NHD(SZ:002946) Guan Cha Zhe Wang·2025-12-22 10:18Core Viewpoint - New Dairy has successfully completed the acquisition of Fuzhou Aoniu Dairy assets, marking the end of a six-year negotiation process, which is part of its broader strategy to expand its national presence through mergers and acquisitions [2][6][34]. Group 1: Acquisition Details - The acquisition of Fuzhou Aoniu Dairy involved a total payment of 111 million yuan, with 109 million yuan already paid by November 2025, and the final payment of 2.31 million yuan completed on December 18 [6][8]. - The deal began in August 2019, with a framework agreement signed shortly after New Dairy's IPO, aiming to acquire 55% of Aoniu's equity [7][34]. - Aoniu Dairy has been operating in the local market for over 20 years, focusing on low-temperature milk products, and holds a significant market share in Fujian province [10][11]. Group 2: Market Position and Strategy - New Dairy's acquisition strategy has included multiple regional brands since its listing in 2019, establishing a business network centered in the Southwest and extending nationwide [2][34]. - The company currently operates 15 major dairy brands, 16 processing plants, and 12 owned farms, with a total liquid milk production capacity exceeding 162,000 tons per year [4][20]. - The acquisition of Aoniu is expected to enhance New Dairy's channel capabilities and brand influence in the Fujian region, which is crucial for expanding its market presence in Southern China [15][35]. Group 3: Financial Performance - For the first three quarters of 2025, New Dairy reported revenues of 8.434 billion yuan, a year-on-year increase of 3.49%, and a net profit of 623 million yuan, up 31.48% [23]. - The company has been focusing on low-temperature products, which have shown double-digit growth, particularly in its low-temperature yogurt brand [23]. - New Dairy's debt levels have been high, with total liabilities decreasing from 68.25 billion yuan in 2022 to 56.24 billion yuan by September 2025, marking a significant reduction in its debt ratio [30][33]. Group 4: Industry Trends - The Chinese low-temperature milk market is projected to grow at a rate of 8.4% in 2024, significantly outpacing the 1.2% growth of ambient milk, indicating a shift in consumer preferences [17]. - The trend in the dairy industry is moving towards consolidation, with regional dairy companies banding together to enhance competitiveness, as seen in New Dairy's acquisition strategy [17][29].