China Modern Dairy (1117) H2 2025 earnings summary

Executive summary

• Revenue declined 4.9% year-over-year to RMB 12,601 million, mainly due to weaker demand in integrated dairy farming solutions, while raw milk sales remained stable.

• Net loss narrowed to RMB -1,204 million from RMB -1,469 million, with loss per share improving by 20.3%.

• Cash EBITDA rose 2.6% to RMB 3,063 million, reflecting improved operational efficiency.

• The company maintained a healthy herd structure, increasing the proportion of milkable cows to 58.2%.

• No final dividend was recommended for 2025.

Financial highlights

• Gross profit remained stable at RMB 3,454 million, with a gross margin of 27.4%.

• Raw milk sales revenue was RMB 10,466 million, with sales volume up 8.5% to 3.139 million tons, but average selling price fell 7.7% to RMB 3,335/ton.

• Integrated dairy farming solutions revenue dropped 23.8% to RMB 2,134.6 million.

• Cost of sales dropped 8.3%, mainly due to lower feed prices and cost control.

• Finance costs increased 20.5% to RMB 637.2 million, driven by new USD bond issuance.

Outlook and guidance

• Strategy focuses on deepening the industrial chain, digital transformation, green development, and overseas markets.

• Plans to consolidate core business, optimize herd structure, and expand specialty milk production.

• Intends to acquire China Shengmu Organic Milk Limited to enhance scale and product mix.

• Diversification of profit growth drivers and expansion into new business models.

• Industry expects further herd reduction and supply-demand balance at a critical stage.