China Modern Dairy (1117) H1 2026 earnings summary

Executive summary

• Revenue increased 8.6% year-over-year to RMB6,592.8 million in H1 2026, with net profit rebounding to RMB41.7 million from a loss of RMB983.8 million in H1 2025, driven by both raw milk and integrated dairy farming solutions.

• Cash EBITDA rose 8.3% year-over-year to RMB1,598.8 million, and net cash from operating activities surged 56.8% to RMB768.5 million.

• The acquisition of China Shengmu Organic Milk Limited (CSM) was completed, making the group the largest shareholder and expanding access to organic milk supply.

• Strategic focus on digital services, overseas markets, and full industrial chain integration diversified profit drivers.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 7.7% year-over-year to RMB1,727.4 million, with gross margin stable at 26.2%.

• Cash EBITDA grew 8.3% year-over-year to RMB1,598.8 million, with margin stable at 24.3%.

• Feed costs per kg dropped 1.7% year-over-year, and overall COGS per kg fell 1.3%.

• Financing cost rate reached a record low of 3.21%.

• Cash and cash equivalents increased 20.6% to RMB95.4 million.

Outlook and guidance

• Continued focus on digital transformation, smart animal husbandry, and expanding overseas markets.

• Strategic synergies from the CSM acquisition are expected to drive scale, efficiency, and profitability.

• Plans include expanding breeding R&D, forage and feed business, and digital platforms, while exploring international markets.

• Ongoing cost control and efficiency improvements expected to support future profitability.

• No interim dividend declared for the period.