Core Viewpoint - Guangxi Baifei Dairy Co., Ltd. is attempting a second IPO on the Shanghai Stock Exchange after previous attempts to list on different exchanges, highlighting the challenges faced by dairy companies in the current market environment [1] Company Summary - Baifei Dairy primarily engages in the research, production, and sales of dairy products, including sterilized milk, modified milk, fermented milk, pasteurized milk, and milk-containing beverages, using raw materials such as water buffalo milk and cow milk [1] - The company reported significant revenue growth during the reporting period from 2022 to 2024, with revenues of 780.80 million yuan, 1.075 billion yuan, and 1.422 billion yuan, reflecting year-on-year growth rates of 9.28%, 37.69%, and 32.33% respectively [2] - The net profit attributable to the company, excluding non-recurring gains and losses, showed a mixed performance with figures of 117.10 million yuan, 227.15 million yuan, and 299.65 million yuan, with growth rates of -11.27%, 93.98%, and 31.92% respectively [2] Industry Summary - The cost structure analysis indicates that a decrease in operating costs has been a key factor in the company's performance improvement, with gross profit margins increasing from 27.87% to 40.14% over the reporting period [3] - The average price of fresh milk has been declining, from 4.25 yuan per kilogram in February 2022 to 3.07 yuan per kilogram in April 2025, with a year-on-year decrease of 11.3% [5] - The "China Agricultural Outlook Report (2025-2034)" suggests that the oversupply of fresh milk in China may see a turning point in the second half of 2025, with prices expected to stabilize and potentially rise [7] - Water buffalo milk remains a niche product in the market, facing challenges due to its higher fat content compared to traditional cow milk, which may deter health-conscious consumers [7]