Yihai Kerry Arawana Holdings Co.,Ltd. disclosed its 2025 annual report on April 17, revealing performance that exceeded market expectations. During the reporting period, the company achieved operating revenue of 245.126 billion yuan, a year-on-year increase of 2.87%. Net profit attributable to shareholders reached 3.153 billion yuan, a significant surge of 26.01% compared to the previous year. Net profit after deducting non-recurring gains and losses amounted to 2.845 billion yuan, skyrocketing by 193.68% year-on-year.
The strong rebound in profitability was primarily driven by two key factors: systematic improvements in the flour and rice businesses, and a comprehensive recovery in soybean crushing margins. A bumper soybean harvest in South America lowered raw material procurement costs for the first three quarters. Coupled with persistently high prosperity in the downstream breeding industry and robust demand for soybean meal, the profitability of the company's feed ingredients segment saw significant restoration. Furthermore, the kitchen food segment benefited from new factory capacity utilization and channel expansion, achieving growth in both volume and profit. Some new business segments also showed gradual improvement in profitability.
On the dividend front, the company also sent a positive signal. The board of directors reviewed and passed a profit distribution plan, based on 5.422 billion shares, to distribute a cash dividend of 2.30 yuan per 10 shares (tax inclusive), demonstrating management's confidence in the sustainability of future earnings.
Revenue showed steady growth, peaking in the third quarter before moderating in the fourth. Quarterly trends indicate that Yihai Kerry Arawana's 2025 revenue followed a pattern of strength early in the year followed by stability. Revenue was 59.9 billion yuan in the first quarter, 56.6 billion yuan in the second, rose to 68.6 billion yuan in the third, and moderated to 60.9 billion yuan in the fourth. Full-year revenue reached 245.126 billion yuan, a mild increase of 2.87% from the low base of 2024.
Profit distribution was more concentrated in the first three quarters. Net profit attributable to shareholders was close to 1 billion yuan in both the first and third quarters, and 774 million yuan in the second quarter. The fourth quarter saw profit plummet to 404 million yuan due to a significant provision for litigation losses. This sharp decline clearly reflects the impact of litigation matters on year-end performance.
Cash flow performance was particularly strong. Net cash flow from operating activities accumulated to approximately 27.6 billion yuan in the first three quarters. Although the fourth quarter saw a net outflow of about 12.2 billion yuan due to seasonal factors like procurement and inventory buildup, the full-year cumulative net inflow reached 15.445 billion yuan, a substantial increase of 155.80% year-on-year. This growth far exceeded the net profit growth rate, highlighting a substantial improvement in the quality of the company's earnings.
Kitchen Food Segment: Flour and Rice Turnaround, Channel Expansion Drives Volume. The Kitchen Food segment, as the core foundation of Yihai Kerry Arawana, encompasses various categories including edible oil, rice, flour and noodles, condiments, eggs, and central kitchen products. In 2025, both sales volume and profit in this segment achieved year-on-year growth, although performance varied internally.
Flour and rice emerged as the biggest performance highlights of the year. The improvement logic for these two categories was highly consistent: a year-on-year decline in raw material prices, combined with the company's precise procurement timing and product marketing strategies, jointly drove a significant recovery in gross profit margins. From an industry perspective, prices for common rice varieties remained stable, while premium varieties trended upward throughout the year. Wheat raw material supply was ample, with prices experiencing a slight increase. Overall, mild raw material costs provided a favorable operating window for the company.
The edible oil business faced a more complex cost structure. Prices for rapeseed oil and sunflower seed oil increased noticeably, while soybean oil and corn oil were relatively stable. This structural divergence in raw material costs had a differentiated impact on profit margins across categories. From a consumption trend perspective, demand for healthier and functional edible oils continues to heat up, providing long-term growth potential for the company's premium and specialized product lines.
Notably, the continuous release of capacity from new factories, coupled with the deepening of both online and offline channels, provided crucial support for sales volume growth. The operational performance of some new business segments, such as functional health products and central kitchen products, is gradually improving, positioning them as potential new profit growth points in the future.
Feed Ingredients and Oils & Fats Technology: Soybean Meal Boom Drives Growth, Oils & Fats Tech Under Pressure. The Feed Ingredients segment was another core profit driver for Yihai Kerry Arawana in 2025. Benefiting from high inventory levels of domestic pigs, meat poultry, and layer hens, combined with reduced imports of rapeseed meal and sunflower meal, the cost-effectiveness of soybean meal became more prominent. Its inclusion ratio in feed formulations increased significantly, driving year-on-year growth in soybean meal consumption. Crushing enterprises generally reported better profits compared to the previous year.
On the cost side, the bumper harvest of South American soybeans in the 2024/2025 season was clear, leading to a year-on-year decrease in the company's soybean procurement costs for the first three quarters. Although costs rose somewhat in the fourth quarter, full-year crushing profits still surpassed those of 2024. The company's sustained advantage in feed ingredient sales channels also helped it further expand its market share.
In contrast, the Oils & Fats Technology segment performed weakly. During the reporting period, overall demand for the segment fell short of expectations, and trade tensions increased uncertainty in the export environment. While the domestic market remained relatively stable, heightened price sensitivity continued to pressure corporate profit margins. Although the industry is transitioning towards greener, low-carbon, and personalized customization trends, external disruptions are expected to constrain the pace of profitability recovery in this segment in the short term.
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