China Modern Dairy (1117) investor relations material

Executive summary

• Revenue grew 8.6% year-over-year to RMB6,592.8 million for the six months ended 30 June 2026, driven by both raw milk and integrated dairy farming solutions.

• Net profit reached RMB41.7 million, a turnaround from a loss of RMB983.8 million in the prior year period, mainly due to reduced losses from dairy cow fair value changes and improved gross profit.

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

• The group maintained industry-leading product quality, with its pure milk brand winning the Monde Selection gold medal for 13 consecutive years.

• MSCI upgraded the group’s ESG rating to AA, ranking it first among Chinese livestock companies.

Financial highlights

• Revenue: RMB6,592.8 million, up 8.6% year-over-year.

• Cash EBITDA: RMB1,598.8 million, up 8.3% year-over-year.

• Net cash from operating activities: RMB768.5 million, up 56.8% year-over-year.

• Gross profit: RMB1,727.4 million, gross margin 26.2%.

• Basic EPS: RMB0.20 cents, compared to a loss of RMB11.67 cents per share last year.

Outlook and guidance

• Focus on optimizing herd structure, improving milk yield, and enhancing raw milk quality.

• Plans to accelerate new business expansion, including breeding technology and digital platforms.

• Intends to extend the industrial chain and expand international business, leveraging technology and management exports.

• No interim dividend declared for the period.