Core Viewpoint - The announcement from the company highlights the postponement of two major fundraising projects until December 2027, citing "prudent investment" as the reason, marking the sixth such delay in 2023 alone [1][4]. Group 1: Project Delays - The company has decided to postpone the "Yihai Kerry (Qingdao) Food Industrial Co., Ltd. - Food Processing Project" and the "Oil Pressing and Refining and Supporting Engineering Construction Project" located in Kunming, with both projects now expected to reach usable status by December 31, 2027 [2][3]. - The "Yihai Kerry (Qingdao) Food Processing Project" includes the construction of facilities for an annual production of 800,000 tons of various flours, 48,000 tons of peanut products (excluding peanut oil processing), 45,000 tons of sesame oil, and 32,000 tons of sesame products [3]. Group 2: Project Implementation Status - As of mid-2023, the progress of the "Yihai Kerry (Qingdao) Food Processing Project" stands at 58.25%, with the first phase completed and the second phase under construction, while the third phase has not yet commenced due to prudent investment considerations [4]. - The "Oil Pressing and Refining and Supporting Engineering Construction Project" is also being implemented in phases, with the first phase completed and the second phase's start date postponed [4]. Group 3: Industry Context - The domestic flour supply is currently abundant, leading to low operating rates among milling companies, which has resulted in a market environment characterized by oversupply and low demand [4]. - The company has faced challenges in achieving expected returns on ten fundraising projects, primarily due to lower-than-expected market demand and increased competition in the flour processing industry [7][8].

Core Viewpoint - The announcement on August 12 revealed that the company Jinlongyu has postponed its two core fundraising projects until December 2027, citing "prudent investment" as the reason. This marks the sixth postponement of fundraising projects since 2023, raising concerns about the company's strategic clarity and execution capabilities [2][3][4]. Project Delays - Jinlongyu has decided to delay the "Yihai Kerry (Qingdao) Food Industrial Co., Ltd. - Food Processing Project" and the "Oil Pressing and Refining and Supporting Engineering Construction Project" located in Kunming, with both projects now expected to reach operational status by December 31, 2027 [4][5]. - The "Yihai Kerry (Qingdao) Food Processing Project" includes the production of 800,000 tons of various flours annually, 48,000 tons of peanut products (excluding peanut oil), 45,000 tons of sesame oil, and 32,000 tons of sesame products. The project will be implemented in three phases, with the first phase already completed and the second phase expected to be operational by December 2026 [5][6]. Industry Context - As of mid-2023, the progress of the "Yihai Kerry (Qingdao) Food Processing Project" was at 58.25%, with the first phase completed and the second phase under construction. The third phase, which involves flour production, has not yet commenced due to market conditions [6][7]. - The domestic flour supply is currently abundant, leading to low operating rates among milling companies. The market is characterized by oversupply, resulting in a lack of enthusiasm for purchasing from downstream buyers [6][7]. Financial Performance - In the first half of 2023, Jinlongyu reported that 10 fundraising projects did not meet expected returns, primarily due to lower-than-expected market demand and increased competition in the flour processing industry [11][12]. - Specific projects, such as the Yihai Kerry (Wenzhou) Grain and Oil Food Co., Ltd. and the Yihai Kerry (Chaozhou) Oil Industry Co., Ltd., have also failed to achieve anticipated returns due to external market conditions and declining sales [11][12]. Conclusion - The frequent postponements of projects and the significant deviation from expected returns indicate that Jinlongyu must demonstrate that these delays are not indicative of strategic missteps but rather a necessary pivot back to core business principles [13].

Summary of Key Points Core Viewpoint - The company, Yihai Kerry Arawana Holdings Co., Ltd. (referred to as "Jinlongyu"), has decided to postpone certain fundraising investment projects while maintaining the original investment purposes and scales, ensuring no adverse impact on the company's normal operations [1][8]. Group 1: Fundraising Overview - The company raised a total of RMB 1,369,293.81 million from its initial public offering, with net proceeds after deducting issuance costs amounting to RMB 1,369,293.81 million [1]. - As of June 30, 2025, the company has utilized RMB 1,182,506.05 million of the raised funds, with RMB 248,639.15 million remaining unutilized [2][4]. Group 2: Project Implementation Status - The company has invested RMB 1,181,918.11 million directly into projects, including RMB 339,502.11 million from self-raised funds [2]. - The total investment amount for various projects is RMB 17,467,417 thousand, with RMB 13,692,938 thousand allocated for fundraising projects [4]. Group 3: Postponement Details - The projects "Food Processing Project of Yihai Kerry (Qingdao) Food Co., Ltd." and "Oil Pressing and Refining Project" in Kunming have been postponed to December 31, 2027 [6][8]. - The postponement is based on the actual construction progress and aims to ensure the effective use of raised funds without changing the project scope or harming shareholder interests [8][9]. Group 4: Impact of Postponement - The postponement is a prudent decision that does not alter the investment project’s implementation subject, fundraising purposes, or investment scale, and is not expected to have a significant adverse impact on the company's operations [8][9]. - The company will enhance supervision of project progress to align with the new timeline and maximize benefits for all investors [8]. Group 5: Internal Review Process - The postponement was approved by the company's board of directors and supervisory board, confirming compliance with relevant laws and regulations [9]. - Both boards concluded that the decision aligns with the company's operational status and long-term development plans, ensuring no harm to shareholder interests [9].