Core Viewpoint - The company, Yihai Kerry Arawana Holdings Co., Ltd. (referred to as "Jinlongyu"), announced the transfer of its 50% stakes in Yihai Kerry Kellogg Foods (Shanghai) Co., Ltd. and Yihai Kerry Kellogg Foods (Kunshan) Co., Ltd. to Mars Wrigley Confectionery (China) Co., Ltd. for a total consideration of $60 million, which is expected to significantly impact the company's 2026 earnings [1][2][7]. Group 1: Transaction Details - The company will transfer its 50% stake in Yihai Kerry Kellogg Foods (Shanghai) for $45 million and its 50% stake in Yihai Kerry Kellogg Foods (Kunshan) for $15 million [1][6]. - The assessed value of Yihai Kerry Kellogg Foods (Shanghai) is approximately 630 million RMB, while Yihai Kerry Kellogg Foods (Kunshan) is valued at over 210 million RMB [1][6]. - Post-transaction, the company will no longer hold stakes in the target companies, and the transaction will not affect the company's consolidated financial statements [1][6]. Group 2: Financial Impact - The transaction is expected to impact the company's 2026 revenue by more than 10% of the audited net profit attributable to shareholders for 2024 [2][7]. - The company reported a revenue of 68.588 billion RMB for Q3 2025, a year-on-year increase of 3.96%, with a net profit of 999 million RMB, reflecting a 196.96% increase [9][10]. - The growth in revenue is attributed to increased sales in kitchen foods, feed raw materials, and oil technology products [10]. Group 3: Industry Context - The transfer of stakes is part of Mars' broader strategy to complete its acquisition of Kellanova, a snack food company that owns brands like Kellogg's cereals and Pringles [2][7]. - Mars completed the acquisition of Kellanova for $35.9 billion (approximately 253 billion RMB), marking one of the largest deals in the global food industry [4][9].