Tianrun Dairy's 2024 operating profit plummets, CITIC Securities investigates

Xinjiang Tianrun Dairy (SSE:600419) experienced a sharp decline in operating profit in 2024, falling 52.08% to CNY 11,743.78. This decline triggered a special on-site inspection by CITIC Securities, the company's sponsor for its convertible bond issuance, in accordance with regulatory requirements. While revenue increased 3.33% to CNY 280,433.88, the company faced headwinds from a cyclical downturn in the dairy industry, lower prices for raw milk and beef, losses on the disposal of cattle, and higher financial expenses following the acquisition of Xinong Dairy. CITIC Securities noted the company’s active measures to address the challenges, including channel diversification, product innovation, and cost control.