Ausnutria Dairy Corporation reported a steep reversal for the six months ended 30 June 2026, moving from a RMB180.45 million profit a year earlier to a RMB705.05 million net loss. The downturn was driven by weaker revenue, compressed margins and sizeable one-off charges.
Revenue contracted 18.60% year on year to RMB3.16 billion. Mainland China’s infant-formula market, pressured by declining birth rates and heightened competition, was the main drag: domestic cow-milk formula sales fell 45.60 % to RMB523.10 million and goat-milk formula sales in China dropped 29.10 % to RMB978.60 million. Overseas goat-milk formula sales grew 6.80 % to RMB516.20 million, supported by gains in the Middle East, North America and the CIS, but could not offset domestic weakness.
Group gross profit plunged 68.10 % to RMB518.78 million. Gross margin narrowed to 16.4 % from 41.9 %, hit by a RMB616.47 million inventory provision linked to channel restructuring, higher raw-material costs and currency-related supply-chain expenses.
Operating performance deteriorated further after additional non-cash impairments: Ausnutria booked RMB15.82 million in goodwill and RMB27.58 million in intangible-asset write-downs related to Australian subsidiaries Ozfarm and ADP. EBITDA swung to a RMB611.46 million loss from a RMB397.50 million profit in 1H 2025.
Selling and distribution expenses eased 6.10 % to RMB951.31 million, reflecting lower promotional spending, while administrative costs were broadly stable at RMB294.88 million. Net finance costs rose to RMB30.68 million as capitalised interest on the new Dutch infant-formula base powder plant ceased.
Cash and equivalents, time deposits and long-term deposits totalled RMB1.76 billion at period-end, versus RMB1.85 billion six months earlier. Net debt was little changed at RMB754.40 million, with all RMB2.41 billion in bank borrowings denominated in euros and due within one year. The current ratio slipped to 0.85x from 1.00x, while the gearing ratio inched up to 7.8 %.
Ausnutria recorded an income-tax credit of RMB120.04 million, aided by deferred-tax movements and preferential policies, partially cushioning bottom-line pressure. No interim dividend was declared.
Looking ahead, management highlighted continued optimisation of channel inventory, cost-control measures and expansion of its nutrition business—whose sales jumped 52.70 % to RMB237.41 million—as strategic priorities. In July, the company sold a 35 % stake in cheese subsidiary Amalthea Group for EUR15.78 million, retaining majority control while adding a European partner.
No further major investments or capital-raising plans were disclosed. The board confirmed compliance with Hong Kong’s Corporate Governance Code and the Model Code for directors’ dealings.