China Feihe (6186) H1 2026 earnings summary

Executive summary

• Revenue rose 2.3% year-over-year to RMB9,362.4 million for the six months ended 30 June 2026, driven by growth in certain infant milk formula series and other dairy products.

• Gross profit increased 2.9% to RMB5,800.1 million, with gross margin improving to 62.0% from 61.6% year-over-year.

• Net profit declined 12.7% to RMB901.1 million, mainly due to higher selling, distribution, and administrative expenses.

• Basic and diluted EPS were RMB0.10 and RMB0.09, respectively.

Financial highlights

• Cost of sales increased 1.3% to RMB3,562.3 million.

• Other income and gains, net, fell 36.0% to RMB345.7 million, primarily due to lower interest income.

• Selling and distribution expenses rose 7.9% to RMB3,425.2 million, and administrative expenses increased 14.2% to RMB883.4 million.

• Finance costs dropped 42.7% to RMB9.4 million.

• Effective tax rate was 38.3%, down from 41.3% year-over-year.

Outlook and guidance

• The company plans to focus on innovation in milk protein raw materials, expand its full life cycle nutrition business, and develop more products for different age groups.

• Continued adherence to a dividend policy of distributing no less than 30% of net profit annually, with an interim dividend of HK$0.0828 per share declared.