Core Insights - China Feihe's H1 2025 performance report shows strong revenue of 9.15 billion RMB and net profit of 1.03 billion RMB, indicating a healthy financial structure and robust cash flow [1] - The company emphasizes technological innovation as a core driver for growth, maintaining its leading market position in infant formula [2][3] Financial Performance - Revenue for H1 2025 reached 9.15 billion RMB, with a net profit of 1.03 billion RMB and cash equivalents of 6.48 billion RMB, showcasing a solid financial foundation [1] - The company plans to distribute approximately 1 billion RMB in dividends for H1 2025, with a total dividend payout of no less than 2 billion RMB for the year [15] Market Position and Innovation - Feihe maintains the top market share and sales in the infant formula sector, supported by continuous investment in scientific research and technological advancements [2] - The company has established a global collaborative innovation network with over 20 leading research institutions, enhancing its product development capabilities [2][3] Technological Advancements - Feihe launched a groundbreaking "milk protein fresh extraction technology," significantly improving the quality and nutritional value of its products [2] - The company has been recognized for its smart manufacturing capabilities, receiving awards for its advanced digital and intelligent manufacturing management systems [5] Global Expansion - Feihe's overseas revenue reached approximately 110 million RMB in H1 2025, with significant progress in North America and Southeast Asia [8] - The company has successfully entered the North American market, with its Canadian factory receiving local production licenses and expanding its presence in over 1,500 supermarkets [8] Social Responsibility - Feihe initiated a 1.2 billion RMB maternity subsidy program to support families, aiming to benefit over 800,000 newborn families [13] - The company has created 170,000 jobs and increased income for 160,000 farmers through its "common prosperity chain" initiative [13] Product Development - Feihe's new generation of products, such as the Star Flying Sail Zhi Rui formula, has shown superior nutritional absorption rates compared to regular formulas [6] - The company has received multiple awards for its innovative products in the children's nutrition segment, highlighting its commitment to quality and innovation [12]

Core Viewpoint - China Feihe (06186) reported strong financial performance for the first half of 2025, showcasing robust revenue and profit growth, alongside significant cash flow generation [1] Financial Performance - The company achieved a revenue of 9.15 billion RMB and a net profit of 1.03 billion RMB during the reporting period [1] - Cash flow reached 6.48 billion RMB, indicating strong financial resilience [1] Market Position - Feihe maintained its position as the market leader in the infant formula sector, with the highest market share and sales across all channels [1] Innovation and Technology - The company emphasized its commitment to innovation by launching "Fresh Protein Extraction Technology" and the first comprehensive database of HMOs in China, reinforcing its technological barriers [1] International Expansion - Feihe accelerated its international strategy, entering over 1,500 supermarkets in North America, with a year-on-year increase of 270% in overseas store count [1] - The company also expanded into Southeast Asia, successfully entering the Philippine market [1] Shareholder Returns - The company announced a plan to repurchase shares worth 1 billion RMB and distribute approximately 1 billion RMB in interim dividends, with an expected total dividend distribution of no less than 2 billion RMB for 2025 [1] Social Responsibility - Feihe initiated a 1.2 billion RMB maternity subsidy program, aiming to benefit over 800,000 newborn families, aligning with national policies and demonstrating its commitment to social responsibility [1]

Core Viewpoint - China Feihe (06186) demonstrated strong financial performance in its 2025 mid-year report, showcasing robust revenue and profit figures along with significant cash flow, indicating a solid operational foundation and financial resilience [1] Financial Performance - The company achieved a revenue of 9.15 billion RMB and a net profit of 1.03 billion RMB during the reporting period [1] - Cash flow reached 6.48 billion RMB, reflecting strong liquidity and operational efficiency [1] Market Position - Feihe maintained its position as the market leader in the infant formula sector, with continued dominance in both market share and sales volume [1] Innovation and Technology - The company is driving growth through hard technology innovation, having launched the "Milk Protein Fresh Extraction Technology" and the first comprehensive HMOs database in China, reinforcing its technological barriers [1] International Expansion - Feihe's international strategy is accelerating, with over 1,500 supermarkets in North America now carrying its products, representing a 270% year-on-year increase in overseas store count [1] - The company is also expanding into Southeast Asia, successfully entering the Philippine market [1] Shareholder Returns - The company announced a plan to invest 1 billion RMB in share buybacks and distribute approximately 1 billion RMB in interim dividends, with an expected total dividend distribution of no less than 2 billion RMB for 2025, aimed at boosting investor confidence [1] Social Responsibility - Feihe initiated a 1.2 billion RMB fertility subsidy program, responding to national policies and expected to benefit over 800,000 newborn families, demonstrating its commitment to social responsibility and long-term value creation [1]

EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 中國飛鶴有限公司 | | 股份代號 | 06186 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 截至2025年6月30日止6個月之中期股息 | | | 公告日期 | 2025年8月28日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年6月30日 | | 宣派股息 | 每 股 0.1209 HKD | | 股東批准日期 | 不適用 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.1209 HKD | | 匯率 | 1 HKD : 1 HK ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 China Feihe Limited 中國飛鶴有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：6186） 截至二零二五年六月三十日止六個月 的中期業績公告 財務摘要 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月： – 3 – 中國飛鶴有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 （統 稱「本集團」、「我 們」或「飛 鶴」）截至二零二五年六月三十日止六個月（「報 告 期 間」）之 未 經 審 核 綜 合 中 期 業 績，連 同 二 零 二 四 年 同 期 之 比 較 數 字。 – 1 – • 本集團的收益為人民幣9,150.5百 萬 元，同 比 減 少9.4%； • 本集團的毛利為人民幣5,634.9百 萬 元，同 比 減 少17.8%； • 本集團的期內溢利為人民幣 ...

Investment Rating - The report assigns an "Outperform" rating to several companies including China Feihe, Huazhu, and others, while Budweiser APAC is rated as "Neutral" [1]. Core Insights - The report indicates a slight rebound in spot costs for essential consumer goods, with most indices showing an increase, while futures indices generally declined [35]. - The overall trend in the consumer goods sector reflects a mixed performance, with some categories experiencing cost increases while others face declines [8][35]. Summary by Category Beer - The spot cost index for beer increased by 0.39% month-on-month, while the futures index decreased by 6.06%. Year-to-date changes show a decline of 4.17% for spot and 6.16% for futures [36][13]. - Glass prices initially rose but later fell, with month-on-month changes of +0.3% for spot and -13.9% for futures [12]. Seasonings - The spot cost index for seasonings decreased by 0.16% month-on-month, while the futures index fell by 5.93%. Year-to-date changes are -1.76% for spot and -6.01% for futures [37]. - Domestic soybean prices have increased due to supply contraction, while imported soybeans remain weak [16]. Dairy - The spot cost index for dairy products increased by 0.7% month-on-month, while the futures index decreased by 1.44%. Year-to-date changes are -3.2% for spot and -2.11% for futures [38]. - Fresh milk prices have declined to 3.02 yuan/kg, with various factors contributing to price pressures [19]. Instant Noodles - The spot cost index for instant noodles increased by 1.3% month-on-month, while the futures index decreased by 2%. Year-to-date changes are -3.01% for spot and -4.21% for futures [39]. - Palm oil prices have risen, impacting overall costs [23]. Frozen Foods - The spot cost index for frozen foods increased by 1.15% month-on-month, while the futures index rose by 0.97%. Year-to-date changes are -1.83% for spot and -2.74% for futures [40]. - Vegetable prices have shown significant fluctuations due to seasonal demand [27]. Soft Drinks - The spot cost index for soft drinks increased by 0.78% month-on-month, while the futures index decreased by 5.63%. Year-to-date changes are -4.99% for spot and -8.6% for futures [41]. - PET prices are stable to weak, reflecting changes in demand and inventory levels [31].

Core Viewpoint - The infant formula industry leader, Feihe, is facing significant challenges with a projected profit decline in the first half of 2025 and only low single-digit revenue growth for the entire year, attributed to multiple factors beyond just declining birth rates [1][3]. Group 1: Market Dynamics - Feihe has launched a 1.2 billion yuan subsidy plan to stimulate demand among new parents, which has led to a price war as competitors like Yili and Junlebao also introduced substantial subsidy plans [1][4]. - The overall market for infant formula has shrunk from 157.2 billion yuan in 2023 to 142 billion yuan in 2024 due to declining birth rates, with the number of newborns in 2024 at 9.54 million [1][3]. Group 2: Financial and Operational Challenges - Feihe's inventory has increased from 1.284 billion yuan at the end of 2020 to 2.154 billion yuan at the end of 2024, with inventory turnover days extending from 69 to 114 days, indicating significant inventory pressure [6]. - The reduction in government subsidies, which fell from 973 million yuan in 2023 to 664 million yuan in 2024, has further impacted Feihe's profitability [6][9]. Group 3: Brand and Consumer Perception - Feihe's premium pricing strategy is misaligned with current consumer preferences, as the majority of the market favors products priced between 200-299 yuan, while Feihe's main products are priced between 350-450 yuan [7]. - Despite heavy marketing expenditures amounting to 7.18 billion yuan in 2024, which is 35% of revenue, the effectiveness of these marketing efforts is diminishing, leading to a decline in brand trust due to quality complaints [8][9]. Group 4: Strategic Initiatives and Future Outlook - Feihe is attempting to diversify its product offerings beyond infant formula to include adult nutrition and health products, but these new segments currently contribute less than 10% to total revenue [10]. - The company is also expanding into international markets, with its Canadian factory now operational, yet overseas revenue remains low, accounting for only about 1% of total revenue in 2024 [10][11]. Group 5: Industry Context - Feihe's challenges reflect a broader shift in the Chinese infant formula industry from growth through new customer acquisition to competition for existing market share, necessitating a transformation in business strategy to enhance resilience in a low-growth environment [11].

Core Viewpoint - China Feihe has issued a profit warning for the first half of 2025, reporting a significant decline in both revenue and net profit, marking the worst mid-year performance in five years [1] Group 1: Financial Performance - Revenue for the first half of 2025 is projected to be between 9.1 billion and 9.3 billion yuan, representing a year-on-year decline of 7.87% to 9.86% [1] - Net profit is expected to be between 1 billion and 1.2 billion yuan, down 37.17% to 47.64% year-on-year, also the lowest mid-year performance in five years [1] Group 2: Reasons for Performance Decline - The decline in performance is attributed to several factors: 1. The company has actively fulfilled its social responsibility by providing fertility subsidies to consumers, leading to a decrease in revenue [1] 2. The company has reduced channel inventory of infant formula to maintain product freshness and health, impacting sales [1] 3. There has been a reduction in government subsidies received by the company [1] 4. The company has made impairment provisions for whole milk powder products [1] Group 3: Core Business Insights - The core business of infant formula remains under pressure, with sales volume struggling and diversification efforts showing limited results [2] - In 2024, the infant formula segment generated 19.062 billion yuan in revenue, contributing 91.9% to total revenue, indicating its critical importance to the company [2] Group 4: Market Dynamics - The demand for infant formula is closely tied to the birth rate, which has been declining in China, despite recent policies aimed at increasing birth rates [4] - The government has announced cash subsidies for families, but there are reports of price increases for various baby products, including China Feihe's products, leading to consumer concerns [4][5] Group 5: Pricing and Distribution Challenges - There are discrepancies in pricing across different sales channels, with reports of significant price variations for the same product [6] - The company relies heavily on over 2,800 distributors, which accounts for 77.1% of its total revenue from dairy products, leading to potential issues with brand control and pricing consistency [5][6]

Core Viewpoint - China Feihe is facing significant challenges with a forecasted decline in both revenue and net profit for the first half of 2025, marking the worst mid-year performance in five years due to over-reliance on infant formula and ineffective diversification strategies [1][2] Financial Performance - Revenue for the first half of 2025 is expected to be between 9.1 billion and 9.3 billion yuan, representing a year-on-year decline of 7.87% to 9.86% [1][2] - Net profit is projected to be between 1 billion and 1.2 billion yuan, down 37.17% to 47.64% year-on-year, also the lowest mid-year performance in five years [1][2] Business Challenges - The primary reasons for the poor performance include: 1. Heavy reliance on infant formula sales, which are under pressure due to declining birth rates and increased competition [2][3] 2. Ongoing struggles with channel inventory management [2][3] 3. Rising marketing expenses that have not translated into proportional revenue growth [2][3] Market Dynamics - The infant formula segment remains the core business, contributing 91.9% of total revenue, but only saw a modest year-on-year growth of 6.6% in 2024 [3] - The demand for infant formula is significantly influenced by the declining birth rate in China, which has been a persistent issue despite government policies aimed at increasing birth rates [3] Pricing and Consumer Perception - Following the announcement of government subsidies for child-rearing, there have been consumer complaints regarding price increases for certain products, including those from China Feihe [5][6] - Specific examples of price increases include the Feihe Star Flying A2-2 formula, which saw a price rise from 960 yuan to 1020 yuan per box, reflecting a price increase of approximately 14% to 20% [5][6] Distribution and Pricing Strategy - China Feihe relies heavily on over 2,800 distributors, which account for 77.1% of its total revenue from dairy products, leading to potential issues with brand control and pricing consistency [7][8] - There is a noted lack of price transparency, with significant discrepancies in product pricing across different sales channels, indicating a need for improved pricing index systems to reduce information asymmetry [8]

Core Viewpoint - The article highlights the launch of Feihe's 2025 Fresh Nutrition Witness Journey, showcasing the company's commitment to high-quality, fresh nutrition products through immersive experiences and advanced technology [1][9]. Group 1: Event Overview - The Fresh Nutrition Witness Journey features a diverse group of participants, including celebrities, cultural scholars, and media representatives, who explore Feihe's production facilities and supply chain [1][5]. - The event includes engaging activities such as a dairy cow beauty contest and live demonstrations of fresh technology, emphasizing the company's innovative approach [5][6]. Group 2: Technology and Production - Feihe's production process is highlighted, showcasing the entire supply chain from dairy farms to the final product, ensuring high-quality fresh milk reaches consumers [6][9]. - The company employs advanced technologies such as low-temperature extraction and membrane separation to enhance the nutritional value of its products, aiming to replicate the quality of breast milk [9][10]. Group 3: Social Impact and Sustainability - Feihe's initiatives contribute to rural revitalization, creating 170,000 jobs and increasing the income of over 160,000 farmers, demonstrating the company's commitment to social responsibility [12]. - The company aims to transform ecological challenges into economic opportunities, aligning its business growth with environmental sustainability [12]. Group 4: Future Directions - Feihe plans to continue its focus on research-driven product development, aiming to enhance the nutritional health of families through its innovative offerings [12]. - The company emphasizes its role in the high-quality development of the Chinese dairy industry, striving to set new standards in fresh nutrition [12].