Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 13.458 billion, an increase of 9.5% compared to RMB 12.295 billion in the previous year[4]. - The group’s net profit for the year was RMB 185 million, a decline of 68.1% from RMB 580 million in the previous year[4]. - The group’s cash EBITDA for the year was RMB 2.496 billion, down 8.9% from RMB 2.740 billion in the previous year[4]. - Gross profit for 2023 was RMB 3,128,013 thousand, down 4.2% from RMB 3,266,979 thousand in 2022[7]. - The company reported a net foreign exchange loss of RMB 77,638,000 in 2023, a decrease from a loss of RMB 377,346,000 in 2022, indicating improved foreign exchange management[31]. - The company reported a profit attributable to shareholders of RMB 175.2 million, a decrease of 68.9% from RMB 562.5 million in 2022, with basic earnings per share dropping to RMB 2.23 from RMB 7.16[73]. Revenue Breakdown - The raw milk business generated RMB 10,263,657,000 in revenue, up from RMB 9,945,090,000 in the previous year[19]. - The offline feed business generated revenue of RMB 2,537,792,000, significantly up from RMB 1,851,325,000 in 2022[19]. - The digital platform business contributed RMB 605,278,000 in revenue, compared to RMB 498,676,000 in the previous year[19]. - Revenue from external customers in mainland China reached RMB 13,103,259,000, an increase from RMB 11,877,865,000 in 2022, representing a growth of approximately 10.3%[29]. - The revenue from raw milk was RMB 10,263,657,000, while the offline feed business generated RMB 2,537,792,000, and the digital intelligence platform contributed RMB 656,774,000[21]. Cost and Expenses - The total sales cost for the year was RMB 10,330.2 million, an increase of 14.4% compared to RMB 9,028.1 million in 2022, driven by growth in both raw milk and new business sales[56]. - The sales cost of the raw milk business reached RMB 7,350.7 million, up 7.3% from RMB 6,850.0 million in 2022, primarily due to increased sales volume[56]. - Total employee benefits expenses rose to RMB 827,191,000 in 2023, compared to RMB 748,604,000 in 2022, marking an increase of about 10.5%[32]. - The total operating expenses for the year amounted to RMB 1,230.2 million, an increase of 11.8% from RMB 1,100.1 million in 2022[66]. - Administrative expenses for the year amounted to RMB 852.4 million, an increase of RMB 122.2 million or 16.7% compared to RMB 730.2 million in 2022, primarily due to the hiring of experienced management for new farms and increased operational resources[68]. Debt and Financial Stability - The group reduced interest-bearing debt to RMB 11.497 billion, a decrease of 7.8% year-on-year[3]. - The company has sufficient financial resources to meet its debt obligations and fund ongoing operations, with available credit facilities amounting to approximately RMB 6,989.0 million[74]. - The company's net debt was approximately RMB 8,813.2 million, down from RMB 9,921.7 million as of December 31, 2022[77]. - Net gearing ratio improved to 74.4% as of December 31, 2023, down 10.8 percentage points from 85.2% in 2022, indicating better financial stability[74]. Market and Business Development - The group achieved a sales revenue of RMB 3.195 billion from new business developments, representing a year-on-year increase of 35.9%[3]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[12]. - The new business segment, which includes feed and digital platforms, is expected to continue growing and contribute to the group's profits[54]. - The company aims to increase its dairy cow inventory to over 500,000 heads and produce 3.6 million tons of fresh milk by 2025[83]. - The company plans to maintain a low operating cost while achieving high economic efficiency, high performance, high employee satisfaction, and high-quality development[82]. Operational Metrics - The total sales volume of fresh milk reached 255,000 tons, up 9.4% from 233,000 tons in the previous year[4]. - The average milk yield per cow increased by 3.3% to 12.6 tons per head per year[4]. - The average annual milk yield per cow increased to 12.6 tons in 2023, up 3.3% from 12.2 tons in 2022[48]. - Total milk production reached 2.588 million tons in 2023, representing a 9.5% increase from 2.364 million tons in 2022[50]. - The group operated 42 farms in mainland China, with a total of 450,562 dairy cows, reflecting an 11.2% increase from 405,358 cows in 2022[49]. Investment and Future Plans - The company entered into a capital injection agreement with Zhongken Fund, with an investment of RMB 600 million for a 25.4% stake in a subsidiary[89]. - The company will implement a "Five-Year Leading Plan" focusing on technological innovation and green transformation[82]. - The company is committed to sustainable development and aims to lead the industry towards digital innovation and low-carbon environmental protection[83]. - The company plans to leverage national policies and technological innovations to support high-quality development in the dairy industry despite ongoing challenges[45]. Governance and Compliance - The audit committee consists of two independent non-executive directors and one non-executive director, who reviewed the accounting principles and discussed risk management and internal controls[92]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[94]. - The company has established a securities trading behavior code for directors, ensuring compliance with the standards set by the listing rules[85].

财联社2月16日讯（编辑 冯轶）财联社为您带来今日港股重要公告 1）公司要闻 金沙中国有限公司(01928.HK)：发布年度业绩，2023年净收益总额为65.3亿美元，同比增长307.1%；利润为6.92亿美元，同比扭亏为盈。 现代牧业(01117.HK)：发布盈警，预计2023年净利润约1.6亿-2亿元，同比减少约66%~72%。 龙光集团(03380.HK)：开曼群岛大法院及香港高等法院已分别颁令撤销开曼清盘呈请及香港清盘呈请。 2）回购动态 汇丰控股(00005.HK)：2月15日耗资约7645.9万港元回购124.68万股，回购价60.95-61.55港元。 友邦保险(01299.HK)：斥资8910.16万港元回购139.78万股，回购价62.75-64.7港元。 百胜中国(09987.HK)：斥资2443.13万港元回购7.7万股，回购价313.4-318.8港元。 中远海控(01919.HK)：斥资1038.72万港元回购125万股，回购价8.16-8.35港元。 ...

Financial Performance - For the six months ended June 30, 2023, the Group reported revenue of RMB 6,633.4 million, representing a year-over-year increase of 17.8% compared to RMB 5,632.1 million in 2022[6]. - The net profit for the same period decreased by 59.0% to RMB 217.9 million from RMB 531.1 million in 2022[6]. - The Group's sales revenue for the first half of 2023 reached RMB 6,633.4 million, a year-on-year increase of 17.8% compared to RMB 5,632.1 million in 2022[71]. - The profit attributable to the owners of the Company for the period was RMB 209.3 million, a decrease of 58.8% compared to RMB 507.7 million in 2022[171]. - Basic earnings per share were approximately RMB 2.66 cents, down from RMB 6.46 cents in 2022, while diluted earnings per share were approximately RMB 2.65 cents, down from RMB 6.45 cents[171]. Milk Production and Yield - The herd size increased to 418,596 heads, a year-over-year growth of 9.4% from 382,693 heads[10]. - The annualized average yield per milkable dairy cow reached 12.6 tons, reflecting a year-over-year increase of 2.4%[10]. - Total milk yield for the period was 1.249 million tons, representing an 8.4% increase from the previous year[10]. - The production of raw milk was reported at 1,250,000 tons, reflecting an 8.7% increase from the previous year[29]. - The total sales volume of raw milk increased by 8.6% year-over-year to approximately 1.233 million tons, compared to 1.135 million tons in 2022[127]. New Business Segments - New business segments, including forage and feed production, contributed sales revenue of RMB 1.59 billion, marking a year-over-year increase of 105%[16]. - Sales revenue from new business segments amounted to RMB 1,589.4 million, marking a significant year-on-year increase of 105.3% from RMB 774.1 million in 2022[128]. - Revenue from the feeds and forage business reached RMB 1,105.6 million, which is a year-on-year increase of 42.8%[71]. - The Group successfully acquired Inner Mongolia Aiyangniu Technology Co., Ltd. in June 2022, expanding its business into the digital intelligence platform for the industry value chain, generating RMB 483.7 million in revenue during the period[71]. Cash Flow and Financial Stability - Net cash inflow from operating activities surged by 70.2% to RMB 2.182 billion, compared to RMB 1.282 billion in the same period last year[11]. - The Group achieved a net free cash inflow of approximately RMB 896.7 million, a significant turnaround from a net outflow of RMB 559.3 million in the prior year[6]. - Net cash inflow from operating activities was RMB 2,182.9 million, an increase of RMB 900.7 million year-over-year from RMB 1,282.2 million[174]. - Net cash outflow from investing activities decreased to RMB 1,286.2 million from RMB 1,841.5 million in 2022, a reduction of RMB 555.3 million[175]. Cost and Profitability - The Group's cost of sales rose to RMB 5,112.7 million, representing a year-over-year increase of 28.5% from RMB 3,977.3 million in 2022[133]. - The gross profit margin for the raw milk business decreased to 28.3% in 2023 from 32.2% in 2022[139]. - The gross profit of the Group's raw milk business was RMB 1,426.6 million, a year-on-year decrease of 8.8% from RMB 1,563.9 million, with a gross profit margin of 28.3%, down 3.9 percentage points from 32.2%[141][146]. Environmental and Sustainability Initiatives - The Group is committed to innovating with digital intelligence to become a global leader in dairy farming[65]. - The company aims to reduce carbon emissions by 7%, 15%, and 20% by the end of 2025, 2030, and 2035 respectively, using 2021 as the base year[111][114]. - The company has established a green recycling industrial chain that includes forage planting, cow breeding, fertilizer treatment, biogas power generation, and returning fertilizer to the field[105][106]. - The Group's commitment to environmental sustainability includes optimizing feed formulas and reducing greenhouse gas emissions through various measures[68]. Market and Industry Trends - In the first half of 2023, China's dairy industry saw milk production reach 8.34 million tons, representing a year-over-year increase of 8.59%[58]. - The average import price of alfalfa was US$566.5 per ton, a year-over-year increase of 21%[58]. - In the first half of 2023, Mainland China imported 1.5536 million tons of various dairy products, a year-over-year decrease of 12.9%, with an import value of US$7.016 billion, down 4.7%[59]. Corporate Governance and Recognition - Modern Dairy was awarded a "BBB" investment grade credit rating by Standard & Poor's, indicating stable outlook and confidence in the company's financial stability[18]. - The company has been recognized as one of the "Top 20 Leading Agricultural Industrialization Enterprises in Anhui Province," highlighting its contributions to agricultural practices[117]. - Modern Dairy was awarded the Gold Prize of Monde Selection for the tenth consecutive year, indicating strong recognition of its premium quality branded milk[112].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 6,633.4 million, an increase of 17.8% compared to RMB 5,632.1 million in the same period last year[4]. - Net profit decreased by 59.0% to RMB 217.9 million from RMB 531.1 million in the same period last year[4]. - Gross profit for the same period was RMB 1,520,752 thousand, down 8.1% from RMB 1,654,823 thousand in 2022[7]. - The group reported a total segment profit of RMB 459,431 thousand for the six months ended June 30, 2023, compared to RMB 876,963 thousand for the same period in 2022[18]. - The basic and diluted earnings per share for the six months ended June 30, 2023, were calculated based on a profit of RMB 209,288,000, a decrease of 58.8% from RMB 507,688,000 for the same period in 2022[31]. - Profit attributable to owners of the company for the six months ended June 30, 2023, was RMB 209.3 million, a decrease of 58.8% from RMB 507.7 million in 2022[67]. Revenue Breakdown - Revenue for the six months ended June 30, 2023, was RMB 6,633,422 thousand, an increase of 17.8% compared to RMB 5,632,126 thousand for the same period in 2022[7]. - Revenue from raw milk business reached RMB 5,044,062 thousand, up from RMB 4,858,036 thousand, reflecting a growth of 3.8% year-over-year[16]. - The offline feed business generated revenue of RMB 1,105,624 thousand, a significant increase of 42.7% from RMB 774,090 thousand in the previous year[16]. - The digital platform business contributed RMB 483,736 thousand in revenue, marking its first reporting period since its establishment[16]. - Revenue from mainland China accounted for RMB 6,493,234 thousand, representing an increase of 17.9% from RMB 5,507,656 thousand in the prior year[16]. Production and Operations - The total milk production reached 1,249,000 tons, representing an 8.4% increase from 1,152,000 tons year-on-year[4]. - The company’s herd size increased to 418,596 heads, a growth of 9.4% compared to 382,693 heads in the previous year[4]. - The average annual milk yield per cow was 12.6 tons, a 2.4% increase from 12.3 tons year-on-year[4]. - The average selling price of raw milk decreased by 4.4% to RMB 4.09 per kilogram, down from RMB 4.28 per kilogram in 2022[49]. - The total sales volume of raw milk increased by 8.6% to approximately 1,233,400 tons, compared to 1,135,080 tons in 2022[49]. Cash Flow and Financial Position - Operating cash flow increased by 70.2% to RMB 2,182.9 million, up from RMB 1,282.2 million year-on-year[4]. - The company achieved a free cash flow of RMB 896.7 million, compared to a net outflow of RMB 559.3 million in the previous year[4]. - Total assets as of June 30, 2023, were RMB 22,733,767 thousand, an increase from RMB 20,353,194 thousand as of December 31, 2022[10]. - The company’s cash and cash equivalents amounted to RMB 2,377,402 thousand as of June 30, 2023, compared to RMB 2,125,628 thousand at the end of 2022[9]. - The net gearing ratio as of June 30, 2023, was 80.6%, down from 85.2% as of December 31, 2022, indicating improved financial leverage[68]. Expenses and Costs - The total cost of sold feed and farm materials increased to RMB 1,495,190,000, compared to RMB 683,167,000 in the previous year, indicating a rise of approximately 118.5%[25]. - The sales cost for raw milk was RMB 3,617.5 million, reflecting a year-on-year increase of 9.8% due to higher sales volume and feed prices[52]. - The overall sales cost for the group rose to RMB 5,112.7 million, a 28.5% increase from RMB 3,977.3 million in 2022[52]. - Financial expenses for the period were RMB 260.4 million, up from RMB 153.8 million in 2022, with interest-bearing borrowings accounting for RMB 212.3 million, reflecting a 26.7% increase year-on-year[66]. - Administrative expenses increased to RMB 379.1 million for the six months ended June 30, 2023, up from RMB 318.4 million in 2022, primarily due to the growth in employee numbers and related compensation[62]. Investments and Future Plans - The company aims to achieve a dairy cow inventory of over 500,000 heads and an annual fresh milk production target of 3.6 million tons by 2025[76]. - The group is focused on integrating ecology and technology, enhancing its comprehensive business capabilities and management levels[75]. - The company has successfully integrated new businesses, including a digital platform for livestock trading, which generated RMB 483.7 million in revenue during the period[44]. - The group continues to implement a three-year strategic plan focused on cost leadership and operational efficiency, achieving better-than-expected performance across key operational metrics[44]. Employee and Operational Metrics - As of June 30, 2023, the group employed 8,817 employees, an increase of 11.9% from 7,876 employees in the previous year[73]. - Total employee costs (excluding share-based payment expenses) for the reporting period were approximately RMB 601.4 million, representing an 18.3% increase from RMB 508.4 million in 2022[73]. - The group has adopted a retirement benefits plan for employees in Hong Kong and complies with local laws for mainland employees[74]. Risk Management and Compliance - The group has implemented a credit risk management system, reviewing customer credit limits and transaction amounts biannually[74]. - The audit committee consists of two independent non-executive directors and one non-executive director, overseeing financial reporting and risk management[81]. - The group has completed the review of the interim financial statements for the six months ending June 30, 2023, in accordance with the Hong Kong Accounting Standards[82].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 China Modern Dairy Holdings Ltd. 中國現代牧業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1117） 截 至2022年12月31日止年度的 全年業績公告 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------- ...

Financial Performance - The total revenue of China Modern Dairy reached RMB 5.63 billion for the six months ended June 30, 2022, representing a year-on-year increase of 77.1%[6]. - Gross profit for the same period was RMB 1.65 billion, reflecting a year-on-year growth of 40.0%[6]. - Cash EBITDA amounted to RMB 1.44 billion, showing a year-on-year increase of 25.0%[6]. - Net profit recorded was RMB 531 million, with a year-on-year increase of 5.0%[6]. - Adjusted net profit reached RMB 729 million, representing a significant year-on-year increase of 48.9%[6]. - The Group's sales revenue recorded RMB 5,632.1 million, a year-on-year increase of 77.1%, with raw milk sales contributing RMB 4,858.0 million, up 52.8%[53]. - The Group recorded a net loss from other gains and losses of RMB 225.4 million, compared to a net loss of RMB 9.9 million in the previous year, mainly from foreign exchange losses and fair value changes on derivatives[142]. - For the six months ended June 30, 2022, the profit attributable to owners of the Company was RMB 507.7 million, a slight year-over-year increase of 2.2% compared to RMB 496.7 million in 2021[148]. - Basic earnings per share for the period was approximately RMB 6.46 cents, down from RMB 7.13 cents in 2021, while diluted earnings per share was approximately RMB 6.45 cents, down from RMB 7.12 cents[148]. Production and Yield - The herd size increased to 382,693 heads, marking a year-on-year growth of 51.9%[6]. - The total milk yield was 1,152 thousand tons, reflecting a year-on-year increase of 56.9%[10]. - The annualized unit yield per milkable dairy cow grew by 11% year-on-year to 12.3 tons, achieving a record high[10]. - The average annualized milk yield per milkable cow increased to 12.3 tons, compared to 11.1 tons in 2021[52]. - The average milk yield per milkable cow was 12.3 tons, with a total milk yield of 1,152 thousand tons during the reporting period, reflecting a year-on-year increase of 56.9%[69]. - The total sales volume of raw milk increased by 56.7% year-over-year to approximately 1.135 million tons, up from 725 thousand tons in 2021, driven by higher annual milk yield per cow and contributions from newly acquired farms[102]. Quality and Standards - Modern Dairy was assigned a "BBB" investment grade rating by Standard & Poor's, with a stable outlook, affirming its recognition in the industry[10]. - The Group's raw milk quality indicators exceed EU standards, with strict monitoring throughout the production process to ensure compliance with food safety regulations[79]. - Modern Dairy's standard for somatic cell count is less than 150,000 cells per milliliter, which is more stringent than the PRC's standard of 600,000 cells and the EU's standard of 400,000 cells[75]. - The Group's raw milk production quality indicators exceed EU standards, ensuring high-quality raw milk through comprehensive monitoring during production[83]. Innovation and Technology - The company has introduced innovative EHT enzymatic hydrolysis technology for its zero lactose milk, making it suitable for the constitution of Chinese people[29]. - The Dreamcap product line includes a sleep aid milk that supplements GABA, improving sleep quality[27]. - The A2 genotype dairy cows are screened by DNA detection, providing a limited supply of milk that is naturally compatible with the human body[26]. Market and Industry Trends - In the first half of 2022, China's domestic milk production increased by 8.4% year-on-year, with an average market milk price of RMB 4.19/kg[40]. - Mainland China imported 1.7835 million tons of various dairy products in the first half of 2022, a year-on-year decrease of 18%[41]. - The auction price of foreign whole milk powder increased by 9.2% year-on-year due to reduced milk production in New Zealand and the European Union[41]. - By 2025, national milk production in China is projected to reach approximately 41 million tons, with large-scale farms expected to account for 75%[45]. Operational Efficiency - The Group has implemented measures to mitigate the impact of rising feed costs, including optimizing feed formulas and improving cow health[54]. - The Group's farms have sufficient feed inventory, enough to sustain cows for 20-30 days, ensuring operational stability during emergencies[81]. - The Group has established a green recycling industrial chain, including forage planting, cow breeding, fertilizer treatment, biogas power generation, and returning fertilizer to the field[80]. Financial Position and Investments - The Group's total equity as of June 30, 2022, was RMB 11,529.4 million, an increase from RMB 11,114.7 million as of December 31, 2021[152]. - Total interest-bearing borrowings as of June 30, 2022, amounted to RMB 10,496.8 million, a year-over-year increase of 23.6% from RMB 8,494.7 million[162]. - The company issued long-term bonds with a nominal amount of US$500 million at an interest rate of 2.125%, due in 2026, rated "BBB" by Standard & Poor's[177]. - Modern Farming acquired 80% equity interest in Datong Yilei Second Animal Husbandry Co., Ltd. on May 6, 2022, with a provision of RMB 4.57 million recognized for ongoing arbitration[185]. - The acquisition of 75% equity interest in Inner Mongolia Aiyangniu Technology Co., Ltd. was approved on June 8, 2022, aimed at enhancing the Group's profitability through digital technology and supply chain finance[194]. Corporate Culture and Values - The company emphasizes quality, stating that "Quality comes first, never be compromised" as a core value[18]. - The corporate culture emphasizes safety and health as the top priority, alongside a commitment to innovation and talent development[23].

Financial Performance - The total revenue of China Modern Dairy reached RMB 7,078 million, representing a year-on-year increase of 17.6%[27]. - Cash EBITDA recorded RMB 2,434 million, reflecting a year-on-year increase of 7.5%[30]. - Profit attributable to owners of the Company reached RMB 1,019 million, marking a year-on-year increase of 32.3%[30]. - The Group's revenue increased by 17.6% year-on-year to RMB 7,078.5 million in 2021, up from RMB 6,020.3 million in 2020, primarily due to increased sales volume and average selling price (ASP) of raw milk, as well as revenue from feed sales following the acquisition of Fuyuan International[140]. - Raw milk sales reached RMB 7,005.0 million in 2021, compared to RMB 6,020.2 million in 2020, indicating a significant growth in this segment[139]. - The Group's total revenue from raw milk sales increased by 16.4% year-on-year to RMB7,005.0 million during the Reporting Year, up from RMB6,020.2 million in 2020[141]. - The average selling price (ASP) of raw milk grew by 6.8% year-on-year to RMB4.41/kg, compared to RMB4.13/kg in 2020[142]. - Total sales volume of raw milk increased by 8.9% year-on-year to approximately 1.59 million tons, up from 1.46 million tons in 2020[142]. - Gross profit for the dairy farming business was RMB2,534.9 million, reflecting a 3.1% increase year-on-year, while the gross profit margin decreased to 36.2% from 40.8%[153]. Operational Growth - The herd size increased to 353,793 heads, a significant year-on-year increase of 43.0%[27]. - The Company successfully completed acquisitions of Zhongyuan Muye and Fuyuan International, adding approximately 80,000 heads of dairy cows[31]. - Modern Dairy achieved a historic breakthrough in raw milk sales, reaching 1.59 million tons during the reporting year, marking a significant step towards the strategic goal of "doubling herd size and milk production"[54]. - The Group's herd size significantly increased following the acquisition of Fuyuan International, strengthening its competitive position in the dairy farming industry in China[136]. - The Group plans to increase its dairy herd to over 500,000 heads by 2025, with an expected annual output of 3.6 million tons of fresh milk[197]. - The Group added approximately 2,157 employees due to mergers and acquisitions during the reporting year, increasing total employees to about 6,772[196]. Product Quality and Innovation - The Group's pure milk was awarded the Gold Prize of Monde Selection for the eighth consecutive year, indicating high quality recognition[31]. - Modern Dairy's High Calcium Milk contains 125 mg of calcium per 100 ml, enriched with Vitamin D to enhance calcium absorption, and has won the Gold Award at Monde Selection for two consecutive years[39]. - The Holstein Pure Milk product contains 3.2 g of high-quality milk protein per 100 ml, providing essential nutrition with a rich taste[38]. - The company has expanded its product line to include innovative offerings such as A2 DNA Milk, which is compatible with human nutrient absorption[37]. - Modern Dairy maintains stringent quality standards for raw milk, with somatic cell counts of less than 150,000 cells per ml, significantly lower than the PRC's 600,000 cells and the EU's 400,000 cells[103][104]. - The Group's milk quality indicators exceed EU standards, with strict monitoring throughout the raw milk production process to ensure compliance[116]. Strategic Initiatives - The company launched the "Five-Year Lead Plan" to outline a new development blueprint for the dairy industry during the "14th Five-Year Plan" period[52]. - The Group is committed to becoming the largest dairy farming group globally with the most complete industry chain and strongest business capability[70]. - The Group's strategy includes building a smart, eco-friendly, and well-branded ecological farm to enhance competitiveness in raw milk quality and pricing[132]. - The company is committed to high-quality development and aims to integrate breeding, farming, and processing to seize industry opportunities and enhance internal efficiency[199]. - The Group is exploring new business opportunities in the feed sector, beef cattle business, and trading platform business to enhance its competitive advantages[197]. Financial Management and Investments - The Company issued bonds of US$500 million with a coupon of 2.125%, due in 2026, attracting significant attention from the capital market[31]. - The Group successfully issued US$500 million in bonds with a 2.125% interest rate due in 2026, with proceeds used for refinancing and general corporate purposes[130]. - The Group plans to utilize the net proceeds of approximately RMB 1,295 million from the issuance of new shares for infrastructure development, herd expansion, potential acquisitions, and general working capital[129]. - The total interest-bearing borrowings of the Group amounted to RMB 8,494.7 million, a significant increase of 50.6% from RMB 5,642.3 million in 2020[176]. - The net gearing ratio as of December 31, 2021, was 56.1%, an increase of 2.7 percentage points from 53.4% in 2020[173]. Employee Welfare and Corporate Responsibility - The average salary of employees increased by up to 10%, significantly higher than the market average, as part of a comprehensive remuneration incentive policy[66]. - Modern Dairy launched the "Happiness Program," introducing various measures to enhance employee satisfaction and ensure they benefit from corporate profits[64]. - The company established a multi-dimensional welfare system for employees, increasing vacation types to 20 and offering 25 welfare programs across four categories[67]. - The Group emphasizes social responsibility by promoting local economic development and implementing poverty alleviation measures in farming areas[192].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 3,179.7 million, representing a 12.4% increase from RMB 2,827.8 million in 2020[11] - Gross profit increased by 12.3% to RMB 1,181.6 million compared to RMB 1,052.0 million in the previous year[11] - Profit attributable to owners of the Company surged by 125.0% to RMB 496.7 million from RMB 220.7 million in 2020[11] - Cash EBITDA for the period was RMB 1,152.7 million, reflecting a 16.8% increase from RMB 986.9 million in 2020[11] - Basic earnings per share rose by 105.5% to RMB 7.13 from RMB 3.47 in the previous year[11] - For the six months ended June 30, 2021, the Group achieved a profit before tax of approximately RMB506.0 million, representing a year-over-year growth of 123.3% compared to RMB226.6 million in 2020[37] - Total comprehensive income for the period was RMB 504,522, up from RMB 230,250 in the prior year[180] - Basic earnings per share increased to RMB 7.13 cents from RMB 3.47 cents, indicating strong profitability growth[180] Operational Highlights - The herd scale increased to 251,876 heads, a growth of 6.8% from 235,877 heads in the previous year[11] - The average selling price (ASP) of raw milk increased to RMB4.39/kg, reflecting a year-over-year growth of 13.4% from RMB3.87/kg in 2020[38] - The Group's sales of raw milk reached RMB3,179.7 million, representing a year-over-year growth of 12.4% compared to RMB2,827.8 million in 2020[38] - The gross profit of the dairy farming business was RMB1,181.6 million, with a gross profit margin of 37.2%, maintaining the same margin as in 2020[38] - The annualized milk yield per head of milkable cow was 11.1 tons, with a total milk yield of 734 thousand tons during the reporting period[48] - The Group operates 26 dairy farms across seven provinces in China, with each farm housing close to or over 10,000 dairy cows[46] - The Group continues to enhance cow comfort and health through improved facilities and management practices, contributing to increased milk production[42] Strategic Initiatives - The acquisition of Fuyuan is expected to increase the Group's herd size to approximately 340,000 heads, enhancing competitiveness in the dairy farming industry[17] - Modern Dairy aims to double its herd size and milk production by 2025, targeting over 500,000 dairy cows and an annual production of 3.6 million tons of fresh milk[47] - The Group is focused on upstream dairy farming operations and developing self-branded liquid milk products in collaboration with China Mengniu Dairy Company Limited[37] - The Group is exploring new business opportunities, including developing the feed business, beef cattle business, and enhancing breeding techniques[135] - The Group has implemented the "Five-Year Leading Program" to align production plans with downstream demand and achieve rational expansion[136] Financial Position and Capital Management - The net gearing ratio improved significantly to 24.2% as of June 30, 2021, down from 66.4%[11] - The Company issued US$500 million 2.125% bonds due 2026, rated "BBB" by Standard & Poor's, to lower overall financing costs[17] - The Group's total equity as of June 30, 2021, was RMB 9,696.7 million, an increase from RMB 8,038.4 million as of December 31, 2020[97] - Total interest-bearing borrowings amounted to RMB 4,992.1 million as of June 30, 2021, all of which were bank borrowings[102] - The Group's available and unutilized credit facilities were approximately RMB 4,823.4 million as of June 30, 2021, compared to RMB 4,597.9 million as of December 31, 2020[97] Market and Economic Context - China's GDP grew by 12.7% year-over-year in the first half of 2021, with the first and second quarters recording growth rates of 18.3% and 7.9%, respectively[31] - The average market price of raw and fresh milk in the first half of 2021 was approximately RMB4.26/kg, representing a year-over-year growth of 15%[32] - The proportion of large-scaled dairy farming in China reached 67%, an increase of 3% year-over-year, with all large-scale farms adopting mechanized milking[32] - China's milk production grew by 7.6% year-over-year in the first half of 2021[32] - The introduction of favorable national policies, including the three-child policy, is expected to drive future growth in dairy demand[35] Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the reporting period, except for one non-executive Director's absence at the annual general meeting[157] - The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended 30 June 2021[165] - The financial statements are prepared in accordance with International Accounting Standards, ensuring compliance with applicable disclosure requirements[197] - The auditor's conclusion reinforces the integrity of the financial reporting process, which is vital for stakeholder trust[177] Shareholder Information - The Company issued 650,000,000 new shares at a placing price of HK$2.40 per share, raising approximately HK$1,552 million (approximately RMB1,295 million) for infrastructure development and herd expansion[64] - The total number of shares issued as of June 30, 2021, was 7,108,565,947[151] - China Mengniu Dairy Company Limited held a beneficial interest of 1,246,079,369 shares, accounting for 17.53% of the company's issued share capital[148] - The interests of substantial shareholders are recorded in compliance with the Securities and Futures Ordinance[147]

Financial Performance - For the year ended December 31, 2020, the profit attributable to the owners of the Company recorded RMB770 million, representing a year-on-year growth of 126%[14]. - Earnings before tax increased to RMB784.4 million, a year-on-year growth of 123%[12]. - The company's revenue grew by 9.2% year-on-year, reaching RMB6,020 million[45]. - The gross profit margin before raw milk fair value adjustment increased by 2.7 percentage points to 40.8%[45]. - The Group's cash EBITDA grew by 10.7% year-on-year to RMB2,264.9 million, with a cash EBITDA margin increase to 37.6%[110]. - Basic earnings per share increased to RMB12.07 cents, up from RMB5.54 cents in the previous year[110]. - The total operating expenses increased by 25.7% year-over-year to RMB568.6 million, up from RMB452.2 million in 2019[100]. - The total staff costs for the reporting year were approximately RMB 585.6 million, an increase of about 19.2% from RMB 491.0 million in 2019[137]. Production and Operations - The total milk production during the year reached 1.49 million tons, an increase of 7% year-on-year[14]. - The average annualized unit yield of each milkable cow reached 11.1 tons, representing a year-on-year increase of 5%[14]. - The Group had about 247.4 thousand dairy cows at the end of the year, a steady year-on-year increase of 6%[14]. - The total sales volume of raw milk reached approximately 1.46 million tons in 2020, up 6.6% from 1.37 million tons in 2019[52][53]. - The average milk yield per milkable cow increased to 11.1 tons in 2020, a 4.7% increase from 10.6 tons in 2019, contributing to a total annual milk production of 1.49 million tons, up 7.2% year-on-year[56][57]. - The unit cost of raw milk was successfully controlled at RMB2.29 per kg in 2020, a decrease of 1.2% from RMB2.32 per kg in 2019[90]. - The Group operated a total of 26 dairy farms with 247,371 dairy cows as of December 31, 2020, an increase from 233,618 in 2019, representing a year-on-year growth of 5.6%[52][53]. Market and Industry Trends - China's milk production reached 34.4 million tonnes, representing a year-on-year growth of 7.5%[40]. - The average selling price of raw milk increased to RMB4.13/kg, a year-on-year growth of 2.2%[45]. - Total dairy imports in China increased by 10.4% year-on-year, totaling 3.281 million tonnes[40]. - The milk sufficiency rate in China decreased to 65.3%, marking a decline for five consecutive years[40]. - The raw milk market is expected to remain in short supply, driving an increase in milk prices, with the Company positioned to benefit from this trend[139]. Sustainability and Innovation - The company is committed to sustainable development, emphasizing ecology and environmental protection in its operations[31]. - The Group has established a green recycling industrial chain for sustainable development, including biogas power generation facilities at each farm[76]. - The company launched a new skimmed milk product, showcasing an innovative production model that integrates forage grass planting, cow breeding, and milk processing within two hours[33]. - The Group's operational strategies focus on raising unit output and raw milk quality through scientific breeding and feeding techniques[62]. - The company is committed to continuous research to improve milk yield and cow health, collaborating with experts to enhance genetic quality and operational efficiency[55][62]. Corporate Governance and Leadership - The Board of Directors of China Modern Dairy Holdings Ltd. comprises nine members, including two executive Directors and three independent non-executive Directors[179]. - The Company has complied with the Corporate Governance Code throughout the reporting year, with one exception regarding the attendance of a non-executive Director at the annual general meeting[174]. - The Group's management is responsible for day-to-day operations under the supervision of the executive Directors, ensuring effective leadership and control[179]. - The Company has implemented comprehensive liability insurance for Directors and senior management to protect against potential risks[180]. - The Group's management team includes professionals with extensive backgrounds in major dairy companies like Mengniu and Yili[170]. Future Strategies - The Company aims to double both herd size and milk yield over the next five years, targeting more than 500,000 cows and an annual fresh milk yield of 3.6 million tons by 2025[143]. - The implementation of the "Five-Year Leading Plan" has commenced, focusing on expanding production capacity to enhance overall competitiveness[144]. - The Group aims to maintain its leadership position in the dairy farming industry by leveraging its unique geographical advantages and innovative farming models[52].

Financial Performance - For the six months ended June 30, 2020, the total revenue of China Modern Dairy reached RMB 2,828 million, representing a year-on-year increase of 10%[8] - Cash EBITDA for the same period recorded RMB 987 million, reflecting a year-on-year increase of 12%[8] - Profit attributable to owners of the company was RMB 220.7 million, a significant increase of 76% year-over-year[9] - Free cash flow surged to RMB 631.8 million, reflecting a year-over-year growth of 79.9%[9] - The Group achieved a profit before tax of approximately RMB226.6 million, representing a growth of 69.2% year-on-year, and a net free cash inflow of RMB631.8 million, up 79.9% year-on-year[28] - The net profit attributable to the owners of the Company for the Reporting Period was RMB220.7 million, representing a year-on-year increase of 76.7% compared to RMB124.9 million in 2019[88] - Total comprehensive income for the period was RMB 230,250, up from RMB 133,812 in 2019, reflecting a significant increase of approximately 72%[199] - Basic earnings per share for the Reporting Period was approximately RMB3.47 cents, compared to RMB2.05 cents in 2019[89] Production and Operations - The company operates 26 dairy farms in China with over 235,000 dairy cows and an annual milk yield of approximately 1.5 million tons[3] - Modern Dairy has implemented a unique production model called "Zero-distance Integration of Forage Grass Planting, Cows Breeding and Milk Processing within Two Hours," which is SGS certified[3] - Total milk production during the reporting period was 750,000 tons, representing a year-over-year growth of 10%[11] - The herd scale increased to 235,877 head of dairy cows, a 4% increase year-over-year[11] - The annualized milk yield per milkable cow reached 11.2 tons, a 5.7% increase from 10.6 tons in 2019[11] - The average milk yield per milkable cow rose to 11.2 tons during the reporting period, representing a growth of 5.7% year-on-year from 10.6 tons in 2019[42] - The company operates 26 dairy farms across seven provinces in China, each with a herd size close to or over 10,000 dairy cows[40] Market Position and Strategy - The company is the largest dairy farming operator and fresh raw milk producer in China based on herd size and milk yield[4] - Future strategies include expanding market presence and enhancing product offerings through new technologies and research[8] - The company aims to maintain its leadership position in the dairy industry by focusing on quality and sustainability in its operations[8] - The company is actively exploring potential mergers and acquisitions to further strengthen its market position and operational capabilities[8] - The company plans to focus on increasing herd size, maintaining a reasonable herd portfolio, and achieving steady growth in output over the next three to five years[138] - The company will strengthen the synergistic integration of upstream and downstream businesses to enhance market competitiveness as a top brand in raw milk production[138] Quality and Sustainability - Modern Dairy's pure milk has won the Gold Prize at Monde Selection for seven consecutive years, indicating strong brand recognition[12] - Quality management of raw milk adheres to high standards, ensuring that all processes from milking to transportation are monitored[45] - The company has implemented various measures to enhance cow comfort, including improved ventilation, feeding frequency, and bedding conditions[37] - The company is committed to social responsibility, promoting sustainable development in the dairy industry, and supporting local economic development[131] - The company has effectively alleviated the pressure of surplus rural labor by providing multiple job opportunities across the country[130] Financial Health and Debt Management - The company's debt-to-asset ratio decreased from nearly 60% at the end of 2018 to 51% as of June 30, 2020[11] - The total equity of the Group as of June 30, 2020, was RMB7,440.0 million, up from RMB7,207.7 million as of December 31, 2019[91] - The net gearing ratio decreased to 66.4% as of June 30, 2020, compared to 77.0% as of December 31, 2019[91] - The total interest-bearing debt as of June 30, 2020, was RMB6,215.0 million[95] - The Group's available and unutilized credit facilities amounted to approximately RMB6,688.2 million as of June 30, 2020, compared to RMB3,753.4 million as of December 31, 2019[92] Shareholder Information - The board of directors has resolved not to declare any interim dividend for the reporting period[141] - As of June 30, 2020, Ms. Gao holds approximately 3.46% of the company's shares through Jinmu Holdings Co Ltd[141] - As of June 30, 2020, China Mengniu Dairy Company Limited holds 58.15% of the issued share capital of the Company[151] - The total number of shares issued by Mengniu as of June 30, 2020, is 3,938,589,900[152] - The substantial shareholder, China Mengniu Dairy Company Limited, has a beneficial interest in 1,317,903,000 shares, accounting for 20.57% of the Company's issued share capital[157] Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended 30 June 2020, with a noted deviation regarding non-executive Directors' attendance at the annual general meeting[168][169] - The auditor, Deloitte Touche Tohmatsu, reviewed the condensed interim financial statements in accordance with relevant standards[185] - The Audit Committee consists of two independent non-executive directors and one non-executive director, reviewing accounting principles and financial reporting matters[188] Market Trends - The raw milk market is currently in short supply, and this shortage is expected to continue, leading to a steady rise in prices[136] - The dairy industry saw a 7.9% year-on-year increase in raw milk production, with major dairy companies recovering sales to over 90%[22]