New Dairy 2025 net profit attributable to parent company increases over 30% year-on-year, proposes dividend of 3.8 yuan per 10 shares

Source: Sichuan Observation News

Text | Sichuan Observation News Shi Xiaolu

On March 22, New Hope Dairy Co., Ltd. (referred to as New Dairy) disclosed its 2025 annual report. Despite the overall pressure on the dairy industry, the company achieved double growth in revenue and profit, with operating income of 11.233 billion yuan, up 5.33% year-on-year; net profit attributable to shareholders of 731 million yuan, up 35.98% year-on-year.

Over the past year, the overall sales of liquid milk faced pressure, and some companies in the industry encountered performance challenges. Why has New Dairy been able to grow against the trend?

The report states that the company has continuously strengthened its core competitiveness through product innovation, technological empowerment, and operational efficiency. Especially, the company adheres to the “Fresh Cube Strategy,” focusing on low-temperature fresh milk and specialty yogurt products, emphasizing product innovation, and cultivating strategic categories. Using the DTC (Direct-to-Consumer) model as a key growth engine, the company concentrates on core regions and markets, leading in Sichuan, Yunnan, Ningxia, and other regional markets, with good growth momentum in East China and South China. By differentiating itself from major industry leaders and continuously enhancing product innovation, brand building, and operational efficiency, the company’s market share has steadily increased, and business quality has improved.

Building on its positive performance, New Dairy continues to increase shareholder returns. According to the profit distribution plan disclosed in the annual report, the company plans to distribute a cash dividend of 3.8 yuan (including tax) for every 10 shares based on 861 million shares.

In recent years, the domestic dairy industry has maintained a competitive pattern of “two super, many strong,” namely two national leading companies, several regional dairy companies deeply rooted in one or more provinces or cities, and numerous local dairy enterprises limited to single provinces or cities, coexisting with differentiated competition among three types of operators.

From industry trends, although the overall sales of liquid milk are under pressure, segmented tracks show structural growth. Low-temperature fresh milk, aligned with new consumer trends, has maintained good growth; functional dairy products, such as those rich in lactoferrin and probiotics, are favored due to consumers’ focus on “health + immunity”; specialty yogurt, desserts, and light cheeses that meet leisure and self-indulgence needs have become new growth points.

New Dairy is a subsidiary of the New Hope Group’s dairy sector. It was listed on the Shenzhen Stock Exchange in 2019. The company mainly engages in the research, production, and sales of dairy products and dairy beverages. The actual controllers are Liu Yonghao and his daughter Liu Chang.

Notably, recently, New Dairy announced that to meet business development needs, deepen internationalization strategies, build an international capital operation platform, and further enhance the company’s capital strength, it plans to issue overseas listed foreign shares (H-shares) and list on the Main Board of the Hong Kong Stock Exchange. If successful, this will mark an important expansion of its capital footprint across A-shares and H-shares.