MENGNIU DAIRY (02319) is expected to have an annual shareholder profit of around 14 billion to 16 billion yuan.

MENGNIU DAIRY (02319) announces that consumer demand, channel scenarios, and competitive environment have continued to change within the year. The group expects a 7% to 8% year-on-year decrease in total revenue by 2025. Despite the impact of declining revenue, the company has continuously optimized marketing expenses and controlled fixed costs. However, economies of scale have been weakened, leading to a year-on-year decrease in operating profit margin. In the face of external environmental changes, the company remains steadfast in its strategic focus, increasing investment in research and development and digitization to continuously enhance core competitiveness and operational efficiency. The company expects the operating profit margin for 2025 to be between 7.9% and 8.1%, slightly lower than 2024 (operating profit margin: 8.2%), but still higher than previous years before 2024. Based on prudence and in accordance with international financial reporting standards, the group expects to make impairment provisions for idle production facilities and certain financial and contractual assets with uncertain repayment abilities (mainly involving receivables from several customers and entrusted loans) that are no longer in use and have no plans for restart in the short term, totaling approximately RMB 2.2 billion to 2.4 billion for 2025. Taking the above factors into account, the group is expected to achieve earnings attributable to owners of the company of approximately RMB 1.4 billion to 1.6 billion for the year ending December 31, 2025 (2024: RMB 1.045 billion (related to impairment of goodwill and intangible assets)). The company is steadfast in advancing the "two-wing" development strategy, actively responding to changes in the external market environment, consolidating the brand foundation, stabilizing market share, and continuously strengthening core competitiveness through innovative product layouts, aiming to provide every consumer with the opportunity to "drink milk, drink good milk, and drink the right milk." We are pleased to see that as raw milk prices stabilize, demand continues to improve, with liquid milk revenue showing stable performance since the second half of 2025; at the same time, categories such as fresh milk, powdered milk, and cheese have all achieved double-digit growth throughout the year and maintained a good growth momentum, presenting a trend of diversified development in business structure.