Financial PerformanceThe revised forecast for FY25 anticipates a loss of RMB1bn due to lower raw milk prices and larger fair value adjustments on dairy cows.
Profitability ChallengesChina Modern Dairy issued a profit warning with a significant net loss, driven by higher-than-expected fair value adjustments due to lower raw milk prices and accelerated culling.
Risk FactorsKey risks include reliance on China Mengniu, outbreak of diseases, food safety issues, and raw milk price and raw material cost fluctuations.