YOURAN DAIRY (09858) has issued a profit alert, indicating a significant financial turnaround. The company expects to record a net profit attributable to shareholders of approximately RMB 739 million to RMB 903 million for the six months ending June 30, 2026. This represents a major shift from the net loss of approximately RMB 297 million reported in the same period last year.

The projected profit is primarily driven by several key factors. First, the company has seen a reduction in losses from changes in the fair value of biological assets less costs to sell. This decrease in revaluation losses is mainly due to a narrowing decline in raw milk market prices, a sustained increase in cull cow prices, and ongoing cost-reduction and efficiency-improvement measures that have boosted milk yield per cow and lowered feed costs.

Second, the core business operations have shown continuous improvement. The raw milk business has benefited from volume growth driven by higher farming efficiency and lower feed costs. Additionally, the ruminant farming systematized solution business has enhanced its performance through product iteration and an optimized business structure. These combined efforts have driven the Group's gross profit higher compared to the first half of 2025.