Performance Bulletin | China Feihe Releases 2024 Financial Report, with Both Revenue and Profit Achieving Double Growth

On the evening of March 28th, China Feihe released its annual performance announcement for the year ended December 31st, 2024: In 2024, it achieved a revenue of 20.75 billion yuan, a year-on-year increase of 6%; the net profit was 3.65 billion yuan, a year-on-year increase of 11%.

In 2024, the Chinese milk powder industry witnessed an opportunity for structural recovery. With the rebound in the birth rate, the enhanced confidence of consumers in domestic milk powder, and policy support, the market space for milk powder was further released, which also created favorable opportunities for Feihe's growth.

Looking at the business segments, during the period, the revenue from infant formula milk powder products was 19.06 billion yuan, a 6.6% increase compared to last year. The revenue from other dairy products, including adult milk powder, liquid milk, rice cereal and complementary foods, was 1.514 billion yuan, a 6.3% increase compared to last year. The revenue from nutritional supplements was 173 million yuan, a 25.4% increase compared to last year.

In terms of sales volume, according to Frost & Sullivan statistics, as of 2024, Feihe milk powder ranked first in sales in the infant formula milk powder market in China for six consecutive years and first globally for four consecutive years.

It is worth mentioning that in 2024, Feihe continued to accelerate its "going global" pace. In April last year, Feihe's Canadian subsidiary, Royal Mook, reached a strategic cooperation with the American baby products company, Munchkin. In September of the same year, Feihe's Canadian infant formula milk powder production factory was officially put into operation.

The financial report shows that in 2024, Feihe's revenue in the Chinese mainland was 20.55 billion yuan, in the United States was 160 million yuan, and in Canada was 38.51 million yuan, all showing varying degrees of growth compared to last year.

Continuous R & D innovation is the core engine driving Feihe's steady growth. It is understood that Feihe has successively cooperated with top scientific research teams such as the Peking University Health Science Center, Harvard BCH, and the Peking University Institute of Neuroscience to systematically explore and apply early-life brain development and brain nutrition.

In terms of achievements, in 2024, Feihe added 153 domestic and international authorized patents, with a cumulative total of 659 domestic and international authorized patents, and won the TPM Grand Prize, known as the "Nobel Prize" in the manufacturing industry, again.

In terms of the results of scientific research transformation, Feihe launched new products such as "Supernova Cheese" to meet the personalized nutritional needs throughout the life cycle, and released the fresh extraction technology of milk protein in January this year, opening a new era of functional nutrition. This series of technologies and achievements have also broadened Feihe's moat and effectively enhanced its competitiveness.

Regarding the future, Leng Youbin, the chairman of Feihe Dairy, said, "China Feihe will seize development opportunities and continue to carry out independent innovation, especially in areas such as breast milk research, brain development research, milk protein technology, and full-age nutrition research, and continuously make new breakthroughs."