Hangzhou Tianyuan Pet Products to Acquire 89.71% of Guangzhou Taotong Technology for RMB 640M, Expanding From Manufacturing Into E-Commerce Distribution
Executive Summary: Hangzhou Tianyuan Pet Products Co., Ltd. (天元宠物, SZSE: 301335) will appear before the Shenzhen Stock Exchange M&A Review Committee on September 9, 2026 seeking approval for its RMB 640 million acquisition of 89.7145% of Guangzhou Taotong Technology Co., Ltd. (淘通科技), a full-stack e-commerce operator serving Mars Wrigley, PepsiCo, Nestlé, and Royal Canin across Tmall, JD, Douyin, and Xiaohongshu. Tianyuan had already pre-acquired 10% in 2024 for RMB 77 million, bringing potential total ownership to 99.71%. Fosun Happy Purchase (Hainan), controlled by Fosun founder Guo Guangchang, will exit its 43.97% stake entirely in cash.
Key Facts
- Company
- Hangzhou Tianyuan Pet Products Co., Ltd. (天元宠物) and Guangzhou Taotong Technology Co., Ltd. (淘通科技)
- Country
- China (Shenzhen Stock Exchange listing)
- Industry
- Pet products manufacturing + e-commerce distribution services
- Category
- Cross-border pet products distribution and online channel operations
- Event
- SZSE M&A Review Committee hearing on RMB 640M acquisition
- Date
- 2026-09-09 (SZSE M&A Review Committee meeting)
- Location
- Shenzhen, Guangdong, China
- Source
- Shenzhen Stock Exchange filing (Tianyuan 301335 announcement, September 2, 2026)
What Happened
Hangzhou Tianyuan Pet Products Co., Ltd. (天元宠物, SZSE: 301335) announced on September 2, 2026 that the Shenzhen Stock Exchange M&A Review Committee will hold its 14th review meeting of 2026 on September 9, 2026 to consider the company’s acquisition of 89.7145% of Guangzhou Taotong Technology Co., Ltd. (淘通科技). The total consideration is RMB 640 million, split between approximately RMB 249 million in newly issued Tianyuan shares (about 10.02 million shares at RMB 22.37 per share) and approximately RMB 391 million in cash. The company plans to raise up to RMB 224 million in supporting capital from no more than 35 qualified specific investors to cover cash consideration and intermediary fees.
Tianyuan had pre-acquired 10% of Taotong in 2024 for RMB 77 million. Closing would bring Tianyuan’s total ownership to 99.71%. The seller group includes 17 entities: Fosun Happy Purchase (Hainan) — controlled by Fosun International founder Guo Guangchang — as the largest seller at 43.97%, plus founder Li Tao at 18.09%, and 15 other individual and institutional shareholders. Under the revised deal structure, Fosun Happy Purchase’s consideration of RMB 316.58 million is paid entirely in cash rather than the original mixed structure, meaning Fosun will exit entirely at closing.
Earnout commitments require Taotong to deliver cumulative net profit of at least RMB 220 million over 2025-2027, with annual thresholds of RMB 70 million (2025), RMB 73 million (2026), and RMB 77 million (2027). If completed, Taotong would be consolidated into Tianyuan’s financial statements.
Background
Tianyuan is among the most established pet products manufacturer china players, with a multi-decade export history and a recent pivot toward domestic online retail.
Tianyuan was founded in 2003 in Hangzhou and is one of China’s longest-established pet products companies. It operates a full category portfolio including pet beds, cat trees, pet toys, pet apparel, electronic pet devices, cat litter, and pet food. The company has historically been an export-oriented manufacturer supplying Walmart and other Western retailers, with limited domestic online retail penetration. Tianyuan’s revenue grew from RMB 2.037 billion in 2023 to RMB 2.764 billion in 2024, but net profit attributable to shareholders declined from RMB 76.77 million to RMB 45.96 million — a reflection of margin pressure facing traditional pet products manufacturers as online channel competition intensifies.
Taotong was founded in 2012 in Guangzhou and operates as a full-stack e-commerce operator for global FMCG brands. The company’s service suite spans e-commerce consulting, consumer insight, store operations, digital marketing, and supply chain management. Channels covered include Tmall, JD.com, Douyin, and Xiaohongshu. Brand partners include Mars Wrigley, PepsiCo, Nestlé, and Royal Canin. In 2025, Taotong generated revenue of RMB 2.154 billion and net profit of approximately RMB 89.24 million. Fosun Happy Purchase (Hainan) has been the controlling shareholder at 43.97%, with founder Li Tao as the second-largest shareholder at 18.09%. Taotong chose acquisition as its exit path given limited independent financing capacity.
Industry Context
The Chinese cross-border pet e-commerce segment has grown steadily through 2024-2026 as overseas pet brands increasingly rely on Tmall Global, JD Worldwide, and Douyin cross-border storefronts to reach Chinese consumers.
The Chinese pet industry has entered a consolidation phase as digital-first and manufacturing-first players converge. E-commerce platforms like Tmall, JD.com, Douyin, and Xiaohongshu have become the dominant sales channels for pet products, with traditional manufacturer-led models facing margin pressure from price competition and rising customer acquisition costs. The acquisition reflects a strategic pattern where established manufacturers use M&A to acquire digital operating capability that would take years to build organically.
For international pet brands serving the Chinese market, the deal is also significant: Taotong operates the Tmall, JD, Douyin, and Xiaohongshu storefronts for Royal Canin, Nestlé, and Mars Wrigley — meaning any change in ownership at Taotong could affect service continuity for these brands if the integration distracts the e-commerce operations team. Tianyuan has signaled that Taotong will continue to operate its existing client roster post-closing, but the operational integration period will be a critical window for clients to monitor.
The deal structure — Tianyuan taking a 10% pre-acquisition stake in 2024 before the larger transaction — is a common Chinese M&A staging tactic. The pre-stake both pre-qualifies the target and limits integration risk by allowing both parties to operate together during the regulatory review period. The final deal has gone through multiple rounds of restructuring, with the total consideration revised down from an earlier RMB 688 million to the current RMB 640 million and the cash/share mix adjusted to accommodate Fosun’s preference for cash exit.
Market and Business Impact
For the broader pet market china landscape, the deal continues the 2025-2026 pattern of consolidation as digital-first and manufacturing-first players converge. Within the pet market china, recent deals include Hisun Pharma (600267.SH) and Zhongyu Pet Food’s plant construction start in Taizhou for a RMB 236 million pet prescription food facility in Taizhou (September 3, 2026), Hangzhou Tianyuan’s pre-acquisition of 10% of Taotong in 2024, and the Woolworths Group acquisition of 55% of Petspiration Group for A$586M in Australia (September 2026).
For Tianyuan specifically, the deal addresses a structural margin pressure problem. Tianyuan’s 2024 revenue growth of 35.7% was paired with a 40.1% decline in net profit — a pattern explained by the company’s reliance on lower-margin offline wholesale channels and limited domestic online presence. Acquiring Taotong gives Tianyuan the omnichannel e-commerce operating capability to build a more balanced channel mix and to apply Taotong’s data analytics for product development and SKU iteration.
For Taotong, the deal provides physical product supply chain access through Tianyuan’s manufacturing network, and a route to international pet brand partnerships via Tianyuan’s existing relationships with overseas retailers.
Companies and Brands Involved
Hangzhou Tianyuan Pet Products Co., Ltd. (天元宠物) is listed on the Shenzhen Stock Exchange under code 301335. Guangzhou Taotong Technology Co., Ltd. (淘通科技) is an unlisted private company. Fosun Happy Purchase (Hainan) and Fosun International founder Guo Guangchang are the major selling shareholders exiting at closing. Li Tao, founder of Taotong, is a continuing minority holder. Brand clients of Taotong include Mars Wrigley, PepsiCo, Nestlé, and Royal Canin (Mars and Mars-owned brands). Pet product distribution partners of Tianyuan include Walmart and other Western retailers.
Data and Evidence
- RMB 640 million total acquisition consideration (Tianyuan filing, September 2, 2026)
- 89.7145% acquisition stake; 99.71% total ownership after considering 2024 pre-stake (Tianyuan filing)
- RMB 249 million share consideration at RMB 22.37/share = ~10.02 million new shares (Tianyuan filing)
- RMB 391 million cash consideration (Tianyuan filing)
- RMB 224 million supporting capital raise from up to 35 specific investors (Tianyuan filing)
- Earnout: cumulative net profit ≥RMB 220 million over 2025-2027; annual thresholds RMB 70M / 73M / 77M (Tianyuan filing)
- Taotong 2025 revenue: RMB 2.154 billion; 2025 net profit: RMB 89.24 million (Tianyuan filing disclosure)
- Tianyuan 2024 revenue: RMB 2.764 billion (+35.7% YoY); 2024 net profit attributable: RMB 45.96 million (-40.1% YoY) (Tianyuan annual report)
- Fosun Happy Purchase stake: 43.97%; founder Li Tao stake: 18.09% (Tianyuan filing)
- SZSE M&A Review Committee 14th 2026 meeting: September 9, 2026 (SZSE filing)
What This Means for the Pet Industry
The Tianyuan-Taotong deal is a textbook example of a Chinese pet products manufacturer using M&A to acquire digital distribution capability it cannot build fast enough organically. Tianyuan’s revenue grew 35.7% in 2024 while net profit fell 40.1%, illustrating the structural margin squeeze facing traditional manufacturers as online channels capture more consumer spend and customer acquisition costs rise. Acquiring Taotong gives Tianyuan immediate access to Tmall, JD, Douyin, and Xiaohongshu storefronts, established brand client relationships, and the data analytics capability to iterate SKUs faster.
For international pet brands with existing Taotong-operated Chinese e-commerce presence — Mars Wrigley, PepsiCo, Nestlé, Royal Canin — the transition period will test the depth of Taotong’s client relationships. Tianyuan has signaled continuity of operations, but integration distractions are common in cross-capability M&A. For the broader China pet industry, the deal continues the 2025-2026 pattern of consolidation as digital-first and manufacturing-first players converge.
Key Takeaways
This deal is the largest pure-play pet industry acquisition in the Chinese listed-market segment so far in 2026, signaling the maturation of the sector.
- Hangzhou Tianyuan Pet Products (SZSE: 301335) will appear before the SZSE M&A Review Committee on September 9, 2026 seeking approval for its RMB 640 million acquisition of 89.7145% of Guangzhou Taotong Technology.
- Tianyuan had pre-acquired 10% of Taotong in 2024 for RMB 77 million, bringing potential total ownership to 99.71%.
- Fosun Happy Purchase (Hainan), controlled by Fosun International founder Guo Guangchang, will exit its 43.97% stake entirely in cash.
- Taotong operates e-commerce channels including Tmall, JD.com, Douyin, and Xiaohongshu for major pet and FMCG brands including Mars Wrigley, PepsiCo, Nestlé, and Royal Canin.
- Earnout: cumulative net profit ≥RMB 220 million over 2025-2027; annual thresholds RMB 70M / 73M / 77M.
Frequently Asked Questions
How much did Tianyuan Pet agree to pay for Taotong Technology?
Tianyuan Pet agreed to pay RMB 640 million in total consideration for 89.7145% of Guangzhou Taotong Technology Co., Ltd. The deal splits between approximately RMB 249 million in newly issued Tianyuan shares at RMB 22.37 per share and approximately RMB 391 million in cash. Up to RMB 224 million in supporting capital will be raised from no more than 35 qualified specific investors.
Why is Tianyuan Pet acquiring Taotong Technology?
Tianyuan Pet is acquiring Taotong Technology to gain the omnichannel e-commerce operating capability Tianyuan lacks domestically. Tianyuan grew 2024 revenue 35.7% to RMB 2.764 billion but net profit fell 40.1% to RMB 45.96 million, reflecting margin pressure from reliance on lower-margin offline wholesale channels and limited domestic online presence. Taotong brings Tmall, JD, Douyin, and Xiaohongshu operating capability plus major brand client relationships.
When is the SZSE M&A Review Committee meeting on this deal?
The Shenzhen Stock Exchange M&A Review Committee will hold its 14th 2026 review meeting on September 9, 2026 to consider the Tianyuan-Taotong deal. Closing requires both SZSE approval and China Securities Regulatory Commission registration consent. Both remain uncertain.
What brands does Taotong Technology operate in China?
Taotong Technology operates e-commerce storefronts and digital marketing for major global FMCG and pet brands in China. Publicly named partners include Mars Wrigley, PepsiCo, Nestlé, and Royal Canin. Channels covered include Tmall, JD.com, Douyin, and Xiaohongshu.
How does this deal fit into the broader China pet industry consolidation trend?
The Tianyuan-Taotong deal is the latest in a 2025-2026 series of pet industry M&A in China that includes Hangzhou Tianyuan’s 2024 pre-acquisition of 10% of Taotong, the Hisun Pharma and Zhongyu Pet Food joint venture that broke ground on a RMB 236 million pet prescription food plant (September 2026), and earlier consolidation moves in the pet food retail and manufacturing segments. The pattern reflects digital-first and manufacturing-first players converging as channel economics shift decisively toward online.
Sources
- Primary — Hangzhou Tianyuan Pet Products Co., Ltd. (天元宠物, SZSE: 301335), “关于收到深圳证券交易所并购重组审核委员会审核公司发行股份及支付现金购买资产并募集配套资金事项会议安排的公告,” September 2, 2026, https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12581518&stockid=301335
- Secondary — Sina Finance (新浪财经), Tianyuan Pet SZSE 301335 announcement and trading data, September 2-8, 2026, https://finance.sina.com.cn/
- Secondary — East Money (东方财富网), Tianyuan Pet 301335 latest news and capital flow data, September 2026, https://quote.eastmoney.com/sz301335.html
- Secondary — Futunn News (富途资讯), Tianyuan Pet 301335 latest news aggregation, September 2026, https://www.futunn.com/stock/301335-SZ/news/news
- Secondary — Tonghuashun (同花顺), “【山证农业】农业行业周报(260831-260906),” September 8, 2026, https://stock.10jqka.com.cn/20260908/c679681512.shtml
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