China Modern Dairy reports wider net loss despite increased milk yield

China Modern Dairy Holdings Ltd. reported a net loss of RMB983.8 million for the six months ended June 30, 2025, a significant increase from RMB207.2 million in the same period of 2024. Revenue decreased by 5.4% year-on-year to RMB6,072.5 million, primarily due to a 23.2% decline in integrated dairy farming solutions revenue and a 0.8% decrease in raw milk revenue to RMB5,068.9 million. The average selling price of raw milk fell by 10.1% to RMB3.29/kg.

Despite the revenue decline, the Group saw positive operational growth. Total raw milk yield increased by 14.6% to 1,661 thousand tons, and the average annualized milk yield per milkable cow rose by 1.5% to 13.2 tons. Herd size grew by 6.2% to 472,480 dairy cows. Operating cash flow improved significantly, increasing by 23.3% to RMB490.0 million, reflecting enhanced efficiency and cost savings.

The company's net gearing ratio increased to 117.1% as of June 30, 2025, up from 97.1% at the end of 2024, driven by an increase in interest-bearing borrowings to RMB16,971.7 million. The Board did not declare an interim dividend for the period.