China Feihe (6186) H1 2026 earnings summary

Executive summary

• Revenue grew 2.3% year-over-year to RMB9,362.4 million for H1 2026, driven by increased sales in certain infant milk formula series and other dairy products.

• Gross profit rose 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.

• The company declared an interim dividend of HK$0.0828 per share, representing approximately 70% of H1 2026 profit.

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

Financial highlights

• Revenue: RMB9,362.4 million (+2.3% YoY); Gross profit: RMB5,800.1 million (+2.9% YoY).

• Net profit: RMB901.1 million (-12.7% YoY); Basic EPS: RMB0.10 (-9.1% YoY); Diluted EPS: RMB0.09 (-18.2% YoY).

• Gross margin: 62.0% (up from 61.6% YoY); Effective tax rate: 38.3% (down from 41.3% YoY).

• Cash and cash equivalents: RMB7,069.5 million as of 30 June 2026.

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

Outlook and guidance

• The company will focus on innovation in milk protein raw materials, deepen breast milk research, and expand its full life cycle nutrition business.

• Plans to develop more nutritional products for different age groups and consumption scenarios.

• Continued adherence to a dividend policy of distributing no less than 30% of net profit annually.