Feihe (06186) 2026 semi-annual report with revenue of 9.36 billion yuan, self-produced milk protein raw materials to reshape long-term development resilience

The Zhitong Finance App learned that on August 26, China's Feihe (06186) released a performance report for the first half of 2026. During the reporting period, the company achieved revenue of 9.36 billion yuan, an increase of 2.3% over the previous year; net profit of 901 million yuan, and profit quality continued to improve. Cash flow and operating quality continue to maintain a healthy trend, and the long-term operating value of the enterprise and shareholder returns are steadily realized.

Currently, the infant formula industry is in a cycle of deep adjustment. Changes in the birth population structure, increased market competition, compounded by the continuous upgrading of high-end consumer demand and functional demand, and increased global milk protein raw material price fluctuations, multiple factors are testing the resilience of dairy companies to the cycle and long-term development resilience.

With the quality system of the entire industry chain that has been deeply cultivated over many years, Feihe has built up market trust, continues to stabilize the basic market of leading domestic infant formula, and has transformed long-term accumulated milk protein core scientific research capabilities and raw material self-production advantages into new growth momentum.

Continue to promote product innovation and leverage structural growth on high-end racetracks

At a time when competition in the industry is becoming more intense and consumers are becoming more cautious about dairy safety, with long-term stable product strength and brand power, Feihe has been ranked first in the domestic infant formula market share for seven consecutive years, consolidating the basic business market, and showing strong ability to overcome the industry cycle.

(Feihe ranked first in sales of infant formula in China for 7 consecutive years)

On the product side, Feihe continues to promote product innovation, and the core single product matrix continues to lead the market. Among them, the Zhuorui series has stabilized at the top of the industry with its mature formula advantages and long-term market reputation; the ultra-high-end Trace and Inspiration series launched rely on localized breast milk research results to create an empirical feeding effect of “a new generation more suitable for Chinese babies”. The empirical evidence can effectively increase the baby's autoimmune globulin SlgA by 10.6%, the empirical formula helps accelerate smart age by 1.2 times, accurately matches the needs of families in the new era for refined and high-end infant nutrition, and continues to gain market recognition for its fresh, safe, and verifiable nutritional quality.

Unlike the competitive logic of most brands in the industry that focus on the iteration of a single formula, Feihe has already extended quality competition to the whole industry chain, redefined high-end milk powder standards with “fresh ingredients+fresh products”, and promoted the industry to fully enter the fresh milk powder era.

From a pure ecological ranch in the 47° northern latitude golden milk source zone, to intelligent thermostatic breeding, AI dairy cow health management, to 2-hour rapid processing of fresh milk, sterile closed production, and full-dimensional quality inspection and control, Feihe has built a full-chain freshness system covering the six dimensions of milk source, raw materials, formula, product, traceability, and standards.

In particular, Feihe achieved fresh self-production of core protein ingredients, and achieved a fresh leading edge from “year” to “day”. In addition, Feihe pioneered the launch of the world's first traceability system for fresh milk powder ingredients, and the China Institute of Standardization pioneered the release of the “Fresh Quality Management Standard for Milk Raw Materials”, incorporating “fresh ingredients” as an independent dimension into the standard system for the first time, implementing “fresh” from a marketing concept to a complete set of rigid standards that run through ranching, R&D, production, finished products, and traceability, to truly take safety and quality into their own hands.

Full chain quality control establishes a secure foundation, and intelligent manufacturing protects the quality of every can

As a “national food ration” to protect the healthy growth of babies, safety and quality are fundamental to the survival of the industry, and it is also an insurmountable core bottom line. Relying on years of industrial chain construction, Feihe has integrated the concept of quality and safety throughout the manufacturing process, and has built a whole industry chain safety system covering source control, intelligent manufacturing, quality inspection and full traceability.

Recently, the CCTV news “Traceability and Purity, Exploring Fresh Nutrition” was broadcast live on the entire industry chain. The camera directly hit the clean production workshop of Feihe 100,000-grade pharmaceutical standards. The workshop uses fully enclosed pipeline transportation, automated production equipment and a strict clean management system to reduce the risk of pollution in the production process at the source.

On the live broadcast, the guests mixed a small 2 mm ball into the milk powder can. Even if the ball sank to the middle of the milk powder can, it was accurately identified and automatically eliminated by the equipment, demonstrating the ability of the Feihe Intelligent Manufacturing System to guarantee product safety and quality. According to reports, the Feihe intelligent production line is equipped with an AI smart pupil inspection system, which combines near-infrared detection technology and deep learning algorithms to monitor more than 200 core production indicators in real time to achieve rapid identification, early warning, and treatment of abnormal risks.

At present, Feihe has established 1,322 quality management systems, covering the entire process of agriculture and animal husbandry management, R&D technology, laboratory management, etc., and has carried out 24-hour full-process testing, covering 25 inspection procedures, 411 tests, and has 12 exclusive quality patents to continuously promote the upgrading of quality management from result testing to risk prevention and control throughout the process.

Self-production of raw materials broke the game, and milk protein technology opened a second growth curve

If the full-chain fresh quality system supports Feihe's stable basic market, then the controllable production of milk protein ingredients is the core motivation for Feihe to open up room for long-term growth. For infant formula, what really determines the core nutrition and quality upper limit of the product is not only the milk source, but also the core ingredients such as whey protein, lactoferrin, and functional protein, which account for 70% to 80%.

Global milk protein raw material prices continued to rise in the first half of 2026, and domestic dairy companies' supply chain shortcomings that are highly dependent on imported raw materials became further evident: imported raw materials are easily disrupted by international prices, and long-distance storage and transportation can also lose nutritional activity, leading to quality uncertainty, and supply chain safety has become a common challenge for the industry.

As early as 2011, Feihe pioneered scientific research on milk protein deep processing technology. Through more than ten years of continuous R&D investment, long-term industry-university-research collaborative innovation, and large-scale production line iterative implementation, it has mastered the world's leading fresh extract technology for milk protein. It has achieved 100% self-development and self-production of 16 key core ingredients such as lactoferrin, demineralized whey protein, and α-lactalbumin. It has 12 technical reserves. It has built 3 deep processing bases for milk protein raw materials in Inner Mongolia, Heilongjiang, and Ningxia. All of them were put into operation in August 2026. Raw material supply system. This definitive technical chassis will completely break the long-term monopoly on overseas raw materials and technology, and make up for the upstream core shortcomings of the domestic dairy industry.

Internally, Feihe's own production of raw materials can calm fluctuations in international raw material prices, stabilize costs and product quality, and strengthen operational resilience; at the same time, efficiently reuse core technology, and comprehensively transform technical advantages, raw material advantages, and quality advantages on the supply chain side into product competitiveness in multiple categories and people.

Based on the original superior products of infant formula, Feihe has continued to improve the nutrition product matrix throughout the life cycle, laying out diverse products such as youth cheese, Aiben PRO50 adult milk powder, fresh milk protein series nutritional powder, slow-fermented cheese, etc., covering all infants, young people, adults, middle-aged and elderly people, completing the progression from “leading infant formula formula” to a “full-age nutritional technology enterprise”, and accurately grasping the trend of national nutrition upgrading, opening up new domestic growth space.

At the same time, Feihe began a global layout with mature technical systems and supply chain capabilities, and upgraded from products going overseas to systems going overseas. At present, Feihe has completed business implementation in key regions such as North America, the Philippines, and Indonesia, bringing high-quality Chinese dairy products to the world, showing the world the hard-core strength of Chinese dairy companies in upstream deep processing, raw material autonomy, and full-chain quality control, and reserving overseas incremental markets for medium- to long-term development.

Externally, the milk protein business is becoming a new growth engine for Feihe. The company set up an independent raw material business department to promote commercialization, export high-quality domestic dairy ingredients to the world, set up a new protein ingredient brand “Zhichun FURIMMO”, released six self-produced protein ingredients, reached strategic cooperation with leading sports nutrition and health companies such as Combit, Xizi Health, Lily Bio, and Jingdong, and joined forces with Arc Marine Biology, Yuxin Biology, Algae Technology, Yuansheng Biology, and Zhongke Optics Valley to solve the problem of protein raw material supply. Relying on the leading large-scale production line of casein in China and improving the strategic layout of milk protein nutrition, it is expected to become the core supplier of global casein by the end of 2026, opening up a definitive second growth curve.

Leng Youbin, chairman of Feihe, said, “We must not only guarantee the protein needs of Chinese people, but also have a responsibility to provide high-quality protein solutions to the world, so that the global market can see the hard strength of Chinese dairy companies in the field of deep processing — not only can they make good milk powder, but they can also supply good raw materials.”