Core Viewpoint - Yiyi Co., Ltd. has announced the termination of its planned acquisition of 100% equity in Gao Ye Jia, a pet food company, due to discrepancies in operational expectations and valuation agreements with the sellers [3][4]. Group 1: Acquisition Details - The acquisition was initially announced in October 2025, with Yiyi planning to purchase Gao Ye Jia through a combination of share issuance and cash payment, including a goodwill payment of 30 million yuan to the sellers [3]. - After four months of planning, Yiyi decided to terminate the acquisition due to Gao Ye Jia's sales adjustments during the 2025 Double Eleven shopping festival and the impact of new product promotions on its financial performance [3][4]. - Yiyi and the sellers could not reach an agreement on key commercial terms, leading to the decision to terminate the transaction in a mutual and amicable manner [3][4]. Group 2: Company Performance - Yiyi Co., Ltd. reported a revenue of 1.306 billion yuan for the first three quarters of 2025, a slight decline of 0.72% year-on-year, while the net profit attributable to shareholders was 156 million yuan, an increase of 3.82 million yuan [8]. - The company’s revenue from its core pet hygiene business was 417 million yuan, down 4.17% year-on-year, with a net profit of 54 million yuan, a decrease of 2.23% [8]. - Despite being a leader in the pet hygiene sector, Yiyi's revenue and profit figures are relatively small compared to major players in the pet food market, such as Guai Bao Pet and Zhong Chong Co., Ltd., which reported revenues of 4.737 billion yuan and 3.86 billion yuan respectively for the same period [8]. Group 3: Future Outlook - Yiyi Co., Ltd. aims to establish a comprehensive "supplies + food + medical" industry chain, but the termination of the Gao Ye Jia acquisition puts its pet food market expansion plans on hold [9]. - The company has announced a partnership with Beijing Fangyuan Jinding to invest 70.2 million yuan in Ruipai Pet Hospital, a leading pet hospital operator in China, which could enhance Yiyi's distribution channels and brand influence [9]. - The future of Yiyi's investment in the pet medical sector and potential adjustments to its pet food strategy remain uncertain following the acquisition's termination [9].