Executive Summary: Wenzhou Yuanfei Pet Toy Products, a Shenzhen-listed manufacturer of dog collars, leashes, harnesses and chew treats that supplies Petco, PetSmart and Walmart on an OEM basis, reported third-quarter 2026 revenue of RMB 538 million on 29 October, up 9.89% year on year. Attributable net profit fell 17.60% to RMB 46.19 million. Across nine months, revenue reached RMB 1.449 billion, up 13.11%, while net profit dropped 33.88% to RMB 86.10 million.
Key Facts
- Company
- Wenzhou Yuanfei Pet Toy Products Co., Ltd., Pingyang county, Wenzhou, Zhejiang
- Country
- China
- Industry
- Pet supplies manufacturing and pet food, sold mainly on OEM and ODM contracts
- Category
- Dog collars, leashes and harnesses, pet toys, chew treats, dry and wet food
- Event
- Third-quarter 2026 results filing with the Shenzhen Stock Exchange
- Date
- 29 October 2026
- Location
- Pingyang, Wenzhou, Zhejiang, China
- Source
- Wenzhou Yuanfei Pet Toy Products, Q3 2026 report
What Happened
Yuanfei’s third quarter split in two directions. Revenue rose 9.89% to RMB 538 million, which keeps the company on a growth path it has held all year. Profit did not follow. Attributable net profit came in at RMB 46.19 million, 17.60% below the same quarter of 2025, and the nine-month picture is worse: net profit of RMB 86.10 million is down 33.88%, with the non-recurring-adjusted figure at RMB 86.22 million, down 32.79%.
The company’s own explanation points at cost lines rather than at demand. It cited higher employee compensation and depreciation on plant and buildings, which lifted administrative expenses; larger foreign exchange losses, which pushed up finance costs; wider losses at associated companies; and higher provisions for inventory write-downs. None of those items is a collapse in orders. Together they describe a manufacturer carrying more fixed cost and more currency exposure than it did a year ago.
Cash generation moved the other way. Operating cash flow for the nine months reached RMB 85.50 million, up 416.75% year on year, which suggests the company collected receivables and managed working capital more tightly even as reported profit fell.
Background
Yuanfei was founded in 2004 and listed on the Shenzhen Stock Exchange in August 2022. It sits in Pingyang county, Wenzhou, a cluster that has supplied leashes, collars and harnesses to Western retail for two decades. The company’s catalogue runs to more than 100,000 leash and collar SKUs with roughly 8,000 new designs a year, plus injection-moulded, rope and plush toys and a chew-treat range of more than 1,000 SKUs. It sells to Petco, PetSmart, Pets at Home, Walmart and Target, and exports to more than 40 countries, with the United States, Europe and Japan the main destinations.
The revenue mix has shifted toward food. In the first half of 2026, pet snacks contributed RMB 547 million, or 60% of revenue, leash and collar sets RMB 170 million at 18.7%, and staple food RMB 83.8 million at 9.2%. Overseas sales were RMB 733 million, or 80.4% of the total. In China the company runs its own PIKAPOO and KUMFI COMFY brands and distributes Nestlé and Mars products, a structure that gives it domestic volume without a domestic brand of scale.
Full-year 2025 revenue was RMB 1.734 billion with net profit of RMB 116 million, down from RMB 1.310 billion and RMB 164 million in 2024. The nine-month 2026 profit figure already sits below the whole of 2025, which makes the fourth quarter decisive for the full-year comparison.
Industry Context
Yuanfei’s quarter is a hardgoods story in a week dominated by pet food results. The two halves of the Chinese pet supply base are being squeezed differently. Food manufacturers are fighting for shelf space and spending on brands. Hardgoods manufacturers such as Yuanfei live on retail programmes: a retailer decides a dog leash and collar range, places a large order, and the manufacturer absorbs material, labour and currency movements between quotation and delivery.
That structure explains why revenue and profit can move apart so sharply. A 9.89% revenue gain on a book that is 80% export-exposed comes with translation and hedging consequences, and the plant investment that supports capacity shows up as depreciation before it shows up as margin. Wenzhou’s leash and collar makers have also been moving production and sourcing to lower-cost inland and Southeast Asian sites, which adds depreciation and payroll at home while the volume benefit lands later.
Market & Business Impact
For Western retailers and brands sourcing from Chinese hardgoods suppliers, the practical read-out is pricing pressure in the 2027 programme round. A supplier whose profit is falling faster than revenue has three options: raise quotes, shift mix toward higher-margin categories, or absorb the difference and cut elsewhere. Yuanfei has been doing the second, pushing food and treats to 60% of revenue, but food carries its own competitive pressure in China.
The 416.75% jump in operating cash flow matters more than it looks. It gives the company room to keep funding capacity and to hold prices through a weak profit quarter, which is exactly what a supplier needs to defend share against Vietnamese and Cambodian leash and harness manufacturers quoting on lower labour costs.
Companies & Brands Involved
Wenzhou Yuanfei Pet Toy Products is the listed entity; its China brands are PIKAPOO and KUMFI COMFY. Retail customers named in its disclosures include Petco, PetSmart, Pets at Home, Walmart and Target. The company sits in Pingyang county, part of the Wenzhou cluster where pet collars manufacturers and dog harnesses manufacturers serving US and European retail programmes are concentrated, and it reports more than 100,000 leash and collar SKUs with about 8,000 new designs a year.
Data & Evidence
Q3 2026 revenue: RMB 538 million, +9.89% year on year. Q3 2026 attributable net profit: RMB 46.19 million, −17.60%. Nine-month 2026 revenue: RMB 1.449 billion, +13.11%. Nine-month attributable net profit: RMB 86.10 million, −33.88%. Nine-month non-recurring-adjusted net profit: RMB 86.22 million, −32.79%. Nine-month operating cash flow: RMB 85.50 million, +416.75%. First-half 2026 revenue: RMB 911.4 million; first-half net profit: RMB 39.9 million. First-half product mix: pet snacks 60.0%, leash and collar sets 18.7%, staple food 9.2%. First-half overseas revenue: RMB 733 million, 80.4% of total. FY2025: revenue RMB 1.734 billion, net profit RMB 116 million. FY2024: revenue RMB 1.310 billion, net profit RMB 164 million.
What This Means for the Pet Industry
The hardgoods side of the Chinese pet supply chain is entering a margin test that food manufacturers have already been through. Yuanfei still sells more leashes, collars and harnesses than it did a year ago, and it is converting that volume into cash. What it cannot do is convert it into profit while payroll, depreciation and currency all move against it. Buyers planning 2027 programmes should expect firmer quotes on dog collar and harness ranges from Chinese suppliers, and more willingness to trade on payment terms rather than on unit price.
Key Takeaways
- Wenzhou Yuanfei Pet Toy Products reported third-quarter 2026 revenue of RMB 538 million, up 9.89% year on year, and attributable net profit of RMB 46.19 million, down 17.60%.
- Nine-month revenue reached RMB 1.449 billion, up 13.11%, while net profit fell 33.88% to RMB 86.10 million.
- The company attributed the profit decline to higher staff costs and plant depreciation, foreign exchange losses, wider associate losses and inventory provisions.
- Operating cash flow for the nine months rose 416.75% to RMB 85.50 million, giving the manufacturer room to hold prices through a weak profit quarter.
- Pet snacks generated 60% of first-half revenue, with leash and collar sets at 18.7% and overseas sales at 80.4% of the total.
Frequently Asked Questions
What does Yuanfei Pet manufacture?
Yuanfei makes dog collars, leashes and harnesses, pet toys including rope and plush ranges, chew treats, and dry and wet pet food. Most of it is produced on OEM and ODM contracts for retailers and brands.
Why did profit fall while revenue rose?
The company cited higher employee compensation and depreciation on plant, foreign exchange losses, wider losses at associates and higher inventory write-down provisions, all of which hit profit without reducing sales.
Who are Yuanfei’s main customers?
Its disclosures name Petco, PetSmart, Pets at Home, Walmart and Target, with exports to more than 40 countries and the United States, Europe and Japan as the largest markets.
Which product line is the largest?
Pet snacks, mainly chew treats, accounted for 60% of first-half 2026 revenue. Leash and collar sets contributed 18.7% and staple food 9.2%.
Is dog harness demand replacing dog collar volume?
The filings do not split collars from harnesses. Both sit in the leash and collar segment, which has held close to a fifth of revenue while treats and food have grown faster.
Sources
- Primary — Wenzhou Yuanfei Pet Toy Products, third-quarter 2026 report filed with the Shenzhen Stock Exchange, summarised by Sina Finance, https://wap.cj.sina.cn/pc/7×24/5179053, 29 October 2026
- Primary — Wenzhou Yuanfei Pet Toy Products, 2026 half-year report, product mix and customer disclosure, https://www.cnfin.com/announ/detail/index.html?dannoun=lcdetail&id=841188456838, August 2026
- Secondary — Eastmoney, third-quarter disclosure round-up including Yuanfei, https://quote.eastmoney.com/q/0.001205.html, 29 October 2026
