Haixin Foods (SZ:002702) Xin Lang Cai Jing·2025-12-18 10:15Core Viewpoint - Hai Xin Food has announced a second delay in its fundraising project for "Deep Processing of Aquatic Products and Frozen Dishes," primarily due to declining sales and low capacity utilization, which has dropped to 65% [1][2][3]. Group 1: Project Delays and Financial Strain - The project completion date has been extended from December 2025 to June 2026, with the initial fundraising amount of 3.76 billion yuan aimed at increasing production capacity by 107% compared to 2021 [2][3]. - The company faces significant liquidity pressure, with cash on hand reduced to 78.235 million yuan and short-term interest-bearing liabilities reaching 286 million yuan, resulting in a cash-to-short-term debt ratio of 0.27 [4]. - The project has not generated the expected returns and has instead become a financial burden, contributing to the company's overall performance decline [3][4]. Group 2: Revenue and Profitability Challenges - Revenue from traditional frozen fish and meat products has decreased from 86% in 2021 to 61.65% in 2024, while frozen dishes have increased from 10% to 28.29% in the same period [6]. - The overall gross margin has significantly declined from 24.64% in 2020 to 18.52% in 2024, with high expense ratios further compressing profit margins [6][7]. - In the first three quarters of 2025, the company's revenue dropped by 15.05%, with losses widening, particularly in frozen fish and meat products, which saw an 18.49% decrease in revenue [6][7]. Group 3: Market Dynamics and Strategic Challenges - The decline in sales is attributed to both the company's decision to eliminate unprofitable SKUs and the broader market shift affecting traditional sales channels [7]. - The company faces challenges in adapting to changing consumer habits and increasing competition in the frozen food sector, particularly in the low-margin frozen dishes segment [7]. - Management must focus on increasing the proportion of high-margin products while controlling costs and expenses to navigate the current market landscape [7].