China Feihe (6186) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB9,150.5 million, down 9.4% year-over-year, mainly due to reduced channel inventory and childbirth subsidies to consumers.

• Net profit for the period was RMB1,032.5 million, a 46.0% decrease compared to the same period last year, with basic and diluted EPS at RMB0.11.

• Gross profit margin declined to 61.6% from 67.9% year-over-year, reflecting higher raw material costs and increased sales of raw material powders.

• The company declared an interim dividend of HK$0.1209 per share, totaling approximately RMB1.0 billion, representing 100% payout of net profit for the period.

Financial highlights

• Revenue: RMB9,150.5 million (down 9.4% year-over-year).

• Gross profit: RMB5,634.9 million (down 17.8% year-over-year).

• Cost of sales increased 8.4% to RMB3,515.7 million, driven by higher production costs for raw material powders.

• Other income and gains, net, decreased 37.4% to RMB540.1 million, mainly due to lower government grants and interest income.

• Selling and distribution expenses decreased 10.2% to RMB3,174.7 million, while administrative expenses rose 4.7% to RMB773.7 million.

Outlook and guidance

• The company will focus on core business, promote independent innovation, optimize product formulas and production processes, and support high-quality development in China's dairy industry.

• Remaining net proceeds from the Global Offering are expected to be fully utilized by 31 December 2025.

• Plans to maintain a dividend payout of no less than 30% of net profit annually, subject to future investment plans.