MENGNIU DAIRY(HK:02319) Zhong Jin Zai Xian·2025-09-03 06:12Group 1 - The core viewpoint of the article highlights that Mengniu Dairy's sale of its Yashili New Zealand factory to A2 Milk Company is part of a broader strategic adjustment among dairy companies in response to challenges such as oversupply in the Australian and New Zealand infant formula market and changes in the Chinese market structure [1][2][4] Group 2 - The Australian and New Zealand infant formula industry is facing significant oversupply pressures, driven by a declining birth rate in China and the rise of local milk powder brands, leading to reduced demand for imported products [2] - Several companies, including Synlait and A2 Milk, are proactively adjusting their strategies, with Synlait shifting its Pokeno factory to plant-based products and A2 Milk selling its loss-making Mataura Valley Milk nutrition factory [2] - Mengniu's sale of the Yashili New Zealand factory is seen as a strategic move to optimize its asset structure and improve resource allocation efficiency, recovering approximately NZD 282 million in cash [3] - Despite the sale, Mengniu maintains control over Yashili's operations in Asia, which are expected to show stronger growth potential due to more concentrated resources [3] - Mengniu's infant formula business is recovering, with double-digit sales growth reported for its Ruibaoen brand in China and over 20% growth for Bellamy's in overseas markets [3] - The article suggests that the ongoing industry adjustments will likely lead to more similar transactions, emphasizing the importance of timely decision-making and strategic focus for companies [4]