CHINA FEIHE: Plans to launch a 1 billion yuan repurchase plan, demonstrating confidence in future development

On July 4th, CHINA FEIHE (06186) released its mid-term performance forecast for 2025, expecting to achieve revenue of approximately RMB 9.1 billion to RMB 9.3 billion in the first half of the year, with a net profit of around RMB 1 billion to RMB 1.2 billion. In response to the industry's phase challenges, Feihe announced plans to use no less than RMB 1 billion for share repurchases and to maintain a stable dividend policy, expecting to distribute a total dividend of no less than RMB 2 billion in 2025. Feihe's share repurchase and continuous dividends are supported by stable performance and substantial cash flow, demonstrating its strong confidence in development while rewarding shareholders. Dairy industry expert Song Liang believes that Feihe is a benchmark for high-quality development in China's dairy industry. The company's stock repurchase sends a positive signal to the market, indicating that even in the face of industry challenges, management remains highly optimistic about the company's intrinsic value and industry development potential, injecting a strong boost into the overall development of the dairy industry. As a leading enterprise in the domestic milk powder industry, Feihe has always integrated responsibility and commitment into its corporate development genes. In April 2025, Feihe took the lead in responding to the national fertility support policy by launching the industry's first "RMB 1.2 billion fertility subsidy plan," providing no less than RMB 1,500 in fertility subsidies to eligible pregnant families nationwide. Chinese food industry analyst Zhu Danpeng pointed out: "Against the backdrop of fierce competition in the industry, Feihe uses real financial subsidies to meet people's livelihood needs, showcasing the responsibility of leading enterprises and setting a benchmark for the 'social value-commercial return' dual cycle in the industry, effectively enhancing consumer welfare." While actively investing in public welfare, Feihe also regards "technological innovation" as an important driving force for corporate development. In January 2025, Feihe launched "milk protein fresh extraction technology," achieving a "leapfrog" in dairy product quality. In May, as the leading unit of a key national research and development project during the 14th Five-Year Plan, Feihe established the country's first full-spectrum structural database for HMOs (human milk oligosaccharides), with technology reaching an internationally leading level. Relying on strong research and development capabilities, the company is accelerating the expansion of business directions such as children's milk powder and adult functional nutrition around the "whole life cycle nutrition" strategy, launching multiple new products including the AiBen protein nutrition powder. In addition to diversifying its business, Feihe is also continuously expanding its overseas operations and accelerating its internationalization process. In September 2024, the infant formula products from Feihe's Canadian factory officially went into production and were launched locally. Currently, the milk powder produced in Canada by Feihe has entered over 1,100 supermarkets in North America, including Walmart