BAIYANG(SZ:002696) Xin Lang Cai Jing·2025-12-11 05:34Core Viewpoint - The company Baiyang Co., Ltd. is undergoing a significant transition in the seafood industry, moving from a phase of rapid expansion to one characterized by low growth and stability, as evidenced by the recent share reduction plan by Vice President Yang Sihua [1][3]. Company Performance - Baiyang Co., Ltd. reported a revenue of 2.952 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 38.77% [1][3]. - The net profit attributable to shareholders reached 36.128 million yuan, a remarkable year-on-year surge of 218.12% [1][3]. Strategic Adjustments - The company plans to adjust its strategic direction and optimize its operational strategies starting in the second half of 2024, with positive results already beginning to show [1][3]. - The food processing export business continues to grow, with a steady increase in export volume and a corresponding rise in net profit [1][3]. Industry Context - The seafood industry is transitioning from high-speed expansion to a phase focused on low growth, low investment, and stability [1][3]. Financial Concerns - There is a notable divergence between cash flow and profit, with a net cash flow from operating activities of -406 million yuan for the first three quarters of 2025, contrasting sharply with the net profit of 36.128 million yuan [2][4]. - This cash flow issue is attributed to the long export settlement cycles typical in the seafood processing industry and the company's advance payments for raw material procurement [2][4]. Policy Risks - Recent changes in agricultural tax policies in countries like Mauritania and Ecuador have posed risks, with the company’s subsidiary needing to pay back taxes and penalties amounting to 3.2132 million yuan, impacting net profit by approximately 1.86 million yuan [2][4]. Business Structure - The company’s diversification efforts have not yet yielded results, and it remains disconnected from industry trends where leading firms are moving towards high-value areas such as prepared foods and functional proteins [2][4].