China Feihe (6186) H2 2025 earnings summary

Executive summary

• Revenue declined 12.7% year-over-year to RMB18,112.6 million, mainly due to intensified competition and lower infant milk formula sales.

• Net profit dropped 42.7% to RMB2,093.8 million, with EPS at RMB0.21, down from RMB0.39 last year.

• Gross profit margin decreased to 65.0% from 66.3% due to higher contribution from lower-margin raw material powders.

• Final dividend proposed at HK$0.1290 per share, with interim dividend of HK$0.1209 per share already paid.

Financial highlights

• Gross profit fell 14.5% to RMB11,775.4 million.

• Other income and gains, net, decreased 18.2% to RMB1,198.0 million.

• Selling and distribution expenses were stable at RMB7,162.0 million.

• Administrative expenses slightly increased to RMB1,682.7 million.

• Finance costs dropped 28.8% to RMB31.8 million.

• Effective tax rate rose to 37.5% from 34.2%.

Outlook and guidance

• Plans to deepen core business, innovate in milk protein raw materials, and expand full life cycle nutrition products.

• Intends to maintain dividend payout of no less than 30% of net profit.