China Feihe sees profit halve as revenue falls in first half of 2025

China Feihe Limited reported a 9.4% decrease in revenue to RMB9,150.5m for the six months ended June 30, 2025, down from RMB10,094.9m in the same period of 2024. This was primarily attributed to strategies aimed at reducing channel inventory for freshness and quality, and the provision of childbirth subsidies to consumers. Gross profit fell by 17.8% to RMB5,634.9m, with the gross profit margin declining from 67.9% to 61.6%, partly due to increased sales contribution from raw material powders.

Profit for the period saw a significant 46.0% drop to RMB1,032.5m, compared to RMB1,911.5m in the prior year. Basic and diluted earnings per share both decreased to RMB0.11 from RMB0.21. Other income and gains, net, also decreased by 37.4% to RMB540.1m, mainly due to lower government grants and interest income.

The Board also declared an interim dividend of HK$0.1209 per share for the six months ended June 30, 2025, totaling approximately HK$1,096,327,741. The dividend will be paid on or around September 24, 2025, to shareholders registered by September 15, 2025.