Summary of Conference Call Notes Company and Industry - The conference call pertains to the dairy industry, specifically focusing on a dairy company involved in milk production and sales. Key Points and Arguments 1. **Production and Yield Guidance** The company expects to maintain a yield of 12.8 tons for the year, with a potential increase to around 13 tons next year, indicating confidence in production capabilities despite lower yields in the second half of the year due to external factors [1][2][3] 2. **Sales Growth Expectations** The company anticipates double-digit sales growth for the upcoming year, driven by improved production yields and contributions from organic milk, which will impact both halves of the year [1][2] 3. **Cost Structure and Cash Costs** The estimated cash costs are projected to be between 3.33 to 3.34 per unit, with management and sales expenses included in this figure. The company is managing costs effectively despite market pressures [3][4] 4. **Market Performance and Price Trends** The company experienced a decline in market prices, with a drop of 13% in the first nine months and 15% in the third quarter. However, the company's decline was less severe than the market average due to better quality and management of feed costs [4][5] 5. **Competitive Landscape** Competitors face higher feed costs, which could impact their profitability. The company maintains a focus on quality, which allows it to manage costs better than some smaller competitors [6][7] 6. **Government Subsidies and Market Dynamics** Government subsidies for new dairy farms will cease after this year, which may lead to a reduction in supply as smaller farms struggle without financial support. The company expects a market adjustment as a result [9][10] 7. **Future Supply and Demand Outlook** The company predicts a tightening of supply in the market by mid-2024, with potential price increases for milk products. The overall sentiment in the industry is cautious but optimistic regarding future demand [12][30] 8. **Financial Health and Debt Management** The company aims to reduce its debt ratio, currently projected at 62%, with a target to lower it further in the coming years. The focus remains on maintaining a healthy balance sheet amidst market fluctuations [24][25] 9. **Cash Flow Projections** The company expects stable cash flow for the year, with operational cash flow projected around 28 billion, indicating a solid financial position despite market challenges [22][23] 10. **Impact of Culling on Profitability** Increased culling of dairy cows has led to a temporary boost in profits due to reduced costs, although this has also resulted in non-cash losses that need to be managed [17][18] Other Important but Overlooked Content - The company is actively managing its relationships with major buyers, ensuring a stable supply chain and maintaining a significant portion of sales directed towards key partners [19][20] - The company is cautious about future capital expenditures, indicating a strategic approach to investments in light of market conditions [23] - The management is aware of the competitive pressures and is taking steps to ensure that operational efficiencies are maximized to maintain profitability [21][26]

Revenue and Sales Performance - Revenue for the six months ended 30 June 2024 was RMB 6,418.5 million, a decrease of 3.2% compared to RMB 6,633.4 million in the same period in 2023[7] - Raw milk sales revenue reached RMB 5.112 billion, a year-on-year increase of 1.3%[12] - Raw milk sales revenue grew by 1.3% to RMB 5.112 billion, with total raw milk sales volume increasing by 13.4% to 1.4 million tons[14] - Modern Dairy's sales revenue for the first half of 2024 was RMB 6,418.5 million, a year-over-year decrease of 3.2%[53][54] - Raw milk sales revenue increased by 1.3% year-over-year to RMB 5,111.7 million, driven by a 13.4% increase in sales volume to 1,398 thousand tons[53][57] - Revenue for the six months ended 30 June 2024 decreased to RMB 6,418,499 thousand, compared to RMB 6,633,422 thousand in the same period in 2023, representing a decline of 3.2%[191] Profitability and Margins - Cash EBITDA increased by 19.2% to RMB 1,515.0 million, up from RMB 1,271.4 million in the same period in 2023[7] - The Group's raw milk business gross profit margin increased by 2.0 percentage points compared to the same period in 2023[12] - The gross profit margin of raw milk business improved by 2.0 percentage points, with gross profit increasing by RMB 120 million, an 8.4% year-on-year growth[14] - Gross profit for the raw milk business increased by 8.4% year-on-year to RMB1,547.0 million, with gross profit margin rising to 30.3% from 28.3%[70] - Gross profit for integrated dairy farming solutions surged by 38.9% year-on-year to RMB130.8 million, with gross profit margin improving to 10.0% from 5.9%[70] - Gross profit for the six months ended 30 June 2024 increased to RMB 1,677,739 thousand, up 10.3% from RMB 1,520,752 thousand in the same period in 2023[191] Cash Flow and Financial Position - Net cash from operating activities decreased by 81.8% to RMB 397.5 million, down from RMB 2,182.9 million in the same period in 2023[7] - The Group's asset-liability ratio remained stable at 62.7%, with long-term debt accounting for 76.2% of the total debt structure[13] - The Group's financing cost ratio decreased from 3.5% in the same period last year to 3.4% this year[13] - The financing cost rate decreased from 3.5% to 3.4%, and the debt-to-asset ratio remained stable at 62.7%[14] - Net cash inflow from operating activities decreased by RMB1,785.4 million yoy to RMB397.5 million, due to adjustments in working capital management strategy[90] - Net cash inflow from operating activities decreased by RMB1,785.4 million to RMB397.5 million in 2024, compared to RMB2,182.9 million in 2023, due to the expiration of large supply chain finance payments[93] - Net cash outflow from investing activities increased by RMB204.0 million to RMB1,490.2 million in 2024, driven by higher payments for property, plant, and equipment, and increased loans to associates[94] - Net cash inflow from financing activities was RMB2,474.1 million in 2024, a significant turnaround from a net outflow of RMB656.2 million in 2023, primarily due to increased interest-bearing borrowings[95] - Total interest-bearing borrowings increased by 20.3% to RMB13,835.5 million as of 30 June 2024, compared to RMB11,496.7 million as of 31 December 2023[96] - Bank borrowings increased to RMB9,468.4 million as of 30 June 2024, up from RMB7,390.4 million as of 31 December 2023, with interest rates ranging from 1.50% to 4.20%[99] - Other borrowings rose to RMB977.6 million as of 30 June 2024, compared to RMB547.2 million as of 31 December 2023, with interest rates ranging from 3.35% to 6.00%[101] - Long-term bonds decreased slightly to RMB3,389.6 million as of 30 June 2024, down from RMB3,559.0 million as of 31 December 2023[105] - Capital commitments decreased by 67.7% to RMB90.9 million as of 30 June 2024, compared to RMB281.1 million as of 31 December 2023, reflecting cautious investment and strict capital expenditure control[109] - Available and unutilized credit facilities amounted to RMB7,035.8 million as of 30 June 2024, supporting debt repayment and operational needs[89][92] Operational Performance and Efficiency - Herd size increased by 6.3% to 444,859 heads, compared to 418,596 heads in the same period in 2023[7] - Average annualized milk yield per cow increased by 3.2% to 13.0 tons/head/year, up from 12.6 tons/head/year in the same period in 2023[7] - Total milk production increased by 16.1% to 1.45 million tons, compared to 1.249 million tons in the same period in 2023[7] - The average annual milk yield per cow reached 13 tons, a 3.2% year-on-year increase[14] - The Group's total number of dairy cows increased by 6.3% year-on-year to 444,859 heads as of 30 June 2024, with milkable cows accounting for 50.6% of the total, up 1.8 percentage points from 48.8% in 2023[34] - The company operates 42 dairy farms in China, with a total of 444,859 dairy cows, a 6.3% year-on-year increase, and the proportion of mature cows increased to 50.6%, up 1.8 percentage points[35] - The average annual milk yield per milkable cow reached 13.0 tons, a 3.2% year-on-year increase, and the total milk yield was 1,450 thousand tons, a 16.1% year-on-year increase[36][37] - The company has established four forage grass plantation bases covering 66,000 mu, with an annual output of 30,000 tons of high-quality forage grass, and cooperates with third-party companies to improve 15,000 mu of saline-alkali land[41][42] - The company owns five feed production and processing plants in China and jointly operates three feed production plants with large domestic feed companies, with an annual supply capacity of over 200,000 tons of high-quality forage grass[42] - The Aiyangniu e-commerce platform achieved a transaction amount of RMB 17.4 billion in the first half of 2024, with significant growth in both transaction amount and volume[44][45] - The Yunyangniu intelligent digital system covers 457 farms and 1.57 million cows, focusing on digital farming and improving digital and intelligent breeding capabilities[44][45] - The company sold approximately 360,000 units of high-quality frozen semen in the first half of 2024, promoting genetic improvement in dairy cows[46][47] ESG and Sustainability - Modern Dairy maintained a "BBB" investment-grade credit rating from Standard & Poor's for four consecutive years[15][16] - MSCI upgraded Modern Dairy's ESG rating to BBB, marking a three-level improvement within a year[15][16] - Modern Dairy's MSCI ESG rating was upgraded to "BBB," marking a significant three-level jump within a year, and the company was selected into the S&P Global Sustainability Yearbook (China Edition) 2024[48] - Modern Dairy was awarded the "BBB" investment grade rating by Standard & Poor's with a stable outlook, becoming the first dairy farming company globally to achieve this rating[49][50] - Modern Dairy was selected for the S&P Global Sustainability Yearbook 2024, highlighting its achievements in sustainable development[50][51] - The company won the "2024 Digital Innovation Leadership Award" for its digital transformation in production management and the entire industry chain[50][51] - The Group aims to reduce unit carbon emissions by 7%, 15%, and 20% by the end of 2025, 2030, and 2035, respectively, compared to the 2021 baseline[134] - The Group has built a green recycling industrial chain, including forage grass planting, cow breeding, fertilizer treatment, biogas power generation, and fertilizer back to the field[130] - The Group has launched the Dual-carbon Project, setting a quantitative target for carbon intensity emissions by 2035[133] Cost Management and Efficiency - The average unit cost of raw milk before inter-segment offset decreased to RMB2.58/kg from RMB2.95/kg in 2023, with feed costs dropping to RMB2.02/kg from RMB2.39/kg, a year-on-year decrease of RMB0.37/kg[64][67] - The cost of sales for integrated dairy farming solutions decreased by 21.3% year-on-year to RMB1,176.0 million, driven by a reduction in sales scale[65][68] - Total cost of sales decreased by 7.3% year-over-year to RMB 4,740.8 million, primarily due to reduced sales scale in integrated dairy farming solutions[61][62] - Administrative expenses decreased by 5.3% yoy to RMB359.0 million, reflecting cost reduction and efficiency improvement efforts[83] - Finance costs decreased by RMB16.0 million yoy to RMB244.4 million, with interest-bearing borrowings contributing RMB199.9 million[87] Market and Industry Trends - China's raw milk production increased by 3.4% year-on-year in the first half of 2024, but raw milk prices continued to decline[20][22] - China's dairy product imports decreased by 15.6% in volume and 22.4% in value year-on-year in the first half of 2024[21][22] - The average selling price (ASP) of raw milk decreased by 10.5% year-over-year to RMB 3.66/kg due to downward price trends in the domestic raw milk market[57][58] Strategic Initiatives and Business Development - The Group operates 42 farm companies across 13 provinces and autonomous regions, focusing on improving the feeding environment and health of dairy cows to increase the proportion of the core herd[34] - The Group actively eliminated low-yielding and inefficient cows to optimize herd structure and increase dairy cow yield, resulting in significant improvements in key operational indicators[28] - The Group has strengthened quality farm management, focusing on increasing the ratio of core dairy cows and overall health levels, leading to solid development in the raw milk business[28] - The Group continues to explore emerging technologies such as collars, pedometers, and image recognition to improve breeding, health standards, and safety management in farm production[32] - The Group has renovated cowshed equipment, improved ventilation, adjusted feed formulas, and increased feeding frequency to enhance cow comfort and milk production[31] - The Group leverages the "integration of forage grass planting, cow breeding, and milk processing" model, ensuring high nutritional value and freshness of raw milk[30] - The Group has expanded into feeds, forage grass, intelligent digital platforms, and breeding, forming two major business segments: raw milk and integrated dairy farming solutions[26] - The Group is committed to deploying forces throughout the entire dairy value chain, innovating with digital intelligence, and aiming to become a global dairy farming leader[25] - The Group has established long-term strategic cooperation with large dairy manufacturing enterprises to jointly promote the development of the dairy industry[25] - The Group will focus on cost reduction and efficiency enhancement, shifting from "volume-driven profitability" to "value-driven profitability" to achieve sustainable profit growth[138] - The Group aims to lead the dairy industry towards digital innovation and a sustainable development model emphasizing low-carbon and environmentally friendly practices[139] Corporate Governance and Shareholding - Modern Farming Wuhe's total registered capital increased to approximately RMB529 million after the capital injection, with Modern Farming owning 66.1%, China Agricultural owning 25.4%, and Anhui Suida owning 8.5% respectively[116] - The capital injection of RMB600 million by China Agricultural into Modern Farming Wuhe constitutes a deemed disposal of 25.4% equity interest in the subsidiary[110][113] - The Group's capital commitments for property, plant, and equipment decreased by RMB190.2 million (67.7%) to RMB90.9 million as of June 30, 2024, compared to RMB281.1 million as of December 31, 2023[112] - The Group's biological assets were valued at RMB861.7 million, accounts receivable at RMB23.7 million, and real estate at RMB23.6 million as of June 30, 2024, all pledged as security for the Group's borrowings[111] - The Company granted China Agricultural an option to subscribe for shares at an exercise price of HK$2.06 per share, with a total subscription amount not exceeding RMB600 million or 6% of the Company's total issued shares[114][115] - The Group's financial instruments include equity instruments at FVTOCI, trade receivables, bank deposits, and derivatives, with risks managed through regular reviews and hedging strategies[122][123] - The Group manages foreign exchange risk by monitoring net exposures and may use currency options or swaps to mitigate risks related to RMB-USD exchange rate fluctuations[123] - Credit risk is managed through an internal credit scoring system, with customer-specific credit limits reviewed twice a year and monitoring procedures in place to recover overdue debts[124] - The Group had 8,819 employees in the Chinese Mainland and Hong Kong as of 30 June 2024, with total staff costs (excluding equity-settled share award expenses) of approximately RMB575.5 million[126] - The Group has introduced advanced management methods such as five-aspect management, benchmarking management, and lean management to improve organizational efficiency[127] - The Group has upgraded its performance incentive system and optimized the employee happiness and caring plan[127] - The Group has strengthened the construction of four talent teams: leading managerial talents, elite professionals, up-and-coming young talents, and scarce high-end talents[127] - The Group has implemented a full-coverage training model, delivering courses to front-line employees to improve overall management capabilities[127] - The Group's milk quality indicators are better than EU standards, with strict monitoring of raw milk production to ensure quality[129] - The Group has enhanced cooperation with Mengniu in product testing, unifying inspection standards and processes to improve testing efficiency and product quality[129] - The Group actively promotes local economic development by providing multiple jobs nationwide, effectively alleviating rural labor surplus and increasing local farmers' income[136] - The Group is committed to its corporate vision of "deploying the whole industry chain, be innovative with digital intelligence, and be a global dairy farming leader"[137] - No interim dividend was declared for the six months ended 30 June 2024[141] - As of 30 June 2024, Mr. Sun Yugang holds 17,808,287 shares, representing 0.22% of the total issued shares[144] - As of 30 June 2024, Mr. Zhu Xiaohui holds 10,208,593 shares, representing 0.13% of the total issued shares[144] - Mengniu Group holds 56.36% of the issued share capital of the Company as of the report date[146] - China Mengniu Dairy Company Limited holds a beneficial interest of 1,246,079,369 shares, representing 15.74% of the company's issued share capital[150] - China Mengniu Dairy Company Limited has an interest in controlled corporations through Future Discovery Limited, holding 3,214,962,513 shares, representing 40.62% of the company's issued share capital[150] - Central Huijin Investment Ltd. holds 568,181,818 shares through BOCI Financial Products Limited, representing 7.18% of the company's issued share capital[150] - Bank of China Limited holds 568,181,818 shares through BOCI Financial Products Limited, representing 7.18% of the company's issued share capital[150] - New Hope Dairy Co., Ltd. holds 635,345,763 shares through GGG Holdings Limited, representing 8.03% of the company's issued share capital[150] - GGG Holdings Limited holds a beneficial interest of 635,345,763 shares, representing 8.03% of the company's issued share capital[152] - MGD Holdings holds a beneficial interest of 400,000,000 shares, representing 5.05% of the company's issued share capital[152] - The company operates a restricted share award scheme (Share Award Scheme II) adopted on 26 March 2018, which is funded by existing shares of the company and remains effective for ten years[154] - As of 30 June 2024, the company had 7,915,662,048 shares issued[153] - 568,181,818 shares of the company were lent to BOCI Financial Products Limited as of 30 June 2024[153] - The Board granted a total of 79,042,000 Award Shares under the Share Award Scheme II to 160 middle and senior management personnel, with 5,770,000 and 3,400,000 shares granted to executive directors Sun Yugang and Zhu Xiaohui respectively[160] - The fair value of an Award Share as of 3 April 2024 was HK$0.67 per share, determined based on the market price of the Company's shares at the grant date[160] - The trustee of the share award scheme purchased 36,914,000 ordinary shares from the open market at a consideration of HK$27,769,000 (RMB25,281,000) as restricted shares for the scheme[170] - The Company's Board comprised nine Directors as of the interim report date, including two executive Directors, four non-executive Directors, and three independent non-executive Directors[168] - The Company confirmed compliance with the Model Code for securities transactions by Directors, with all Directors adhering to the required standards throughout the period[169] - Mr. Zhang Ping resigned as an executive director and member of the Sustainability Committee of China Mengniu on 26 March

Financial Performance - The company reported cash EBITDA of RMB 1,515 million for the six months ended June 30, 2024, an increase of approximately RMB 244 million or 19.2% compared to the same period in 2023[2]. - The company's revenue for the six months ended June 30, 2024, was RMB 6,418.5 million, a decrease of 3.2% compared to RMB 6,633.4 million in the same period of 2023[4]. - The company recorded a net cash inflow from operating activities of RMB 397.5 million, down 81.8% from RMB 2,182.9 million in the previous year[4]. - For the six months ended June 30, 2024, the total comprehensive income was a loss of RMB 220,968 thousand, compared to a loss of RMB 197,211 thousand for the same period in 2023, representing an increase in loss of approximately 12.1%[8]. - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB 2.91, compared to RMB 2.66 for the same period in 2023, indicating a decline of about 9.4%[8]. - The company reported a net loss attributable to shareholders of RMB 228.3 million for the period, a decrease of 209.1% compared to a profit of RMB 209.3 million in 2023[76]. - Basic and diluted loss per share was approximately RMB 2.91, compared to earnings of RMB 2.66 in 2023[76]. Revenue and Sales - Raw milk sales revenue amounted to RMB 5.112 billion, reflecting a year-on-year growth of 1.3%[2]. - Revenue from raw milk business was RMB 5,111,706 thousand, up from RMB 5,044,062 thousand, reflecting a growth of 1.3% year-over-year[16]. - The group reported a total revenue of RMB 6,418,499 thousand for the six months ended June 30, 2024, a decrease of 3.2% compared to RMB 6,633,422 thousand for the same period in 2023[16]. - The average selling price of raw milk was RMB 3.66 per kg, reflecting a decrease influenced by the domestic raw milk market price decline[57]. - The company sold approximately 1,398,437 tons of raw milk, an increase of 13.4% compared to 1,233,400 tons in 2023, attributed to improved annual yield per cow[56][57]. - The integrated breeding solution business generated revenue of RMB 1,306.8 million, down 17.8% from RMB 1,589.4 million in 2023, primarily due to market conditions[58]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 24,792,417 thousand, an increase from RMB 24,526,141 thousand as of December 31, 2023, reflecting a growth of approximately 1.1%[9]. - Current assets decreased to RMB 7,415,491 thousand as of June 30, 2024, from RMB 6,868,103 thousand as of December 31, 2023, showing a decline of about 7.9%[9]. - The company's total liabilities as of June 30, 2024, were RMB 13,092,542 thousand, compared to RMB 11,088,696 thousand as of December 31, 2023, indicating an increase of about 18.1%[10]. - Non-current liabilities increased to RMB 6,412,729,000 as of June 30, 2024, compared to RMB 5,183,959,000 as of December 31, 2023[41]. - As of June 30, 2024, the company reported a total debt of RMB 9,468,381,000, an increase of 28.2% from RMB 7,390,443,000 as of December 31, 2023[41]. Cost and Expenses - The cost of sales for raw milk production was RMB 3,564,743,000, slightly down from RMB 3,617,480,000, indicating a decrease of 1.5%[26]. - Employee benefits expenses rose to RMB 445,525,000, compared to RMB 405,443,000 in the previous year, an increase of 9.9%[26]. - Interest expenses on bank loans decreased to RMB 147,608,000 from RMB 163,883,000, a reduction of 9.9%[28]. - The total borrowing cost was RMB 244,427,000, slightly down from RMB 244,688,000, indicating a decrease of 0.1%[28]. - The income tax expense for the six months ended June 30, 2024, was RMB 15,951,000, compared to RMB 15,397,000 in the previous year, an increase of 3.6%[29]. - The net loss from other income and expenses increased to RMB 53.7 million, compared to a net loss of RMB 46.3 million in the previous year[73]. Operational Metrics - Average annual milk yield per cow reached 13 tons, representing a year-on-year increase of 3.2%, while total raw milk sales volume reached 1.4 million tons, up 13.4% year-on-year[2]. - The herd size increased by 6.3% to 444,859 heads compared to 418,596 heads in the previous year[4]. - The company operates 42 farms across 13 provinces and regions in mainland China, focusing on optimizing the breeding environment and cow health[47]. - The company aims to enhance its breeding capabilities by increasing investment in breeding technology and achieving self-sufficiency in core breeding resources[53]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[3]. - The company declared a final dividend of RMB 0.0045 per share, totaling RMB 34,888,000, down from RMB 111,997,000 in the previous year[32]. - The company purchased a total of 36,914,000 shares of its ordinary stock for a total price of HKD 27,769,000 (approximately RMB 25,281,000) under its share award plan[88]. Governance and Compliance - The audit committee consists of two independent non-executive directors and one non-executive director, overseeing financial reporting and risk management[89]. - The group's interim financial statements for the six months ending June 30, 2024, have been reviewed by the auditors in accordance with the relevant standards[90]. - The interim results announcement will be published on the company's website and the Hong Kong Stock Exchange website[91]. - The company expresses gratitude to shareholders for their continued support and acknowledges the hard work of all employees[92].

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Revenue and Sales Performance - Revenue for the year reached RMB 13,458 million, representing a year-on-year increase of 9.5%[6] - Total raw milk sold was 2.55 million tons, a year-on-year increase of 9.4%, with sales revenue from raw milk amounting to RMB 10,264 million, up 3.2%[10] - New business segments, including e-commerce and feed production, generated sales revenue of RMB 3,195 million, marking a 35.9% year-on-year increase[12] - Modern Dairy achieved a sales revenue contribution of RMB 3.195 billion from new business developments, representing a year-on-year increase of 35.9%[14] - The Group's sales revenue for the year was RMB 13,458.2 million, representing a year-on-year increase of 9.5%, with raw milk sales revenue at RMB 10,263.7 million, up 3.2%[81][84] - Revenue from new business segments reached RMB 3,194.6 million, marking a significant year-on-year increase of 35.9% from RMB 2,350.0 million in 2022[116] Profitability and Financial Performance - Profit for the year was RMB 185 million, a decline of 68.1% compared to RMB 580 million in 2022[6] - Cash EBITDA for the year was RMB 2,496 million, a decrease of 8.9% from the previous year[6] - The gross profit from the raw milk business decreased by 5.9% year-on-year to RMB 2,913.0 million in 2023, down from RMB 3,095.0 million in 2022[133] - The gross profit margin for the raw milk business decreased by 2.7% year-on-year to 28.4% in 2023, compared to 31.1% in 2022[133] - Profit attributable to owners of the company fell by 68.9% to RMB 175.2 million in 2023, compared to RMB 562.5 million in 2022[155] Cash Flow and Financing - Net free cash inflow was approximately RMB 1,568 million, a significant turnaround from a net outflow of RMB 2,414 million in the previous year[13] - The group recorded consolidated revenue of RMB 13,458.2 million in 2023, representing a year-over-year increase of 9.5% compared to RMB 12,295.1 million in 2022[116] - The net cash inflow from operating activities surged to RMB 5,449.0 million in 2023, a significant increase of RMB 3,871.9 million year-on-year[157] - The net cash outflow from investing activities decreased to RMB 3,881.1 million in 2023, down RMB 110.4 million from RMB 3,991.5 million in 2022, due to adjusted merger and acquisition strategies[158] - The net gearing ratio improved to 74.4% as of December 31, 2023, down from 85.2% in the previous year, reflecting a 10.8 percentage point decrease[153] Operational Efficiency and Production - The herd size increased to 450,562 heads, reflecting an 11.2% year-on-year growth[10] - Average milk yield per cow reached 12.6 tons, a 3.3% increase compared to the previous year[10] - Modern Dairy produced over 2.5 million tons of high-quality raw milk in 2023, maintaining industry-leading cost efficiency[66] - The average annualized milk yield per cow was 12.6 tons, up 3.3% from 12.2 tons in 2022, while total milk yield increased by 9.5% to 2.588 million tons[80][84] - The average unit cost of raw milk before inter-segment offset was RMB 2.92/kg in 2023, a decrease from RMB 2.97/kg in 2022[126] Debt and Borrowing - Interest-bearing borrowings decreased by 7.8% year-on-year to RMB 11,497 million[13] - As of December 31, 2023, total interest-bearing borrowings decreased by 7.8% to RMB 11,496.7 million from RMB 12,470.9 million in 2022[163] - The net borrowings of the Group were approximately RMB 8,813.2 million as of December 31, 2023, down from approximately RMB 9,921.7 million in 2022[171] Awards and Recognition - Modern Dairy maintained a "BBB" investment grade credit rating with a stable outlook, marking it as the first Chinese dairy farming enterprise to achieve this recognition[14] - The company was recognized as one of the "Top 20 Leading Agricultural Industrialization Enterprises in Anhui Province," highlighting its contributions to agricultural practices and technologies[48] - Modern Dairy received the "2023 Netease New Energy Annual ESG Pioneer Enterprise Award," showcasing its commitment to environmental, social, and governance practices[54] Sustainability and ESG Initiatives - The company has been recognized for its excellent ESG performance, receiving the "Green Development Typical Case" award from the China Dairy Industry Association[17] - The Group's commitment to social responsibility includes improving product quality and promoting local economic development through job creation and direct donations[191] - The Group's dual carbon targets were recognized in the COP28 "2023 Corporate Climate Action Case Collection," underscoring its commitment to sustainable development[68] Digital Transformation and Innovation - The company is focused on deploying the entire industry chain and innovating with digital intelligence to enhance its competitive edge in the global dairy farming sector[24] - The digital transformation initiatives include the Aiyangniu and Yunyangniu platforms, aimed at reducing procurement costs and integrating AIoT solutions for dairy management[105] - The Group is committed to enhancing digitalization across the entire value chain and accelerating the transition to green practices[198] Product Quality and Development - The company’s branded pure milk has won the Gold Prize of the Monde Selection for ten consecutive years, highlighting its commitment to product quality[16] - Modern Dairy's Gold Award High Calcium Milk contains 125mg of calcium per 100ml, enriched with vitamin D to enhance calcium absorption[44] - The Group maintains a raw milk quality compliance rate of 100%, emphasizing the importance of product quality for long-term development[104] Strategic Goals and Future Outlook - The Group aims to increase its dairy cow herd size to over 500,000 heads by 2025, targeting an annual milk yield of 3.6 million tons[199] - The motto for 2024 is "Breakthrough Beyond Limits, Innovation Embraces Victories," focusing on high-quality development through innovation[197] - The Group aims to implement a cost leadership strategy to manage rising material prices by expanding herd size, improving yields, and enhancing operational management to reduce unit costs[94]

智通财经APP获悉，中信里昂发布研报表示，现代牧业(01117)在2023年的销售额和净利润分别同比增长 了9%和下降了69%，与之前发布的盈利预警一致。由于消费者需求疲软，该行预计原奶价格的下行周 期将在短期内延续。尽管如此，该行认为CMD可以凭借与下游合作伙伴的紧密合作、饲料采购优化和 效率改进，胜过其上游乳制品同行。该行维持"买入"评级，并保持目标价为港币1.00。 2023财年回顾 2023财年原奶/新业务销售（饲料和数字平台）分别同比增长了3%和36%。原奶平均售价同比下降了 6%，销量同比增长了9%（产量增长：同比增长3%至12.6吨）。每吨毛利润同比下降了14%，原因是原 奶价格疲软和饲料成本上升。销售和管理费用占收入比率同比扩大了0.2个百分点，达到9.1%。经调整 的税前息税折旧摊销前利润（Cash Ebitda）同比下降了9%，至人民币25亿元。报告的净利润同比下降 了69%，至人民币1.75亿元。 原奶价格可能保持下行势头 中国原奶价格在2023年平均同比下降了8%，受需求疲软的影响，而2024年的下降幅度更大，原奶价格 同比下降了11%。管理层预计2024年第三季度可能出现逆转。该行认 ...

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2023年12月31日止年度的 全年業績公告 亮點摘要： 本集團以「佈局產業鏈，數智創新，做全球牧業引領者」為企業願景，以原料 奶生產為業務核心，以數智化和生態化為引領，業務貫穿乳業全產業鏈條， 覆蓋上游的「種業、草業、飼料、奶牛養殖及產業鏈互聯網交易平台」。現代牧 業憑藉優秀的管理團隊，領先的科研創新，高度的產業鏈數智化，高效的成 本控制，原料奶核心業務與產業鏈新業務形成有機協同，讓本集團整體業務 持續穩健發展。 ...

CORPORATE PROFILE 公司簡介 China Modern Dairy Holdings Limited (the "Company" or "Modern Dairy" together with its subsidiaries, the "Group") is the leading dairy farming operator and raw milk producer in the People's Republic of China (the "PRC"). Modern Dairy operates 42 dairy farming companies in the PRC with dairy cows over 418,000 heads and annualized milk yield of over 2.50 million tons. The Group is a leading dairy farming operator and raw milk producer in terms of herd size in the PRC. The Company initia ...

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的內容概不負 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 對 因 本 公 告 全 部 或任何部分內容而產生或因倚賴該等內容而引致的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2023年6月30日止六個月的中期業績公告 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...