HONG KONG, July 24, 2026 - (ACN Newswire) - On 24 July, Ausnutria (1717.HK) issued a profit alert for the first half of 2026, under which the Company is expected to record revenue of approximately RMB3.065 billion to RMB3.165 billion. Excluding the effects of one-off inventory adjustments, non-cash asset impairments and other related items, the Company's core business fundamentals remained stable, with core operating net profit expected to range from approximately RMB155 million to RMB255 million.

According to the announcement, Ausnutria's first-half performance faced temporary pressure due to a combination of external industry shifts and proactive internal adjustments. Externally, changes in the international logistics environment, volatile shipping costs, and tightening regulatory oversight disrupted the supply rhythm and fulfillment efficiency of certain products. Internally, the Company proactively optimized channel inventory, streamlined SKU structures, reallocated resources, and upgraded overseas operational frameworks around its core brands, core products, and core channels. Meanwhile, adhering to a prudent approach to asset valuation, the Company recognized certain non-cash asset impairments. The relevant one-off adjustments affected profit for the period under review.

Ausnutria emphasized in the announcement that while these adjustments put pressure on short-term profits, they will help improve channel inventory structure, enhance product freshness at retail terminals, and optimize consumer experience in the long run, thereby laying a more solid foundation for subsequent healthy business development. Backed by its firm confidence in the Company’s long-term development prospects and intrinsic value, Ausnutria stated that it will initiate a share repurchase plan at an appropriate time, subject to share buyback mandates and relevant regulations, to effectively safeguard the overall interests of the company and all shareholders.

The dairy industry has entered a phase of more refined competition, where enterprises compete on the efficiency of resource allocation and operational quality across the entire industry chain, rather than just raw scale. Industry insiders note that Ausnutria’s proactive adjustments essentially represent a strategic move to shed short-term baggage in exchange for long-term agility. It represents a strategic trade-off driven by firm confidence in its future development, building a stronger foundation for sustainable growth.

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