Group 1 - The acquisition of 100% equity in Gao Ye Jia by Yi Yi Co., Ltd. was terminated due to changes in the company's operational conditions and failure to reach an agreement on valuation and key commercial terms with the counterparties [1] - Yi Yi Co., Ltd. remains focused on the pet hygiene care products sector, which is experiencing growth in both domestic and international pet ownership rates, indicating significant growth potential for its products [1] - The company plans to continue strategic investments in the pet sector through industry funds or direct investments, exploring opportunities in pet medical care, cat litter, and smart pet products [2] Group 2 - In the third quarter of 2025, Yi Yi Co., Ltd. reported a revenue of 4.18 billion yuan, a year-on-year decrease of 17.0%, while the net profit attributable to shareholders was 545 million yuan, a decline of 2.2% [3] - The company's export business to the United States has largely returned to normal, with domestic production being the primary source for global pet hygiene care products due to limited local capacity in the U.S. [3] - The company's production base in Cambodia has been operational since May 2025, with a capacity of nearly 300 million pet pads per year, and a second factory is under construction to produce 800 million pet pads and 100 million pet pants annually [4]

Core Viewpoint - The company, Yiyi Co., announced the termination of its acquisition of Hangzhou Gaoye Family Pet Food Co., due to changes in the expected business conditions and failure to reach an agreement on key commercial terms with the transaction counterparties [2] Group 1: Acquisition Details - The decision to terminate the acquisition was influenced by adjustments in the sales model for cat litter during the Double Eleven shopping festival and the preliminary investment in new cat food products scheduled for the second half of 2025 [2] - The company emphasized that the termination of the transaction will not have a significant adverse impact on its production, operations, or financial status [2] Group 2: Future Outlook - Despite the acquisition not proceeding as planned, the company retains a stake in Gaoye Family through an industrial fund and intends to maintain friendly communication and collaboration with them in the future [2] - The company remains confident in the long-term prospects of the pet industry and will continue to focus on its core business and strategic development to create value for shareholders [2]

Core Viewpoint - Yiyi Co., Ltd. is planning to acquire equity in Gao Ye Jia Company, indicating a strategic move to strengthen its control over the pet food sector. The stock has been suspended since October 14, 2023, pending further announcements regarding the transaction [2][4][15]. Summary by Sections Acquisition Plans - Yiyi Co., Ltd. has signed a preliminary agreement to purchase all or part of the shares of Gao Ye Jia Company, with the final transaction price to be determined based on an evaluation report from a qualified appraisal agency [8][14]. - The major shareholders of Gao Ye Jia Company include Peng Han (36.27%), Wen Guangkai (18.60%), and Dong Xiaosong (8.33%) [8]. Strategic Intent - The acquisition is part of Yiyi Co., Ltd.'s strategy to enhance its presence in the pet industry, having previously invested in Gao Ye Jia through an industry fund [4][16]. - Yiyi Co., Ltd. aims to expand its product offerings in essential pet supplies, leveraging its experience in pet hygiene products [18]. Financial Performance - In the first half of 2025, Yiyi Co., Ltd. reported a revenue increase of 9.34% to approximately 888.38 million yuan, with a net profit growth of 7.37% to about 102.20 million yuan [19][20]. - The company has adopted a dual strategy focusing on both domestic and international markets, as well as a combination of ODM/OEM and proprietary brands [20].

Core Viewpoint - Yiyi Co., Ltd. is planning to acquire equity in Gao Ye Company, indicating a strategic move to strengthen its control over the pet food sector, with trading suspension effective from October 14 [2][4]. Group 1: Acquisition Details - Yiyi Co., Ltd. has signed a letter of intent for the acquisition of all or part of the shares of Gao Ye Company, with the main transaction counterparties being the shareholders of Gao Ye Company [4]. - The controlling shareholder of Gao Ye Company is Peng Han, holding 36.27% of the shares, followed by Wen Guangkai and Dong Xiaosong with 18.60% and 8.33% respectively [4][6]. - The final transaction price for the shares will be determined based on an evaluation report from a qualified appraisal agency [9]. Group 2: Strategic Intent - Yiyi Co., Ltd. aims to enhance its control over Gao Ye Company, which it has previously invested in through an industry fund [9]. - The company has been strategically investing in the pet industry, including projects related to cat litter, pet food, and pet healthcare products [9][12]. - Yiyi Co., Ltd. reported a revenue increase of 9.34% year-on-year to 888.38 million yuan in the first half of 2025, with a net profit increase of 7.37% to 102.20 million yuan [12][13]. Group 3: Market Position - Gao Ye Company is recognized as a leading brand in the domestic cat food market, while its product line includes high-quality pet food and supplies [12]. - Yiyi Co., Ltd. is a prominent player in the hygiene care products sector, with extensive experience in producing and selling pet hygiene products [12].