China Shengmu Swings to Deeper 2025 Loss Despite Efficiency Gains

China Shengmu Organic Milk Ltd ( (HK:1432) ) has shared an announcement.

China Shengmu Organic Milk Limited reported essentially flat operating income of RMB3.34 billion for 2025, but saw gross profit fall 18.3% and a significantly wider loss attributable to shareholders of RMB373.4 million. Despite improvements in key operating metrics, including a 2.9% rise in milk yield per cow and a 7.7% reduction in cost of sales per kilogram of milk, cash EBITDA declined 7.9% and the group remained loss-making.

The company reduced its administrative expense ratio slightly, and operating loss before impairment provision narrowed marginally, indicating some underlying operational discipline amid a challenging profit environment. Given the continued losses, the board decided not to recommend a final dividend for 2025, signalling a focus on preserving cash and stabilising the business rather than returning capital to shareholders.

The most recent analyst rating on (HK:1432) stock is a Hold with a HK$0.41 price target. To see the full list of analyst forecasts on China Shengmu Organic Milk Ltd stock, see the HK:1432 Stock Forecast page.

More about China Shengmu Organic Milk Ltd

China Shengmu Organic Milk Limited is a dairy producer specialising in organic milk, operating large-scale farms with a focus on improving milk yield and cost efficiency. Listed in Hong Kong, the company serves the mainland China dairy market, positioning itself in the higher-value organic segment of the industry.

Average Trading Volume: 13,688,892

Technical Sentiment Signal: Hold

Current Market Cap: HK$2.85B

For a thorough assessment of 1432 stock, go to TipRanks’ Stock Analysis page.