SANYUAN(SH:600429) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2026-02-25 22:41Core Viewpoint - Beijing Sanyuan Foods Co., Ltd. anticipates a significant loss for the fiscal year 2025, primarily due to substantial goodwill impairment related to its investment in the French subsidiary HCo France S.A.S. The projected net profit loss ranges from 356 million to 178 million yuan, with an expected reduction in the investment value of HCo by 496 million to 616 million yuan [1][2]. Group 1: Long-term Equity Investment - The company, in collaboration with Fosun High Technology and Fosun Health, acquired 100% of HCo France through a Luxembourg-based SPV, with the investment value reaching approximately 6.26 billion euros (about 49.32 billion yuan) [2][3]. - The book value of the long-term equity investment in HCo France was reported at 20.59 billion yuan as of June 30, 2025, with previous years showing balances of 17.65 billion yuan and 18.35 billion yuan for 2023 and 2024, respectively [2][3]. Group 2: Financial Performance of HCo France - HCo France reported a net profit of -10,083 million yuan in 2023, primarily due to interest expenses from shareholder loans and bank loans, with a net profit of 14,335 million yuan when excluding these costs [6]. - The projected revenue for HCo France in 2025 is 90,587 million yuan, with an anticipated net loss of -94,453 million yuan, largely attributed to the goodwill impairment of approximately 101,411 million yuan [6][8]. Group 3: Goodwill Impairment Testing - The goodwill impairment testing for 2025 is based on HCo France's management's six-year business plan, which indicates a significant decline in expected future cash flows, leading to a projected impairment of approximately 1.26 billion euros [20][31]. - The testing process revealed that the fair value of HCo France's equity is estimated at 3.89 billion euros, down from a book value of 5.15 billion euros, resulting in a reduction of about 5 billion yuan in the company's investment income for 2025 [20][21]. Group 4: Market Conditions and Strategic Adjustments - The overall market demand for consumer goods has declined, with a reported 3.8% decrease in sales volume in 2025, exacerbated by inflation and competitive pricing pressures [40][41]. - HCo France's management has adjusted its long-term forecasts due to underperformance in strategic initiatives, leading to a more conservative outlook for future growth [43][44].