Modern Dairy Financial Report Releases Strong Signal——Precisely Positioning in "15th Five-Year Plan" Agricultural New Track, Forward-Looking Layout of Second and Third Curves Synergistic Resonance

Question: How does AI · Modern Farming Industry resist industry cycle fluctuations through diversified growth curves?

Radar Finance Production | Text by Su Jing | Edited by Meng Shuai

Modern Farming Industry, with a new financial report, shows the market that the dairy industry has emerged from the cycle bottom and is returning to a new cycle of value reversion.

On March 24, Modern Farming Industry (01117.HK) disclosed its 2025 financial report, achieving sales revenue of 12.601 billion yuan, with a gross profit margin up 1.4 percentage points year-on-year to 27.4%. Cash EBITDA increased by 2.6 percentage points year-on-year to 3.063 billion yuan; operating cash flow grew 4.1% year-on-year to 2.502 billion yuan.

Beyond the financial data itself, this report releases a more critical signal: the second and third growth curves centered on feed, forage, breeding, digital intelligence, and overseas expansion are gradually taking shape. This not only effectively hedges against the cyclical fluctuations of the core business but also confirms the management’s strategic foresight and precise layout over the years, which has received positive market feedback and provides a reference model for industry transformation during counter-cyclicality.

Industry insiders believe that Modern Farming Industry has officially entered a new cycle benefiting from the “14th Five-Year Plan” policies, with its market value expected to be re-evaluated. Behind this is the management’s breakthrough under performance pressure, turning challenges into transformation momentum, and laying the logical foundation for high-quality development.

Raw Milk Prices Reach “Turning Point,” Cost Moat and Diversified Growth Curves Drive Dual Growth

After four years of downturn, raw milk prices have reached a turning point. Data from the Ministry of Agriculture and Rural Affairs shows that in the fourth week of February 2026, the average price of fresh milk in major producing provinces nationwide was 3.03 yuan per kilogram, seen as a bottoming rebound signal. Many brokerages believe the “turning point has arrived.”

During the cycle bottom in 2023, the company’s market value was affected by the dual pressures of falling raw milk prices and high feed costs. At that time, it was also a period of strategic transformation for Modern Farming Industry, focusing on “building internal strength,” upgrading internal industries, strengthening core business resilience, and exploring second and third growth curves, without revealing long-term strategic deployment externally.

From the perspective of core business resilience, Modern Farming Industry has adhered to a “cost leadership” strategy in recent years. By optimizing procurement systems, dynamically adjusting feed formulas, and implementing precise feeding, feed costs per kilogram of milk decreased by 9.2% year-on-year to 1.77 yuan, driving the cost per kilogram of milk sales down to 2.32 yuan, an 8.3% reduction. Despite industry pressures on raw milk prices, the gross profit margin of its raw milk business remains at 31.2%, demonstrating strong cost control and operational resilience.

Starting in 2024, signals of valuation recovery for Modern Farming Industry have appeared, reflecting capital market recognition of its industry upgrade.

Under the “14th Five-Year Plan” Policy Benefits, Industry Chain Upgrades Activate New Growth Drivers for the Second Curve

The 2026 Government Work Report and the “14th Five-Year Plan” explicitly propose to deepen the implementation of seed industry revitalization, coordinate the development of science and technology, green agriculture, and build agriculture into a modern large industry. This policy wind provides opportunities for the dairy industry, and Modern Farming Industry’s early industry chain layout precisely aligns with the “14th Five-Year” agricultural strategic map.

Breeding chain — Achieving core seed source independence and control, developing the “Modern No. 1” dairy cow genome liquid-phase “chip,” and establishing two national-level dairy cow breeding centers;

Forage chain — Breaking the traditional positioning of “only supporting its own farms,” achieving brand commercialization and iterative upgrades, with the “Grass King” alfalfa ranked first in China for import volume;

Technology chain — Pioneering dairy cow udder health detectors and unmanned feed carts, holding 9 national patents, and participating in drafting 4 industry standards;

Digital intelligence chain — Leading the “Love Dairy” platform in transaction scale, with cloud-based dairy farming systems covering over 370 farms and 1.5 million dairy cows, creating a supply chain closed loop through cloud logistics;

Green chain — Achieving ISO 14064 certification for greenhouse gas verification for four consecutive years, with renewable energy accounting for 60%, recognized by FAO authorities.

The 2025 financial report shows that the integrated breeding solutions revenue exceeded 2 billion yuan, successfully transforming the second growth curve from “supporting” to “independent growth engine,” complementing the main business and forming a solid foundation for long-term enterprise value.

The Third Curve “Sprouts,” Overseas Expansion “Rides the Wind,” Business “Blossoms in Multiple Points”

With the momentum of the second growth curve strong, Modern Farming Industry has launched the third growth curve in 2025: focusing on overseas expansion, linking breeding services and talent cultivation, and achieving a strategic leap from “asset-heavy farming” to “high-value technology export.”

In March 2025, its managed farm in Indonesia, leveraging mature management systems and advanced technology, set a record for the highest single-unit yield in Indonesia’s large-scale farming in just 8 months, demonstrating the international competitiveness of the “Chinese solution.” In early 2026, the company signed another management contract for Southeast Asia’s largest single farm, marking a new stage of “light asset, high-margin” service trade.

In 2025, Modern Farming Industry partnered with major universities to establish Modern Smart Cattle, aiming to produce a set of farming solutions representing China and benchmarking against international standards, based on two decades of advanced breeding concepts, experience, and technology, exploring and cultivating diversified growth points.

Since this year, many listed dairy companies’ stock prices have risen significantly, reflecting the capital market’s positive expectations for the “meat-milk resonance” cycle turning point and diversified layout. The steady traditional core business (“old tree with deep roots”) and emerging new growth points (“sprouting new shoots”) work together, showing the market that Modern Farming Industry is gradually shedding reliance on a single cycle, with strategic resilience, and injecting new imagination into market revaluation.