--- title: "The first quarter report of the dairy industry has been released, and the development situation varies" type: "News" locale: "en" url: "https://longbridge.com/en/news/285509670.md" description: "The dairy industry’s Q1 2026 financial report shows that leading companies such as Yili and Mengniu achieved steady growth, while small and medium-sized enterprises like MQR faced difficulties. MQR has reported losses for three consecutive years due to the propylene glycol incident, and its stock has been renamed \"ST MQR,\" with Q1 revenue declining by 13.76% year-on-year. In contrast, SANYUAN Foods has improved its operations steadily by divesting non-core assets and focusing on its main business" datetime: "2026-05-07T08:09:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285509670.md) - [en](https://longbridge.com/en/news/285509670.md) - [zh-HK](https://longbridge.com/zh-HK/news/285509670.md) --- # The first quarter report of the dairy industry has been released, and the development situation varies The financial reports for the dairy industry in the first quarter of 2026 have mostly been released in the past two months, with leading companies stabilizing their positions through economies of scale: Yili's total operating revenue in the first quarter increased by 5.47% year-on-year, while Mengniu's overall revenue also achieved a high single-digit year-on-year growth. However, small and medium-sized dairy companies rooted in the region have delivered different development "report cards." **Maqiu'er: Three consecutive years of losses, stock abbreviation changed to "ST Maqiu"** As a representative of local dairy companies in Xinjiang, Maqiu'er once successfully broke into the market with its "rich milk flavor, sweet and smooth" taste. With the help of leading influencers and the marketing label of "the Moutai of milk," it enjoyed a period of glory—achieving revenue of 1.146 billion yuan in 2021 and a net profit of 18.4575 million yuan. However, just a year later, it faced a turning point. In 2022, Maqiu'er's pure milk was found to contain propylene glycol, primarily used for flavor enhancement. This was contrary to Maqiu'er's signature "natural and pure aroma," and revenue began to "plummet," resulting in three consecutive years of losses. The company's stock has been subject to other risk warnings since April 29, changing its abbreviation to "ST Maqiu." Entering the first quarter of 2026, the downward trend has not stopped. According to the financial report disclosed on April 28, Maqiu'er achieved revenue of approximately 128 million yuan in the first quarter, a year-on-year decline of 13.76%; the net profit attributable to the parent company plummeted from a profit of 700,000 yuan in the same period last year to a loss of 13.1807 million yuan, a year-on-year drop of 1976.15%. The aftereffects of the "propylene glycol incident" are not only reflected in the collapse of profits but also compounded by the mistake of aggressively expanding 62 directly-operated stores in the second half of 2025: the new store cultivation period burned cash, and the overall offline channels cooled down, leading to a shift in operating cash flow from positive to negative, with the debt-to-asset ratio climbing to 88%. From "internet celebrity milk" to risk warnings, Maqiu'er's trajectory of decline is a typical example of small and medium-sized dairy companies simultaneously losing ground on the two bottom lines of quality trust and financial leverage. **Sanyuan Foods: "Slimming down" development, focusing on core areas** Sanyuan Foods is very confident about the future. Over the past year, Sanyuan Foods has actively "slimmed down," divesting non-core assets, streamlining business and product lines, and simplifying the internal organizational framework, focusing efforts on its main business to "deeply penetrate" the core market. This choice is very suitable for Sanyuan. According to the financial report for the fiscal year 2025 and the first quarter of 2026 released on April 23, Sanyuan Foods' operational development is steadily improving: in 2025, it achieved operating revenue of 6.34 billion yuan. Excluding the impact of reduced long-term equity investments in affiliated companies, it achieved a net profit attributable to the parent company of 271 million yuan, a year-on-year increase of 395%. In the first quarter of 2026, it achieved operating revenue of 1.72 billion yuan, a year-on-year increase of 4.46%; and a net profit attributable to the parent company of 100 million yuan, a year-on-year increase of 14.28%. This year marks the 70th anniversary of Sanyuan Foods, and the company officially launched its "True Fresh" strategy, fully focusing on low-temperature fresh milk. At the brand strategy launch conference, Chairman Yuan Haozong stated that this strategy is an active layout for Sanyuan to establish itself in the new pattern of high-quality development in China's dairy industry, which will shift the dairy industry from scale expansion and stock competition to value competition through quality upgrades, defining a new standard for fresh dairy in China **Nantang Dairy: Greater Pressure, Can It Strike Back in Crisis?** For Yantang Dairy in the South China region, the pressure it faces this year will be even greater. On April 16, Junlebao's South China dairy industry integrated base phase one project officially commenced production in Jiangmen, Guangdong. From construction to production, the project took only 11 months, and its fresh milk production line is already nearly at full capacity. Junlebao's layout this time is not just for the Guangdong market. The group's chairman and president, Wei Lihua, revealed plans to leverage Jiangmen's geographical advantages to build an efficient supply chain network for surrounding provinces and the Hong Kong and Macau regions, with plans to enter Southeast Asian markets such as Singapore in June this year. In the face of this "formidable" layout, Yantang Dairy's pressure has already been reflected in its first-quarter report. In the first quarter of 2026, the company achieved revenue of 333 million yuan, a slight year-on-year decrease of 0.43%; however, the net profit attributable to the parent company plummeted from several million yuan in the same period last year to 49,500 yuan, a year-on-year drop of 99.43%. The net profit attributable to the parent company after deducting non-recurring items even recorded a loss of 900.22 yuan. However, Yantang Dairy is also actively adjusting its development direction. In January this year, the company launched the "Super Fresh Plan," releasing nine types of locally sourced fresh milk from its own farms, improving quality without raising prices. Relying on its three self-owned farms in Zhanjiang, Yangjiang, and Lufeng, it maintains the largest controlled dairy cow inventory in Guangdong, with key raw milk indicators exceeding EU standards; the delivery side achieves "fresh delivery from farm to market in as fast as 12 hours." Additionally, a modern dairy processing plant in Jieyang, with a daily capacity of 600 tons, is also under construction, attempting to further release production capacity and expand market coverage. The first-quarter report of the dairy industry in 2026 reflects not only the fluctuations in numbers but also the transformation of China's dairy industry from barbaric growth to quality competition, from extensive expansion to meticulous cultivation. 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