China Feihe Profit Plummets 45.7% as Revenue Slides

Edgen Stock

·Mar 26 2026, 17:11

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Key Takeaways

China Feihe (06186.HK) disclosed a sharp decline in profitability and sales for its 2025 fiscal year, signaling significant headwinds for the infant formula producer. The company's net profit was nearly halved, and it responded by reducing its dividend payout to shareholders.

Net profit fell 45.7% year-over-year to RMB 1.939 billion for the full year 2025.
Annual revenue declined 12.7% to RMB 18.113 billion, with gross profit also falling 14.5%.
The final dividend was cut to HKD 0.129 per share, down from HKD 0.1632 in the prior year.

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.