China Feihe reports significant profit decline in H1 2025

China Feihe Limited reported revenue of RMB9.15 bn for the six months ended June 30, 2025, a 9.4% decrease from RMB10.09 bn in the same period of 2024. Gross profit also saw a significant decline of 17.8%, falling to RMB5.63 bn from RMB6.85 bn. Profit for the period plummeted by 46.0% to RMB1.03 bn compared to RMB1.91 bn in H1 2024.

Earnings per share attributable to ordinary equity holders of the parent decreased to RMB0.11, down from RMB0.21. The company attributes the revenue decrease to a strategy of reducing channel inventory for infant formula products to maintain freshness and quality, and providing childbirth subsidies. Cost of sales increased by 8.4% to RMB3.52 bn, primarily due to higher production costs for raw material powders.

Other income and gains, net, decreased by 37.4% to RMB540.08m, mainly due to a reduction in government grants and interest income. Selling and distribution expenses decreased by 10.2% to RMB3.17 bn, attributed to lower advertisement, offline activities, and promotion costs. The company's total assets as of June 30, 2025, were RMB33.90 bn, with total liabilities at RMB6.75 bn.