Core Viewpoint - The acquisition plan by Yiyi Co., Ltd. to purchase 100% equity of Hangzhou Gaoye Family Pet Food Co., Ltd. has been terminated due to discrepancies between the actual operating conditions of Gaoye Family and initial expectations [2][3] Group 1: Acquisition Termination - Yiyi Co. announced the termination of the acquisition after nearly four months of planning, citing that Gaoye Family's operational performance during the 2025 "Double Eleven" event and subsequent product launches did not align with initial expectations [2][3] - The decision to terminate the acquisition was made after careful consideration and discussions with all parties involved, ensuring that it would not adversely affect Yiyi Co.'s operations or financial status [3][4] Group 2: Company Strategy and Future Plans - Yiyi Co. will continue to focus on its core business of pet hygiene products and will not alter its strategic deployment in the domestic market despite the acquisition's termination [4][6] - The company plans to maintain communication with Gaoye Family and will pursue a dual-circulation strategy involving both domestic and overseas markets, as well as continue investments in pet health and smart products [4][6] Group 3: Financial Performance and Market Position - In the first three quarters of 2025, Yiyi Co. reported revenues of 1.306 billion yuan, a slight decline of 0.72% year-on-year, while net profit attributable to shareholders was 156 million yuan, an increase of 3.82% [8] - The pet food sector accounted for 53.7% of the market share in 2025, highlighting the importance of this segment for Yiyi Co.'s growth strategy [8][9] Group 4: Future Collaboration Possibilities - Although the acquisition did not proceed, both Yiyi Co. and Gaoye Family expressed a willingness to explore future collaborations in product development and brand operations [7][9] - Yiyi Co. remains an indirect shareholder of Gaoye Family, which may facilitate ongoing partnerships despite the failed acquisition [7]