Core Insights - Aoyou Dairy's revenue for the first half of 2025 reached approximately 3.887 billion yuan, representing a year-on-year growth of 5.6% [1] - The company's EBITDA was about 398 million yuan, showing a significant increase of 29.7% year-on-year [1] - Net profit attributable to equity holders was around 181 million yuan, up 24.1% compared to the previous year [1] International Business Growth - Aoyou's international and nutrition businesses have become key growth drivers, with overseas revenue from Jiabeiaite increasing by 65.7% to approximately 483 million yuan [1] - The Middle East remains the largest overseas market, with revenue growth of 54.2%, driven by enhanced brand influence and market penetration in countries like Saudi Arabia and the UAE [1][2] - North America saw a remarkable revenue increase of over 138.7%, with Jiabeiaite achieving leadership in the goat milk infant formula category on Amazon and successfully entering Walmart [1][2] Product Line Expansion - The CIS market contributed stable revenue growth with a year-on-year increase of 33.8%, covering a full range of Jiabeiaite products [2] - Aoyou's nutrition business also grew by 7.0%, expanding into high-end overseas markets like the US and France [2] - The company launched seven new functional products in the To C segment, receiving positive market feedback [2] Domestic Market Performance - Despite a declining newborn population and increased competition in the infant formula market, Aoyou maintained stable growth, with its own brand milk powder revenue reaching approximately 2.826 billion yuan [2] - Goat milk powder revenue grew by 3.1%, with market share increasing by 2.8 percentage points to 30.4% [2] Strategic Acquisitions and Future Outlook - Aoyou completed the strategic acquisition of the remaining 50% stake in Amalthea Group B.V. to enhance its goat milk supply chain [3] - The company aims to strengthen its "milk powder + nutrition" strategy, focusing on product, brand, channel, digital, and organizational capabilities to ensure revenue and profit growth [3] - The company anticipates ongoing challenges from macroeconomic uncertainties and a declining infant formula market, but remains committed to consumer-centric strategies [3]

Core Viewpoint - Aoyou Dairy's mid-year report for 2025 shows continued growth in revenue and profit despite a challenging global economic environment and increased competition in the infant formula market, driven by a comprehensive nutrition strategy and strong international performance [2][3][4]. Financial Performance - For the first half of 2025, Aoyou reported revenue of approximately 3.887 billion yuan, a year-on-year increase of 5.6% - EBITDA reached about 398 million yuan, up 29.7% - Net profit attributable to equity holders was approximately 181 million yuan, reflecting a 24.1% increase [2]. International Market Growth - Aoyou's international business experienced explosive growth, with revenue from the goat milk powder brand "Jiabai Aite" increasing by 65.7% to approximately 483 million yuan - The Middle East market saw a revenue increase of 54.2%, while North America reported a staggering 138.7% growth, becoming the second-largest revenue source for Aoyou [3][4]. Product and Market Strategy - Aoyou's nutrition business also grew by 7.0%, with successful expansion into overseas markets - The company launched several new products under the NC brand, which has become the top-selling Australian brand of probiotics in China [5][6]. Supply Chain and Operational Efficiency - Aoyou implemented a digital can code system to enhance product freshness and transparency, which, while impacting short-term sales, is expected to support long-term growth - The company's own brand milk powder business generated approximately 2.826 billion yuan, with goat milk powder maintaining a market share of 30.4% [6][7]. Research and Innovation - Aoyou hosted an international medical seminar on goat milk in Amsterdam, enhancing its authority in the field - The company launched four new goat milk raw materials, with three achieving global commercial viability, and received several awards for its products [9][10]. Future Outlook - Despite ongoing macroeconomic uncertainties and a declining trend in the infant formula industry, Aoyou remains confident in its market position and plans to strengthen its second growth curve through consumer-centric strategies and continued innovation [10].

Core Insights - Aoyou Dairy Co., Ltd. reported a revenue of approximately 3.887 billion yuan for the first half of 2025, representing a year-on-year growth of 5.6% [1] - The company's EBITDA reached approximately 398 million yuan, showing a significant increase of 29.7% year-on-year [1] - Net profit attributable to equity holders of the parent company was approximately 181 million yuan, reflecting a year-on-year growth of 24.1% [1] Brand Performance - Aoyou's own brand milk powder business generated approximately 2.826 billion yuan in revenue, with the goat milk powder segment growing by 3.1% year-on-year [1] - The company's market share for goat milk powder increased by 2.8 percentage points to 30.4% as of June 30 [1] - Aoyou has maintained over 60% market share in China's imported infant goat milk powder market for seven consecutive years, with sales volume and revenue share reaching 84% in 2024 [1] International and Nutritional Business Growth - The international business and nutritional products have become significant growth drivers for the company [1] - Aoyou's international business saw explosive growth, with revenue from Jiabei Aite in overseas markets increasing by 65.7% to approximately 483 million yuan [1] - The growth in international markets is attributed to strategic breakthroughs in the Middle East, North America, and the CIS, with notable progress in channel expansion, product innovation, and brand building [1][2] Nutritional Products Expansion - The nutritional products segment achieved a revenue growth of 7.0% year-on-year and successfully expanded into overseas markets [2] - The To B segment, particularly Jinqi Biological, improved fermentation processes and stability, leading to a revenue contribution increase to 24% through strategic partnerships [2] - The To C segment launched seven functional products, including G13 growth capsules and Aiyisen Shouhu PRO, during the first half of the year [2]

Core Viewpoint - Aoyou's international and nutrition businesses have become the second growth engine for the company, showing robust performance in the first half of 2025 with significant revenue and profit growth [1][3]. Group 1: Financial Performance - In the first half of 2025, Aoyou achieved revenue of approximately RMB 38.87 billion, a year-on-year increase of 5.6% [1]. - EBITDA reached approximately RMB 3.98 billion, reflecting a year-on-year growth of 29.7% [1]. - Profit attributable to equity holders of the parent company was approximately RMB 1.81 billion, up 24.1% year-on-year, indicating sustained revenue and profit growth [1]. Group 2: International Business Growth - Aoyou's international business saw explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 4.83 billion [5]. - The Middle East remains the largest overseas market for Aoyou, with a revenue increase of 54.2% [7]. - North America experienced a revenue increase of over 138.7%, becoming the second-largest revenue source for Aoyou [7]. - The Commonwealth of Independent States (CIS) market contributed stable revenue growth with a year-on-year increase of 33.8% [7]. Group 3: Nutrition Business Development - Aoyou's nutrition business achieved a revenue growth of 7.0% year-on-year, successfully expanding into overseas markets [8]. - The To B segment saw significant improvements in the stability of probiotic fermentation processes, with revenue contributions from strategic partnerships and e-commerce channels [8]. - The To C segment launched seven new functional products, which received positive consumer feedback [8]. Group 4: Brand and Market Position - Aoyou's own brand milk powder business generated approximately RMB 28.26 billion in revenue, with the goat milk powder segment growing by 3.1% [13]. - The market share of Aoyou's goat milk powder increased by 2.8 percentage points to 30.4% [13]. - Aoyou's cow milk powder business stabilized, with significant growth in e-commerce sales [13]. Group 5: Supply Chain and Operational Efficiency - Aoyou completed the strategic acquisition of the remaining 50% stake in Amalthea Group B.V., enhancing its supply chain advantage in goat milk products [14]. - The company implemented a digital can code system to improve product freshness and transparency, which may impact short-term sales but supports long-term growth [11]. - Sales and distribution expense ratios improved, with a 3.8% year-on-year decrease due to enhanced marketing efficiency [15]. Group 6: Research and Innovation - Aoyou hosted the "Future of Goat Milk" international seminar, enhancing its authority in the field of goat milk formula [16]. - The company launched four new goat milk raw materials, with three achieving global commercialization [17]. - Aoyou received multiple awards for its research and product innovations, reinforcing its commitment to scientific advancement [17].

Core Viewpoint - Aoyou Dairy's performance in the first half of 2025 shows resilience with revenue growth and significant increases in EBITDA and net profit, driven by strong international market performance and strategic business developments [1][2][4]. Group 1: Financial Performance - In the first half of 2025, Aoyou achieved revenue of approximately RMB 38.87 billion, a year-on-year increase of 5.6% [1] - EBITDA reached approximately RMB 3.98 billion, reflecting a year-on-year growth of 29.7% [1] - Net profit attributable to equity holders was approximately RMB 1.81 billion, up 24.1% year-on-year [1] Group 2: International Business Growth - Aoyou's international business saw explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 4.83 billion [2] - The Middle East remains the largest overseas market, with a revenue increase of 54.2% [2] - North America experienced a revenue surge of over 138.7%, becoming the second-largest source of overseas revenue [2] Group 3: Nutritional Products and Strategic Developments - The nutritional products segment achieved a revenue growth of 7.0%, expanding into overseas markets [3] - Aoyou completed a strategic acquisition of the remaining 50% of the Dutch goat cheese company Amalthea Group B.V., enhancing its supply chain advantages [4] - The company launched a digital can code system to improve product freshness and transparency, which is expected to support long-term sustainable growth [4][6] Group 4: Operational Efficiency and Management - Aoyou improved its sales and distribution expense ratio by 3.8% through enhanced digital marketing and reduced traditional promotional expenses [6] - The overall asset turnover rate improved, with inventory turnover days decreasing by 20 days [6] - The company implemented a new operational philosophy focusing on sales, supply chain, and functions to enhance organizational efficiency [6] Group 5: Research and Innovation - Aoyou hosted an international seminar on goat milk, reinforcing its authority in the field [7] - The company launched four new goat milk raw materials, with three achieving global commercialization [8] - Aoyou is committed to continuous innovation and research to drive future growth and enhance product offerings [8]