China Youran Dairy Group Ltd Issues Positive Profit Alert for H1 2026

Key Highlights

• Turnaround to Profit: The Group expects a profit attributable to owners of the Company for the six months ended June 30, 2026, in the range of RMB 739 million to RMB 903 million, versus a loss of approximately RMB 297 million in the same period last year.
• Major Drivers:
  • Significant reduction in losses related to changes in fair value of biological assets, due to:
    • Narrowing decline in raw milk market prices
    • Continued rise in culled cow prices
    • Ongoing cost reductions and operational efficiency, including improved milk yield per cow and lower feed costs
  • Improved operating performance in core businesses:
    • Raw milk segment benefited from higher sales volumes and reduced feed costs due to better farming efficiency
    • Comprehensive ruminant farming solutions contributed to higher gross profit via product iteration and business model optimization

Important Information for Shareholders

• Price-Sensitive Disclosure: This positive profit alert represents a material change from last year’s loss and is likely to be price sensitive.
• The profit turnaround is attributed to both operational improvements and favorable market conditions in the dairy industry.
• The results are based on preliminary unaudited management accounts and may be subject to changes. The final, audited results will be published before late August 2026.
• Shareholders and potential investors are advised to exercise caution when trading shares pending the release of the final results.

Details and Outlook

China Youran Dairy Group Limited has issued a positive profit alert for the first half of 2026. The Group’s performance marks a significant turnaround, with anticipated profits between RMB 739 million and RMB 903 million, compared to a loss of RMB 297 million in the first half of 2025. The improvement is driven by several factors:

1. Reduction in Losses from Biological Asset Valuation: The decrease in revaluation losses is linked to a stabilization and partial recovery in raw milk prices, sustained higher prices for culled cows, and internal initiatives to cut costs and boost operational efficiency, such as increasing milk yield per cow and further reducing feed costs.
2. Core Business Performance: The raw milk segment saw both sales volume and gross profit growth, supported by improved farming efficiency and lower feed costs. The Group’s comprehensive ruminant farming solutions also contributed to gross profit through product innovation and optimizing the business structure.

The Board emphasizes that these figures are based on preliminary unaudited accounts and may change upon completion of the interim results review and audit. The Company plans to release its official interim results before late August 2026.

The Board also reminds all shareholders and potential investors to remain cautious and monitor future announcements, as the information is subject to finalization and possible adjustments.

Company Leadership

The Board is led by Chairman and Executive Director Mr. Hao Haijun, with additional executive, non-executive, and independent non-executive directors named in the announcement.

Disclaimer: This article is a summary of the official announcement by China Youran Dairy Group Limited. The information is based on preliminary and unaudited data, which may be revised. Investors are advised to read the Company’s official interim results when published and exercise caution in their investment decisions.

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