YILI(SH:600887) Xin Lang Cai Jing·2025-08-29 07:35Summary of Key Points Core Viewpoint - The company reported its 2025 semi-annual results, showing a slight revenue increase but a decline in net profit, indicating mixed performance in a challenging market environment [1]. Financial Performance - The company achieved a revenue of 61.777 billion yuan in H1 2025, representing a year-on-year increase of 3.49% [1]. - The net profit attributable to shareholders was 7.2 billion yuan, down 4.39% year-on-year [1]. - The adjusted net profit was 7.016 billion yuan, reflecting a significant year-on-year increase of 31.78% [1]. - In Q2 2025, the revenue reached 28.838 billion yuan, marking a year-on-year growth of 5.9% [1]. Product Performance - The liquid milk segment generated revenue of 16.485 billion yuan in Q2, showing a slight decline of 0.85% year-on-year due to weak demand [1]. - The company experienced improved operational efficiency and reduced impairment losses, contributing to a positive performance despite ongoing pressures in the liquid milk sector [1]. - The gross margin for Q2 was 34.19%, an increase of 0.61 percentage points year-on-year, attributed to cost advantages and a higher proportion of high-margin products like milk powder [1]. Market Outlook - The company anticipates steady revenue growth in H2 2025, supported by healthy inventory levels in liquid milk and innovative low-temperature products [1]. - There is an expected recovery in demand for infant formula and enhanced competitiveness in adult milk powder, indicating a positive trend for profitability [1].