China Modern Dairy Holdings Ltd. (Modern Dairy) reported a turnaround in the first half of 2026, driven by record milk production and tighter cost control.

Modern Dairy’s revenue rose 8.6% year-on-year to RMB 6.59 billion, supported by a 7.1% increase in raw-milk output to 1.78 million tons and a 0.4% rise in average annualised yield per cow to 13.3 tons.

After booking a sharp reduction in biological-asset fair-value losses, profit attributable to shareholders reached RMB 15.29 million, reversing the prior-year loss of RMB 913.47 million. Cash EBITDA grew 8.3% to RMB 1.60 billion.

Operating cash flow strengthened to RMB 768.50 million, up 56.8% from a year earlier, while capital expenditure continued to decline. Net gearing improved to 108.0% from 115.7% at end-2025.

Herd optimisation continued: total dairy cows fell 2.5% to 460,854, but milkable cows accounted for 60.1% of the herd, six percentage points higher than a year ago.

The integrated dairy-farming solutions unit generated RMB 1.19 billion in sales, up 19.0%, lifting the segment’s gross margin to 11.2% from 7.3%.

On 3 August 2026, Modern Dairy closed the acquisition of a 53.53% stake in China Shengmu Organic Milk Limited, securing control of approximately 83.52% of Shengmu together with concert parties. Management expects the deal to expand high-end organic milk supply and enhance overall scale and synergies.

Total interest-bearing borrowings stood at RMB 20.67 billion, with the average bank-loan rate ranging from 1.45% to 4.50%. The company issued RMB 500 million of onshore perpetual capital securities in April at a 2.50% coupon, raising RMB 497.05 million net to refinance green-industry payables.

The Board did not declare an interim dividend for the period.