YKA(SZ:300999) Xin Lang Cai Jing·2025-10-22 06:13Core Viewpoint - The company is divesting its wholly-owned subsidiary, Zhalaihe Company, to optimize its asset structure amid weak profitability in traditional businesses and sluggish growth in new ventures [1][2]. Group 1: Company Actions - On October 17, the company announced the sale of 100% equity in Zhalaihe Company, which previously supported its beet sugar business, along with a significant debt waiver arrangement [1][2]. - The total debt waiver could reach up to 197 million yuan, indicating the company's effort to remove a financially distressed subsidiary from its balance sheet [1][2]. Group 2: Financial Performance - Zhalaihe Company reported total assets of 239.02 million yuan and total liabilities of 377.95 million yuan, resulting in negative equity of 138.94 million yuan [2]. - The company faced significant challenges, with 10 investment projects failing to meet expected returns in the first half of the year, reflecting ongoing issues with sales not keeping pace with capacity expansion [3][4]. Group 3: Market Conditions - The company is experiencing severe underutilization of capacity, with oil extraction and refining rates at 56.94% and 49.97%, respectively, which could exacerbate the existing overcapacity issues [3]. - The revenue growth for the company was 5.67% in the first half of the year, with net profit increasing by 60.07%, but growth in kitchen food was only 2.69%, indicating a reliance on feed raw materials for growth [4][5]. Group 4: Challenges and Outlook - The company is grappling with low profitability and high debt levels, with a net profit margin of around 0.5% in 2023 and 1.2% in the first half of 2024, primarily due to declining raw material costs [5]. - The company's asset-liability ratio stood at 56% in the first half of the year, with short-term interest-bearing liabilities reaching 831.9 billion yuan, highlighting financial strain [5].