Bright Dairy & Food Co., Ltd. (600597.SH) has issued a profit warning for the 2025 fiscal year, forecasting a net loss attributable to owners of the parent company in the range of 1.2 billion to 1.8 billion yuan. This represents a significant shift into loss-making territory compared to the same period last year.
For the 2025 fiscal year, the company also anticipates a net loss attributable to owners of the parent company, after excluding non-recurring gains and losses, to be between 370 million and 970 million yuan. The primary reason for the expected negative net profit attributable to the parent company's shareholders is as follows.
During 2025, the company's overseas subsidiary, Synlait Milk Limited (referred to as "Synlait"), encountered production issues at its manufacturing base. These problems led to substantial direct losses, including inventory write-offs and increased production costs, which adversely impacted Synlait's profit and loss for the period and resulted in an operational loss for Synlait in 2025.
Bright Dairy & Food holds a 65.25% stake in Synlait, and the operational loss incurred by Synlait is the direct cause of the negative net profit attributable to the parent company. The aforementioned issues at Synlait have now been largely resolved.
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