001206，跨界并购终止

Core Viewpoint - Yiyi Co., Ltd. has terminated its acquisition of the pet food brand "Xu Cuihua" and "Gao Ye Jia" after four months of negotiations due to changes in the target company's 2025 operational performance and failure to reach agreement on key commercial terms [1][2] Group 1: Acquisition Details - Yiyi Co. planned to acquire 100% equity of Hangzhou Gao Ye Jia to enter the pet food market and strengthen its leading position in the pet hygiene sector [1] - The termination was officially announced on February 10, 2026, during the fourth board meeting [1] Group 2: Reasons for Termination - The target company's operational performance in 2025 deviated from initial expectations due to adjustments in sales strategies during the "Double Eleven" shopping festival and increased upfront investments in new cat food products [2] - The parties could not agree on valuation and other core commercial terms, leading to a cautious decision to terminate the transaction [2] Group 3: Market Performance - Hangzhou Gao Ye Jia reported significant online sales growth during the "Double Eleven" festival, with over 120% increase in sales, including 120% on Tmall and 60% on JD [3][5] - The brand "Xu Cuihua" became the first pet product brand on Tmall to surpass 100 million in sales during the "Double Eleven" event [5] Group 4: Financial Performance - In 2023, Hangzhou Gao Ye Jia generated revenue of 302 million yuan with a net profit of 3.08 million yuan, resulting in a net profit margin of only 1% [6] - Revenue is projected to increase to 460 million yuan in 2024, with net profit rising to 18.30 million yuan and a net profit margin of 4% [6] Group 5: Pricing Strategy and Market Challenges - Despite high sales volumes, the company faces challenges with profitability due to a price war and new sales models that may increase costs and reduce margins [6] - The introduction of "subscription-like" sales models for cat litter has gained popularity but may lead to higher costs and pricing pressures [6]