Core Viewpoint - Youyou Food, known for its spicy chicken feet, has officially entered the venture capital space by investing 20 million yuan in the Wenrun Biological Manufacturing Venture Capital Fund, marking a strategic move to enhance resource allocation and explore new growth avenues [3][6][9]. Investment Announcement - Youyou Food's wholly-owned subsidiary, Youyou Manufacturing, announced its investment of 20 million yuan in the Wenrun Biological Manufacturing Venture Capital Fund, which has a total scale of 482.85 million yuan, with Youyou holding a 4.1421% stake [6]. - The fund includes other notable LPs such as Guangdong Wens Foodstuff Group and Yunnan Plateau Characteristic Agriculture Equity Investment Fund, creating a resource network across the agricultural and livestock industry [7]. Financial Performance - Youyou Food's half-year performance forecast indicated revenue between 746 million to 798 million yuan, a year-on-year increase of 40.91% to 50.77%, and a net profit attributable to shareholders of 105 million to 112 million yuan, reflecting a growth of 37.91% to 47.57% [6]. - According to Southwest Securities, Youyou's Q2 2025 revenue is expected to be between 363 million to 415 million yuan, with a year-on-year growth of 42.7% to 63.3% [8]. Industry Trends - The venture capital landscape is witnessing a shift, with consumer companies like Youyou Food becoming key players in the investment space, driven by stable cash flows and a desire for financial returns [11][12]. - The activity of industrial LPs has increased, with a 14% rise in contributions from non-listed companies, indicating a growing trend of consumer brands entering the private equity sector [11][12]. Market Environment - The venture capital market is showing signs of recovery, with a reported 8.15% increase in institutional LP contributions in June, alongside a year-on-year growth of 41.12% [15][16]. - The combination of favorable policies and technological changes is driving renewed enthusiasm in the primary market, attracting more LPs to participate [15][16].

Investment Overview - Company’s wholly-owned subsidiary, Youyou Food Chongqing Manufacturing Co., Ltd., will invest RMB 20 million in the Wenrun Biological Manufacturing Venture Capital Fund [1] - The investment aims to enhance capital efficiency, optimize resource allocation, and leverage the expertise of professional investment institutions to explore new growth avenues [1][11] - The total scale of the partnership fund is expected to be RMB 482.85 million, with various partners contributing different amounts [2] Partner Contributions - Guangdong Wens Food Investment Co., Ltd. and Yunnan Provincial Plateau Characteristic Agriculture Equity Investment Fund each contribute RMB 160 million, accounting for 33.14% of the fund [2] - Other partners include Hengqin Guangdong-Macao Deep Cooperation Zone Industrial Investment Fund and several individual investors, with Youyou Food contributing 4.14% [2][6] Investment Agreement Details - The partnership fund will primarily invest in sectors such as biological manufacturing, agricultural technology, food engineering, and related equipment [7] - The fund has a lifespan of 12 years, with the investment period lasting 7 years, extendable under certain conditions [7][8] - The decision-making process involves an investment decision committee, ensuring professional management of investment activities [8] Financial Impact - The investment represents a small proportion of the company's net assets, indicating it will not significantly affect the company's operational activities or financial status [11] - The company will monitor the fund's operations closely to mitigate potential investment risks [11]

Core Viewpoint - Youyou Food's subsidiary, Youyou Food Chongqing Manufacturing Co., Ltd., has invested 20 million yuan in an investment fund with a total scale of approximately 482.85 million yuan, representing a 4.1421% stake in the fund [1][2]. Investment Details - The investment fund primarily focuses on sectors such as biomanufacturing, agricultural technology, food engineering and supply chain, and agricultural machinery and related equipment [1]. - The fund aims to enhance business synergy, expand investment layout, and capture opportunities in related industries, aligning with the company's development strategy and shareholder interests [1]. Fund Partners - The investment fund is established in partnership with 10 institutions and individuals, including Guangdong Wens Investment Co., Ltd., Yunnan Plateau Characteristic Agriculture Equity Investment Fund, and Hengqin Guangdong-Macao Deep Cooperation Zone Industrial Investment Fund [2][3]. - Notably, Wens Investment is fully controlled by Wens Foodstuffs Group, which is a leading enterprise in the agricultural sector, indicating a strategic alignment with Youyou Food's core business in food processing [3]. Capital Contribution Structure - The total capital contribution of the fund is 48.285 million yuan, with Wens Investment and Yunnan Plateau Fund each contributing 16 million yuan, accounting for 33.1366% of the total [3]. - Youyou Food's contribution of 2 million yuan represents 4.1421% of the total fund, indicating a relatively low impact on the company's net assets and operational activities [4]. Funding Phases - The initial phase will require partners to pay 50% of their subscribed capital, with the second phase contingent on the completion of 70% of the first phase's investment [4].