13 Mar 2026
FY25 revenue is expected to be 7% to 8% lower YoY while OPM is slightly lower. FY25 NP would be Rmb1.4bn to Rmb1.6bn, vs Rmb104.5m in FY24. The main reason the FY25 profit rebound appears so dramatic is that FY24 was exceptionally depressed by major non-cash impairments and associate losses, including Bellamy’s impairment and Modern Dairy’s losses. FY25 results showed that Mengniu’s earnings are normalizing from a highly abnormal FY24 trough. Last year, the company still took Rmb2.2bn to Rmb2.4bn of impairment provisions (although much lower than FY24), in respect of (i) certain production facilities that have been left idle and with no plan for resumption of usage in short term; and (ii) certain receivables due from customers and entrusted loans with uncertain repayment ability.