In the first half of 2026, the domestic economy is under stable pressure and steadily recovering. The dairy industry is in a critical stage of consumption upgrading and industry adjustment, with market opportunities and competitive challenges coexisting. Entering a new development cycle of the 15th Five Year Plan, Bright Dairy has anchored its strategic direction of "reform and innovation, breaking through pressure, and building a long-lasting foundation", closely following the national demand for nutrition and health consumption, adhering to the dual drive of innovation driven and digital intelligence empowerment, and steadily promoting high-quality development of the entire industry chain. During the reporting period, the company's operating fundamentals remained stable and improved, achieving a total operating revenue of 11.873 billion yuan and a net profit attributable to shareholders of the listed company of 251 million yuan. The weighted average return on equity reached 2.64%, stabilizing the operating fundamentals in the deep adjustment of the industry and fully demonstrating the development resilience and comprehensive competitiveness of the leading dairy enterprise.

Innovation driven improvement in quality and efficiency accelerates the realization of scientific research achievements

The century long accumulation of innovation is the core foundation for the high-quality development of Bright Dairy. Relying on high-end scientific research platforms such as the State Key Laboratory of Dairy Biotechnology and the national enterprise technology center, the company deeply cultivates cutting-edge technology in the dairy industry, adheres to independent innovation and research for a long time, continues to achieve breakthrough technological achievements in the industry, and builds a complete innovation system from basic research to achievement transformation.

In the first half of 2026, the company will drive industrial upgrading through technological innovation and product innovation, and establish a full chain transformation channel for research and development, implementation, and marketization. Based on the track of localized and differentiated development, the company launched the Shanghai limited fresh milk "Enjoy wutong under the tree in Shanghai", selected the exclusive milk source of the city ranch, realized the quick and direct access of milk source from harvesting to factory processing in one hour, and locked the ultimate fresh quality. The product deeply integrates the cultural characteristics of Shanghai style, and uses high-quality dairy products as a link to build emotional connections between the brand, the city, and consumers, creating a benchmark for localized innovative marketing.

During the reporting period, the company's scientific research strength was once again recognized at the national level, and the Key Laboratory of Functional Dairy Processing was successfully approved as a construction platform by the Ministry of Agriculture and Rural Affairs. The laboratory focuses on high value-added dairy based functional ingredients and core processing technology research and development, deeply cultivating personalized nutritional dairy products for all ages, accurately adapting to refined and diversified health consumption needs, and laying a technological foundation for the company's new product iteration and commercial growth. Relying on the only enterprise level State Key Laboratory in the dairy industry in China, the company has been working hard on core technology for many years, and has won five national science and technology awards. With a mature scientific research transformation system, the company has enabled many main products with independent core strain technology, and successfully built an independent and controllable industrial chain closed-loop of "strain - starter - terminal product".

Relying on profound scientific research accumulation, the company continues to iterate and upgrade its product matrix, focusing on the trend of national health consumption, and creating Youbei 5Multiple benchmark products such as 0 ultra fresh milk, high protein fermented milk, and Moslian low GI yogurt cover high-end fresh milk, healthy fermented milk, sugar controlled nutrition, and other segmented tracks. The market reputation and sales continue to rise, effectively transforming scientific research and innovation potential into the core market competitiveness of the enterprise.

Brand deeply cultivates cultural, sports, and tourism scenes, and collaborates with all channels to make efforts

As a national level national dairy enterprise deeply rooted in Shanghai and radiating throughout the country, Bright Dairy has long been deeply involved in urban cultural construction, deeply bound to top city IP and cultural scenes, and accumulated profound brand heritage and national credibility.

In the first half of 2026, the company will continue to deepen its brand layout in multiple cultural, sports, and tourism scenarios, build a three-dimensional brand communication system, and achieve synchronous improvement in brand volume, cultural value, and social benefits. In the cultural field, the company collaborates with urban cultural IPs such as the Shanghai International Film Festival and Shanghai Book Fair to empower the brand's high-end tone, deeply cultivate the dissemination of Shanghai style culture, and solidify the brand's humanistic foundation; In the field of sports, we will collaborate with top tier events, leverage sports hotspots such as women's volleyball championships, deeply integrate the spirit of hard work and enterprising sports with the brand core, and strengthen public emotional recognition. At the same time, the company uses youth oriented and scenario based marketing models such as celebrity co branded products, public welfare cycling, and immersive cultural and tourism experiences to accurately reach diverse consumer groups and achieve brand breaking communication.

With decades of deep cultivation and accumulation in all channels, Bright Dairy has industry-leading omni channel layout and terminal operation capabilities. It has pioneered the "on-demand" milk delivery service and built a convenient fresh delivery network covering the whole country.

In the first half of 2026, the company will continue to optimize the overall channel structure and promote the collaborative improvement of quality and efficiency among various channels. Traditional channels focus on cultivating the terminal market, fully implementing new product listings, iteratively upgrading the digital milk ordering system, and promoting channel upgrades from product sales to quality services; Emerging channels seize new retail opportunities, deeply layout new formats such as instant retail, warehouse supermarkets, snack volume vendors, community group buying, etc., and adapt to new consumption scenarios; B-end commercial channels continue to expand, with customized research and development of exclusive dairy products for catering, tea drinks, and group meals, expanding multiple chain cooperation customers. At the same time, the company strengthens channel refinement control, implements unified control of goods and prices, empowers dealer development, relies on the collaborative advantages of Xiaoxiniu to fill the gaps in the northwest market, continuously optimizes the national channel layout, and broadens the growth space of the enterprise.

Digitization empowers the entire chain of animal husbandry and builds a solid foundation at the source

The steady breakthrough in front-end brand marketing and channel market relies on the lean operation and digital empowerment support of the entire back-end industry chain. The company will integrate lean management throughout the entire production and logistics chain, continuously optimize production capacity layout and production processes, reduce production and operation costs, and multiple factories have passed international equipment management system audits, resulting in continuous improvement of production and operation efficiency. Establish a centralized warehousing and unified distribution system at the logistics end, implement a temperature control traceability mechanism throughout the entire process, achieve intelligent monitoring and risk warning of dairy products, and comprehensively strengthen the food safety defense line.

Milk source animal husbandry is the fundamental source of high-quality development in the dairy industry. During the reporting period, Guangming Animal Husbandry continued to optimize its modern breeding management model, focusing on the health management of cattle throughout their entire life cycle, and continuously reducing costs and increasing efficiency through optimized breeding processes and refined cost control; Accelerate the application of agricultural technology innovation, focus on tackling the bottleneck field of dairy cattle breeding, cultivate 49 bulls with a comprehensive breeding value (GTPI) of over 3000 in the first half of the year, including 22 bulls with a GTPI of over 3300, and consolidate the foundation of local dairy cattle breeding industry development.

In terms of digitization, the company promotes the deep integration of big data, artificial intelligence, industrial intelligence, and the entire industry chain, and implements an intelligent health management system for dairy cows in the animal husbandry sector, ensuring that "good cows produce good milk" from the source; Deploy industrial robots on the production end, covering production monitoring, data collection, material handling, quality inspection and other links; Build a digital intelligent analysis platform on the marketing end to capture real-time consumer dynamics and market demand, coupled with 7 × 24-hour intelligent customer service, to accurately support product iteration and business decision-making.

Based on the new starting point of development during the 15th Five Year Plan period, Bright Dairy will continue to adhere to the main line of high-quality development, relying on its century old brand accumulation, strong scientific research capabilities, and integrated advantages of the entire industry chain. It will continue to deepen product innovation, brand upgrading, channel expansion, and digital transformation for coordinated development. In the future, the company will continue to deeply cultivate technological innovation and industrial upgrading in the dairy industry, continuously optimize the product matrix, consolidate the resilience of the supply chain, activate endogenous growth momentum, empower the transformation and upgrading of China's dairy industry with stable operation and practical responsibility, continue to demonstrate the responsibility and value of national dairy enterprises, and strive to write a new chapter in the long-term development of the enterprise foundation and high-quality development of the industry.