SWIREPROPERTIES(HK:01972) Sou Hu Cai Jing·2025-12-05 02:14Core Viewpoint - International giants are struggling to operate in the Chinese market, as evidenced by the sale of Yoplait's business in China following similar moves by Starbucks and Burger King [1]. Group 1: Transaction Details - Tian Tu Investment announced the sale of its 45.22% stake in Yoplait China to Kunshan Noyuan Ruiyuan Management Consulting for approximately 814 million RMB [4]. - IDG Capital, known for investing in over 1,700 companies in China, is the main backer of Kunshan Noyuan Ruiyuan, with a portfolio that includes notable brands like Luckin Coffee and Yuanqi Forest [4]. - Additional sellers, holding about 41.74% of Yoplait's equity, will also sell their stakes for a total consideration of 751 million RMB [5]. Group 2: Financial Performance - Yoplait China is projected to generate revenues of 454 million RMB and 810 million RMB for the years 2023 and 2024, respectively, with net profits of 8.5 million RMB and 95.5 million RMB [8][10]. - Despite the anticipated sale, Tian Tu Investment expects to incur a total loss of 847,000 RMB from the transaction [11]. Group 3: Strategic Insights - IDG Capital's interest in Yoplait stems from a two-year effort to build trust with the management team, which has a strong background from General Mills [13]. - The management team will remain in place post-acquisition, with plans to expand the brand's presence in southern and northern China, explore new channels, and enhance operational efficiency [14]. - The competitive landscape for dairy products in China is intensifying, with local brands outperforming foreign companies, which may have influenced General Mills' decision to divest Yoplait China [16].