Core Viewpoint - The popular brand "Gao Ye Jia" is set to change ownership as A-share listed company Yiyi Co., Ltd. announced a merger and acquisition plan to acquire 100% equity of Hangzhou Gao Ye Jia Pet Food Co., Ltd. [1] Group 1: Acquisition Details - Yiyi Co., Ltd. plans to acquire Hangzhou Gao Ye Jia through a combination of share issuance and cash, with an initial earnest payment of 30 million yuan [3][11] - The acquisition aims to accelerate Yiyi's layout in the domestic pet consumption market and enter the pet food sector, establishing a dual-driven business model of "dogs + cats" [3][4] Group 2: Financial Performance - In 2023, Hangzhou Gao Ye Jia achieved revenue of 302 million yuan with a net profit of 3.08 million yuan, resulting in a net profit margin of only 1% [4] - The company’s revenue is projected to increase to 460 million yuan in 2024, with a net profit of 18.30 million yuan, leading to a net profit margin of 4% [4] - Comparatively, another pet food company, Guai Bao, reported a net profit margin of 9.95% in 2023 and 11.96% in 2024, highlighting a significant performance gap [4] Group 3: Cost and Market Strategy - The rising cost of raw materials, particularly cassava powder used in "Xu Cui Hua" cat litter, has pressured profit margins, with prices increasing by 19%-22% year-on-year [5] - To maintain market share, Hangzhou Gao Ye Jia is attempting to increase sales volume by lowering prices, with plans for further cost optimization after the second-phase factory begins production by the end of 2024 [6][7] Group 4: Impact on Yiyi Co., Ltd. - Yiyi Co., Ltd. reported a net profit margin of 11.97% in the previous year, and the acquisition of Hangzhou Gao Ye Jia is expected to drag down this margin due to the latter's lower profitability [8] - Yiyi's revenue for the first three quarters of the year was 1.306 billion yuan, a slight decline of 0.72% year-on-year, with a net profit increase of 3.82% to 157 million yuan [13][14] - The company faces challenges in its overseas markets, which account for 93.57% of total revenue, as fluctuations in international trade conditions impact its pricing power and stability [14]

Core Viewpoint - Yiyi Co., Ltd. (依依股份) has resumed trading and announced a plan to acquire 100% equity of Hangzhou Gaoye Family Pet Food Co., Ltd. through a combination of issuing shares and cash payment, which has led to a significant drop in its stock price [1][2]. Group 1: Acquisition Details - The company plans to purchase the equity from 19 parties, with the transaction price yet to be determined based on an asset appraisal report [1][2]. - The total amount of funds raised through the issuance of shares will not exceed 100% of the transaction price, with the number of shares issued not exceeding 30% of the company's total share capital prior to the transaction [2]. - The funds raised will be used for cash consideration, intermediary fees, and related taxes, with specific amounts to be disclosed in the restructuring report [2]. Group 2: Financial Performance of Target Company - The target company, Gaoye Family, reported revenues of 301.97 million yuan and 460.45 million yuan for 2023 and 2024, respectively, with net profits of 3.08 million yuan and 18.30 million yuan [4]. - The total net profit for the last two years amounts to 21.38 million yuan [4]. Group 3: Strategic Implications - The acquisition is expected to accelerate Yiyi's market presence in the domestic pet consumption market, covering both dog and cat user groups, and solidifying its leading position in the pet hygiene sector [3]. - The transaction will enhance the company's online operational capabilities and improve team structure through the introduction of professional talent [3]. - The deal aims to strengthen the existing business, expand market boundaries, and increase customer coverage, thereby improving profitability and sustainability [3]. Group 4: Recent Financial Performance of Yiyi - In Q3 2025, Yiyi reported a revenue of 418 million yuan, a year-on-year decrease of 16.98%, and a net profit of 54.5 million yuan, down 2.23% [7][8]. - For the first three quarters of 2025, the company achieved a revenue of 1.31 billion yuan, a slight decline of 0.72%, while net profit increased by 3.82% to 157 million yuan [8].

Core Viewpoint - Yiyi Co., Ltd. plans to acquire 100% equity of Hangzhou Gaoye Family Pet Food Co., Ltd. through a combination of share issuance and cash payment, aiming to enhance its presence in the domestic pet consumption market and solidify its leading position in the pet hygiene sector [1] Group 1: Acquisition Details - The acquisition will not constitute a major asset restructuring, a restructuring listing, or a related party transaction [1] - The company will issue shares to no more than 35 qualified specific investors to raise matching funds through an inquiry method [1] Group 2: Market Strategy - The transaction is expected to accelerate the company's layout in the domestic pet consumption market, covering both dog and cat user groups [1] - The acquisition marks the company's first entry into the pet food market, leveraging Gaoye's mature experience and resources in online e-commerce operations [1] Group 3: Operational Enhancements - The online operational capabilities of the company will be effectively improved through this acquisition [1] - The introduction of professional talent will further enhance the team's structure [1]