Q4 net profit soars 69%! New Dairy's 2025 revenue and profit both increase, and the five-year strategic efforts are showing results.

On the evening of March 22, 2026, New Hope Dairy released its 2025 annual report. During the reporting period, the company achieved operating revenue of 11.233 billion yuan, a year-on-year increase of 5.33%; net profit attributable to shareholders of 731 million yuan, up 35.98%; net profit after non-recurring gains and losses of 774 million yuan, up 33.76%; sales net profit margin increased by 1.57 percentage points year-on-year; asset-liability ratio was 56.51%, down 8.10 percentage points from the beginning of the period, with continuous optimization of operating quality.

In Q4 2025, the company’s revenue grew by double digits, with net profit attributable to shareholders increasing by 69% year-on-year.

Regarding shareholder returns, the company continues to focus on its core business, constantly improving operational and governance levels, and enhancing the sustainability and stability of dividend policies through steady performance.

In 2025, the total dividends for the mid-year and annual distributions increased by 90% compared to the previous year. The company plans to continue increasing total dividends throughout 2025, sharing development dividends with investors, and promoting a virtuous cycle of “governance improvement—performance growth—value sharing.”

This is a remarkable achievement for New Hope Dairy during a period of deep industry adjustment. It not only signifies the company’s solid progress and steady growth in advancing its “Five-Year Strategic Plan” but also clearly demonstrates a systematic innovation centered on the “Fresh Cube Strategy,” through product innovation, technological empowerment, channel transformation, and brand upgrading. In a market where industry growth is slowing, the company is pioneering new growth paths, continuously optimizing corporate governance and value enhancement, and achieving high-quality development with excellent efficiency.

1

The power of “fresh” transcends cycles,

anchored in consumption-driven growth and favorable policies

According to the National Bureau of Statistics, in 2025, the national milk production was 40.91 million tons, a slight increase of 0.3%. China’s dairy industry is shifting toward deep competition focused on quality, structure, and efficiency. The consumer market shows significant differentiation: on one hand, becoming more rational, paying attention to product value-for-money; on the other hand, the demand for health, nutrition, and functionality continues to upgrade, providing broad space for structural industry upgrades.

At the macro policy level, positive signals continue to be released. Seven departments jointly issued the “Guiding Opinions on Promoting Growth in Dairy Product Consumption,” and twelve departments released the “Special Action Plan for Promoting Healthy Consumption,” emphasizing the need to improve healthy eating consumption levels and expand the supply of high-quality health foods. Recently, agricultural officials further proposed the “Add Milk” initiative, encouraging increased dairy consumption to improve national nutrition and health.

These policy directions align closely with New Hope Dairy’s long-term core value of “freshness,” focusing on freshness, nutrition, and health, providing a favorable policy environment for the company to consolidate and enhance its “fresh” advantage.

Against this backdrop, New Hope Dairy’s persistent and upgraded “Fresh Cube” strategy has achieved exemplary results. During the reporting period, the company’s core low-temperature business segments—fresh milk and low-temperature yogurt—both achieved double-digit growth, directly confirming its forward-looking focus on the high-quality fresh segment.

The company’s continuous improvement in profitability and shareholder returns demonstrates excellent growth quality and operational capability, also aligning with the “14th Five-Year Plan” requirements to enhance governance efficiency and promote high-quality development.

2

User-centric approach,

product innovation and channel deepening drive dual engines

New Hope Dairy’s growth engine is rooted in the systematic construction of the “fresh” value, with a user-centered approach. It has established a comprehensive “fresh supply chain” system covering “fresh milk source, fresh orders, fresh production, fresh distribution, and fresh delivery,” as well as the “Eight Fresh Capabilities” in brand value: “Fresh Sight” (customer experience), “Fresh Enjoy” (scene penetration), and “Fresh Action” (user interaction). This forms a complete operation system from product innovation to end-user reach, truly making “fresh” visible, tangible, and perceptible to users.

Precise focus and continuous innovation in the product matrix directly connect users with freshness and are the primary driving force for enterprise development.

During the period, New Hope Dairy continued to promote the “Strong Duality of Fresh and Yogurt” strategic categories, conducting in-depth value exploration. Through product innovation and multi-dimensional channel cultivation, the company steadily increased its market share.

In 2025, high-end fresh milk and “Today’s Fresh Milk Shop” both achieved double-digit growth; specialty yogurt grew over 30% year-on-year, with functional yogurt brands like “Huorun” series leveraging trends such as value-for-money, meal replacement, and zero sugar, continuously iterating and innovating. Asahi’s Vipshop launched multiple best-selling new products, driving rapid growth.

Particularly noteworthy is that new product revenue has maintained double-digit proportions for five consecutive years, becoming a key engine for stable business growth.

Deep transformation and comprehensive breakthroughs in channels are crucial to ensuring “fresh” reaches consumers directly.

During the period, New Hope Dairy promoted a multi-layered channel transformation centered on DTC: on one hand, subscription penetration and mode innovation drove growth, with self-commissioned subscription services further refining flexible supply chains and delivery systems to build a comprehensive advantage of “product—delivery—service—brand”; on the other hand, offline “Milk-At-Store” projects restore the “freshly poured and freshly drunk” ritual, transforming product purchases into lifestyle interactions and becoming important offline traffic activation points.

In online business, the company rapidly built a live broadcast matrix to achieve efficient online exposure; the implementation of membership operation platforms laid a solid foundation for refined user management and full lifecycle value mining.

In emerging channels, the company seized the development opportunities of O2O (online-to-offline) instant retail, strengthening the “fresh + instant” advantage through agile models like “Lightning Warehouse,” achieving rapid growth and becoming a new growth engine.

Meanwhile, refined operations of membership stores, snack discounts, and deeper cooperation with tea and catering channels have also yielded significant results, driving leading sales growth in emerging channels.

3

Building a solid foundation for development,

technology empowerment and brand resonance strengthen long-term value

During the period, New Hope Dairy’s continuous investment in core technology R&D and top-level brand building laid a solid foundation for its long-term development and ensured sustainable growth.

In 2025, the company’s lactic acid bacteria research team led the formulation of three industry standards, applied for 39 patents, and won the first prize for technological progress from the China Dairy Industry Association, along with multiple provincial science and technology awards.

With the vision of “a technology-driven nutritional food enterprise,” New Hope Dairy deepened its biological innovation strategy, focusing on basic research in biological fermentation, enzyme engineering, and precise nutrition. It has established a resource bank of over 2,100 strains of special lactic acid bacteria, with self-developed strains stably applied in strategic products like Huorun and Chuxin, driving excellent performance of products like “Light Food Bottle” and “Milk Skin Yogurt.”

Additionally, the company’s self-cultivated strains successfully carried out space mutation experiments aboard the “Practice No. 19” satellite, marking a leap from ground screening to space breeding in core strain development, reserving strategic resources for future development of more differentiated functional products.

To accelerate the “digital and intelligent” transformation of new quality production capacity, New Hope Dairy adheres to the concepts of “data-driven operations” and “value-oriented, scene-based implementation,” connecting “business-data-finance” closed loops. The integration of digital and industry (“Shuye”) enhances quality and efficiency, with pilot intelligent tools in marketing, supply chain, and finance, continuously improving management mechanisms, optimizing customer experience, and increasing operational efficiency.

On the brand communication front, New Hope Dairy has adopted a more youthful approach, continuously integrating brand values into consumers’ lifestyles. From functional messaging to leading lifestyle attitudes, it builds emotional connections and cultural resonance, achieving simultaneous expansion in communication reach, emotional depth, and user stickiness. The company’s internal MCN system produces high-quality content with total views exceeding one hundred million, forming an efficient flexible communication network connecting with users.

In November 2025, world champion and Olympic medalist Tang Qianting was invited to become the brand ambassador, linking “fresh vitality” with health and the sports spirit of perseverance, enhancing brand image; the “Chinese-style Freshness” series of micro-dramas focus on daily scenes, becoming a new “mouthpiece” for users; initiatives like the “24-Hour Fresh Milk Festival,” “Chuxin Yogurt’s Qiao Qiao Flight,” and collaborations with intangible cultural heritage and IP characters like “Siam Reap,” as well as themed campaigns connecting “Hedong Mountain + Yellow River Water + Western Xia,” and Asahi Vipshop’s lifestyle advocacy of “Respect Nature, Love Heaven and Man,” form a series of innovative communications and emotional resonances. These efforts make “fresh” and “adding milk” not just passive marketing or nutrition supplements but active, joyful lifestyle choices, stimulating more lasting market vitality from demand.

The 2025 performance confirms the effectiveness and resilience of New Hope Dairy’s “Fresh Strategy” amid complex market environments, aligning deeply with the national “14th Five-Year Plan” for consumption-driven and innovation-driven growth.

Through product innovation focusing on low-temperature value, channel transformation deepening user links, technological R&D strengthening quality, and brand communication shaping emotional recognition, New Hope Dairy demonstrates quality and sustainable growth. With the further promotion of health-oriented initiatives like “Adding Milk,” the dairy market, especially high-quality low-temperature dairy, is expected to open new development space.

Looking ahead to 2026, as a critical year in New Hope Dairy’s five-year strategic plan, the company has clearly stated it will continue to “stay true to core values and create long-term growth,” adhere to the “Fresh Cube Strategy,” focus on strategic tracks, actively explore the second growth curve, and strive for sustained revenue growth and further improvement in net profit margins. Under the guidance of health consumption policies and evolving market demands, leveraging the unique “fresh” power, the company aims to steadily advance on the path of high-quality development, continuously creating value for consumers, shareholders, and the overall competitiveness of China’s dairy industry.