Bright Dairy & Food Co., Ltd. reported a net loss of 149 million yuan last year, with liquid milk revenue decreasing by 6.65%, and an optimization adjustment of 144,400 tons of inefficient production capacity.

In recent days, Bright Dairy & Food Co., Ltd. released its 2025 financial report. The filing shows that last year the company’s revenue fell 1.58% year over year to 23.895 billion yuan, while net losses were 149 million yuan, down 120.67% year over year.

Image source: Screenshot of the company announcement

By product segment, the company’s liquid milk achieved operating revenue of 13.223 billion yuan, down 6.65% year over year; operating costs were 9.809 billion yuan, down 5.84% year over year; gross margin was 25.82%, down 0.65 percentage points year over year.

Other dairy products achieved operating revenue of 8.466 billion yuan, up 8.67% year over year; operating costs were 8.022 billion yuan, up 12.25% year over year; gross margin was 5.24%, down 3.03 percentage points year over year. The main reason is that production costs increased and the industrial milk powder selling price fell.

Animal husbandry products achieved operating revenue of 909 million yuan, down 11.15% year over year; operating costs were 998 million yuan, down 6.95% year over year; gross margin was -9.71%, down 4.95 percentage points year over year. The main reason is that losses were incurred from selling calves due to market conditions.

Other products achieved operating revenue of 1.166 billion yuan, down 0.92% year over year; operating costs were 836 million yuan, down 5.53% year over year; gross margin was 28.28%, up 3.50 percentage points year over year. The main reason is product-structure optimization, which increased the proportion of high-gross-margin products.

By region, the company’s Shanghai revenue was 6.108 billion yuan, down 9.22% year over year; operating costs were 4.922 billion yuan, down 8.90% year over year; gross margin was 19.43%, down 0.28 percentage points year over year.

Revenue from outside Shanghai was 10.007 billion yuan, up 0.17% year over year; operating costs were 7.273 billion yuan, up 2.08% year over year; gross margin was 27.31%, down 1.36 percentage points year over year.

Overseas revenue was 7.650 billion yuan, up 2.84% year over year; operating costs were 7.470 billion yuan, up 6.82% year over year; gross margin was 2.35%, down 3.64 percentage points year over year. The main reason is that production costs increased and the industrial milk powder selling price fell.

According to the announcement, the company actively optimized its production system last year to achieve both market matching and efficiency improvement. In 2025, the company actively responded to market changes. Focusing on improving overall operating efficiency and flexible capabilities, the production side was market-oriented, and the company proactively implemented a series of adjustments and optimization initiatives. First, the company continued to optimize its asset structure and orderly exit low-efficiency production capacity. The company coordinated and optimized 12 outdated production lines with more than 10 years of operational life throughout the year, cumulatively optimizing and adjusting 1.444 million tons of low-efficiency production capacity. This covered multiple product categories such as room-temperature and fresh products, releasing space for the introduction of more efficient and more flexible advanced production capabilities. Second, optimizing incrementally to drive an improvement in capacity utilization. The PET plastic bottle production lines at the East China center factory achieved a significant increase in capacity utilization, effectively easing the supply-demand mismatch in peak seasons.

In line with channel transformation, in 2025, the company continued to optimize its channel structure and pushed the channel layout from broad coverage to deeper operations. On the online side, Guangming’s “Follow Your Heart” (随心订) digital upgrade went deeper and took root; the core was to shift from “selling products” to “selling services.” Relying on coordinated efforts within the e-commerce matrix, it improved the consumer-experience closed loop. On the offline side, it deepened penetration in diverse scenarios such as supermarkets and convenience stores, focusing on improving stocking density and display quality, and strengthening end-customer visibility. For the ToB side, it adapted to channel demands such as catering and specialty channels, and advanced multiple types of customized channel cooperation. For community channels, it strengthened end-customer penetration by linking with public welfare activities alongside Lianjia. At the same time, the company actively seized opportunities in emerging channels such as discounts and snack bulk sales, aligning with the trend toward consumer tiering to achieve a rapid rollout.

On the ranch operations side, in 2025, Guangming Animal Husbandry focused on the core goal of reducing costs and increasing efficiency, taking multiple measures to improve management quality and effectiveness. By strengthening refined management, it steadily improved the quality of fresh milk; by optimizing feed formulations and improving conversion efficiency, it effectively reduced the cost of feed per kilogram of milk; and by implementing dedicated cost-reduction projects, it further reduced manufacturing costs per kilogram of milk.

(Company announcement)

(Editor: Lin Chen)

Keywords:

                                                            Bright Dairy & Food Co., Ltd.
                                                            Dairy industry