Australia and Asia Group (02425) expects the net profit attributable to shareholders for the medium term to be about 90 million yuan to 130 million yuan, turning a year-on-year loss into a profit

According to the Zhitong Finance App, the Australian and Asian Group (02425) announced that the Group expects to obtain a net profit of about RMB 90 million to RMB 130 million in the six months ending June 30, 2026, while the net loss attributable to the owner of the parent company is approximately RMB 378 million for the six months ending June 30, 2025 (previous period).

The Group's expected performance changed from net loss to net profit, which is mainly due to (i) the combined effects of (i) improved efficiency of farming operations and an increase in the average sales price of beef cattle during the reporting period; and (ii) a reduction in losses (revaluation losses) due to changes in the fair value of other biological assets minus the cost of sale. During the reporting period, the estimated revaluation loss ranges from approximately RMB 60 million to RMB 110 million, compared to approximately RMB 462 million in the previous period. The reduction was mainly due to a decrease in feed costs per kilogram of raw milk and an increase in the selling price of eliminated cows.