YouYou Foods(SH:603697) Sou Hu Cai Jing·2025-06-25 09:11Core Viewpoint - Youyou Food's actual controller plans to reduce his stake by 3%, causing stock price fluctuations, with high dividends and share reduction coexisting, indicating potential underlying issues [3][5]. Group 1: Share Reduction and Stock Performance - The actual controller Zhao Ying plans to reduce up to 12.83 million shares, representing 3% of the total share capital, due to personal financial needs [3]. - Following the announcement, the stock price dropped by 7.65% after hitting the daily limit down, raising concerns about potential underperformance in upcoming financial results [5]. - The stock price increased approximately 30.8% from 9.96 yuan on January 3, 2025, to 13.03 yuan on June 25, 2025, indicating significant volatility within the year [5]. Group 2: Dividend Policy and Financial Implications - Youyou Food has maintained a high dividend payout ratio, exceeding 90% for four consecutive years since 2021, resulting in the Zhao family receiving at least 580 million yuan in dividends [8][10]. - The new regulations implemented in May 2024 require that the actual controller's share reduction must meet conditions such as cumulative dividends not being less than 30% of net profit, suggesting that high dividends may facilitate compliance with reduction regulations [10]. - The dual strategy of high dividends and share reduction raises concerns about potential conflicts of interest and governance fairness, as the Zhao family controls over 70.25% of the company [10]. Group 3: Governance and Management Issues - Frequent changes in the company secretary position have led to concerns about information disclosure and governance stability, with four secretaries replaced since the company's listing in May 2019, averaging less than two years per term [11][12]. - The company has allocated significant cash for dividends, with cash dividends exceeding net profit last year, potentially impacting investments in R&D and market expansion [12][13]. - Youyou Food has invested over 900 million yuan in financial products from 2021 to 2024, while R&D spending totaled only 15 million yuan, indicating a misalignment in capital allocation [13][15]. Group 4: Financial Management and Investment Strategy - The average annualized return on Youyou Food's recent financial products is approximately 2.51%, which is considered low compared to prevailing market rates [15]. - The company has set a high self-managed financial investment limit of 1 billion yuan, with a balance of 830 million yuan by the end of 2024, indicating potential liquidity management issues [15].