Guangming Dairy's net profit will lose 149 million yuan in 2025, with revenue declining for four consecutive years.

Ask AI · How will production issues at New Zealand Dairy drag down Guangming Dairy’s net profit in 2025?

On March 30, Guangming Dairy disclosed its annual report. In 2025, it achieved operating revenue of 23.895 billion yuan, down 1.58% year over year; net profit attributable to shareholders turned from profit to loss, with a loss of 149 million yuan, down sharply 120.67% year over year from a profit of 722 million yuan in the same period last year.

Guangming Dairy said that in 2025, China’s dairy industry faced dual pressure: insufficient momentum for consumption growth on the demand side and excess production capacity on the supply side. The financial report shows that in 2025, Guangming Dairy’s dairy product manufacturing segment achieved operating revenue of 21.689 billion yuan, down 1.22% year over year; its animal husbandry segment achieved operating revenue of 0.909 billion yuan, down 11.15%.

By product category, in 2025 the company’s liquid milk achieved operating revenue of 13.223 billion yuan, down 6.65% year over year; other dairy products achieved operating revenue of 8.466 billion yuan, up 8.67% year over year; animal husbandry products achieved operating revenue of 0.909 billion yuan, down 11.15% year over year; and other products achieved operating revenue of 1.166 billion yuan, down 0.92% year over year.

What is worth noting is that the main reason Guangming Dairy’s net profit incurred a loss in 2025 was being dragged down by its overseas subsidiary, New Zealand Dairy. The financial report discloses that in 2025, New Zealand Dairy recorded operating revenue of 7.65 billion yuan; and a net profit loss of 407 million yuan. The loss in 2025 was mainly due to production problems at its production base, resulting in relatively large direct losses such as inventory write-offs and increases in production cost and expense. Guangming Dairy said that this issue has basically been resolved at present.

As a subsidiary of Guangming Dairy, New Zealand Dairy’s main businesses are the production and sales of milk powder, cheese, and liquid milk. In 2010, Guangming Dairy acquired New Zealand Dairy, viewing it as an important driver for its overseas business. However, after the acquisition, New Zealand Dairy’s operating performance has not been encouraging, and net profit has repeatedly turned to losses.

Against this backdrop, Guangming Dairy has had to consider divesting this business. It is understood that Guangming initiated the New Zealand Dairy North Island asset disposal plan in September 2025. It will be sold to Abbott’s subsidiary for a price of 170 million US dollars (about 1.2 billion yuan RMB), with delivery scheduled for April 2026.

A reporter from Nandu Bay Finance and Economics noted that Guangming Dairy’s revenue in 2022–2024 was 28.215 billion yuan, 26.485 billion yuan, and 24.278 billion yuan respectively, representing declines of 3.39%, 6.13%, and 8.33% respectively. This means that Guangming Dairy’s revenue has declined for four consecutive years.

For its future development strategy, in its financial report Guangming Dairy stated that it will implement refined management—reviewing assets, reviewing products, reviewing expenses, reviewing personnel, and reviewing enterprises—to identify and eliminate activities and investments that do not create value. It will continue to optimize existing businesses and the industrial layout, promptly phase out outdated and backward production capacity, deepen efforts to turn losses into profits, and improve operating quality and economic efficiency.

In January this year, Guangming Dairy held a new product launch event, at which it unveiled its innovative achievements in three areas: its own intellectual property strain transformation application, high-end fermented milk, and functional milk.

In its financial report, Guangming Dairy also stated that its full-year 2026 operating plan is: to strive to achieve total operating revenue of 24.858 billion yuan, net profit attributable to shareholders of the listed company of 313 million yuan, and a return on net assets attributable to shareholders of the listed company greater than 3.44%.

Written and edited by: Nandu · Bay Finance and Economics reporter Wang Jingjuan