August 7, 2006

China Dairy's first half revenue up 33 percent
 

China Dairy Group Ltd announced a 32.9 percent rise in its revenue for the first half of the year last week. Revenue hit US$63.1 million compared with US$47.5 million in the same period last year.

Revenue for its liquid milk segment rose 43.6 percent to US$42.3 million and revenue from its milk powder segment increased by 15.4 percent to US$20.8 million.

Despite the strong revenue growth, net profits increased by 8.5 percent to US$4.8 million as the company upped the marketing of its liquid milk segment.

The continued expansion of the company's distribution networks have extended China Dairy's reach into more provinces and have positioned it as one of the fastest growing companies in the industry, China Dairy Executive Chairman Liu Hua Guo said in a press release.

Market experts have projected China's dairy market to grow at an annual compounded rate of 17 percent to reach approximately US$19.6 billion by the year 2010, with most of the growth coming from Tier 2 and Tier 3 cities.

China Dairy owns Yingqiao, a manufacturer of milk products in China. Its products include milk powder, pasteurized milk, UHT milk, and yoghurt. It currently has three processing plants in the Shanxi province.