Against the backdrop of accelerating volume growth for its own brands and simultaneous expansion of production capacity, GAMBOL PET is undergoing a typical &#34;profit-for-structure&#34; phase.
In the first quarter, the company achieved operating revenue of 1.644 billion yuan, a year-on-year increase of 11.08%.
However, net profit attributable to shareholders of the listed company was 124 million yuan, a significant year-on-year decline of nearly 40%, exhibiting clear characteristics of &#34;revenue growth with profit reduction.&#34;
Regarding the causes, the pressure on the profit side stems from both external disturbances and the cumulative impact of internal adjustments.
On one hand, the tariff environment during the same period last year was relatively relaxed, creating a high base; on the other hand, exchange rate fluctuations caused financial expenses to shift from -6.8 million yuan in the same period last year to 18.31 million yuan, significantly amplifying exchange losses.
Depreciation and amortization from newly commissioned large-scale bases, along with the concentrated accrual of share-based payment expenses, also jointly squeezed short-term profits.
However, the more core variable still comes from sustained investment on the expense side.
In the first quarter, the company's selling expenses surged to 364 million yuan, a year-on-year increase of 38%. The financial report indicates that this growth mainly resulted from an increased proportion of revenue from own brands and direct sales channels, leading to a corresponding rise in business promotion fees and sales service fees.
Meanwhile, as performance assessment and incentive mechanisms were implemented, management expenses increased by 45% year-on-year to 109 million yuan, with the overall expense side showing an upward trend driven by structural adjustments.
In recent years, GAMBOL PET's strategic focus on its own brands has become very clear.
In 2025, the company's proportion of revenue from its own brands exceeded 73%, becoming the absolute dominant force for growth. Among them, the high-end brand Fregatte grew by over 80%, while the high-end sub-brand of Myfoodie, Bafu, grew by over 60%.
While brand premiumization and channel structure upgrades have boosted revenue scale, they have also led to front-loaded investments in marketing and channel construction, causing pressure on the expense side to appear earlier.
In 2025, the company achieved operating revenue of 6.769 billion yuan, a year-on-year increase of 29%, and net profit attributable to parent company shareholders of 673 million yuan, a year-on-year increase of 7.75%, with growth significantly slower than revenue.
Changes on the asset side further confirm that the company is in a clear cycle of expenditure expansion.
As of the end of the first quarter, the balance of construction in progress rose to 254 million yuan, a 331.7% increase from 58.92 million yuan at the beginning of 2025.
Combined with the simultaneous expansion of right-of-use assets and lease liabilities, it can be concluded that the company is not only advancing fixed asset construction but also accelerating the matching rhythm of production capacity and supply chain systems through increased factory leasing.
Although short-term capital expenditures are putting pressure on cash flow, this also means the company maintains a relatively optimistic outlook for future order releases and growth in sales of its own brands.
Looking ahead, market attention will likely focus on two points: first, whether economies of scale can gradually be released and expense ratios improved after the own brand scale continues to expand; second, whether an increasing proportion of high-end products can further elevate gross margin levels, thereby driving the company to transition from a stage of &#34;revenue growth without profit growth&#34; to one where profitability quality improves synchronously.

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Revenue Grows While Profits Decline in Q1: GAMBOL PET Pays a Transitional Cost for Its Own Brands