China Modern Dairy (1117) H1 2025 earnings summary

Executive summary

• Operating cash flow increased 23.3% year-over-year to RMB 490 million, reflecting improved herd structure and cost control.

• Raw milk production and yield per cow reached record highs, with total milk production up 14.6% year-over-year and annualized yield per milkable cow at 13.2 tons.

• Revenue for 2025H1 was RMB 6,073 million, down 5.4% year-over-year, with a net loss of RMB 984 million, mainly due to non-cash losses from changes in dairy cow fair value.

• Raw milk business remained stable, accounting for 83.5% of revenue, while integrated dairy farming solutions revenue declined 23.2%.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit was RMB 1,604 million with a margin of 26.4%; cash EBITDA margin rose 0.7 ppt to 24.3%.

• Net profit was a loss of RMB 984 million, compared to a loss of RMB 207 million in 2024H1.

• Loss per share (basic) was RMB 11.67 cents, compared to RMB 2.91 cents loss per share in the prior year.

• Net asset value per share was RMB 1.08, down 20% year-over-year.

• Net gearing ratio increased to 117.1% from 97.1% at year-end 2024.

Outlook and guidance

• The Group will focus on strengthening core raw milk business, expanding breeding and feed, and exploring the dairy farming service chain.

• Continued emphasis on cost control, lean management, digitalization, and sustainable development.

• Management expects integrated dairy farming solutions to contribute to future profits and value chain resilience.

• Industry trends indicate continued destocking in the domestic herd, with herd size down by 159,000 heads in H1 2025.

• Raw milk production in China increased 0.5% year-over-year in H1 2025.