China Shengmu Organic Milk Limited released a positive profit alert indicating an expected consolidated profit of RMB15.00–25.00 million for the six months ended 30 June 2026, compared with a loss of about RMB46.00 million in the same period of 2025. Profit attributable to owners is projected to be no less than RMB60.00 million, versus a loss attributable to owners of roughly RMB48.00 million a year earlier.

Management cited three main drivers for the return to profitability:

1. Sales volume of raw fresh milk recorded double-digit growth while the sales mix of higher-margin organic milk remained stable.

2. Milk yield per milkable cow surpassed 13 tonnes for the first time, lowering the selling cost per kilogram and lifting the consolidated gross profit margin despite softer raw milk prices.

3. Lower production costs and higher market prices for culled cows reduced fair-value losses on biological assets and losses on culled cows, further supporting earnings.

The figures are based on unaudited management accounts and may be adjusted prior to the publication of the interim results, expected by the end of August 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.