YKA(SZ:300999) Zhong Guo Zheng Quan Bao·2025-08-12 23:43Core Viewpoint - The announcement on August 12 revealed that the company Jinlongyu has postponed its two core fundraising projects until December 2027, citing "prudent investment" as the reason. This marks the sixth postponement of fundraising projects since 2023, raising concerns about the company's strategic clarity and execution capabilities [2][3][4]. Project Delays - Jinlongyu has decided to delay the "Yihai Kerry (Qingdao) Food Industrial Co., Ltd. - Food Processing Project" and the "Oil Pressing and Refining and Supporting Engineering Construction Project" located in Kunming, with both projects now expected to reach operational status by December 31, 2027 [4][5]. - The "Yihai Kerry (Qingdao) Food Processing Project" includes the production of 800,000 tons of various flours annually, 48,000 tons of peanut products (excluding peanut oil), 45,000 tons of sesame oil, and 32,000 tons of sesame products. The project will be implemented in three phases, with the first phase already completed and the second phase expected to be operational by December 2026 [5][6]. Industry Context - As of mid-2023, the progress of the "Yihai Kerry (Qingdao) Food Processing Project" was at 58.25%, with the first phase completed and the second phase under construction. The third phase, which involves flour production, has not yet commenced due to market conditions [6][7]. - The domestic flour supply is currently abundant, leading to low operating rates among milling companies. The market is characterized by oversupply, resulting in a lack of enthusiasm for purchasing from downstream buyers [6][7]. Financial Performance - In the first half of 2023, Jinlongyu reported that 10 fundraising projects did not meet expected returns, primarily due to lower-than-expected market demand and increased competition in the flour processing industry [11][12]. - Specific projects, such as the Yihai Kerry (Wenzhou) Grain and Oil Food Co., Ltd. and the Yihai Kerry (Chaozhou) Oil Industry Co., Ltd., have also failed to achieve anticipated returns due to external market conditions and declining sales [11][12]. Conclusion - The frequent postponements of projects and the significant deviation from expected returns indicate that Jinlongyu must demonstrate that these delays are not indicative of strategic missteps but rather a necessary pivot back to core business principles [13].