Milkground reports strong Q3 profit growth, board approves wealth management

Shanghai Milkground Food Tech Co., Ltd. reported a robust third quarter for 2025, with total profit increasing by 330.75% to RMB 62,633,484.27 and net profit attributable to shareholders rising by 214.67% to RMB 42,967,940.21. For the first nine months, total profit grew 117.95% to RMB 239,092,363.91, and net profit attributable to shareholders increased by 106.88% to RMB 175,938,062.26, driven by optimized product structure, higher-margin cheese products, government subsidies, and investment income.

The company's board approved using up to RMB 2.2 bn of idle own funds and RMB 1.48 bn of idle raised funds for cash management. These investments, primarily in highly secure, capital-guaranteed, and liquid products, aim to boost company earnings and shareholder returns without impacting normal operations or project construction. The authorization extends for 12 months, from November 1, 2025, to October 31, 2026.

As of September 30, 2025, Milkground had 5,873 distributors, a reduction due to streamlining inactive accounts and integrating operations following the Inner Mongolia Mengniu Dairy acquisition. Milkground also highlighted an ongoing arbitration related to a trust loan and collateral involving its investment in Mongolia Mengniu Dairy, with commitments from Inner Mongolia Mengniu Dairy and Ms. Chai Xiu to cover potential losses.