China Modern Dairy Holdings Ltd. Announces Q1 2026 Financial Results for Modern Farming (Group) Co., Ltd.

Key Highlights Investors Must Know

• Modern Farming (Group) Co., Ltd., a non-wholly owned subsidiary of China Modern Dairy Holdings Ltd., has published its unaudited consolidated financial results for the three months ended 31 March 2026.
• Return to Profitability: The group reported a net profit of RMB 10.52 million in Q1 2026, a major turnaround from a net loss of RMB 71.21 million recorded in Q1 2025.
• Significant Revenue Growth: Operating income increased to RMB 3.45 billion, up from RMB 3.09 billion in the same period last year.
• Strong Cash Position: Cash and cash equivalents at the end of Q1 2026 stood at RMB 4.89 billion, up from RMB 2.68 billion at year-end 2025.
• Substantial Financing Activities: The group raised RMB 500 million from perpetual bonds and RMB 4.87 billion from borrowings during the quarter, reflecting robust access to capital markets.
• Issuance of Green Medium-Term Notes: Modern Farming completed a RMB 500 million green note and RMB 300 million domestic medium-term note issue, strengthening its funding base and sustainability credentials.
• Balance Sheet Expansion: Total assets increased to RMB 34.74 billion at 31 March 2026 from RMB 32.77 billion at the end of 2025.
• Notable Minority Interest Gains: Profit attributable to minority interests rose to RMB 24.14 million, up from RMB 16.52 million in Q1 2025, while net profit attributable to the parent remained negative at -RMB 13.62 million, albeit significantly improved.

Detailed Financial Performance

Income Statement Overview

• Operating Income: RMB 3.45 billion (up 11.7% YoY).
• Operating Costs: RMB 2.73 billion (up from RMB 2.34 billion YoY).
• Gross Profit: Improved with higher revenues, although operating cost rises partially offset gains.
• Administrative Expenses: Decreased to RMB 131.6 million from RMB 161.6 million, reflecting tighter cost control.
• Financial Costs: Slightly decreased to RMB 114.6 million from RMB 120.2 million.
• Gains/Losses on Fair Value Changes: Continued to record substantial negative fair value changes (-RMB 490.83 million), though this improved from -RMB 546.58 million in Q1 2025.
• Investment Income: Rebounded to RMB 8.50 million from a loss of RMB 3.55 million in Q1 2025.
• Total Profit Before Tax: RMB 15.55 million, versus a loss of RMB 65.08 million last year.
• Income Tax: RMB 5.03 million, down from RMB 6.13 million.
• Net Profit: RMB 10.52 million, compared to a loss of RMB 71.21 million.

Balance Sheet Position

• Total Assets: RMB 34.74 billion, up from RMB 32.77 billion at end-2025.
• Monetary Funds: RMB 5.16 billion, a significant increase from RMB 3.08 billion.
• Current Liabilities: RMB 9.28 billion, up from RMB 8.71 billion at year-end.
• Non-Current Liabilities: RMB 13.99 billion, up from RMB 13.11 billion.
• Total Owners’ Equity: RMB 11.46 billion, up from RMB 10.95 billion.
• Perpetual Bonds: Introduced RMB 500 million in perpetual bonds, enhancing capital structure.
• Minority Interests: RMB 2.70 billion, slightly up from RMB 2.67 billion.

Cash Flow Statement Highlights

• Net Cash from Operating Activities: RMB 416.9 million (Q1 2025: RMB 229.4 million).
• Net Cash from Investing Activities: Outflow of RMB 486.3 million (Q1 2025: Outflow of RMB 893.9 million).
• Net Cash from Financing Activities: Inflow of RMB 2.29 billion (Q1 2025: RMB 2.39 billion).
• Cash & Cash Equivalents at End of Period: RMB 4.89 billion (Q1 2025: RMB 3.72 billion).

Important Shareholder Information & Price Sensitive Matters

• Return to Profitability: The return to net profit in Q1 2026 after a significant loss in Q1 2025 is a material improvement and could positively influence investor sentiment and share price.
• Successful Fundraising: The completion of green and medium-term note issues, as well as the introduction of perpetual bonds, demonstrates strong market confidence and may support future growth and balance sheet resilience.
• Minority Interest Performance: Continued growth in profit attributable to minority interests highlights the value generated for non-controlling shareholders.
• High Fair Value Losses: The persistently large negative fair value adjustments, despite improvement, should be monitored by investors as they can impact reported profits and asset valuations.
• Operational Cash Flow Strength: Robust operating cash flows and increased cash balances enhance the group’s liquidity position, supporting future operations and investments.

Additional Cautions for Investors

• The unaudited financial results are prepared under PRC GAAP and may be subject to adjustment during the audit process.
• The information provided covers Modern Farming and its subsidiaries only, not the full China Modern Dairy Holdings Ltd. group, and does not present the entire operational status.
• Shareholders and potential investors are advised to exercise caution and not to rely solely on these results for investment decisions.

Disclaimer

This article is for informational purposes only. The financial information presented is unaudited and may be subject to change. It does not constitute investment advice. Readers are advised to review official company disclosures and consult with financial advisors before making investment decisions. The information herein does not represent the full financial position or performance of China Modern Dairy Holdings Ltd. or its other subsidiaries.

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