According to the Zhitong Finance App, Hyundai Animal Husbandry (01117) announced its 2026 interim results, with revenue of about 6.593 billion yuan, up 8.6% year on year; gross profit of about 1,727 billion yuan, up 7.72% year on year; profit attributable to the company's equity shareholders was 15.29 million yuan, turning a year-on-year loss into a profit; basic profit per share was 0.2 points.
According to the announcement, turning a loss into a profit was mainly due to a drastic reduction in losses and an increase in gross profit due to changes in the fair value of dairy cows to reduce the sales cost of dairy cows.
In the first half of 2026, despite improvements in the market environment, the group continued to promote various cost reduction and efficiency measures, optimize herd structure and increase dairy cow yield. During the period, the number of cows hunted declined, compounded by the increase in the price of cattle rushing, the loss due to changes in the fair value of dairy cows decreased year-on-year, gross profit from raw milk sales also increased, gross margin remained stable, and other operating costs and expenses were effectively controlled during the period. During the period, the Group continued to strengthen lean management of the ranch, increasing the proportion of core herds and the health standards of cows, which led to significant improvements in the main operating indicators during the period.
During the period, the group achieved an average annual yield of adult dairy cows of 13.3 tons per head (2025:13.2 tons), an increase of 0.4% year on year, and overall milk production reached 1.778 million tons (2025:1.661 million tons), an increase of 7.1% year on year. The continuous increase in the yield of adult dairy cows depends on comprehensive and efficient herd management and fine control and adjustment, including cross-generational genetic optimization of dairy cows, extending the peak lactation period, and management of breeding stock, breed, living comfort, health conditions and feed structure.
As of July 20, 2026, the group and those acting in concert held about 71.49% of the shares of China Shengmu Organic Milk Co., Ltd., and the offer became unconditional in all aspects. As of the end of the offer period on August 3, 2026, the group held about 53.53% of China's Shengmu shares, making it the largest shareholder of China's Shengmu. This move enabled the Group to quickly obtain scarce desert organic milk sources, improve the product structure, and enhance the supply capacity of high-end raw milk. After completing the acquisition, the Group's business scale and asset base expanded significantly, achieving economies of scale, enhancing synergy, strengthening comprehensive operations and financial strength, and further consolidating the Group's leading position in the raw milk supply market.