China’s Top Pet Food Makers Post Record Revenue but Plunging Profits in H1 2026, Signaling a Sector-Wide Margin Squeeze

Executive Summary: Three of China’s largest listed pet food manufacturers — Gambor Pet, China Pet Foods and Petpal — reported first-half 2026 results between August 24 and 26, 2026, showing a consistent pattern of strong revenue growth and sharply lower profits. Gambor Pet revenue rose 10.01% to ¥35.43 billion while net profit fell 49.57% to ¥1.91 billion; China Pet Foods revenue jumped 34.88% to ¥32.81 billion but net profit dropped 37.63% to ¥1.27 billion; and Petpal revenue was nearly flat at ¥7.35 billion while net profit plunged 69.25% to ¥243.2 million. The divergence reflects rising raw-material costs, RMB appreciation, export-tariff friction and heavy investment in domestic branded growth.

Key Facts

Event: H1 2026 earnings releases by three Chinese pet food manufacturers
Companies: Gambor Pet (301498.SZ), China Pet Foods (002891.SZ), Petpal (300673.SZ)
Period: Six months ended June 30, 2026
Revenue range: ¥7.35B – ¥35.43B
Profit trend: -37.63% to -69.25% year-over-year
Key drivers: Raw-material inflation, RMB appreciation, FX losses, domestic brand-building spend, e-commerce price wars
Market context: China pet consumption forecast to reach ¥336.5B in 2026

What Happened

Between August 24 and 26, 2026, China’s three most closely watched listed pet food manufacturers published their semi-annual reports for the six months ended June 30, 2026. Each company delivered a different revenue profile, but the profit picture was uniformly weak — a pattern that Chinese financial media described as “增收不增利” (revenue up, profits not up).

Gambor Pet (乖宝宠物, Shenzhen: 301498), the domestic-market leader behind the Myfoodie brand, reported revenue of ¥35.43 billion, up 10.01% year-over-year, but net profit attributable to shareholders fell 49.57% to ¥1.91 billion. The second-quarter profit decline was even steeper, at approximately 61.4% year-over-year.

China Pet Foods (中宠股份, Shenzhen: 002891), which remains heavily export-oriented, posted the strongest top-line growth: revenue surged 34.88% to ¥32.81 billion. Yet net profit fell 37.63% to ¥1.27 billion, and operating cash flow swung from a positive ¥235 million in H1 2025 to a negative ¥193 million in H1 2026.

Petpal (佩蒂股份, Shenzhen: 300673), known for functional dental chews and overseas ODM contracts, recorded essentially flat revenue of ¥7.35 billion (+0.96%) and a 69.25% collapse in net profit to ¥243.2 million.

Background

China’s pet food sector has spent the last decade evolving from a low-cost export manufacturing base into a branded consumer industry. Companies that originally supplied overseas private labels — China Pet Foods and Petpal in particular — have been building domestic brands to capture higher margins and reduce dependence on foreign retailers.

That transition accelerated after 2020, when e-commerce platforms such as Tmall, JD.com and Douyin made it possible for domestic brands to reach pet owners directly. Gambor’s Myfoodie, China Pet Foods’ Wanpy and Petpal’s Meatyway/Jueyan have all gained visibility through live-streaming commerce and 618/11.11 promotions.

The strategic shift, however, requires sustained marketing investment, new production capacity and ingredient sourcing that meets domestic premium positioning. Those investments are now colliding with external cost shocks, producing the margin squeeze visible in the H1 2026 numbers.

Industry Context

The profit pressure comes at a time of robust underlying demand. According to the Asia Pet Research Institute’s 2026 China Pet Industry Blue Paper, released August 18, 2026, China’s pet consumption market is expected to reach ¥336.5 billion in 2026. Pet food is the largest segment, accounting for roughly 39% of total spending, followed by pet supplies (~25%) and veterinary care (~26%).

Within pet food, the premiumization and humanization trends remain intact. Owners are trading up to higher-protein, fresher and functionally positioned diets. Domestic brands are capturing share from multinationals in online channels, but the battle for share is expensive: customer acquisition costs on Douyin and Xiaohongshu have risen, and promotional discounting is common during platform festivals.

From a pet food manufacturer perspective, the industry is therefore in a transitional phase: volume and revenue are growing, but the shift from OEM exporter to brand owner is compressing margins until scale and pricing power mature.

Market & Business Impact

The earnings reports carry several near-term business implications:

B2B sourcing pressure. Export-oriented manufacturers are facing higher input costs and currency translation. Overseas buyers negotiating Q3/Q4 2026 contracts may encounter firmer pricing or longer lead times as producers try to recover margin.
Domestic price competition. E-commerce price wars are eroding realized prices. Brands that lack differentiation are being forced to match discounts, while those with strong brand equity can partially insulate themselves.
Capacity investments. All three companies are expanding domestic and overseas capacity. China Pet Foods is ramping its U.S. factory Phase II; Petpal’s New Zealand 40,000-tonne main-food line is in ramp mode. Until utilization crosses breakeven, these assets are a fixed-cost drag.
FX and tariff risk. RMB appreciation against the U.S. dollar created material FX losses. Gambor reported roughly ¥31 million in FX losses; Petpal’s financial expenses jumped 728.77%. Tariff policy uncertainty adds further volatility.

Companies & Brands Involved

Gambor Pet (乖宝宠物, 301498.SZ) — The most domestically focused of the three, with Myfoodie as its flagship brand. H1 2026 main-food revenue reached ¥23.32 billion (+23.87%), while snack revenue declined 10.43% to ¥11.59 billion. The company is investing heavily in marketing and Douyin distribution.

China Pet Foods (中宠股份, 002891.SZ) — Still derives roughly 65% of revenue from overseas markets. Pet snacks contributed ¥20.55 billion (+34.37%) and main food ¥9.98 billion (+27.33%). The Wanpy brand showed strong 618 sales indices. The company is pushing autonomous brands both at home and abroad.

Petpal (佩蒂股份, 300673.SZ) — Functional chew specialist with large ODM exposure to European and U.S. retailers. Plant-based chews grew 16.89% to ¥2.58 billion, while hide chews declined 20.22%. Its New Zealand main-food line is the key strategic pivot from snack to full-range nutrition.

Data & Evidence

Gambor Pet H1 2026: revenue ¥35.43B (+10.01%), net profit ¥1.91B (-49.57%), Q2 net profit -61.4% YoY. Source: company filing, Aug 26, 2026.
China Pet Foods H1 2026: revenue ¥32.81B (+34.88%), net profit ¥1.27B (-37.63%), operating cash flow -¥193M. Source: company filing, Aug 24, 2026.
Petpal H1 2026: revenue ¥7.35B (+0.96%), net profit ¥243.2M (-69.25%). Source: company filing, Aug 25, 2026.
China pet consumption market 2026 forecast: ¥336.5B. Source: Asia Pet Research Institute, Aug 18, 2026.
Global pet food market 2026 estimate: USD 134.46B–135.0B. Source: Grand View Research / Fortune Business Insights.

What This Means

The H1 2026 results are not a demand problem — they are a margin-transition problem. China’s leading pet food manufacturers are successfully growing revenue and capturing domestic share, but they are paying for that growth with higher marketing, input and currency costs. The sector is moving from an export-OEM model to a branded-consumer model, and the P&L is reflecting that reinvestment cycle.

For international buyers and investors, the near-term takeaway is cautious: expect tighter margins, selective price increases and continued marketing intensity. The long-term story, however, remains positive. A ¥336.5 billion pet economy, rising premiumization and the emergence of domestic champions should support stronger profitability once the transition costs normalize.

Key Takeaways

Three Chinese pet food manufacturers reported H1 2026 revenue growth of 0.96% to 34.88%, but net profits fell 37.63% to 69.25%.
Rising raw-material costs, RMB appreciation and heavy domestic brand-building spend are the primary margin pressures.
Export-oriented manufacturers face additional FX and tariff headwinds, while domestic brands battle e-commerce price wars.
China’s pet consumption market is forecast to reach ¥336.5B in 2026, supporting long-term demand.
The sector is in a structural transition from OEM exporter to branded consumer player; margin recovery depends on scale, pricing power and capacity utilization.

FAQ

Which Chinese pet food manufacturers reported weaker H1 2026 profits?

Gambor Pet (乖宝宠物), China Pet Foods (中宠股份) and Petpal (佩蒂股份) all reported revenue growth but profit declines in their H1 2026 results released August 24–26, 2026.

Why are profits falling while revenue is rising?

The main drivers are higher raw-material costs (chicken, duck), RMB appreciation causing foreign-exchange losses, and increased sales and marketing investment to build domestic brands on e-commerce platforms.

What does this mean for pet food manufacturers globally?

Chinese manufacturers may push for higher export prices or prioritize higher-margin domestic sales, affecting international sourcing dynamics. At the same time, their domestic brands are becoming stronger competitors to global multinationals in China.

Is Chinese pet food demand slowing?

No. The Asia Pet Research Institute forecasts China’s pet consumption market will reach ¥336.5 billion in 2026. The issue is margin compression, not demand contraction.

Sources

Gambor Pet 2026 Semi-Annual Report (301498.SZ), Aug 26, 2026 — primary filing.
China Pet Foods 2026 Semi-Annual Report (002891.SZ), Aug 24, 2026 — primary filing.
Petpal 2026 Semi-Annual Report (300673.SZ), Aug 25, 2026 — primary filing.
广州日报新花城 / 广州日报大洋网, “中宠股份上半年增收不增利…”, Aug 25, 2026.
南方财经 (nfnews.com), “上半年净利降近四成！中宠股份增收不增利…”, Aug 2026.
央广网 via Toutiao, “乖宝宠物披露2026年半年报…”, Aug 26, 2026.
Asia Pet Research Institute, 《宠物行业蓝皮书：2026中国宠物行业发展报告》, Aug 18, 2026.
Grand View Research / Fortune Business Insights, Global Pet Food Market Report 2026.

Related News & GPI Data

Explore GPI’s pet food manufacturer directory and our news archive for more China pet industry analysis, and see GPI Knowledge for market-trend reports.