YouYou Foods(SH:603697) Sou Hu Cai Jing·2025-10-16 13:55Core Viewpoint - Youyou Foods, known as the "first stock of spicy chicken feet," is facing governance issues highlighted by the frequent turnover of its board secretary, which has occurred five times in six years, raising concerns about internal management and stability [1][3][5]. Group 1: Management and Governance Issues - The recent resignation of the board secretary after only three months in office has sparked widespread scrutiny regarding the company's governance structure [3][5]. - Since its listing in May 2019, Youyou Foods has experienced a high turnover rate in the board secretary position, with five individuals having held the role, indicating potential internal chaos and instability [4][5]. - The frequent changes in the board secretary position may disrupt strategic execution and highlight deeper issues such as management confusion and lack of commitment from professional managers [4][5]. Group 2: Financial Performance and Market Dynamics - Youyou Foods has shown a significant recovery in financial performance, with a revenue increase of 45.59% year-on-year in the first half of 2025, reaching 771 million yuan, and a net profit growth of 42.47% to 108 million yuan [11]. - The partnership with Sam's Club has been a key driver of this turnaround, with products like "deboned duck feet" becoming bestsellers [11][12]. - However, the company's reliance on Sam's Club raises concerns about cash flow, as accounts receivable surged to 156 million yuan in the first half of 2025, significantly exceeding the net profit for the same period [12]. Group 3: Shareholder Actions and Dividend Policies - The actual controller of Youyou Foods, Zhao Ying, recently reduced her holdings by 12.83 million shares, amounting to 151 million yuan, which has raised investor concerns about the timing of the sale following a stock price increase [6][8]. - The company has maintained a high dividend payout ratio, with a payout rate exceeding 90% during downturns and reaching 127.77% in 2024, indicating a strategy that may prioritize short-term returns for shareholders [8][9]. Group 4: Product and Market Strategy - Youyou Foods faces challenges with a narrow product structure, as 93.42% of its revenue comes from poultry products, particularly spicy chicken feet, which are in a highly competitive market [14]. - The company's heavy reliance on Sam's Club for sales could limit its growth potential and expose it to risks associated with dependency on a single customer [13][14]. - The overall gross margin has been under pressure, declining from 30.84% to 27.57% in the first half of 2025, reflecting the challenges posed by the pricing power of large retail partners [13].