Core Viewpoint - Li Ziyuan has terminated a planned investment of 200 million yuan in a dairy beverage production line in Yunnan, citing "land planning and industrial planning" as reasons, while industry insiders believe it is related to declining revenue and underutilization of existing capacity [1][2] Group 1: Project Termination - The terminated project was planned since 2022, involving the construction of three sterile filling production lines for dairy beverages with a total investment of approximately 200 million yuan [2] - The termination was officially announced on September 12, 2023, through an agreement with the local government, emphasizing the need to optimize resource allocation and reduce investment risks [2] Group 2: Capacity and Utilization - As of last year, Li Ziyuan's total production capacity across five factories was 375,900 tons, with an actual utilization of 248,800 tons, resulting in a capacity utilization rate of only 66% [1][4] - The company has ongoing projects with a planned investment of 1.58 billion yuan, aiming to increase total capacity to 592,600 tons by 2029, representing a 58% increase compared to 2024 [3] Group 3: Revenue and Market Challenges - The core revenue source for Li Ziyuan, dairy beverages, has faced significant pressure, with revenue for this segment declining by 11.19% year-on-year to approximately 583 million yuan in the first half of 2025 [4] - The company is attempting to diversify its product offerings, including new products like AD calcium milk and vitamin water, to mitigate reliance on a single category [5] Group 4: Strategic Shift to Milk Powder - Li Ziyuan plans to invest 320 million yuan in a new project in Ningxia to produce whole and skim milk powder, indicating a strategic shift to explore a "second growth curve" [1][5] - The milk powder market is highly competitive, with established players like Yili and Mengniu already present, raising concerns about Li Ziyuan's ability to penetrate this market effectively [5]

Core Viewpoint - Li Ziyuan has announced the termination of a planned 200 million yuan investment in a dairy beverage production line in Yunnan, citing "land planning and industrial planning" as reasons, while industry insiders attribute it to declining revenue and underutilization of existing capacity [2][3][4] Group 1: Project Termination - The terminated project was planned since 2022, involving the construction of three sterile filling production lines for dairy beverages with a total investment of approximately 200 million yuan [3] - The agreement to terminate the project was signed on September 12, 2023, with a mutual understanding to negotiate the termination by September 12, 2025 [3] - The decision to halt the project was made to optimize resource allocation, reduce investment risks, and protect the interests of the company and its shareholders [4] Group 2: Capacity and Utilization - As of 2024, Li Ziyuan has a total production capacity of 375,900 tons across five factories, but the actual capacity utilized is only 248,800 tons, resulting in a capacity utilization rate of 66% [2][6] - The company has been expanding its production capacity since its A-share market debut in 2021, raising a total of 1.376 billion yuan for capacity expansion projects [4][5] Group 3: Revenue and Market Challenges - The core revenue source for Li Ziyuan, dairy beverages, has faced pressure, with revenue for this segment dropping by 11.19% year-on-year to approximately 583 million yuan in the first half of the year [6] - The company is attempting to diversify its product offerings to mitigate reliance on a single category, with plans to enter the milk powder market amid fierce competition [6][7] Group 4: Future Investments - Li Ziyuan plans to invest 320 million yuan in a new project in Ningxia, focusing on the production of whole and skim milk powder, among other dairy products [7] - The company aims to leverage its existing production management systems and resources to navigate the competitive landscape of the milk powder market [8]