PM Edition: Top 10 Business Articles on LiveNews.co.nz for March 28, 2026 – Full Text

Source: Media Outreach

SINGAPORE – Media OutReach Newswire – 27 March 2026 – The Institute of Singapore Chartered Accountants (ISCA), together with its Professional Services (PS) Centre Alliance partners, comprising Association of Small & Medium Enterprises, Institute of Valuers & Appraisers, Singapore Business Federation (SBF), Singapore Chinese Chamber of Commerce & Industry (SCCCI), Singapore Manufacturing Federation, Tax Academy of Singapore and the Law Society of Singapore, has launched the PS Centre in Nanjing. This marks the Alliance’s second PS Centre in China and its third globally, strengthening a growing network to support enterprises expanding across China, Singapore and Southeast Asia.

Amid rising demand from businesses seeking overseas growth, the PS Centre was established as a trusted platform to connect enterprises with trusted professional services expertise and in-market networks, enabling smoother and more effective cross-border expansion. Nanjing is strategically positioned, with strong linkages to universities that support talent pipelines, as well as ecosystem builders such as the Singapore-Nanjing Eco Hi-tech Island that help businesses establish and maintain operational presence in the market.

Since its inception, the PS Centres in China and Vietnam have provided on-the-ground support and facilitated opportunities for over 100 businesses. Prior to the launch in Nanjing, the PS Centre has already supported several Small and Medium-sized Enterprises (SMEs) in establishing operations and building local teams. One such example is BIPO, a HR solutions provider, which successfully set up its presence in Nanjing with support from the PS Centre ecosystem.

Mr Michael Chen, CEO of BIPO (Asia) shared: “The launch of the Professional Services Centre marks an important step in enabling more efficient and scalable global expansion for enterprises. As companies expand across markets, what they increasingly need is not just individual services, but an integrated ecosystem of professional capabilities. At BIPO, we are proud to partner with ISCA and the broader professional community to provide the HR technology and operational infrastructure that supports this ecosystem, helping businesses build sustainable, compliant, and tech-enabled global operations.”

The launch took place at the forum titled “Bridging Singapore and Nanjing, Charting Opportunities from ASEAN to China“, organised by the PS Alliance and co-hosted by China-Singapore Nanjing Eco-Tech Island Investment Development Co., Ltd. The forum brought together government representatives, professional bodies, financial institutions and business leaders from both Singapore and China.

Mr Xu Feng, Vice Mayor of Nanjing, highlighted the growing economic linkages between China and Southeast Asia: “Nanjing and Singapore share a long-standing friendship built upon a strong foundation of cooperation. We recognise that the international expansion of enterprises relies on the support of professional services. As a global hub for professional services, Singapore offers complementary strengths, and the prospects for collaboration between our two sides are vast. Nanjing will continue to foster a world-class international business environment, enhance its end-to-end support systems for enterprises expanding overseas, and promote mutually beneficial partnerships between enterprises and Singapore’s professional institutions.”

Mr Ernie Koh, Council Member, SBF / Vice-Chairman, Research & Publications Committee, SCCCI said: “Singapore and China share strong and enduring economic ties, and platforms like the Nanjing PS Centre play a critical role in deepening these linkages. By bringing together business networks and professional expertise, the Alliance can better support enterprises in navigating new markets, strengthening their capabilities, and unlocking opportunities across Southeast Asia. This collaboration reflects our shared commitment to enabling sustainable, cross-border growth.”

Mr Daniel Koh, Vice-President, The Law Society of Singapore, said: “As businesses expand across borders, navigating legal and regulatory complexities becomes increasingly critical. The establishment of the PS Centre provides a valuable platform for enterprises to access trusted legal expertise alongside other professional services. By strengthening cross-border collaboration, we can help businesses operate with greater confidence, manage risks effectively, and build resilient foundations for international growth.”

Mr Darren Ku, Council Member, ASME, said: “For many SMEs, internationalisation presents both significant opportunities and challenges. The Nanjing PS Centre offers a practical and structured gateway for businesses to access the professional support they need, from compliance to market entry strategies. By lowering barriers and providing coordinated expertise, the Alliance will empower more SMEs to expand into Southeast Asia with greater confidence and clarity.”

Beyond facilitating business expansion, the Nanjing PS Centre will also anchor talent development and cross-border capabilities. ISCA has established partnerships with key institutions including Nanjing University of Finance and Economics, Nanjing Audit University, and Jiangsu Certified Public Accountants, laying the foundation for a sustainable pipeline of internationally-ready accounting professionals.

ISCA President Mr Teo Ser Luck said: “The Professional Services Centre in Nanjing shows our commitment to helping Chinese and Singapore businesses grow with good governance, proper compliance, and sound financial management as they expand across the region. Through working together, we can help businesses grow with confidence and in a sustainable way. We plan to bring this model to other parts of the world, so we can continue sharing knowledge and networks with businesses operating across borders.”

With regions such as Shenzhen, Johor Bahru, and Bangkok earmarked for new PS Centres, the PS Alliance has highlighted their commitment to supporting businesses in their cross-border endeavours and operations. By providing a platform for them to explore new opportunities for growth and talent development, these PS Centres play a vital role in cross-border professional development.

The launch of Nanjing PS Centre will serve as a platform to integrate professional resources from Singapore and Jiangsu, supporting enterprises investing in Singapore and across ASEAN. This initiative, coupled with future expansion into other regions, further underscores ISCA’s continued role in strengthening cross-border collaboration and enabling resilient, future-ready business growth.

Hashtag: #ISCA #DifferenceMakers #Accounting #Accountancy #CharteredAccountants #ChooseAccountancy #Singapore #China #Nanjing #PSCentre #Alliance

The issuer is solely responsible for the content of this announcement.

– Published and distributed with permission of Media-Outreach.com.

Source: Media Outreach

High-Quality Growth with Improved Gross Profit Margin, increasing R&D Investment and Strategic Focus on Trustworthy Agents Ecosystem

– Published and distributed with permission of Media-Outreach.com.

Source: Media Outreach

Recorded Continuous Growth in Revenue, Proposed a final dividend of HK9.0 cents per share

– Published and distributed with permission of Media-Outreach.com.

Source: Media Outreach

Dual Engines, Global Reach: B2C-B2B Synergy Drives Market Expansion

Results Highlights

• Revenue hit a new high of US$501.54 million, representing a strong YoY growth of 45.0%
• Gross profit rose by 40.9% to US$148.50 million; operating profit increased by 28.2% to US$31.90 million
• Net profit grew by 21.5% to US$23.14 million
• The Board has proposed a final dividend of HK10 cents per share, up 33.3% year-on-year
• Business-to-consumer (B2C) platform YesStyle recorded revenue of US$347.48 million, up 30.8%, accounting for 69.3% of the Group’s total revenue
• Revenue of business-to-business (B2B) platform AsianBeautyWholesale (ABW) surged by 91.7% to US$148.89 million, accounting for 29.7% of the Group’s total revenue
• Non-core markets (excluding the US, UK, Canada, Australia) accounted for over 60% of the Group’s total revenue for the first time, with Latin America and the Middle East achieving remarkable growth
• The Group strengthened its global logistics network to improve economies of scale, opened a second AMR warehouse in Hong Kong and a new warehouse in South Korea, reducing freight costs as a percentage of revenue to 18.7%

HONG KONG SAR – Media OutReach Newswire – 27 March 2026 – YesAsia Holdings Limited (“YesAsia Holdings”, together with its subsidiaries, the “Group”) (02209.HK), a leading e-commerce platform operator recognized for its expertise in curating Asian beauty and lifestyle products, announced today its annual results for the year ended 31 December 2025 (the “Year”).

The Group’s revenue rose by 45.0% to US$501.54 million, boosted by the global K-Beauty momentum and the scaled expansion of its B2B platform, which accounted for nearly 30% of the Group’s revenue. Gross profit increased by 40.9% to US$148.50 million, and gross profit margin remained relatively stable at 29.6%. Operating profit also grew by 28.2% to US$31.90 million. Net profit for the Year climbed 21.5% to US$23.14 million, with a net profit margin of 4.6%. Basic earnings per share was US5.62 cents (2024: US4.74 cents).

As at 31 December 2025, the Group maintained a solid financial position with bank and cash balances amounting to US$15.94 million. In the view of YesAsia Holdings’ solid operating performance, healthy cash reserves and future capital requirements, the Board has proposed a final cash dividend of HK10 cents per share (2024: HK7.5 cents per share).

Market diversification pays off as non-core markets lead global growth

Building on stable revenue from its core markets (the US, UK, Canada, and Australia), the Group accelerated its expansion into mainland Europe, Latin America, the Middle East, and other emerging markets. In 2025, non-core markets accounted for over half of the Group’s total revenue, significantly outpacing core markets in growth and becoming the primary catalyst of its business across the globe. Among these regions, Latin America and the Middle East recorded the strongest upward trend, with growth of 224.4% and 75.5% respectively, while Europe and Associated Countries remained the Group’s largest regional market.

Social media marketing and influencer engagement remain core drivers of YesStyle‘s growth strategy. During 2025, the number of YesStyle influencers increased to over 502,000, representing a year-on-year growth rate of approximately 24.6%. Revenue generated from influencer referrals reached approximately US$104.8 million, up approximately 43.0% year‑on‑year, and accounted for approximately 30% of YesStyle‘s total revenue, highlighting the continued strengthening of the YesStyle influencer ecosystem.

Meanwhile,YesStyle bolstered its localization efforts to capture opportunities in non-English-speaking markets. In July 2025, it launched a Polish-language website, expanding its language offerings to nine. Combined with social-media-driven marketing, regional campaigns via a robust network of influencers, and AI-powered solutions, the Group extended K-Beauty’s reach to a broader audience worldwide. This momentum is further amplified by the opening of Yesful Land in Seoul, South Korea, a physical hub where influencers and the K-Beauty community can converge and create authentic content, bridging digital engagement with real-world experience.

B2C-B2B synergy fuels performance with ABW business scaling rapidly

YesAsia Holdings is an authorized distributor for over 475 K-Beauty brands, serving both B2C and B2B channels. The dual-growth-engine strategy continued to bear fruit in 2025, fortifying the Group’s overall market influence and ongoing advancement.

Notably, ABW maintained its vigorous growth trajectory in 2025, with the newly launched ABW Offline business generating almost US$50 million in revenue in its debut year, underscoring the strong international retail demand for K-Beauty products. During the Year, ABW established distribution networks for 56 leading retailers across 26 markets, spanning North America, Europe, Latin America, the Middle East and Asia. Prominent partners include Target, Costco, Primark, Douglas, Sally Beauty, Watsons, and Nykaa. These collaborations have enabled the Group and its K-Beauty brand partners to reach millions of consumers through established offline retail networks, effectively tapping into a market segment that remains significantly larger than its online counterpart.

Mr. Joshua Lau, Founder, Executive Director and Chief Executive Officer, said: “Looking ahead, we are confident that K-Beauty’s global development impetus will only gather steam as it has transitioned from a niche category into a mainstream retail staple. To capture the opportunities that arise, we will deepen engagement in non-core markets through targeted and localized digital initiatives. At the same time, we are accelerating our B2B business by connecting K-Beauty brands with international retailers, and leveraging our logistics network and AI-driven capabilities. With dual growth engines in B2C and B2B, advanced technology, and a dedicated team, YesAsia Holdings is well-positioned to soar to new heights and deliver long-term value to shareholders and stakeholders.”

Hashtag: #YesAsiaHoldings

The issuer is solely responsible for the content of this announcement.

– Published and distributed with permission of Media-Outreach.com.

Source: New Zealand Government

Good afternoon, everyone. 

I’d like to thank Denise for the warm welcome and Leonie, and the rest of Property Council NZ for inviting me to speak.

It’s been about six months since I spoke to you at The Property Conference in Queenstown – 

I’m disappointed to see there is no pool this time!

Since September last year, we have seen strong year-on-year growth for building consents in each month. 

For instance, when it comes to residential buildings consents grew: 

• 27% in the year to September 2025
• 24% in the year to October 2025
• 13% in the year to November 2025
• 26% in the year to December 2025
• 15% in the year to January 2026

Today I’ll run through where we are at on RMA reform, with a focus on housing and property, then touch on Development Levies. 

I’m also very excited to give you all a sneak peek into initial findings from an economic analysis I commissioned into the cost of viewshafts in Auckland. 

Then I’m happy to answer any question you guys have. 

Context

But before I get into it, I want to briefly touch on the context we are operating in. Over the last month, global events and uncertainty have impacted New Zealand’s economic recovery. 

The conflict in the Middle East, and its resulting fallout is hurting all kiwis, particularly with higher fuel prices at the pump.

This has exposed an uncomfortable reality for kiwis – 

Not only do we face systemic, decades-in-the-making challenges like low productivity and an infrastructure deficit – we also face significant and more frequent shocks such as extreme weather events and offshore conflicts.

At the same time, Fitch recently put our AA+ credit rating on a negative outlook. 

Currently, the interest bill on Government debt is $8.9 billion per annum and rising. In Wellington I’d say that’s six Transmission Gully’s a year on interest payments alone. 

If New Zealand’s credit rating was downgraded and that led to higher bond yields, then our interest payments would go up even more.

Taken together, we effectively have triplet headwinds (1) long-standing systemic economic issues, (2) exposure to shocks, and (3) high debt.

While we don’t have the power to declare peace in the Middle East, we can and must control how we respond.

Support for hardworking families 

To start, we have moved quickly to provide extra support for low-to-middle-income working families. 

From 7 April, about 143,000 working families with children will get an extra $50 a week through a boost to the in-work tax credit. The boost will also expand eligibility to around 14,000 additional working families. 

The increase will be temporary, lasting for one year or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks. 

This boost will deliver support to working families who are under significant cost-of-living pressure, without making inflation worse or further driving up Government debt as this $373m initiative is being paid for out of Budget 2026 operating allowances. 

The COVID-19 Inquiry stressed that spending in response to crises should be timely, targeted, and temporary. 

That’s what we’re doing. 

The previous Government responded to COVID-19 through profligate, irresponsible spending – racking up debt. It’s clear some people have not learned from this and have called for this Government to make the same mistakes. But we won’t. 

Throwing the kitchen sink at every event that happens is a recipe for fiscal disaster. 

While it may sound simple and appealing, simply borrowing more could lead to a self-reinforcing “vicious cycle” where debt servicing takes up a large (and growing) share of government revenue, forcing increased taxes and/or cuts to public services and infrastructure to pay for that debt, which in turn reduces long-term economic growth, which then puts downward pressure on Government revenue, making the debt even less manageable. 

It is naive at best and economically-illiterate at worst to pretend that New Zealand can afford to run structural deficits. 

The Coalition Government understands New Zealand’s fiscal reality, and we know we cannot live beyond our means in the long run.

We are committed to protecting people’s living standards, which depends on strong fiscal discipline. We also know that sometimes, extra, targeted support is needed.

We can do both. 

Fuel plan

Right now, we know the conflict in the middle east is causing concerns across the country and across the world about supply of fuel.

As you know, the Government has been keeping New Zealanders informed about our fuel supply situation.

We have sufficient stocks for now, and we are working hard across diplomatic, commercial, and industry channels to ensure that remains the case.

But this situation is also a reminder of something we already knew – New Zealand is exposed to international fuel markets in ways that carry real risk.

Around half our fuel comes from South Korea and nearly a third from Singapore.

When global supply chains are disrupted, as they are now, that exposure becomes very tangible for families and businesses who feel the pain at the pump.

We know higher fuel prices are hitting families and businesses hard. That’s why we put in place the targeted cost-of-living relief for low- and middle-income families I mentioned before.

But maintaining fuel supply is the most important thing we can do to protect Kiwis from the worst-case scenarios.

Later this week, Nicola Willis – who is in charge of our response as a Government – will provide an update on the National Fuel Plan along with further detail around how we see some of the levels playing out in practice.

We all hope things improve quickly – but as the Prime Minister has said, hope is not a plan.

So, we’re doing the hard yards now to ensure New Zealand has a really solid fuel plan that gets us through whatever the international situation throws at us in the coming months.

Fixing the basics and building the future 

A key part of becoming more resilient to shocks is having strong institutions, functional regulation, and a high-performing economy.

As Paul Krugman observed – 

“Productivity isn’t everything, but in the long run it is almost everything.”

This Government is supporting growth through policies like Investment Boost and Fast-Track, getting on with building billions in infrastructure, and signing up to more free trade agreements. 

We are also tackling long-standing systemic issues that have accumulated and festered for 20 to 30 years. 

I’m thinking of things of things like RMA reform, infrastructure funding and financing reform, sorting the Holidays Act, reversing wealth destructive earthquake prone building legislation, opening up competition in building materials, and more. 

I strongly believe that if we get these things right, maintain fiscal discipline, and keep momentum going, the 2030s will be New Zealand’s decade.

RMA reform

The single biggest thing this Government is doing to unlock New Zealand’s economy is RMA reform. 

Our new planning system will make it significantly easier to build the homes New Zealand needs. 

The Resource Management Act 1991 is the root cause of so many of our challenges. 

It has been a handbrake on growth and opportunity. It is directly responsible for New Zealand’s housing crisis – despite us having a land mass comparable to the United Kingdom but just five million people.

And it’s also allowed council planners to delay the delivery of social housing because the “grass colour is too similar to the concrete colour”. Or because “the colour of pipes on the house is too contrasted to the colour of the house itself”. Or because council was concerned there was no signage so people could find their house. 

These are all real examples from Kainga Ora. 

I am sure you have a laundry list of your own examples. But these are example of the past!

Our new planning system will radically change how we approach development, while still protecting the environment.

A specific goal of the new Planning Bill is for the system to enable competitive urban land markets by making land available to meet current and expected demand for business and residential use and development. 

National Direction will follow, including the establishment of housing growth targets, rules making it easier for cities to expand outwards, requirements to enable greater mixed-use zoning, and prohibitions on minimum floor area and balcony requirements.

My ambition is to deliver the most significant pro-housing reforms in a generation. In practice, this will mean: 

Everyone will be able to do more without needing council consent. The new system won’t control for things like the layout of your house, balconies, or private outdoor space – giving people more freedom to use their land how they see fit.

Developers will be able to use the same designs anywhere in the country. Right now, New Zealand has more than 1,100 different zones, each with its own set of rules. Under the new system, we’ll reduce that complexity by using standardising zones nationwide and applying consistent rules for key things like building height, site coverage, and daylight access. No more juggling different rules for Upper Hutt versus Lower Hutt, or Christchurch versus Selwyn.

Getting a consent will be simpler. If you do need one, the process will be simpler and cheaper. Rules will be clear, in more cases only affected people can take part in the consent process, and a new planning tribunal will help resolve disputes at low cost.

Land will be released faster through a mechanism that removes the need for extra plan changes or long consultations where the land has been previously identified as suitable for development.

And developers will have greater certainty to invest. Long-term spatial plans will show where new housing and infrastructure will go, so developers can plan projects and invest with confidence.

All of these changes – along with others – will finally give New Zealand the planning settings it needs to grow. 

Development Levies 

But as all of you here know, liberalising land markets and removing red tape is – on its own – not enough. 

We also need a flexible infrastructure funding and financing system to match our new flexible planning system. 

We have heard from the sector, and from the Property Council in-particular that we must get infrastructure funding and financing right – I agree.

So, we are making a suite of changes to the toolkit including:

• Replacing Development Contributions (DCs) with a Development Levy system, where growth pays for growth
• Establishing independent regulatory oversight of these Levies to ensure charges are fair and appropriate
• Amending the IFF Act to make it easier to use and to broaden the providers that can use it

I want to go over where we are at on Development Levies. 

Late last year, we released an exposure draft on development levies to get the sector’s feedback. 

I’d like to thank Property Council for their submission. I’m told my officials and office had an initial workshop with Property Council on their submission, and I’ll be meeting with them next week to continue the conversation.

It’s clear the exposure draft doesn’t have everything right just yet, but that’s why we went out for consultation early – so we can take your feedback on board. For me, it’s vital that the sector has trust in the new system. 

We have heard your calls for more transparency on how much councils collect from developers for growth infrastructure, and how they use those funds.   

That is why we are getting the independent Commerce Commission to regulate Development Levies – with a focus on strong information disclosure requirements. 

My intention is also for the Commerce Commission to set the standardised methodology for calculating development levies. I can promise both councils and the sector that there will be consultation on this methodology. 

The Commission’s role will focus on ensuring levies are transparent, fair, and deliver value for communities, while safeguarding against anti-competitive behaviour. 

I think we can all agree that the current regime is not working. 

Our new Development Levies system, and our wider infrastructure funding and financing toolkit aims to do two things: be flexible to match our new flexible planning system, and strike a balance and be designed in a way where growth pays for growth in a fair and appropriate way.

I’m confident we can get there. 

We will continue to work with developers, councils, and groups like the Property Council to make sure we do. 

Once the legislation for development levies passes in 2027, councils will have time to establish their new levy policies. 

We expect the first councils to begin charging development levies in 2028/2029 – about the same time the new planning system comes in. 

Now, this alignment of “turning on” development levies and the new planning system at the same time is intentional and important – particularly when it comes to preparing new spatial plans and land-use plans.

We know this shift may increase charges for some developers, particularly those who’ve already bought land. 

That’s why the exposure draft proposes a three‑year phase‑in for any price increases where councils move early.

We’re looking closely at feedback on these transition settings to make sure the shift is manageable.

There will also be further opportunities to provide feedback through the select committee process.

We are committed to getting this right – it’s a once in a generation change to ensure we fund growth properly. 

I look forward to meeting with the Property Council on Development Levies next week. 

Viewshafts and Auckland CBD

Now, to finish, I’ll briefly touch on the work Government is doing on Auckland City CBD and give you a sneak peek of some economic analysis I commissioned on viewshafts. 

I don’t want to get into the whole PC120, PC78, MDRS, NPS-UD acronym soup speal so I will just say this: 

The Government believes there is significant unrealised potential in the CBD. Existing provisions, such as setback requirements, tower dimension controls, and height limits, constrain development and should be revisited. 

Enabling more growth in the city centre will unlock productivity and increase the benefits of CRL even further. 

However, for largely unfathomable RMA legal reasons, the City Centre Zone is not included in PC120 work, and the Council does not have a simple mechanism to unlock this potential.

Therefore, Cabinet has agreed that I will start an investigation into these planning provisions that are holding back Auckland’s city centre, with a view to making regulations under the RMA – similar to what we have just announced for Eden Park. 

This investigation will contribute to the Auckland we are trying to build which is an international, world-class city. 

*Now, on viewshafts – I’m told the Auckland Unitary Plan designates over 80 protective viewshaft cones and 10 height sensitive areas that impose building height limits on affected properties.

While the cultural and amenity rationale for these protections is well established, the height restrictions also impose a substantial economic cost on Auckland which is less understood. 

Work done by Geoff Cooper in 2018 found that the E10 viewshaft (which protects views of Mount Eden for southbound motorists approaching the Harbour Bridge around the Onewa onramp) was limiting development at a cost of $1.4 billion.

This is material, and I wanted to get a better and more up to date understanding of these costs. So, last year I commissioned a report on all 80 volcanic viewshafts. 

The report is yet to be finalised, and numbers could still change, but I wanted to share a statistic which I though was compelling, and a good comparison to work already done by Geoff Cooper. 

The draft report indicates that, based on current zoning patterns across Auckland, the harbour bridge viewshafts (E10 and E16) are limiting development in the central city at a cost of $4 billion. 

In other words, there is $4 billion of value locked up in just these two viewshafts. 

In addition to this, the draft analysis shows that viewshafts across the central isthmus are depressing disposable incomes in Auckland by an average of $2,500 per household per year due to transport and location-based inefficiencies.

I am looking forward to receiving the final report shortly and will publish it in the next month or two.

Conclusion

I’d like to thank the Property Council for inviting me to speak. 

Changes to our planning and housing systems are fundamental to this Government’s ambition to create a more prosperous future for New Zealand. 

Now it is up to all of us to do the hard work required to turn this ambition into reality.

Thank you. I look forward to your questions. 

MIL OSI

MIL OSI

MIL OSI

Source: Radio New Zealand

Paying dairy farmers a premium for their white gold could come at a cost to Synlait Milk, according to an agribusiness expert.

The Dunsandel-based processor and exporter increased its farmgate milk price this week to up to $9.90 per kilogram of milk solids for the financial year, 20 cents higher than competitor Fonterra’s new current season midpoint.

But it also released what bosses labelled a “frustratingly disappointing” half-year financial result, due to manufacturing challenges and inventory kerfuffles between raw and powdered milk through 2025.

It reported a $80.6 million loss in the six months to late January, while debts soared to $472.1m.

Lincoln University senior lecturer in agribusiness Dr Nic Lees said the company was under significant financial stress, which could affect farmer confidence.

“Farmers do have options. I suspect this result’s not going to add confidence amongst farmers that there isn’t a financial risk for them supplying Synlait.”

Lees said the company’s sales were no longer covering the direct cost of making and processing its products. He said paying farmers the higher milk price added to the pressure, increasing raw material costs, but he could understand the strategy.

“They need to be able to be offering their suppliers something more than what they can get from supplying Fonterra or Open Country,” he said. “They are having to pay a risk premium to their suppliers to try and hold those.”

• Do you supply Synlait? Let us know your thoughts monique.steele@rnz.co.nz

He said Synlait faced fixed retail pricing in “onerous” customer contracts, making it more vulnerable to fluctuating global prices – which differed to how Fonterra could pass on costs.

“In some ways from Fonterra’s point of view, the higher milk price is beneficial to their farmers. Whereas from Synlait’s perspective, higher milk price means higher costs for their raw materials, which potentially is difficult to directly pass on to their customers.”

Lees said Synlait was lucky to have major long-term shareholders like Bright Dairy of China that had significant financial scale, so the losses would not threaten the overall business.

But he said the results showed the challenge of going down the “value-add pathway” into retail, like into its consumer brand Dairyworks.

It came as Fonterra divested its consumer brands business under Mainland Group, for dairy products including ice creams and cheese.

This week, Fonterra announced its net profit for the six months ended January rose 3 percent on last year to $750m.

Poor 2025 results don’t reflect future – company

When publishing the results to the New Zealand Exchange, Synlait Milk chief executive Richard Wyeth and chairman George Adams told investors the financial result did not define the company’s future.

“Many of you, like us, will find today’s numbers frustratingly disappointing – we are all hungry for positive financial performance,” the joint statement read.

“The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them.”

Synlait’s “realistic” roadmap to recovery sought to position it for future growth, grow high-margin products from existing assets and accelerate growth and future growth opportunities.

Last year, the dairy company sold its North Island operations, including its Pōkeno site, for $307m to help the balance sheet.

It said on Monday the sale was on track to be completed from 1 April.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Media Outreach

BEIJING, CHINA – EQS Newswire – 26 March 2025 – InnoCare Pharma (HKEX: 09969; SSE: 688428), a leading biopharmaceutical company focusing on cancer and autoimmune diseases, today announced the annual results for 2025 as of December 13, 2025.

2025 marked InnoCare’s 10th anniversary and a milestone year of transformative growth and strategic execution. The Company achieved its first full year profitability, secured two new drug application (NDA) approvals, enhanced market penetration of its core products, accelerated globalization, and made breakthroughs across multiple pipelines. With numerous “China First” achievements, InnoCare continues to accelerate its 2.0 development strategy, demonstrating its strong ability to translate scientific innovations into sustainable long-term growth.

Financial Highlights

• Revenue grew 135.3% year-on-year to RMB 2,375 million[1] in 2025, mainly driven by robust commercial growth and two strategic business development (BD) deals.
• Profit reached RMB 644 million, achieving profitability for the first time, mainly due to significant commercialization growth and global out-licensing deals.
• Gross Profit Margin increased by 5.7 percentage points to 92%.
• Research and Development Investment increased by 16.9% to RMB 952 million in 2025, reflecting advancements of multiple Phase III registrational trials, as well as increased investments in new technology platforms such as ADCs and molecular glue.
• Cash and Related Accounts Balance[2] stood at approximately RMB 7.8 billion as of December 31, 2025 and achieved positive operating cash flow for the first time. This strong cash position provides InnoCare with the flexibility to expedite global clinical development of key assets and invest in new technology platforms.

Accelerating Globalization with Transformative Deals

In 2025, InnoCare accelerated the implementation of its globalization strategy, unlocking global value of its core pipeline with two out-licensing deals, further enhancing the Company’s global influence and financial performance, and marking a significant step forward in its global expansion.

On Oct. 8, InnoCare entered into a transformative licensing agreement with Zenas for its autoimmune disease pipeline, including orelabrutinib. The agreement includes up to US$100 million in upfront and near-term milestone payments, and up to 7,000,000 shares of Zenas common stock, with a total deal value exceeding US$ 2 billion, setting a new record for small molecule autoimmune out-licensing in China.

This strategic collaboration marks a significant milestone in InnoCare’s globalization journey and will leverage shared focus to accelerate the global Phase III clinical development of orelabrutinib for the treatment of primary progressive multiple sclerosis (PPMS) and secondary progressive multiple sclerosis (SPMS), maximizing its clinical and commercial value worldwide, and advance a novel oral IL-17 AA/AF inhibitor and a brain-penetrant oral TYK2 inhibitor into clinical trials.

In addition, InnoCare entered into a licensing agreement with Prolium to further its global presence in 2025. In March 2026, Prolium announced first dosing of healthy volunteers in an ongoing single ascending dose study of ICP-B02 (PRO-203) and expects to initiate a multinational Phase I/II study of ICP-B02 in systemic sclerosis (SSc) in the second quarter of 2026, with additional studies in B-cell-driven autoimmune disease expected to follow.

Dr. Jasmine Cui, the Co-founder, Chairwoman, and CEO of InnoCare, said, “Building on an inspiring decade of solid growth, we have continuously enhanced our fully integrated platform ranging from original innovation, clinical development, commercialization, manufacturing, to business development, achieving our strategic goal of break-even ahead of schedule, marking a significant milestone in our development history. As we enter our 2.0 phase of rapid development, we are focused on key strategic priorities, including securing approvals for five to six innovative drugs, advancing three to four products globally, and progressing five to ten differentiated molecules into clinical trials. We will further accelerate globalization, significantly increase revenue, and deliver more high-quality innovative therapies to benefit patients worldwide. “

Building A Leading Franchise in Hemato-Oncology

In 2025, InnoCare made significant progress toward building a leading hemato-oncology franchise, driven by advances in commercial execution, late-stage clinical development, and global expansion.

InnoCare continued to strengthen its commercial portfolio with orelabrutinib approved for first line chronic lymphocytic leukemia/small lymphocytic lymphoma (1L CLL/SLL) and successfully included in the updated National Reimbursement Drug List (NRDL), while tafasitamab became the first CD19 antibody approved for the treatment of relapsed or refractory diffuse large B-cell lymphoma (R/R DLBCL) in China. As a result, drug sales increased by 43.4% to RMB 1,442 million in 2025.

Mesutoclax (ICP-248), the first BCL2 inhibitor granted Breakthrough Therapy Designation in China, continues to advance across multiple indications, including CLL/SLL, mantle cell lymphoma (MCL), acute myeloid leukemia (AML), and myelodysplastic syndromes (MDS), with clinical trials ongoing in China and globally. Together, these three assets form the core of InnoCare’s hemato-oncology strategy, supporting near-term revenue growth with a pipeline of differentiated, late-stage therapies.

Orelabrutinib

Orelabrutinib serves as a backbone therapy in InnoCare’s extensive hemato-oncology pipeline. Its newly approved 1L CLL/SLL indication has been included in the NRDL and is recommended as a Class I treatment in the Chinese Society of Clinical Oncology (CSCO) Diagnosis and Treatment Guidelines for Malignant Lymphoma. With all four approved indications now covered under the NRDL, orelabrutinib offers stable annual treatment costs, benefiting more lymphoma patients.

The commercial team further strengthened execution capabilities and sharpened strategic focus, delivering strong sales performance throughout 2025. Improved market penetration and operational discipline laid a solid foundation for sustained revenue growth and long-term commercial success.

Internationally, orelabrutinib continued to expand its regulatory footprint, with approval granted for relapsed or refractory marginal zone lymphoma (R/R MZL) in Singapore and NDA submission for R/R MCL successfully completed in Australia.

Tafasitamab

In May 2025, the tafasitamab regimen received NDA approval for adult patients with R/R DLBCL, representing the first CD19 antibody therapy approved in China for this indication and a key addition to InnoCare’s commercial portfolio.

Building on the initial commercial launch in September 2025, 2026 will mark the first full year of tafasitamab sales in China. Moreover, tafasitamab has been included as a Class II recommendation in the CSCO Guidelines, which will help address unmet clinical needs in this patient population and provide meaningful benefits.

Mesutoclax (ICP-248)

As the first BCL2 inhibitor granted BTD in China, mesutoclax has rapidly advanced across multiple registrational studies. The Phase III combination regimen with orelabrutinib for 1L CLL/SLL completed patient enrollment within 10 months, demonstrating strong clinical execution. This fixed-duration combination regimen has the potential to deliver deeper remissions, bringing hope for clinical cure and representing a promising treatment option.

A registrational trial in BTK inhibitor-treated MCL is progressing rapidly, and a Phase III randomized, double-blind, multicenter study of mesutoclax in combination with orelabrutinib versus pirtobrutinib (a reversible BTK inhibitor) in r/r MCL is expected to commence in 2026.

Global development of mesutoclax in AML and MDS is progressing across China, U.S., and Australia. The global AML and MDS markets are projected to reach US$8 billion[3] and US$11 billion[4] by 2034 respectively.

Mesutoclax, as a monotherapy or in combination with orelabrutinib, demonstrated a favorable safety profile for CLL/SLL across all dose levels tested. In the CLL/SLL patients receiving mesutoclax in combination with orelabrutinib, the overall response rate (ORR) was 100%, the complete response rate (CRR) was 57.1%, and the peripheral blood uMRD rate at 36-week was 65%. The clinical data from mesutoclax monotherapy demonstrated potential best in class efficacy in MCL patients, particularly in heavily treated patients with BTK inhibitor refractory. Among MCL patients who were BTK inhibitor-refractory, the ORR was 84.0% and the CRR was 36.0%. Mesutoclax in combination with orelabrutinib demonstrated a consistently favorable safety profile across B-cell malignancies (MCL, MZL, CLL/SLL). This oral, chemo-free regimen has the potential to establish a novel therapeutic option for B-NHLs. Updated data will be presented at 2026 American Society of Clinical Oncology (ASCO) annual meeting.

The combination of mesutoclax and azacitidine demonstrated a favorable safety profile and encouraging anti-tumor activity not only in AML but also in MDS patients. Among 35 evaluable treatment-naive AML patients, the regimen achieved an 85.7% composite CR rate and an 86.7% uMRD rate, with no mortality observed with 90 days. Preliminary data among MDS patients is also promising. There were no dose-limiting toxicities (DLT) or tumor lysis syndrome (TLS) events. Detailed data to be presented at 2026 ASCO annual meeting.

Developing B-cell and T-cell Pathways in Autoimmune Diseases

Autoimmune diseases can affect almost every organ in the body and may arise at any stage of life. The global market for autoimmune disease therapeutics is anticipated to reach $185 billion by 2029[5]. The Company has fortified its powerful discovery engine on cutting-edge global targets for the development of autoimmune therapeutics through B-cell and T-cell pathways, with the aim of delivering first-in-class and/or best-in-class treatments to address the massive unmet clinical needs and strong market potential in China and globally.

Orelabrutinib

Immune Thrombocytopenia (ITP): With over 200,000 new cases globally each year, including 60,000 in China, ITP represents a significant unmet medical need. The pivotal Phase III study has been completed, and the Company expects to submit the NDA application in the first half of 2026. ITP represents an important expansion of orelabrutinib from hematologic malignancies into autoimmune hematologic diseases, unlocking its enormous commercial potential. By leveraging the BTK inhibitor’s advantage in ITP, such as decreased macrophage-mediate platelet destruction and reduced production of pathogenic autoantibodies, orelabrutinib is well positioned to become a preferred BTK inhibitor in the field of ITP.

Systemic lupus erythematosus (SLE): There are about 8 million SLE patients worldwide. Orelabrutinib is the first BTK inhibitor to demonstrate significant efficacy in a Phase II clinical trial for SLE. The Phase IIb study met its primary endpoint, and a Phase III registrational study was initiated in the first quarter of 2026. Under stringent steroid-tapering requirements, orelabrutinib 75 mg once daily (QD) achieved a statistically significant improvement in SLE Response Index-4 (SRI-4) rate compared with placebo at Week 48 (57.1% vs. 34.4%, p

Multiple Sclerosis (MS): The US SPMS and PPMS market exceeds US$12 billion[6], representing a significant commercial opportunity. Based on the deal, InnoCare has been cooperating with Zenas to accelerate two global Phase III clinical trials of orelabrutinib for the treatment of PPMS and SPMS, further unleashing its global value in autoimmune diseases.

• Initiated Orelabrutinib PriMroSe PPMS trial, a Phase III, global registration-directed, multicenter, randomized, double-blind, placebo-controlled trial to evaluate the efficacy and safety of orelabrutinib in patients with PPMS in the third quarter of 2025. More information on the Phase III PriMroSe trial (NCT07067463) is available at clinicaltrials.gov.
• Orelabrutinib Monarch trial for non-active SPMS (naSPMS) is planned, a Phase III, global registration-directed, multicenter, randomized, double-blind, placebo-controlled trial to evaluate the efficacy and safety of orelabrutinib in patients with naSPMS is expected to initiate in the first quarter of 2026. More information on the Phase III Monarch trial (NCT07299019) is available at clinicaltrials.gov.

Two TYK2 Inhibitors

The global dermatology drug market has enormous potential, with over 500 million patients suffering from dermatological diseases worldwide. By 2035, the global dermatology market size is projected to reach nearly US$100 billion. InnoCare is well positioned to capture this opportunity with two TYK2 inhibitors targeting multiple high-value indications, including atopic dermatitis (AD), psoriasis, vitiligo, nodular prurigo (PN), urticaria (CSU), cutaneous lupus erythematosus (CLE), and other dermatological diseases. The global AD market is projected to reach $30 billion[7] by 2030, the vitiligo market $3 billion[8] by 2032, the CSU market $3 billion[9] by 2029, the psoriasis market $58 billion[10] by 2032, the PN market $3 billion[11] by 2034, and CLE market US$ 7.9 billion[12] by 2032.

Soficitinib (ICP-332)

The Phase III clinical study of soficitinib in patients with moderate to severe atopic dermatitis (AD) completed patient enrollment, with data readout expected in mid-2026. The Phase II clinical study of soficitinib in patients with vitiligo has also completed patient enrollment. Additional studies in prurigo nodular, urticaria, and psoriasis are progressing rapidly. As a result, soficitinib is expected to deliver a series of clinically meaningful data catalysts in 2026.

Data from the Phase II clinical trial of soficitinib in patients with moderate-to-severe AD were published in JAMA Dermatology in January 2026. The journal concluded that soficitinib demonstrated a favorable safety profile and encouraging efficacy in patients with AD.

Soficitinib achieved multiple efficacy endpoints in the study. The percentage improvement from baseline in EASI at Week 4 were 78.2% in the soficitinib 80 mg group, 72.5% in the soficitinib 120 mg group, and 16.7% for those receiving placebo. There was a statistically significant higher EASI-75 response rate with both soficitinib doses (64.0% for each; difference vs placebo, 56.0%) than with placebo and a greater percentage of Validated Investigator Global Assessment for Atopic Dermatitis (vIGA) score of 0 or 1 and improvement of 2 or more points at Week 4 in the soficitinib 80 mg group vs placebo (36.0%; difference vs placebo, 32.0%, P=0.005). Meanwhile, soficitinib demonstrated rapid relief of pruritus and significant improvement in quality of life. Substantial reductions in Pruritus NRS severity and frequency scores were observed on Day 2 of treatment compared to placebo, with continued improvement over time, peaking at Week 4 for both severity and frequency (all P

ICP-488

The Phase III clinical study in psoriasis has completed patient enrollment, and the Phase II trial for CLE is progressing rapidly. The IND for Sjögren’s syndrome has been submitted, and additional indications and combination strategies are under evaluation.

Data on ICP-488 for the treatment of patients with moderate-to-severe plaque psoriasis has been released at the 2025 AAD Annual Meeting as a late-breaking oral presentation. The study results demonstrated that ICP-488 is highly effective in treating psoriasis at both the 6 mg QD and 9 mg QD doses. Moreover, ICP-488 exhibited favorable safety and tolerability profiles, reinforcing its potential as a valuable treatment option for moderate-to-severe psoriasis patients.

At week 12, the percentage of patients achieving PASI 75 was significantly superior in the ICP-488 6 mg QD group (77.3%) and the 9 mg QD group (78.6%) than that of the placebo group (11.6%); the percentages of subjects achieving PASI 90 and sPGA of 0 (clear) or 1 (almost clear) were also significantly higher in the ICP-488 6 mg QD group (36.4%, 70.5%) and 9 mg QD group (50.0%, 71.4%) compared to the placebo group (0%, 9.3%).

ICP-538

The first healthy volunteer has been dosed in a clinical trial of ICP-538, a VAV1-directed molecular glue degrader (MGD), in China. This is the first VAV1 degrader approved to enter clinical trials in China. ICP-538 is a novel, potent, highly selective, orally administered molecular glue degrader targeting VAV1, a key protein downstream of T-cell and B-cell receptors. ICP-538 induces rapid and efficient degradation of the VAV1 protein in a dose-dependent manner by selectively mediating the formation of a ternary complex between the CRBN E3 ubiquitin ligase and the VAV1 protein. ICP-538 will be developed for the treatment of autoimmune diseases, such as inflammatory bowel disease, systemic lupus erythematosus, and multiple sclerosis. Currently, there are no approved VAV1-targeted therapies globally.

ICP-054

The IND application of ICP-054 (ZB021), a novel oral IL-17AA/AF inhibitor, was submitted. ICP-054 is a novel, oral, highly potent and selective IL-17AA/AF inhibitor with significant therapeutic potential in autoimmune and inflammatory diseases. ICP-054 can effectively block the signal transduction pathways of IL-17AA homodimer and IL-17AF heterodimer, thereby inhibiting the release of pro-inflammatory cytokines and chemokines, exerting an anti-inflammatory effect. Simultaneously, it reduces excessive proliferation of keratinocytes and inflammatory cell infiltration, improving skin lesions and thus suppressing the occurrence of autoimmune and inflammatory diseases.

Under the BD agreement, Zenas holds exclusive rights to develop, manufacture and commercialize the oral, IL-17AA/AF inhibitor in all territories outside Greater China and Southeast Asia.

Building Innovative Solid Tumor Assets

InnoCare has been building a robust and diversified portfolio to address significant unmet medical needs across multiple tumor types. The Company is committed to combining targeted small molecules with next-generation antibody-drug conjugates (ADCs) to maximize clinical benefit while minimizing systemic toxicity. The R&D team aims to focus on tumor types with high unmet needs, and to develop therapies that are differentiated in mechanism of action, potency, and safety profile. InnoCare’s proprietary ADC technology platform, alongside promising precision medicine candidates like zurletrectinib, positions the Company to establish a strong presence in the field of solid tumor treatment.

Zurletrectinib (ICP-723)

Zurletrectinib, a next generation TRK inhibitor, represents InnoCare’s first approved therapy in solid tumors and its third innovative product approved for marketing. Zurletrectinib is indicated for adult and adolescent patients (12–18 years) with NTRK gene fusion-positive tumors.

In the registrational clinical trial for patients with NTRK fusion-positive solid tumors, zurletrectinib demonstrated outstanding efficacy and a favorable safety profile. The study results showed an ORR of 89.1%, a disease control rate (DCR) of 96.4%, and 24-month progression-free survival (PFS) and overall survival (OS) rates of 77.4% and 90.8% respectively.

InnoCare expects to submit NDA for pediatric patients (2 years

In-House Developed Antibody-Drug Conjugate (ADC) Platform

The Company has developed a cutting-edge ADC platform with proprietary linker-payload (LP) technologies, aimed at the delivery of potent and targeted therapies for cancer treatment. This platform allows for the creation of highly differentiated ADCs with improved efficacy and safety profiles. Key features of the platform include:

• Irreversible bioconjugation: ensuring stable antibody-linker bioconjugation for improved stability.
• Hydrophilic linker: enhancing ADC stability and achieving a high drug-to-antibody ratio (DAR) of 8.
• Novel payload: incorporating highly potent cytotoxic payloads with a strong bystander killing effect.

The platform is expected to deliver ADCs with strong tumor-killing efficacy and an adequate therapeutic window, thereby broadening treatment options for cancer patients and improving their clinical outcomes. As the platform continues to evolve, the Company is poised to expand its portfolio with multiple differentiated ADC candidates, further advancing precision medicine in oncology.

ICP-B794: A Novel B7-H3 Targeted ADC for Solid Tumors

InnoCare is advancing the Phase I dose escalation trial of novel B7-H3 targeted ADC, ICP-B794. ICP-B794 is a novel ADC comprising a humanized anti-B7-H3 monoclonal antibody conjugated to a potent in-house developed payload via a protease-cleavable linker. This combination ensures precise targeting of tumor cells while minimizing off-target effects, offering a promising treatment for solid tumors such as lung cancer, esophageal cancer, nasopharyngeal cancer, head and neck squamous cell carcinomas, prostate cancer, and others. ICP-B794 has demonstrated superior anti-tumor activity in animal models compared with other ADCs, and exhibited significant tumor-killing effects even in large tumors.

Early clinical observations indicate favorable pharmacokinetics and tolerability, with preliminary signs of antitumor activity, which validate the Company’s proprietary ADC platform for solid tumor development.

ICP-B208: A Novel CDH17 Targeted ADC for Solid Tumors

Building on the encouraging efficacy and safety of ICP-B794, the second ADC candidate, ICP-B208, is designed to target CDH17, a calcium-dependent cell adhesion protein that plays a key role in tumor cell proliferation, migration, and metastasis. Its tumor-restricted expression and functional role in cancer biology make CDH17 an attractive and differentiated target for ADC therapy, enabling the delivery of potent cytotoxic payloads specifically to tumor cells while minimizing systemic toxicity, which can be developed for the treatment of gastrointestinal cancers, including gastric, colorectal, pancreatic ductal adenocarcinoma, and cholangiocarcinoma. Preclinical studies show that ICP-B208 demonstrates good anti-tumor activity even in CDH17-low tumors. The IND application has been submitted in March 2026.

InnoCare plans to submit at least two more ADC INDs within 2026, further expanding its differentiated solid tumor pipeline.

To know more about the detailed financial data and business updates of InnoCare 2025 annual results, please log in to https://www.innocarepharma.com/en/investor/home .

Conference Call Information

InnoCare will host a conference call at 8:30 p.m. Beijing time on March 25 in English and at 9:00 a.m. Beijing time in Chinese on March 26, 2025. Participants must register in advance of the conference call. Details are as follows:

For English conference call, please register through the below link:
https://goldmansachs.zoom.us/webinar/register/WN_rVCbaOqMSM-QJQlfzlTEvw

For Chinese conference call, please register through the below link:
https://s.comein.cn/qz7duugd

Forward-looking Statement

This report contains the disclosure of some forward-looking statements. Except for statements of facts, all other statements can be regarded as forward-looking statements, that is, about our or our management’s intentions, plans, beliefs, or expectations that will or may occur in the future. Such statements are assumptions and estimates made by our management based on its experience and knowledge of historical trends, current conditions, expected future development and other related factors. This forward-looking statement does not guarantee future performance, and actual results, development and business decisions may not match the expectations of the forward-looking statement. Our forward-looking statements are also subject to a large number of risks and uncertainties, which may affect our short-term and long-term performance.

Hashtag: #InnoCare

The issuer is solely responsible for the content of this announcement.

– Published and distributed with permission of Media-Outreach.com.

Source: Radio New Zealand

Paying dairy farmers a premium for their white gold could come at a cost to Synlait Milk, according to an agribusiness expert.

The Dunsandel-based processor and exporter increased its farmgate milk price this week to up to $9.90 per kilogram of milk solids for the financial year, 20 cents higher than competitor Fonterra’s new current season midpoint.

But it also released what bosses labelled a “frustratingly disappointing” half-year financial result, due to manufacturing challenges and inventory kerfuffles between raw and powdered milk through 2025.

It reported a $80.6 million loss in the six months to late January, while debts soared to $472.1m.

Lincoln University senior lecturer in agribusiness Dr Nic Lees said the company was under significant financial stress, which could affect farmer confidence.

“Farmers do have options. I suspect this result’s not going to add confidence amongst farmers that there isn’t a financial risk for them supplying Synlait.”

Lees said the company’s sales were no longer covering the direct cost of making and processing its products. He said paying farmers the higher milk price added to the pressure, increasing raw material costs, but he could understand the strategy.

“They need to be able to be offering their suppliers something more than what they can get from supplying Fonterra or Open Country,” he said. “They are having to pay a risk premium to their suppliers to try and hold those.”

• Do you supply Synlait? Let us know your thoughts monique.steele@rnz.co.nz

He said Synlait faced fixed retail pricing in “onerous” customer contracts, making it more vulnerable to fluctuating global prices – which differed to how Fonterra could pass on costs.

“In some ways from Fonterra’s point of view, the higher milk price is beneficial to their farmers. Whereas from Synlait’s perspective, higher milk price means higher costs for their raw materials, which potentially is difficult to directly pass on to their customers.”

Lees said Synlait was lucky to have major long-term shareholders like Bright Dairy of China that had significant financial scale, so the losses would not threaten the overall business.

But he said the results showed the challenge of going down the “value-add pathway” into retail, like into its consumer brand Dairyworks.

It came as Fonterra divested its consumer brands business under Mainland Group, for dairy products including ice creams and cheese.

This week, Fonterra announced its net profit for the six months ended January rose 3 percent on last year to $750m.

Poor 2025 results don’t reflect future – company

When publishing the results to the New Zealand Exchange, Synlait Milk chief executive Richard Wyeth and chairman George Adams told investors the financial result did not define the company’s future.

“Many of you, like us, will find today’s numbers frustratingly disappointing – we are all hungry for positive financial performance,” the joint statement read.

“The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them.”

Synlait’s “realistic” roadmap to recovery sought to position it for future growth, grow high-margin products from existing assets and accelerate growth and future growth opportunities.

Last year, the dairy company sold its North Island operations, including its Pōkeno site, for $307m to help the balance sheet.

It said on Monday the sale was on track to be completed from 1 April.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand