Factory-Direct Model for Functional and Diagram

Strengths

• Possesses independent processing capacity and supply chain integration capabilities
• Leverages R&D center to upgrade product matrix for functional and prescription foods

Weaknesses

• Rising sales expenses during the brand transformation phase leading to revenue growth without profit growth
• High-end prescription food market constrained by brand recognition of imports like Royal Canin

Opportunities

• Procurement orders for working dogs, such as police dogs, opening new market segments
• Incremental growth opportunities from fresh food and cross-border expansion amid the domestic brand resurgence

Threats

• Price wars in the budget food segment compressing profit margins
• Fluctuations in raw material prices eroding margins for both OEM and private label products