Dogness (International) Stock

Dogness (International) Corporation (Dogness) engages in the design and manufacture of pet products, including leashes and smart products, and lanyards in the People’s Republic of China (PRC or China, Taiwan, Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR or Hong Kong), and the special administrative regions of Macau). Most products are exported to the U.S. and Europe and sold to pet stores, including major pet store chains.

Dogness has been making the quality collars, harnesses, and traditional and retractable leashes since 2003, featuring stylish design and rugged engineering. Beginning with smart collars and harnesses in 2016, based on the belief that internet-connected products could improve the lives of pets and their caregivers, Dogness developed a suite of smart products, moving past these first products into smart feeders, fountains, treat dispensers and robots to interact with pets.

The company focuses on connected pet care, to link pets and pet caregivers and ultimately to integrate the ‘Smart Pet Ecosystem’ into a single cohesive platform that integrates smart technology into pets’ lives. The Smart Pet Ecosystem has four major areas: smart pet technology, pet care, leashes and collars, and pet health and wellness.

Smart Pet Technology

Through a single platform, the Dogness mobile app, the company’s smart products allow pet owners to remotely see, hear, speak, feed, play, and interact with their pets in different ways. The company accomplishes all of this with a tool the owner likely already has, a smart phone. The Dogness app is available for both Android and iOS and communicates with the smart product anywhere the phone and smart product both have Wi-Fi or cellular service.

Dogness Smart Wearables: The company’s smart wearable collars and harnesses feature integrated electronics, which allows it to pair high quality collars with a lightweight smart component and LED lights. The company has focused on the important details for dog owners, allowing owners to locate their pets, direct their pets’ movements, communicate with their dogs, provide tailored instantaneous feedback to problem barking and keep track of exercise and other biodata.

Dogness Smart iPet Robot: Pet owners will be able to see their pets through a camera, hear their pets through a built-in microphone, interact with their pets by feeding them treats, and play with their pets through an interactive laser pointer. Pet owners have full control over the 360-degree mobility of the robot through the Dogness app and can securely take and save pictures and videos of their dogs.

Dogness Mini Treat Robot: Space-conscious pet owners can see their pets through a stationary tilting camera that securely records photo and video, hear their pets through a built-in microphone, interact with their pets by feeding them treats, and play with them through an interactive laser pointer.

Dogness Smart CAM Feeder: Pet owners can now ensure that their pets are well-fed and on-schedule. Able to hold around 6.5 pounds of dry food, the smart feeder helps pet owners ensure the health of their pets, even when away from home. Pet owners can see their pets’ eating habits night and day through a built-in camera with night vision and call their pets to the feeder through a voice recording that can be programmed to be played at meal times.

Dogness Wide-view CAM Feeder: In addition to the original Smart CAM Feeder, this 2022 version of CAM feeder holds around 4 pounds of dry food. The camera is updated and wide-angled so that the pet owner can see not only their pets and the room, but the bowl and the food in it.

Dogness Cube App Feeder and Programmable Feeder: This 2022 version of the App Feeder and Programmable Feeder holds about 4 pounds of dry food. The food container is semi-transparent, which enables the pet owners to check on the food level without opening the container.

Dogness Smart Fountain: The smart fountain ensures that pets stay hydrated with a source of clean filtered water from a patented filtering technology. Additional features include an oxygenating, free-falling, recirculating water stream for optimal freshness, the ability to increase or decrease the flow of water, a replaceable carbon water filter and a nano filter to maintain water freshness, a submersible pump for quiet operation, dishwasher-safe material, and an easily assembled and disassembled design.

Dogness App Fountain: This brand new App fountain is newly developed with App controlling the water level, UV sterilization, and lights.

Dogness Wireless Sensor Fountain: This brand new wireless fountain is USB rechargeable and operates with sensors. It does not use the long cable that’s common on traditional fountains and makes the fountain portable.

Dogness Smart Fountain Mini and Smart Fountain Plus: In addition to the company’s Smart Fountain, it has developed the Smart Fountain Mini (1L capacity) and Smart Fountain Plus (3.2L capacity) for additional options for pet owners. The Smart Fountain Mini enables the company’s products to be used in smaller spaces, while the Smart Fountain Plus ensures an even larger reservoir for pets. Both fountains maintain a constant flow of water, so pets can drink water that is as fresh as from the faucet. The Smart Fountains have a three-stage filtering system, which ensures the water flowing out is filtered, fresh and clean.

Dogness Smart CAM Treater: Allows pet owners to see their pets night and day through a 160-degree full HD camera with night vision, hear their pets through a built-in microphone, interact with their pets by speaking to them through a built-in speaker, and play with their pets by tossing them treats.

Dogness App Feeder and App Feeder Mini: Pet owners can ensure that their pets are well-fed and on-schedule. Able to hold around 6.5 pounds of dry food, the App feeder enables pet owners to set up their pet’s feeding schedule from the App via their mobile phone, even when away from home. App Feeder Mini holds around 2.0 pounds of dry food and is suitable for cats and small dogs.

Dogness Smart Vacuumed Pet Food Storage Containers: Dogness proprietary vacuum food storage container was designed to use an intelligent, constant pressure vacuum locking method, which significantly upgrades and modernizes conventional food storage, by completely isolating mildew and moisture in the air, keeping pet food fresh and crispy for longer, and bringing a higher quality to pets’ healthy lives.

Dogness C6 GPS Tracker ‘Discover’: Pet owners can have peace of mind knowing where their pets are anytime when they open the GPS Tracker App on their mobile phones. The Trackers are 4G compatible and allow the owners to keep track of the location of their pets. They can also set up virtual fences and the GPS Tracker App will alert the pet parents if their pets are beyond the fences. The Trackers also monitor and provide the pets’ activity level statistics.

Dogness C5 and C5 Mini Trackers: These smaller versions of the trackers have similar features of C6 but uses NB instead of 4G. It features longer battery time with smaller size and weight.

Pet Care

The company’s pet care products focus on high quality pet shampoos. The company launched these shampoo products in August 2018.

The company has two lines of shampoos, which are focused on and tailored to Chinese online and offline consumption. The company’s One on One Service line is focused on consumer purchasers and consists of dog and cat shampoo products that feature natural plant and amino acid composition. In addition to universal-purpose products, the company has developed seven breed-tailored shampoo products for golden retrievers, poodles, huskies, bulldogs, border collies, and corgis. The company’s Professional Bathing and Spa line is focused on professional purchasers, like dog and cat groomers. These products consist of bathing products, hair conditioners and essential oil products.

Leashes and Collars

Traditional Product Lines: The company produces collars, harnesses, and leashes in seven main series (Classic, Elegance, Luxury, LED, Holiday, Special Function, and Cat series). Given the choices available to customers, the company manufactures between 500 and 600 traditional products and can add additional options to meet customer preferences. The company’s traditional product lines use leather, nylon, Teflon-coated fabrics and other materials to suit consumer preferences. Not only do the company produces these products; it also design fabric patterns and invent improved components, such as a comfort curved buckle for collars and locking closing mechanism for leashes.

Retractable Leashes: In addition to its newest smart products, the company has devoted significant effort to designing and manufacturing some of the finest retractable leashes available. Retractable leashes balance freedom for the dog with control for the owner. If used well, a retractable leash promotes good communication between the two, as the dog has exactly as much room to roam as the owner permits, and this amount can be adjusted to suit the environment and circumstances. Dogness also offers an updated retractable leash to enhance the pet walking experience. The new leash allows pet owners to attach Dogness accessories to their retractable leashes, which include an LED light for better visibility in low light settings; a convenience box to store items such as doggie bags, treats, or keys; and a Bluetooth speaker to listen to music or answer calls.

Other Products: In addition to collars, leashes, and harnesses, the company produces lanyards for use by humans and ornaments that attach to collars. As to the lanyards, the company produces such lanyards using its fabric weaving machines. Because the company has its production in-house, it can design lanyards that match a customer’s need, in terms of color, size, quantity and pattern. The company’s hanging ornament series uses high-quality electroplating techniques to create fashionable accents for pet collars. The company makes a variety of patterns in bright and vibrant colors, as well as custom bells for cat collars.

Upcoming New Products

Dogness expects to launch additional products, including convenient indoor pet toilets, air purifiers, and other products.

Pet Health and Wellness

One of the company’s new research areas is pet-focused health and wellness products. One of the company’s subsidiaries is serving as a distributor of a few premium pet food brands from overseas. While it does not offer the company’s own branded products for sale in this category, it is developing supplements and nutrition products in consultation with veterinarians and pharmacists and anticipate introducing these products in the future.

Operations

Dogness has marketing and sales networks all over the world and has businesses in Dallas, Dongguan, Hong Kong, and Zhangzhou. Dogness Group LLC in Dallas, Texas, the U.S.A. serves as the sales and service center for all international markets. The company’s factory in Zhangzhou, Fujian serves as a material production base, responsible for sample dyeing, ribbon dyeing, and electroplating. One of Dogness’ competitive advantages comes from integrating the whole industrial chain, including retraction ropes, textiles, printing and dyeing, mold development, and hardware and plastics. In addition, Dogness’ subsidiary in the United States has R&D and design centers for pet smart products, forming a complete supply chain system with manufacturing bases in China. The company benefits from vertically integrated manufacturing operations, which allow it to design, machine and assemble the vast majority of its products in house, so it can easily incorporate improvements in design.

Markets

The company’s primary market is mainland China, with approximately 36.0% of its products being sold in China in the year ended June 30, 2023 (fiscal 2023).

The company sells the majority of its products through specialty pet store chain retailers and mass market retailers. In addition to selling its products to many of the largest specialty and mass retailers in the U.S., the company is exploring opportunities to drive online sales as well.

The company has leveraged its cooperation with and/or investments in Dogness Network Technology Co., Ltd (Dogness Network); Nanjing Rootaya Intelligence Technology Co., Ltd. (Nanjing Rootaya); Linsun Smart Technology Co., Ltd (Linsun); and the company’s own in-house research and development efforts to design high tech pet products for its customers. Dogness Network, in which the company has a 10% ownership interest, develops the smartphone apps that power its connected products, including its feeders, treaters, robots and others. Nanjing Rootayahas designed some of the company’s pet toys and innovative water and food bowl. Linsun, in which the company has a 13% ownership interest, helped create its smart feeders and treaters. The company’s subsidiary, Dongguan Jiasheng, is responsible for the technology underlying its other smart products and innovation and improvement in traditional products.

Intellectual Property

As of September 25, 2023, the company had completed the registration of 135 patents with the China State Intellectual Property Office (including 87 in China), which included 15 invention patents, 50 utility patents, and 70 appearance patents. In addition, the company has registered 19 patents in Germany, 27 in Japan, 20 in the United States, 9 in Canada, 3 in Australia, and 8 in the European Union. As of June 30, 2023, the company had successfully obtained 201 patents (including 135 in China), which includes 28 invention patents, 68 utility patents, and 125 appearance patents.

The company has completed registration of 188 trademarks, with the Trademark Office of the State Administration for Industry & Commerce of the PRC. In addition, the company has registered its key trademark for Dogness in Japan, Australia, Korea, Hong Kong, Taiwan, and the United States. The company has registered all of its patents and trademarks under Dongguan Jiasheng, Dongguan Dogness, Dogness Group, and HK Dogness. The company’s trademarks will expire at various dates through November 12, 2030.

Trademarks

As of September 25, 2023, the company had registered 181 trademarks (including 162 trademarks in China), all of which are fully owned and in use by it.

Research and Development

The company’s research and development expenses were $931,078 for the year ended year ended June 30, 2023.

Competition

The company faces competition from products from more well-established, better capitalized companies in the United States, such as Garmin, which produces varieties of dog training and tracking devices.

Regulations

Specifically, the major laws that apply to the company’s Mainland China (People’s Republic of China, excluding Taiwan, Hong Kong, and Macau) subsidiaries include Company Law (amended in 2018), governing, among other matters, company registration, existence and business operation; Civil Code of the People’s Republic of China (2021), governing business practices with all other market participants; Labor Contract Law (amended in 2012), governing the relationship between company as an employer and its employees; and Product Quality Law (amended in 2018), governing the relationship between company as a products provider and consumers in the market.

History

Dogness (International) Corporation was founded in 2003. The company was incorporated as a British Virgin Islands company limited by shares under the BVI Business Companies Act, 2004 in 2016.