Core Viewpoint - The announcement of Yiyi Co., Ltd. (001206) to acquire 100% equity of Hangzhou Gaoye Family Pet Food Company through a combination of "share issuance + cash payment" has attracted significant market attention, highlighting the collaboration between an industry leader and a rising star in the pet care sector [1] Group 1: Company Overview - Yiyi Co., Ltd. is a leading player in the pet hygiene care sector, particularly in dog pads and diapers, holding a global leading position [1] - Gaoye Family has rapidly emerged in the industry, owning the pet food brand "Gaoye Family" and the pet hygiene product brand "Xucuihua," with the latter becoming a top domestic cat litter brand [1] - "Xucuihua" achieved the title of "cat litter category sales champion" during the 2025 618 promotion period across multiple platforms [1] Group 2: Strategic Investment Background - The relationship between Yiyi Co. and Gaoye Family dates back to 2021 when Yiyi made a strategic investment in Gaoye Family through a fund, acquiring an 8.125% stake [2] - Yiyi Co. has struggled to penetrate the domestic market, with less than 7% of its revenue coming from China, despite its strong overseas presence [2] - Jinding Capital played a crucial role in shaping Yiyi's investment strategy, focusing on the cat litter segment, which is the largest and most stable growth area in the pet supplies market [2] Group 3: Jinding Capital's Role - Jinding Capital has established itself as a key player in the pet industry, having invested in nearly 20 companies across various segments, including pet supplies, food, and medical care [4] - The firm has developed a unique investment strategy that spans early-stage, growth, private equity, mergers, and even primary market investments [6] - Jinding Capital's approach emphasizes creating a "community of destiny" among listed companies, entrepreneurial firms, and itself, aiming for mutual growth and value maximization [12][13] Group 4: Future Industry Trends - The pet industry is expected to transition from a fragmented competitive stage to a more consolidated phase dominated by multi-brand groups, with mergers and acquisitions becoming a prevalent strategy for growth [5][10] - Jinding Capital predicts that 2025 will be a pivotal year for mergers in the pet industry, as more entrepreneurial companies seek to enter the capital market through consolidation rather than independent IPOs [10]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7] Core Insights - The company plans to acquire 100% equity of Gao Ye Jia, which will enhance its domestic brand and product category layout [2][3] - The acquisition is expected to accelerate the company's layout in the domestic pet consumption market, covering both dog and cat user groups, and solidifying its leading position in the pet hygiene sector while entering the pet food market for the first time [3][5] - The target company, Gao Ye Jia, has established a strong market presence with its products, including "Xu Cui Hua" pet hygiene products and "Gao Ye Jia" pet food, which have gained significant sales traction [4][5] Financial Performance Summary - In Q3 2025, the company reported revenue of 400 million, a decrease of 17% year-on-year, and a net profit attributable to the parent company of 50 million, a decrease of 2% year-on-year [1] - For the first three quarters of 2025, the company achieved revenue of 1.3 billion, a slight decrease of 0.7% year-on-year, while the net profit attributable to the parent company increased by 4% to 160 million [1] Business Strategy and Market Position - The acquisition will allow the company to leverage Gao Ye Jia's mature e-commerce operations and professional talent to enhance its online operational capabilities and expand its customer base [3][11] - The company aims to deepen its domestic market layout and develop its own brand to capitalize on the rapid growth of the pet economy [5][6] - The financial forecasts indicate a steady growth trajectory, with expected net profits of 230 million, 271.5 million, and 321.62 million for the years 2025, 2026, and 2027 respectively [12][14]

Core Viewpoint - Yiyi Co., Ltd. (依依股份) has resumed trading and announced a plan to acquire 100% equity of Hangzhou Gaoye Family Pet Food Co., Ltd. through a combination of issuing shares and cash payment, which has led to a significant drop in its stock price [1][2]. Group 1: Acquisition Details - The company plans to purchase the equity from 19 parties, with the transaction price yet to be determined based on an asset appraisal report [1][2]. - The total amount of funds raised through the issuance of shares will not exceed 100% of the transaction price, with the number of shares issued not exceeding 30% of the company's total share capital prior to the transaction [2]. - The funds raised will be used for cash consideration, intermediary fees, and related taxes, with specific amounts to be disclosed in the restructuring report [2]. Group 2: Financial Performance of Target Company - The target company, Gaoye Family, reported revenues of 301.97 million yuan and 460.45 million yuan for 2023 and 2024, respectively, with net profits of 3.08 million yuan and 18.30 million yuan [4]. - The total net profit for the last two years amounts to 21.38 million yuan [4]. Group 3: Strategic Implications - The acquisition is expected to accelerate Yiyi's market presence in the domestic pet consumption market, covering both dog and cat user groups, and solidifying its leading position in the pet hygiene sector [3]. - The transaction will enhance the company's online operational capabilities and improve team structure through the introduction of professional talent [3]. - The deal aims to strengthen the existing business, expand market boundaries, and increase customer coverage, thereby improving profitability and sustainability [3]. Group 4: Recent Financial Performance of Yiyi - In Q3 2025, Yiyi reported a revenue of 418 million yuan, a year-on-year decrease of 16.98%, and a net profit of 54.5 million yuan, down 2.23% [7][8]. - For the first three quarters of 2025, the company achieved a revenue of 1.31 billion yuan, a slight decline of 0.72%, while net profit increased by 3.82% to 157 million yuan [8].

Core Viewpoint - The company Yi Yi Co., Ltd. (001206.SZ) is planning to acquire 100% equity of Hangzhou Gao Ye Jia You Hao Duo Mao Pet Food Co., Ltd. through a combination of issuing shares and cash payment, while also raising supporting funds [1] Group 1: Acquisition Details - The acquisition involves the issuance of shares and cash to obtain full ownership of the target company [1] - The target company specializes in the research, production, and sales of high-quality pet hygiene products and food [1] Group 2: Brand Information - The main brands of the target company's pet hygiene products and food segments are "Xu Cui Hua" and "Gao Ye Jia" [1] Group 3: Stock Resumption - The company's stock will resume trading on October 27, 2025, following the acquisition announcement [1]

Core Viewpoint - The company Yi Yi Co., Ltd. is planning to acquire 100% equity of Hangzhou Gao Ye Jia You Hao Duo Mao Pet Food Co., Ltd. through a combination of issuing shares and cash payment, while also raising supporting funds [1] Group 1: Acquisition Details - The acquisition involves the complete ownership of Hangzhou Gao Ye Jia You Hao Duo Mao Pet Food Co., Ltd. [1] - The company has applied to the Shenzhen Stock Exchange for the resumption of its stock trading, which is set to begin on October 27, 2025 [1] Group 2: Target Company Overview - The target company specializes in the research, production, and sales of high-quality pet hygiene products and food [1] - The main brands of the target company's pet hygiene products and food segments are "Xu Cuihua" and "Gao Ye Jia" [1]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company plans to issue shares and pay cash to acquire assets, specifically targeting "Hangzhou Gao Ye Jia You Hao Duo Mao Pet Food Co., Ltd." The transaction details are expected to be disclosed within 10 trading days [1] - Gao Ye Jia, established in 2018, has become a leading domestic pet food and supplies brand, with a projected GMV exceeding 600 million yuan in 2024, and a significant growth in its cat litter brand, Xu Cui Hua, which saw a 247% year-on-year increase [2] - The company is enhancing its brand portfolio through external expansion, with a focus on maintaining the original management team post-acquisition, which is expected to contribute significantly to profits in 2026 [2] Financial Projections - The company is expected to achieve a net profit of 240 million yuan, 290 million yuan, and 360 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 27.4X, 22.1X, and 18.2X [3] - Total revenue is projected to grow from 1,337 million yuan in 2023 to 2,828 million yuan by 2027, reflecting a compound annual growth rate [3] - The gross profit margin is expected to improve from 17.0% in 2023 to 20.9% in 2027, indicating enhanced operational efficiency [3] Important Financial Metrics - The company's total revenue for 2025 is estimated at 2,009 million yuan, with a year-on-year growth rate of 11.8% [3] - The net profit attributable to the parent company is projected to be 235 million yuan in 2025, representing a 9.2% increase from the previous year [3] - The return on equity (ROE) is expected to rise from 5.8% in 2023 to 17.3% in 2027, showcasing improved profitability [3]