China Modern Dairy Holdings Ltd. (Modern Dairy) reported interim revenue of RMB6.59 billion for the six months ended 30 June 2026, an 8.6% year-on-year increase, driven by record raw-milk output and double-digit growth in its integrated dairy-farming solutions segment.
Revenue breakdown showed RMB5.40 billion (+6.5% yoy) from raw-milk sales and RMB1.19 billion (+19.0% yoy) from integrated solutions. Average selling price of raw milk slipped 2.4% to RMB3.21 per kg, but volumes rose 8.9% to roughly 1.68 million tons as average annualised milk yield reached 13.3 tons per cow (+0.4% yoy) and the milking-cow ratio improved to 60.1%.
Group gross profit increased 7.7% to RMB1.73 billion with an overall margin of 26.2%. Net profit for the period reached RMB41.74 million, reversing a RMB983.77 million loss a year earlier, aided by a 58.3% reduction in fair-value losses on dairy cows to RMB760.07 million.
Operating cash flow strengthened markedly, up 56.8% to RMB768.50 million, while net gearing eased to 108.0% from 115.7% at end-2025. Cash EBITDA grew 8.3% to RMB1.60 billion.
Capital structure showed total interest-bearing borrowings of RMB15.00 billion, offset by cash and deposit assets of RMB6.82 billion. Available but unused banking facilities stood at RMB7.80 billion.
Strategic expansion advanced through the offer for China Shengmu Organic Milk Limited (CSM). As at 3 August 2026, Modern Dairy and concert parties controlled 83.52% of CSM’s issued shares, positioning the group to secure scarce desert-sourced organic milk and enlarge its high-end product mix.
The herd numbered 460,854 head (-2.5% yoy) after planned optimisation, with milkable cows up 8.4% to 276,871. ESG performance improved, with MSCI upgrading Modern Dairy to ‘AA’ and inclusion in the S&P Global Sustainability Yearbook.
No interim dividend was declared. Looking forward, management targets cost leadership, expanded breeding and feed operations, digital-platform growth, and further integration with newly acquired CSM assets to reinforce market leadership and drive the next phase of growth.