Gambol Pet, China’s Leading Dry Pet Food Manufacturer, Wins Shareholder Nod for RMB 1.1 Billion Convertible Bond
Executive Summary: Shareholders of Gambol Pet Group (SZSE: 301498) approved the company’s plan to raise up to RMB 1.1 billion through a convertible bond at an extraordinary meeting in Liaocheng on September 23, 2026. The proceeds will fund a 300, 000-tonne premium staple food plant, a smart warehousing hub and a digital operations platform. The vote passed with more than 99.9% support, and it lands at a moment when China’s largest listed pet food company is earning less per yuan of sales than a year ago.
Key Facts
- Company
- Gambol Pet Group Co., Ltd. (SZSE: 301498)
- Country
- China
- Industry
- Pet food manufacturing
- Category
- Convertible bond, shareholder approval
- Event
- 2026 first extraordinary general meeting approved the convertible bond plan
- Date
- 2026-09-23
- Location
- Liaocheng, Shandong
- Source
- ChiNext / cninfo filing
What Happened
Gambol Pet Group convened its 2026 first extraordinary general meeting at company headquarters in the Liaocheng Economic and Technological Development Zone, Shandong Province, on September 23, 2026. Shareholders passed every resolution on the convertible bond plan, including eligibility, issue size, coupon terms, conversion mechanics and use of proceeds. The lead resolution drew 223, 275, 142 shares in favor against 176, 100 opposed — a 99.9135% approval rate — and no proposal was voted down.
Attendance stood at 182 shareholders representing 223, 468, 442 shares, or 55.86% of the company’s 400, 030, 840 voting shares. Beijing Dening (Jinan) Law Offices observed the vote and issued a legal opinion confirming the procedures, according to the filing published on cninfo, the Shenzhen exchange disclosure platform.
Background
Gambol Pet is one of China’s few listed pet products manufacturers with fully in-house dry, wet and treat production — dry staple food remains its core business — and it is the country’s largest pet food company by revenue. The board first put the convertible bond plan to the market on August 26, 2026, proposing to raise no more than RMB 1.1 billion. Four uses of proceeds are listed in the plan: the 300, 000-tonne premium staple food project, a smart warehousing and digital sorting center, a data-driven operations and decision platform, and working capital.
The raise arrives during an uncomfortable stretch for the company’s income statement. First-half 2026 revenue reached RMB 3.543 billion, up 10.01% year over year, but net profit attributable to shareholders fell 49.57% to RMB 190.6 million, and gross margin slipped from 42.78% to 40.11%, according to the semi-annual report. Selling expenses ran to RMB 860 million in the half as the group pushed its Myfoodie and Fregate brands through third-party platforms, which now account for RMB 1.452 billion of direct online revenue, or 41.17% of main-business sales.
Myfoodie, the group’s flagship dog food brand, held a 6.2% share of China’s domestic own-brand pet food market in 2024, based on Euromonitor figures the company has cited. A clinical nutrition line, Kangfu, followed in May 2026 as the brand ladder climbs from mass market toward veterinary-adjacent diets.
Industry Context
Gambol’s capital raise fits a broader capacity race among Chinese pet food makers. Tianjin Langnuo is commissioning a freeze-dried plant with a 410-meter public viewing corridor, Hisun Pharma and Zhongyu Pet Food broke ground on a RMB 236 million prescription diet plant in Taizhou, and two RMB 100 million-class projects in Nantong and Shijiazhuang are heading into production this autumn. Foreign majors are building too: Nestlé Purina opened a USD 550 million plant in Ohio on August 31 and won Thai board approval for THB 64 billion of pet food projects in Rayong.
The competitive backdrop explains the timing. China’s seven listed pet companies posted combined H1 2026 revenue growth of 15.15% while net profit dropped 46.75%, according to the Pet Fair Asia Blue Book data GPI covered earlier this month. Price competition in staple food has intensified, and manufacturers are responding with premium positioning, functional recipes and vertical capacity rather than volume discounts.
Market & Business Impact
A 300, 000-tonne premium staple plant is a large bet on the domestic dry food market. For context, Gambol’s in-construction 100, 000-tonne high-end project — funded from an earlier share placement — has already been pushed to June 30, 2027, and construction-in-progress balances grew 541.39% from the start of the year to RMB 378 million. The company is also building a RMB 950 million freeze-dried and baked treat plant in Waikato, New Zealand, aimed at global supply chains.
For buyers sourcing from China, the message is that the largest domestic dry pet food manufacturer intends to defend its scale advantage with owned capacity instead of outsourcing. For investors, the convertible bond shifts funding toward debt-like instruments while profit is compressed; conversion would dilute minority holders if the share price recovers past the strike, while a stalled conversion leaves coupon and redemption obligations on a thinner margin base.
Companies & Brands Involved
Gambol Pet Group (SZSE: 301498) is the issuer. Its consumer portfolio includes Myfoodie, the volume leader among Chinese dry diets; Fregate, the fresh-meat premium line developed with China Agricultural University; and Kangfu, the 2026 clinical nutrition entrant. The bond plan was reviewed by the Shenzhen Stock Exchange disclosure system, and the meeting procedures were verified by Beijing Dening (Jinan) Law Offices.
Data & Evidence
Convertible bond size: up to RMB 1.1 billion (≈USD 155 million), board plan dated August 26, 2026. Approval: 99.9135% of votes cast on the lead resolution, September 23, 2026. Attendance: 182 shareholders, 223, 468, 442 shares, 55.8628% of voting shares. H1 2026 revenue: RMB 3.543 billion, +10.01% YoY. H1 2026 net profit: RMB 190.6 million, -49.57% YoY. Gross margin: 40.11% vs 42.78% a year earlier. Selling expenses: RMB 860 million. Online direct sales via third-party platforms: RMB 1.452 billion, 41.17% of main revenue. Construction in progress: RMB 378 million, +541.39% since year start. Sources: cninfo filing, September 23, 2026; company semi-annual report via Southern Metropolis Daily, August 27, 2026.
What This Means for the Pet Industry
The vote confirms that China’s pet food consolidation will be capital-led: the company that already sells the most is borrowing to build the most, while smaller rivals face a widening cost curve. Expect the 300, 000-tonne project to pressure mid-tier OEM plants on price and certification requirements, and expect premium dry capacity — not more commodity kibble — to be the battleground through 2028.
Key Takeaways
- Gambol Pet shareholders approved a convertible bond of up to RMB 1.1 billion on September 23, 2026, with 99.9135% of votes in favor.
- The funds target a 300, 000-tonne premium staple food plant, a smart warehousing hub, a digital operations platform and working capital.
- H1 2026 net profit fell 49.57% to RMB 190.6 million even as revenue rose 10.01%, so the company is funding expansion during a margin squeeze.
- The raise intensifies a capacity race that already includes Langnuo, Hisun-Zhongyu and Nestlé Purina projects across China, Thailand and the United States.
- Buyers and investors should watch conversion terms and plant utilization, because both determine whether the expansion compounds returns or dilutes them.
Frequently Asked Questions
What did Gambol Pet shareholders approve?
At the 2026 first extraordinary general meeting on September 23, 2026, shareholders approved the full convertible bond plan — eligibility, size of up to RMB 1.1 billion, coupon and conversion terms, and the four uses of proceeds — with more than 99.9% support on every resolution.
How will the RMB 1.1 billion be used?
The plan allocates proceeds to a 300, 000-tonne premium staple food project, a smart warehousing and digital sorting center, a data-driven operations and decision platform, and working capital, according to the board plan published on August 26, 2026.
Why is the company raising debt while profits are falling?
H1 2026 net profit halved to RMB 190.6 million on RMB 3.543 billion of revenue, so the board chose a convertible bond to fund long-cycle capacity without an immediate equity issuance. The structure defers dilution unless the shares convert, which management appears to view as acceptable given the scale of the premium capacity build-out.
What does this mean for China’s pet food supply market?
It signals that the largest player intends to lock in premium dry capacity ahead of demand recovery, tightening the competitive window for mid-tier dry pet food manufacturer rivals and for OEM plants that depend on export orders to fill their lines.
Sources
- Primary — Gambol Pet Group 2026 First Extraordinary General Meeting Resolution Announcement, cninfo (static.cninfo.com.cn/finalpage/2026-09-23/1225580077.PDF), September 23, 2026
- Secondary — Securities Daily via Toutiao, “Gambol Pet EGM passes convertible bond resolutions, ” September 23, 2026
- Context — CNR, “Gambol Pet plans convertible bond of up to RMB 1.1 billion, ” August 26, 2026
- Context — Southern Metropolis Daily, “Gambol H1 2026 profit near halves, ” August 27, 2026
