When pets transition from companions to family members, their health needs become a primary concern for owners. Chaoyun Group, recognizing this profound bond and responsibility, has strategically entered the pet medicine and health supplement sector through a major investment.
On April 18, Chaoyun Group announced a deep strategic partnership with Wuhan Zhongbo Lvya Biotechnology Co., Ltd. (hereafter "Zhongbo Lvya"). This collaboration represents more than a financial transaction—it's a calculated expansion into the pet care industry, combining resources and technical expertise to establish premium pet health brands.
Under the agreement, Chaoyun Group will acquire 30.0046% of Zhongbo Lvya's shares through equity purchase and capital injection, becoming the second-largest shareholder with first refusal rights on future equity transfers. This move signals Chaoyun's official entry into the pet pharmaceutical and supplement market.
Strategic Partnership Creates Comprehensive Pet Health Ecosystem
The collaboration between Chaoyun Group and Zhongbo Lvya will focus on several key areas to build an integrated pet health ecosystem:
- Joint R&D: The partners will establish a shared laboratory, combining research capabilities to drive innovation in pet healthcare products. They will also jointly train research personnel to sustain long-term development.
- Product Development: Leveraging their respective strengths, the companies will co-develop safer, more effective pet medicines and supplements. Zhongbo Lvya will provide contract manufacturing services to Chaoyun under preferential terms to ensure product quality and stable supply.
- Channel Integration: The partners will share distribution networks and supplier resources. Zhongbo Lvya's strong offline presence covers over 10,000 pet stores and veterinary clinics, while Chaoyun brings extensive e-commerce experience and a large online user base.
Zhongbo Lvya: An Established Player in Pet Healthcare
Founded in 2006, Zhongbo Lvya is a national high-tech enterprise specializing in pet medicine and supplement production, R&D, and sales. The company has emerged as an industry leader through years of focused development.
Zhongbo Lvya's competitive advantages include:
- Ownership of popular brands including "Xiao Chong" and "An Lida"
- Complete omnichannel distribution capabilities
- A professional veterinary team serving nearly 20 million users annually
- Strong R&D capabilities with 6 national invention patents and 20 veterinary drug approvals
- GMP-certified production facilities ensuring product safety
Chaoyun Group's Strategic Expansion in Pet Care
This investment represents a significant step in Chaoyun Group's pet business strategy. The partnership enables rapid entry into the pet pharmaceutical and supplement sectors, broadening the company's pet care portfolio.
Chaoyun Group has been actively expanding its pet business through strategic acquisitions and partnerships. In 2021, the company invested ¥66.9 million in Shandong Shuaike Pet Products to collaborate on pet food development and supply chain optimization.
The pet business has become a growth engine for Chaoyun Group, with revenue reaching ¥52.7 million in 2021—a 138% year-over-year increase. Gross margins for pet products rose to 58%, exceeding the company's overall margin.
Current pet brands under Chaoyun include "Stubborn Tail" and "Stubborn Mouth," covering food, supplies, and care products. Future plans focus on premium pet food development, supply chain enhancement, and technological innovation through joint laboratories.
Chaoyun Group aims to maintain rapid growth in its pet business, targeting market leadership within 3-5 years. The company will continue seeking strategic acquisitions in pet care and consumer goods to strengthen its market position.
The partnership with Zhongbo Lvya represents a calculated expansion into the high-value pet healthcare sector. Successful execution could significantly boost Chaoyun Group's overall growth while positioning the company as a comprehensive pet health solutions provider.