Analysis of R&D Investment and Product Innovation at Bright Dairy

Based on the financial data, annual reports and industry information I have obtained, the following is a comprehensive analysis of the relationship between R&D investment and product innovation at Bright Dairy:

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: According to Bright Dairy’s 2024 Annual Report, the company’s R&D expenses reached (RMB 136,811,592), representing a substantial year-on-year increase of (RMB 86.2 million in 2023) [1][2]. This significant growth indicates that the company is increasing its R&D investment.

: As of the end of 2024, Bright Dairy has , including researchers from the Bright Dairy Research Institute and animal husbandry research teams. The age structure of the R&D team is well-distributed: the 30-40 age group accounts for the largest share (47 people), followed by the 40-50 age group (40 people), forming a professional team combining senior, middle-aged and young researchers [1].

: According to the annual report, R&D expenditures are mainly used for new product development, strain research, production process upgrading, and the daily operation of the technology center [1].

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Although specific comparative data is limited, from an industry perspective:

Indicator	Bright Dairy	Industry Characteristics
R&D Expense as a Percentage of Revenue	Approximately 0.56%	Generally low in the dairy industry
R&D Efficiency	Ranks among the top in the industry	According to academic research, Bright Dairy’s R&D efficiency is at a high level in the industry [3]
Scale of R&D Personnel	137 people	Medium scale

It should be noted that the overall R&D intensity of the dairy industry is relatively low, and Bright Dairy’s R&D investment is at a

level in the industry.

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• 2024
  : Launched over
  40 new products
  , covering four core categories: liquid milk, fermented milk, frozen drinks, and milk powder [4]
• 2025
  : Continued innovation with the launch of multiple new product lines, including the Bright Youbei 5.0 Protein Ultra-Fresh Milk Series, “Sleep-Enhancing Milk” Series, and Weight Management Series [5]

• Germplasm Technology
  : In the first half of 2025, 48 breeding bulls with a GTPI (Genomic Total Performance Index) of over 3000 were bred. Among them, “Guanjunhou” (No. 309HO24186) has a GTPI of
  3389
  , ranking
  92nd globally
  , setting a new record for the international ranking of Chinese domestic breeding bulls [5][6]
• Embryo Laboratory
  : Has been successfully put into operation, producing a total of
  104 embryos
  to ensure the quality of raw milk from the source [5]

• The Bright Youbei 5.0 Protein Ultra-Fresh Milk Series stood out from nearly
  30,000 new products
  in the Nielsen IQ 2025 “BASES Breakthrough Innovation Awards” and won the “New Product Trendsetter” award [5]
• Won the title of “Benchmark Enterprise for High-Quality Development of China’s Food Industry in the 14th Five-Year Plan” [5]

The company owns the

, the only national-level R&D platform in the industry, which provides technical support for continuous innovation [5].

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. The reasons are as follows:

1. Rapid Growth in R&D Investment
   : In 2024, R&D expenses increased by 58.72% year-on-year, indicating a significant increase in the company’s emphasis on R&D [1][2]

2. Rich Innovation Outcomes
   : Dozens of new products are launched each year, continuously enriching the product line and covering the consumption trends of healthiness, personalization, and scenario-based consumption [4][5]

3. Core Technology Breakthroughs
   : Achieved a historic breakthrough in the “bottleneck” issue of germplasm technology, reaching international advanced levels [5][6]

4. High Industry Recognition
   : Multiple innovative products have received recognition through authoritative awards, and the company’s R&D efficiency ranks among the top in the industry [3][5]

: Although R&D investment is increasing, Bright Dairy still lags behind industry leaders such as Yili and Mengniu in terms of R&D resources. In the fierce market competition, the company needs to continue to increase R&D investment and consolidate technological barriers to cope with industry competition pressure.

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[1] Bright Dairy & Food Co., Ltd. 2024 Annual Report (https://www.100est.com/res/financial-report/r2024/SH600597_202504291664528548.pdf)

[2] Bright Dairy & Food Co., Ltd. 2024 Annual Report (https://static.cninfo.com.cn/finalpage/2025-04-30/1223413933.PDF)

[3] R&D Performance Evaluation in the Chinese Food Sector (https://www.mdpi.com/2077-0472/12/11/1938)

[4] Bright Dairy: Innovative Development in 2024, New Journey in 2025 (https://m.hexun.com/stock/2025-01-01/216545739.html)

[5] From Source to End: Bright Dairy Builds Industry Influence Through Full-Chain Innovation (https://m.caijing.com.cn/article/202512/389800)

[6] Bright Dairy’s 2025 Half-Year Development Report (https://www.oreateai.com/blog/bright-dairys-2025-halfyear-development-report-fullchain-innovation-and-crossborder-integration-build-industry-competitive-barriers/2067637da4ae3e0fb39768e99a337048)