BEIJING, CHINA - 4 September 2025 - On August 27, Mengniu Dairy (2319.HK) released its interim results for 2025, reporting revenue of RMB 41.57 billion for the first half of the year, with operating profit reaching RMB 3.54 billion-an increase of 13.4% year-on-year.

Thanks to the company's ongoing implementation of lean management practices, Mengniu also achieved a 46.2% year-on-year growth in operating cash flow during the period. The operating profit margin improved by 1.5 percentage points to 8.5%.

Following the results announcement and reflecting confidence in the company's future prospects, institutions such as JPMorgan increased their holdings in Mengniu. DBS Group and Shenwan Hongyuan also issued "Buy" ratings for the stock.

Aice Ice Cream: Deep Local Engagement Driving Growth

Mengniu's international business delivered a standout performance in the latest financial report. Public data shows that Aice Ice Cream entered the Indonesian market in 2015, growing its annual sales from RMB 20 million to RMB 1.2 billion within three years. Currently, the brand generates over RMB 2 billion in annual revenue and holds a 34% market share in Indonesia, ranking first in the market. Aice also ranks second in the Philippines and has climbed to the number two position in Vietnam's ice cream sector, with further expansion into neighboring countries such as Thailand.

Aice has driven innovation through its "Freezer Deployment Program," under which nearly 600,000 freezers have been distributed across rural Indonesia, covering approximately 400,000 retail outlets. The program is supported by electricity subsidies, helping to establish a robust retail network. Notably, Aice has built a fully localized supply chain through strategic investments, including the construction of cold chain infrastructure via joint ventures and the establishment of three self-owned production facilities in Indonesia-effectively resolving cross-border logistics challenges.

To date, Aice has established four production bases across Southeast Asia. Its localized operating model-anchored in R&D, distribution, and supply chain management-has created strong competitive barriers in the region and offers a scalable blueprint for entering new markets.

Bellamy's Accelerates Global Business System Upgrade

As a key pillar of Mengniu's internationalization strategy, Bellamy's Organic Infant Formula is showing strong growth momentum in Southeast Asia. Originating in Australia, Bellamy's is a premium organic baby food brand, with its high-end product line - Bellamy's Organic A2 Platinum - maintaining robust growth. The brand's strategic presence in the Southeast Asian premium maternal and infant market is also contributing significantly to the upgrade and optimization of Mengniu's global business system.

In recent years, Bellamy's has continued to expand its footprint across Southeast Asia, with particularly strong performance in the Vietnamese market, where its infant formula segment is outpacing industry growth. In the first half of 2025, Bellamy's completed a product line upgrade, launching new additions to its Classic Blue Can series and Organic Blue Shield series in both the Australian and Vietnamese markets.

Notably, during a recent distributor signing ceremony, the Australian Government's Trade and Investment Counsellor to Vietnam attended in person-a strong endorsement of Bellamy's product quality. The brand's influence in Vietnam continues to grow, having been featured multiple times in special reports by Vietnam National Television. Bellamy's has also enhanced local brand awareness through hosting visits from Vietnamese government and industry association delegations.

Entering a New Stage of Internationalization

Industry experts note that the globalization of the dairy industry faces multiple challenges, including supply chain integration, product localization, and building brand trust. Mengniu's internationalization strategy goes beyond simple product exports, adopting an integrated "Product–Brand–Culture" approach to establish a multidimensional global presence.

On the branding front, Mengniu leverages global IPs to strengthen emotional connections with consumers, with sports marketing delivering particularly strong results. Since becoming the first Chinese dairy sponsor of the FIFA World Cup in 2018, the company has continued to sponsor major international events such as the World Cup and the Olympic Games. Through its brand message-"I wasn't born strong; I was born to be strong"- Mengniu aligns the spirit of perseverance with athletic excellence, deepening global recognition of its brand values and product quality.

In terms of cultural outreach, Mengniu has positioned itself as an ambassador of Chinese culture, contributing to the broader narrative of cultural exports. Its collaboration with Ne Zha 2 not only launched co-branded products but also brought the creativity of Chinese IPs to global audiences.

Mengniu's internationalization journey reflects a new model for Chinese brands going global: from product localization and brand IP development to achieving cultural resonance. This evolution marks a shift from exporting "Made in China" to communicating "Chinese Values." With strategic patience and cultural confidence, Mengniu is steadily advancing from simply "going global" to "integrating globally" - and ultimately, to "leading globally."

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