Important matters today include:

English summary

① Youran Dairy issued an earnings forecast that beat expectations, which may slightly boost Yili's joint venture investment income and net profit attributable to parent / net profit excluding non-recurring items. ② Fenjiu & Wuliangye announced personnel changes. ③ The food and beverage sector led gains; key recommended stocks reiterated. Details: 1. Youran Dairy performance: Expects H1 2026 net profit attributable to parent of RMB 739 million to RMB 903 million, turning from a loss in H1 2025 (loss of RMB 297 million); previous market optimistic expectation was RMB 500 million, clearly beating expectations. Main reasons: (1) The loss arising from changes in fair value less costs to sell of biological assets ("revaluation loss") narrowed. The reduction in revaluation loss is mainly due to: ① narrower declines in raw milk market prices; ② continued rise in culling cow prices; ③ continued cost reduction and efficiency improvement, higher milk yield per cow, and lower feed costs; (2) Core business operations continued to improve. In H1 2026, the raw milk business benefited from sales growth driven by improved breeding efficiency and lower feed costs;…