Xinjiang Tianrun Dairy Co Ltd

Tianrun Dairy held a performance briefing on September 28, disclosing that in the first half of 2026 it achieved operating revenue of 1.45 billion yuan, up 3.93% year-on-year, with net profit attributable to the parent company of 54.25 million yuan, turning from loss to profit compared with a loss of 21.8564 million yuan in the same period last year. Non-recurring net profit was 18.75 million yuan, down 67.56% year-on-year. The company said the profit growth was mainly due to the normalization of culling dairy cows and a year-on-year reduction in culling losses, while also reducing the spray-drying of surplus raw milk and sales of bulk milk powder. The decline in non-recurring net profit was due to year-on-year increases in corporate income tax expenses and depreciation expenses for the annual 200,000-ton dairy processing project, while selling expenses rose 20.35% year-on-year to 107 million yuan. The general manager said at the meeting that in 2026 the company plans to achieve dairy product sales of 320,000 tons and operating revenue of 3 billion yuan. In the first half of the year it had already completed revenue of 1.45 billion yuan. In the second half it will continue to pursue a dual-engine strategy within and outside Xinjiang, expanding cooperation outside Xinjiang with chain channels such as Hema, Bestore, and Metro, as well as B-end commercial channels, while improving the operational efficiency of the annual 200,000-ton smart factory, optimizing the herd structure, and accelerating new product development. The company said its cooperation with these national chain systems mainly adopts a customized product plus systematic deep cooperation model, and it has already customized exclusive products such as organic pure milk and A2 milk beer for Hema. The new channels are currently in an expansion period, and their contribution to revenue is growing steadily. The chairman cited data from the Ministry of Agriculture and Rural Affairs at the meeting, saying that the average price of raw milk in major producing provinces ended 53 consecutive months of decline in July and turned positive year-on-year, and continued to recover moderately in September.

Tianrun Dairy released its 2026 interim report, with net profit attributable to the parent company of 54.25 million yuan, an increase of 76.1063 million yuan compared with the same period last year, achieving a turnaround from loss to profit. The company's total operating revenue was 1.45 billion yuan, up 3.93% year-on-year; net cash inflow from operating activities was 236 million yuan. The latest gross margin was 18.27%, an increase of 1.40 percentage points from the same period last year; the latest return on equity was 2.17%, an increase of 3.09 percentage points from the same period last year. Diluted earnings per share were 0.17 yuan, an increase of 0.24 yuan from the same period last year.

Dairy stocks surged in unison today, with multiple shares hitting their daily limit during the session. Knight Dairy rose 19.7 percent, while Sunshine Dairy, JuneYao Health, Liziyuan, and Tianrun Dairy all hit the daily limit, with other stocks gaining between 3 and 8 percent. The rally is linked to improved market expectations for dairy companies' future operations. Li Shengli, chief scientist of the National Dairy Industry Technology System, said at the 17th Dairy Industry Conference that a combination of factors—bottoming and rebounding composite milk prices, rising bulk milk prices, and a continued decline in the adult cow inventory—points to a sustained modest year-on-year increase in milk prices in the second half of 2026, marking a turning point for the raw milk sector after an extended downturn. Several institutions have also released research reports anticipating a mild reversal in the raw milk cycle in 2026. Independent dairy analyst Song Liang believes that the previous decline in milk prices led to cheap raw milk flooding the market. As supply and demand rebalance, dairy companies that control milk sources will have stronger bargaining power, potentially improving the landscape of low-price competition.

Tianrun Dairy announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 43 million and 60 million yuan, turning around from a loss in the same period last year. The change in performance is mainly due to a year-on-year reduction in losses from culling cows, a reduction in losses from selling surplus raw milk powder, and an increase in profit from intensified product sales efforts.