Dayin Announces Return of Apple Spaghetti, Aims for Revenue Recovery
Dayou Foods Sees Revenue Boost as Apple Spaghetti Returns, Land Sale Proceeds Expected
Taipei, Taiwan – Dayou Foods, the company behind the beloved “Apple Spaghetti” snack, is projecting a return to normalcy after a tumultuous period. General Manager Yu Zhongmin announced at a press conference yesterday that with the reintroduction of Apple Spaghetti to the market and proceeds from land sales, revenue is expected to increase by NT$1.15, reaching NT$13 per share on regular days.
Dayou has faced significant challenges in recent years. In 2022, the company’s pingzhen factory in taoyuan City was temporarily shut down after the Taoyuan City Government Health Bureau found quality issues with the drinking water used in production. Earlier this year,reports surfaced of bounced checks due to insufficient funds,attributed to a cashier error.
Adding to the company’s woes, employees raised concerns about unpaid wages at the shareholder meeting earlier this year. Chairman Su Yunle assured shareholders that all issues had been resolved and that outstanding wages had been paid.He also stated that product deliveries were resuming and that Dayou products would be gradually restocked across all distribution channels.
Despite these challenges, Dayou’s financial reports for the first and second quarters of this year were reviewed by certified public accountants. However, the reports indicated significant uncertainty regarding the company’s ability to continue operating. the first three quarters of 2023 saw revenue of NT$138 million, a 28% increase year-on-year. However, the company still reported an after-tax loss of approximately NT$42.55 million, resulting in a loss per share of NT$0.75.
Currently, Dayou is classified as a fully distributed stock, meaning it faces the risk of being delisted if its performance doesn’t improve within three consecutive years. If trading ceases for six months without improvement,the company could be delisted by 2026.
Yu Zhongmin expressed optimism about Dayou’s future, stating that Apple Spaghetti production has resumed and that proceeds from the sale of real estate are expected in July. He anticipates a return to normal revenue levels next year.
Regarding the company’s listing status, Yu Zhongmin emphasized that Dayou has addressed its financial issues and that operations are back on track. He expressed confidence that the company’s fourth-quarter and full-year financial reports will comply with stock exchange regulations.
A Bite Back for Battle? Dayou Foods Aims for Recovery with Apple Spaghetti Return
News Diretory 3 sat down with Dayou Foods General Manager Yu Zhongmin after a tumultuous period for the Taiwanese snack giant.
ND3: Dayou has faced considerable challenges in recent years, including a factory shutdown, financial difficulties, and employee wage concerns. How is the company navigating these hurdles?
Yu Zhongmin: We acknowledge the difficulties we faced, but we can confidently state that all issues have been resolved. The Taoyuan factory is operational again, outstanding wages have been paid, and product delivery is resuming. We are gradually restocking shelves across all our distribution channels.
ND3: Yoru auditor’s report highlighted uncertainty regarding the company’s ability to continue operating. How does Dayou plan to address these concerns?
Yu Zhongmin: We understand the concerns raised in the report. However, the reintroduction of our flagship product, Apple Spaghetti, coupled with proceeds from land sales expected in July, is projected to significantly boost our revenue. We anticipate a return to normal profitability by next year.
ND3: Dayou is currently classified as a fully distributed stock, facing potential delisting if performance doesn’t improve. What steps are you taking to avoid this scenario?
yu Zhongmin: We are fully aware of the stock exchange regulations and are working diligently to meet them. We are confident that our fourth-quarter and full-year financial reports will demonstrate our renewed financial stability and operational strength, ensuring our continued listing.
ND3: What message would you give to investors regarding the future of dayou Foods?
Yu Zhongmin: Dayou Foods is a resilient company with a legacy of beloved products. We are committed to regaining our market standing and delivering value to our shareholders.The return of Apple Spaghetti and the completion of our land sale represent significant milestones in our recovery journey. We remain optimistic about the future of Dayou Foods.