Core Viewpoint - The company is focusing on the beverage sector by acquiring a significant stake in Asian Foods, aiming to enhance its market presence and address declining revenues in its food and beverage business [2][3]. Group 1: Acquisition Details - On June 23, the company announced plans to invest 90.28 million yuan to acquire 39.9996% of Asian Foods, gaining 100% voting rights [2]. - The acquisition is part of a strategy to strengthen its position in the beverage market, particularly with Asian Foods' flagship product, Asian Soda, which is a well-known brand in Southern China [3]. Group 2: Financial Performance - The company has faced revenue declines for two consecutive years, with a 0.29% decrease in 2023 and a projected 21.91% decrease in 2024 [3]. - In Q1 2025, the company reported a revenue of 484 million yuan, reflecting a 10.14% year-on-year decline [3]. Group 3: Business Segmentation - The largest revenue source for the company is the sugar industry, accounting for 73.14% of total revenue, while the beverage sector contributes only 14.93% [4]. - Despite the lower revenue share, the beverage segment has a significantly higher gross margin of 44.64%, compared to the sugar segment's 2.43% [4]. Group 4: Challenges and Market Position - Asian Foods is also experiencing performance pressures, with a reported revenue of 175 million yuan in 2024, down 11.17% year-on-year [4]. - The brand has struggled to maintain its market influence since the 1990s and faces challenges in product innovation and market penetration [4].