BRIGHT DAIRY is facing increasing pressure during the industry's down cycle.\n\nIn 2025, the company achieved operating revenue of 23.895 billion yuan, down 1.58% year-on-year; net profit attributable to the parent company was -149 million yuan, compared to a profit of 722 million yuan in the same period last year. This also marks the company's first annual loss since 2009.\n\nFrom a trend perspective, the company's revenue has declined for four consecutive years, but the 1.58% decrease in 2025 represents a narrowing compared to the 3.39%, 6.13%, and 8.33% drops in the previous three years.\n\nThe direct cause of this loss is its controlling New Zealand subsidiary, Synlait Milk Limited. In 2025, Synlait's revenue was 7.650 billion yuan, with a net loss of 407 million yuan.\n\nBRIGHT DAIRY explained in an announcement that production issues at some of Synlait's production bases led to inventory write-offs and increased production costs, which significantly impacted consolidated net profit. Since BRIGHT DAIRY indirectly holds a 65.25% stake in Synlait, the latter's operating fluctuations are directly transmitted to the parent company.\n\nIn fact, Synlait has reported losses for two consecutive years. In 2024, the company's operating revenue was 7.439 billion yuan, with a net loss of 450 million yuan.\n\nTo alleviate pressure, BRIGHT DAIRY launched a plan to sell North Island assets in September 2025, intending to transfer them to an Abbott subsidiary for 170 million US dollars (approximately 1.21 billion yuan), with the transaction expected to close in April 2026. The company stated that Synlait's production issues have now been basically resolved.\n\nBRIGHT DAIRY's competition in the domestic market, especially in the low-temperature fresh milk sector, is also not optimistic.\n\nIn recent years, the low-temperature fresh milk market has maintained relatively rapid growth. As an enterprise that entered the cold chain early and has long promoted a "freshness" strategy, BRIGHT DAIRY should have benefited. However, in 2025, its liquid milk business revenue was only 13.223 billion yuan, a year-on-year decrease of 6.65%, the most significant drop in recent years.\n\nGeographically, the home market of Shanghai is undergoing a reshaping of its competitive landscape. In 2025, revenue in the Shanghai region was 6.11 billion yuan, down 9.2% year-on-year, a decline steeper than the national average.\n\nFacing internal and external pressures, BRIGHT DAIRY set its 2026 operational targets in its annual report: total operating revenue of 24.858 billion yuan and net profit attributable to the parent company of 313 million yuan. The company stated it will promote lean management, optimize existing businesses and industrial layouts, and gradually adjust old or inefficient production capacity.\n\nThe progress of overseas asset disposal, the response to competition in the Shanghai market, and the effectiveness of its low-temperature strategy amidst industry shifts will collectively determine whether BRIGHT DAIRY can regain stability in the next cycle.