Tianyuan Pet: Company and Three Executives Receive Warning Letters Due to Irregular Use of Fundraising Proceeds

On the evening of March 20, Tianyuan Pet (301335.SZ, Hangzhou Tianyuan Pet Supplies Co., Ltd.) announced that it received a decision letter from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission regarding administrative regulatory measures.

According to the announcement, the company continued to use related funds for financial management after the expiration of the 600 million yuan idle raised funds cash management authorization without promptly going through the board approval process. The company only supplemented the review on February 6, 2026, which violated regulations on the supervision of raised funds and information disclosure. The Zhejiang Securities Regulatory Bureau decided to issue warning letters to the company, its chairman and CEO Xue Yuanchao, secretary of the board Ye Qing, and CFO Zhang Zhongping, and record the actions in the securities and futures market integrity archive. The company stated that it has completed comprehensive rectification, and the previous illegal financial management was ratified through supplementary review by the board. Additionally, the company has previously delayed, changed, or terminated several fundraising projects and plans to continue using up to 600 million yuan of temporarily idle raised funds for cash management, with the validity period of the limit being 12 months after board approval.

The announcement states that on March 20, the company received the “Decision Letter” issued by the Zhejiang Securities Regulatory Bureau regarding measures taken against Hangzhou Tianyuan Pet Supplies Co., Ltd. and related personnel.

The “Decision Letter” states that on January 14, 2025, the company’s board of directors approved the proposal to use part of the temporarily idle raised funds for cash management, agreeing to use up to 600 million yuan for this purpose, with the usage period valid for 12 months starting from January 14, 2025. After this period expired, the company continued to use some of the idle raised funds for cash management until February 6, 2026, when a board meeting was held to supplement the review.

The company’s actions violated the relevant provisions of the “Regulations on the Supervision of Listed Company Fundraising” and the “Measures for the Administration of Information Disclosure by Listed Companies.” The company’s chairman and CEO Xue Yuanchao, secretary Ye Qing, and CFO Zhang Zhongping failed to diligently supervise the proper use of raised funds and fulfill information disclosure obligations, violating the “Measures for the Administration of Information Disclosure by Listed Companies.”

According to the relevant provisions of the “Measures for the Administration of Information Disclosure by Listed Companies,” the Zhejiang Securities Regulatory Bureau decided to take supervisory measures by issuing warning letters to the company, Xue Yuanchao, Ye Qing, and Zhang Zhongping, and record the actions in the securities and futures market integrity archive.

Tianyuan Pet states that the company attaches great importance to the issues pointed out in the “Decision Letter.” As of now, the company has completed comprehensive rectification, with specific measures as follows: on February 6, 2026, the company held the 15th meeting of the fourth board of directors, which approved the proposal to use part of the temporarily idle raised funds for cash management, and ratified the supplementary review of the previous authorization period and the use of idle funds for cash management between the authorization deadline and the current review date.

The third quarter 2025 financial report shows that the company’s revenue for the first three quarters was 2.323 billion yuan, a year-on-year increase of 14.18%, mainly due to growth in pet food and overseas warehouse business revenue. The net profit attributable to shareholders was 56.327 million yuan, a year-on-year increase of 3.4%.

Looking at quarterly performance, Tianyuan Pet experienced a slowdown in both revenue and net profit growth.

In the third quarter, the company’s revenue was 888 million yuan, up 13.54% year-on-year, with net profit attributable to shareholders of 18.8676 million yuan, down 19% year-on-year. Non-recurring net profit attributable to shareholders was 164 million yuan, down 10.18% year-on-year.

Data shows that Hangzhou Tianyuan Pet Supplies Co., Ltd. was established in 2003 and listed in November 2022. It is a comprehensive enterprise focused on the design, development, production, and sales of pet supplies, including pet beds, cat trees, pet toys, pet clothing, electronic smart pet products, and pet food across multiple series and categories.