China Modern Dairy (1117) H2 2025 earnings summary

Executive summary

• Revenue declined 4.9% year-over-year to RMB12,600.7 million, mainly due to weaker demand in integrated dairy farming solutions.

• Net loss attributable to owners narrowed to RMB1,128.6 million from RMB1,416.8 million in 2024, with loss per share improving by 20.3%.

• Cash EBITDA rose 2.6% to RMB3,063.3 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 RMB3,454.5 million, with a gross margin of 27.4%.

• Raw milk sales volume increased 8.5% to 3.139 million tons, but average selling price fell 7.7% to RMB3,335/ton.

• Integrated dairy farming solutions revenue dropped 23.8% to RMB2,134.6 million.

• Cost of sales decreased 6.7% to RMB9,146.3 million, mainly due to lower feed prices and cost control.

• Finance costs increased 20.5% to RMB637.2 million, driven by new USD bond issuance.

Outlook and guidance

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

• Focus on digital transformation, green development, and international expansion.

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