China Shengmu-PF (01432) has announced its interim results for the six months ended June 30, 2026, reporting a net profit attributable to shareholders of 64.007 million yuan, a turnaround from the loss of 48.322 million yuan recorded in the same period last year. The company's sales revenue rose 7.1% year-on-year to 1.546 billion yuan, with earnings per share reaching 0.008 yuan.

During the reporting period, the group continued to advance herd structure optimization and dairy farming technology upgrades. By selecting superior cattle, improving breeding systems, iterating nutritional formulas, and strengthening refined feeding management, the company consistently enhanced the health and productivity of its lactating cows. In the first half of 2026, the annualized milk yield per lactating cow reached 13.14 tonnes, up 0.87 tonnes from the prior-year period, marking a 7.1% year-on-year increase and setting another record high.

Specifically, organic pasture lactating cows achieved an annualized yield of 13.38 tonnes per cow, up 1.00 tonne year-on-year, while conventional pasture lactating cows reached 12.47 tonnes, an increase of 0.39 tonnes. The yield improvement was primarily driven by better herd quality, optimized nutritional programs, and more precise on-site management. The group dynamically adjusted feed formulas based on the lactation stages and health status of dairy cows, while strengthening management of TMR preparation, diet uniformity, feeding schedules, and feed intake. Additionally, tools such as environmental control data platforms, cow collars, and thermal imaging improved the timeliness of heat stress management.

During the period, the group further optimized feed conversion and nutritional input structures, leading to effective improvements in milk yield per lactating cow as well as key indicators such as milk fat and milk protein. These gains reflect the company's enhanced farming technology and lean management capabilities. Driven by rising yields and growing demand from core customers, raw milk sales volume reached 424,902 tonnes in the first half, up 51,929 tonnes or 13.9% year-on-year.

The sales growth was primarily attributed to increased production efficiency and a higher proportion of high-performing lactating cows, rather than relying on herd expansion, demonstrating the group's quality- and efficiency-oriented business strategy. Sales to core customers maintained relatively rapid growth, while sales to other customers also improved year-on-year. In terms of product mix, the group continued to leverage its advantages in organic and specialty milk sources. Organic raw milk sales grew steadily, with functional products such as DHA and organic A2 enriching the product portfolio. Premium raw milk accounted for 79.5% of total sales volume.

Organic and specialty raw milk products, supported by their quality standards, customer structure, and resource scarcity, maintained relatively strong profitability resilience during a period of low industry prices, providing important support for the group's operational improvement.