Zheng Quan Shi Bao Wang·2025-09-19 15:09Core Viewpoint - Longda Food has decided to abandon the acquisition of Wucang Agricultural Group due to high debt levels, industry uncertainties, and the company's current financial situation, which does not support the acquisition [1][2][3] Group 1: Acquisition Decision - Longda Food announced the abandonment of the acquisition of Wucang Agricultural Group, citing a focus on its core food business and the high debt ratio of Wucang Agricultural [1] - The decision was influenced by the need to avoid increasing the company's debt burden, as it had already planned to develop pig farming projects in Shandong [1][2] - Wucang Agricultural Group has a high asset-liability ratio of 98.73%, with total borrowings around 1.95 billion and cash reserves of only 3.89 million, posing significant repayment risks [2][3] Group 2: Financial Performance - Longda Food's revenue for the first half of the year was 4.97 billion, a year-on-year decrease of 1.4%, while net profit dropped by 39.5% to 35.17 million [3] - The company has approximately 9.73 billion in cash and interest-bearing liabilities of about 3.22 billion, with short-term debt making up 57.72% of the total [3] - The company faces repayment pressure due to the large scale of short-term borrowings and liabilities due within one year, making it unable to finance the acquisition [3] Group 3: Strategic Focus - Since 2021, Longda Food has been actively seeking strategic transformation to mitigate the impact of industry cycles, focusing on a "one body, two wings" development strategy [2] - The company aims to ensure raw material cost control and meet traceability requirements for major clients through its pig farming business [2] - The decision to abandon the acquisition allows Longda Food to maintain stable cash flow and financial health while concentrating on refined operations in its core food business [3]