Full-Year Profit Plummets 45.7% on Sliding Sales
China Feihe reported a significant contraction in its financial performance for the 2025 fiscal year, revealing a 45.7% year-over-year collapse in net profit to RMB 1.939 billion. The sharp earnings decline was driven by weakening sales, with annual revenue falling 12.7% to RMB 18.113 billion. The pressure on profitability was evident throughout its operations, as gross profit also decreased by 14.5% to RMB 11.775 billion, suggesting challenges with both sales volume and pricing power.
Dividend Cut to HKD 0.129 Signals Financial Pressure
In a direct consequence for investors, China Feihe's board announced a reduction in its final dividend. Shareholders will receive HKD 0.129 per share for the period, a notable decrease from the HKD 0.1632 paid out in the corresponding period of the previous year. The lower payout reflects the company's diminished earnings, which amounted to an earnings per share (EPS) of RMB 0.21. The decision to reduce shareholder returns underscores the financial strain the company is facing and its cautious outlook on near-term capital allocation.