Hong Kong – AustAsia Group Ltd. (AustAsia, 02425) reported a narrowed net loss for the year ended 31 December 2025, supported by stronger margins and lower fair-value writedowns, despite softer revenue.
Key financials • Revenue slipped 5.9 % to RMB 3.47 billion, reflecting lower raw-milk selling prices. • Gross profit rose 29.2 % to RMB 634.31 million, lifting the gross margin to 18.3 % (FY2024: 13.3 %) on reduced feed costs and operational efficiency gains. • Loss attributable to shareholders shrank 40.9 % to RMB 750.62 million. The shortfall was driven primarily by RMB 945.97 million of losses on biological-asset fair-value changes, tied to weaker milk-price assumptions. • Cash EBITDA (non-IFRS) increased 38.1 % year on year to RMB 708.68 million, while profit before biological-asset fair-value adjustments turned positive at RMB 195.35 million (FY2024: RMB 8.64 million loss). • Basic loss per share fell to RMB 0.92 from RMB 1.81.
Segment performance • Raw milk: Revenue declined 7.3 % to RMB 2.68 billion, but gross profit improved 4.4 % to RMB 588.75 million, with margin widening to 22.0 %. Annualised average milk yield edged up 0.7 % to 14.1 tons per cow, although the dairy-cow herd contracted 8.2 % to 112,172 heads. • Beef cattle: Revenue fell 9.3 % to RMB 451.48 million; gross profit swung to a gain of RMB 24.28 million (FY2024: RMB 90.05 million loss) on lower feed costs and firmer selling prices. Herd size dropped 23.4 % to 27,358 heads. • Ancillary products (milk and feed sales): Revenue rose 13.9 % to RMB 338.14 million; gross profit reached RMB 21.28 million, a 25.2 % increase.
Balance sheet and liquidity • Total assets decreased to RMB 8.84 billion; net assets stood at RMB 3.34 billion. • Net current liabilities were RMB 905 million; cash and cash equivalents totalled RMB 341.68 million. • Interest-bearing bank borrowings were RMB 2.93 billion, with RMB 1.88 billion maturing within 12 months; the gearing ratio remained high at 131 %. • Operating cash inflow improved to RMB 1.01 billion (FY2024: RMB 813.55 million). Free cash was partly offset by RMB 319.72 million of investment outflows and RMB 633.73 million of net financing outflows.
Going-concern emphasis Auditors flagged a material uncertainty over going concern due to sizeable short-term debt versus available cash, though management cites ongoing cost-control initiatives, negotiations with lenders and capital-raising options to manage liquidity.
Capital activity A rights issue completed in August 2025 raised net proceeds of HK$307.19 million (≈RMB 276 million), mainly used to repay a US$25 million short-term facility and other offshore loans.
Operational highlights • Eleven dairy farms produced raw milk in Shandong and Inner Mongolia; total farm acreage is 16,992 mu. • Feed-cost optimisation and an in-house premix mill contributed to margin gains. • Genetic-breeding initiatives resulted in 21,689 IVF embryo transfers during the year.
Outlook Management will prioritise efficiency improvements, customer diversification, premium beef expansion (Wagyu and Angus), and debt reduction while monitoring dairy-price recovery. No final dividend is proposed for FY2025.
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