Summary of Mengniu Dairy (2319.HK) 1H25 Results and Key Insights Company Overview - **Company**: Mengniu Dairy - **Ticker**: 2319.HK - **Reporting Period**: 1H25 - **Report Date**: August 27, 2025 Key Financial Highlights 1. **Sales and Net Profit**: - Total sales decreased by **6.9% year-on-year (yoy)** to **Rmb 41.6 billion** - Net profit fell by **16.4% yoy** to **Rmb 2.0 billion** [1][9] 2. **Core Operating Profit (OP)**: - Core OP increased by **13% yoy**, with an Operating Profit Margin (OPM) of **8.5%**, up **150 basis points (bps)** yoy, exceeding the market expectation of **7.6%** [1][8] 3. **Gross Profit Margin (GPM)**: - GPM expanded by **1.5 percentage points (pp)** in 1H25, attributed to lower raw milk costs [1][8] 4. **Cash Flow**: - Operating Cash Flow (OCF) improved to **Rmb 2.8 billion**, a **46% increase** from **Rmb 1.92 billion** in June 2024 [1][8] 5. **Capital Expenditure (Capex)**: - Capex significantly reduced by **40% yoy** to **Rmb 1.0 billion** in 1H25 [1][8] 6. **Net Debt**: - Net debt decreased by **19% half-on-half (HoH)** to **Rmb 14.1 billion** from **Rmb 17.3 billion** at the end of 2024 [1][8] Segment Performance 1. **Liquid Milk Sales**: - Liquid milk sales declined by **11% yoy**, below market expectations by **5%** [1][7] - Fresh milk and low-temperature yogurt showed growth, while ice cream sales increased by **15% yoy** [1][7] 2. **Other Dairy Products**: - Infant formula sales grew by **2% yoy**, and other dairy products (including cheese) increased by **12% yoy** [1][7] Challenges and Risks 1. **Associate Losses**: - Higher associate losses due to raw milk price cycles, with losses of **Rmb 545 million** in 1H25 compared to **Rmb 133 million** in 1H24 [1][9] 2. **Interest Income**: - Interest income decreased to **Rmb 540 million** from **Rmb 914 million** [1][9] 3. **Tax Rate**: - Effective tax rate increased to **24%**, primarily due to associate losses, compared to **18%** in 1H24 [1][9] Future Outlook 1. **Demand Outlook**: - Upcoming onsite briefing scheduled for August 28, focusing on demand outlook for liquid milk, growth expectations for 2H25, and product plans [1][3] 2. **Raw Milk Cycle**: - Industry herd size is declining, with expectations for further reductions, impacting raw milk supply and pricing [1][10] 3. **Shareholder Returns**: - Discussion on shareholder return plans is anticipated in the upcoming briefing [1][3] Management Changes - **CFO Appointment**: Mr. Shen Xinwen appointed as CFO effective September 1, 2025, succeeding Mr. Zhang Ping [2][2] Investment Considerations - **Price Target**: Goldman Sachs maintains a **Buy** rating with a 12-month price target of **HK$ 23.30**, representing an upside of **43.8%** from the current price of **HK$ 16.20** [13][14] - **Risks**: Key risks include slower-than-expected premium demand, intense competition, and potential wider losses in new categories [13][13]

CHINA MENGNIU DAIRY COMPANY LIMITED (2319.HK) 2025 Interim Results Legal Disclaimer The presentation is prepared by China Mengniu Dairy Company Limited (the "Company") and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without profes ...

报告期内，蒙牛聚焦高质量发展，推进"一体两翼"战略，夯实核心乳品业务，驱动品类多元化；加速营 养健康和国际化业务发展，海外市场覆盖提升。运营层面，通过精益管理、审慎费用投入和数智化转 型，提升运营效率和市场反应能力，实现经营利润率稳步提升和自由现金流稳健。 渠道方面，蒙牛优化通路模式，构建线上线下（300959）全渠道融合，拓展下沉市场，深化与会员店、 零食量贩、即时零售、内容电商、直播电商等渠道的合作，并拓展茶饮咖啡、烘焙等餐饮业态B端业 务。此外，蒙牛把握数智化转型机遇，重塑乳业链条，提升渠道效率、降低供应链成本，并优化消费者 服务，以打造乳业新质生产力。 蒙牛乳业公布2025年中期业绩，实现收入人民币415.672亿元，同比下降6.9%；毛利率同比提升1.4个百 分点至41.7%。经营利润为人民币35.382亿元，经营利润率同比提升1.5个百分点至8.5%。权益股东应占 利润为人民币20.455亿元，每股盈利0.523元。 ...

（文章来源：北京商报） 北京商报讯（记者孔文燮）8 月 27 日晚间，蒙牛乳业披露的上半年财报显示，由于原奶仍阶段性供给 过剩，需求恢复不及预期，乳制品行业供需矛盾仍存，集团实现收入约 415.67亿元，同比下降6.9%； 毛利率同比提升1.4个百分点至41.7%；权益股东应占利润约 20.46 亿元。 ...

Group 1 - The company announced the resignation of Mr. Wang Xi as a non-executive director and member of the Strategic and Development Committee effective September 1, 2025 [1] - Mr. Zhang Ping will no longer serve as the Vice President and Chief Financial Officer of the company [1] - Mr. Shen Xinwen has been appointed as the Executive Director, member of the Strategic and Development Committee, Vice President, and Chief Financial Officer of the company [1]

Core Insights - Mengniu Dairy (02319) reported a mid-year revenue of RMB 41.5672 billion for 2025, representing a year-on-year decline of 6.9% while gross margin increased by 1.4 percentage points to 41.7% [1] - The company achieved an operating profit of RMB 3.5382 billion, with an operating profit margin rising by 1.5 percentage points to 8.5% [1] - Net profit attributable to equity shareholders was RMB 2.0455 billion, translating to earnings per share of RMB 0.523 [1] Group 1 - The company is focusing on high-quality development and advancing its "One Body, Two Wings" strategy, which aims to solidify its core dairy business while diversifying product categories [1] - Mengniu is accelerating the development of its "Two Wings" business, achieving key technological breakthroughs and commercialization in the nutrition and health sector, while international business revenue is growing rapidly [1] - The company is enhancing operational excellence through lean management, prudent expense control, and digital transformation, which has led to improved organizational efficiency and a steady increase in operating profit margin [1] Group 2 - The channel landscape is diversifying, with Mengniu optimizing and reconstructing its distribution model [2] - The company is enhancing both traditional and modern channel strategies while building an integrated online and offline omnichannel business model, expanding its reach in lower-tier markets [2] - Mengniu is focusing on digital transformation opportunities, aiming to improve channel efficiency, reduce supply chain costs, and enhance consumer services, thereby revitalizing the dairy industry chain [2]

格隆汇8月27日丨蒙牛乳业(02319.HK)公告，2025年上半年，由于原奶仍阶段性供给过剩，需求恢复不 及预期，乳制品行业供需矛盾仍存，集团实现收入人民币415.672亿元，同比下降6.9%；毛利率同比提 升1.4个百分点至41.7%。集团积极应对外部挑战，坚定推进「一体两翼」战略落地执行，加速渠道优化 和新业务发展，强化精细化运营和提质增效，全面推动高质量发展，实现经营利润人民币35.382亿元， 经营利润率同比提升1.5个百分点至8.5%。权益股东应占利润人民币20.455亿元。 ...

格隆汇8月27日丨蒙牛乳业(02319.HK)公告，自2025年9月1日起：(1)王希先生已辞任公司非执行董事及 公司战略及发展委员会成员；(2)张平先生不再担任公司副总裁及首席财务官；及(3)沈新文先生已获委 任为公司执行董事、战略及发展委员会成员、副总裁及首席财务官。 ...

Core Insights - Mengniu Dairy reported a revenue of RMB 41.5672 billion for the first half of 2025, representing a year-on-year decline of 6.9% while achieving a gross margin increase of 1.4 percentage points to 41.7% [1] - The operating profit reached RMB 3.5382 billion, with an operating profit margin improvement of 1.5 percentage points to 8.5% [1] - Net profit attributable to equity shareholders was RMB 2.0455 billion, translating to earnings per share of RMB 0.523 [1] Group 1: Business Strategy and Performance - The company continues to focus on high-quality development and is advancing its "One Body, Two Wings" strategy, reinforcing its core dairy business while diversifying its product categories [1] - Mengniu has made significant technological breakthroughs and commercial advancements in the nutrition and health sector, alongside rapid growth in international business revenue, enhancing its market presence [1] - Operationally, Mengniu is driving excellence through lean management, prudent expense control, and digital transformation, which has led to improved organizational efficiency and a steady increase in operating profit margin and free cash flow [1] Group 2: Market and Channel Development - The channel landscape is diversifying, with Mengniu accelerating the optimization and restructuring of its distribution models [2] - The company is enhancing its traditional and modern channel strategies while building an integrated online and offline omnichannel business model, expanding its reach in lower-tier markets [2] - Mengniu is collaborating with leading domestic and international brands to develop customized products and is focusing on high-growth channels such as tea and coffee, baked goods, and B-end business expansion [2] - The company is leveraging digital transformation opportunities to improve channel efficiency, reduce supply chain costs, and enhance consumer services, thereby revitalizing the dairy industry chain [2]

智通财经APP讯，蒙牛乳业(02319)发布公告，自2025年9月1日起：王希先生已辞任公司非执行董事及公 司战略及发展委员会成员;张平先生不再担任公司副总裁及首席财务官;沈新文先生已获委任为公司执行 董事、战略及发展委员会成员、副总裁及首席财务官。 ...