Core Viewpoint - Bright Dairy is experiencing a decline in revenue and profit, particularly in its home market of Shanghai, amidst a broader contraction in the dairy industry [1][2][3]. Company Performance - In the first half of 2025, Bright Dairy's revenue decreased by 1.9% year-on-year to 12.47 billion yuan, while net profit attributable to shareholders fell by 22.5% to 220 million yuan [1]. - Revenue from liquid milk, other dairy products, and livestock products was 6.61 billion yuan, 4.45 billion yuan, and 520 million yuan, with year-on-year growth rates of -8.6%, +8.8%, and -13.8% respectively [1]. - Revenue breakdown by region shows that in Shanghai, revenue was 3.49 billion yuan (down 6.9%), in other regions 4.99 billion yuan (down 1.5%), and overseas 3.94 billion yuan (up 1.9%) [1]. Industry Context - The overall dairy market is facing a contraction, with Nielsen IQ reporting a 9.6% year-on-year decline in dairy product sales across all channels as of June 2025 [3]. - Major competitors like Mengniu and Yili also reported revenue declines, with Mengniu down 6.9% to 41.57 billion yuan and Yili's liquid milk revenue down 2.1% to 36.13 billion yuan [3]. Competitive Landscape - Bright Dairy is intensifying efforts to defend its market share in Shanghai by launching new products and enhancing existing ones to meet consumer demands [5]. - The company is also expanding its business-to-business (B2B) operations and improving its channel strategies, including online integration and traditional channel support [5]. - New Dairy, a competitor, reported a 3.01% revenue increase to 5.526 billion yuan in the first half of 2025, indicating a more proactive approach in its core markets [4]. Market Response - As of September 25, 2025, Bright Dairy's stock closed at 8.44 yuan per share, reflecting a slight decline of 0.35% [7].