公司评论 第一上海研究部 research@firstshanghai.com.hk 2024年5月23日 星期四 【公司评论】 澳优（1717,未评级）： 2023年负重前行，长期规划静待改善 黎航荣 Wayne.li@firstshanghai.com.hk 2023FY业绩符合预期 852 2532 1539 公司23FY共计实现收入73.8亿元，同比-5.3%，实现归母净利润1.74亿元，同比 -19.5%，如剔除一次性费用影响后，核心净利润预计为2.55亿元。同期，2023年 行业 乳制品/食品饮料 中国婴幼儿配方奶粉行业受出生率下降+需求疲软等影响，行业规模同比双约双位 股价 2.40元 数下降幅度，逆势环境下公司整体表现优于行业。2023 财年公司拟派末期股息每 股普通股5港仙（总额0.8亿元），派息比率46.2%。 目标价 国内业务短期承压，海外业务强势增长 分产品看，23FY 牛奶粉、羊奶粉、私人品牌及其它、营养品业务分别实现收入 25.6/32.8/12.5/2.9亿元，同比分别-12.4%/-8.6%/+9.1%/113.9%。其中：1）牛奶 市值 42.72亿元 粉业务下滑，主要受行业 ...

Financial Performance - In 2023, the company's revenue was RMB 7,382.0 million, a decrease of RMB 413.5 million or 5.3% year-on-year[21]. - Gross profit for 2023 was RMB 2,852.6 million, down RMB 540.2 million or 15.9% compared to the previous year[21]. - The profit attributable to equity holders was RMB 174.4 million, a decline of RMB 42.1 million or 19.4% year-on-year[21]. - EBITDA for 2023 was RMB 474.5 million, reflecting a significant decline from previous years[15]. - The company's gross profit for 2023 was RMB 2,852.6 million, a decrease of RMB 540.2 million or 15.9% compared to 2022[51]. - The gross margin fell from 43.5% in 2022 to 38.6% in 2023, primarily due to increased discounts and rebates for distributors, high raw milk prices, and currency fluctuations[51]. - The company reported a net loss of RMB 18.9 million from its investment in Farmel Holding B.V. in 2023, compared to a profit of RMB 22.6 million in 2022[59]. - The cash flow from operating activities for 2023 was RMB 224.7 million, a significant improvement from a cash outflow of RMB 357.5 million in 2022[66]. - The net cash used in investing activities for 2023 was RMB 740.9 million, primarily due to the acquisition of property, plant, and equipment amounting to RMB 610.0 million[67]. - The net cash generated from financing activities was RMB 682.4 million in 2023, compared to RMB 664.1 million in 2022, driven by new bank loans and other borrowings totaling RMB 743.9 million[69]. Market Position and Brand Development - The company's self-owned brand formula goat milk powder maintained the number one market share in China, while international sales showed rapid growth[21]. - Brand exposure for the self-owned goat milk powder brand exceeded 15 billion, with brand strength increasing by 20% compared to 2022[23]. - The company achieved FDA approval for "Jia Bei Ai Te Infant Formula," making it the first European-produced infant formula to meet FDA requirements, and established the "Hunan Province Maternal and Infant Food Technology Innovation Center" with government support[25]. - The company maintains a leading position in the goat milk powder market, with over 60% market share in imported infant goat milk powder in China from 2018 to 2022[44]. - The brand's search index remains the highest in the goat milk category across major consumer platforms, indicating strong brand recognition[44]. - The company emphasized brand building through collaborations with media platforms and community engagement initiatives to enhance brand trust and recognition[38]. Product Development and Innovation - The company launched multiple new products, including the popular "Jia Bei Ai Te Yue Hu" goat milk powder and "Hai Pu Nuo Kai Nutrition Planet" cow milk powder, enhancing its product range[24]. - New product launches in 2023 included the Haipinokai 1897 and Nengliduo series, aimed at meeting diverse consumer nutritional needs[40]. - The company launched several new products, including the upgraded Aiyisen probiotic product line and NC's new gastrointestinal health products, enhancing its market presence[48]. - The company received the "2023 Innovative Technology" award for its MP108 strain, which aids in preventing various children's inflammations, showcasing its strong R&D capabilities[146]. - The company has established two major research platforms at its new innovation center in Hunan, China, aimed at developing proprietary strains and promoting domestic production of probiotics[146]. Strategic Initiatives and Future Outlook - The company aims for steady growth in its core goat and cow milk powder business and expects continued rapid growth in international and nutritional product sales in 2024[29]. - The company plans to enhance its core capabilities and management systems, focusing on brand strength, product quality, channel effectiveness, organizational capacity, and digital intelligence[29]. - The company will increase investment in innovation and research and development to capture new consumer segments and improve overall competitiveness[29]. - The company aims to enhance its global development capabilities, as showcased at the China International Import Expo in October 2023[23]. - The company is focusing on reducing carbon emissions and establishing a sustainable green supply chain as part of its commitment to corporate social responsibility[146]. Corporate Governance and Management - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[93]. - The company has adopted the corporate governance code as per the listing rules and is committed to enhancing governance standards[91]. - The company has ensured compliance with the diversity requirements of the listing rules following the appointment of a new non-executive director[91]. - The company has separated the roles of the chairman and the CEO, ensuring compliance with corporate governance standards[91]. - The company is actively reviewing its corporate governance practices to align with the latest developments and best practices[91]. - The company has established formal and transparent procedures for the appointment of directors, including a shareholder nomination process[106]. Financial Position and Shareholder Information - As of December 31, 2023, the total assets and net assets of the group were RMB 10,033.8 million and RMB 5,749.2 million, respectively, representing increases from RMB 9,796.1 million and RMB 5,565.1 million in 2022[62]. - The company's cash and cash equivalents decreased significantly to RMB (331.4) million from RMB 426.7 million in 2022[77]. - The equity attributable to shareholders was RMB 5,693.5 million, slightly up from RMB 5,646.6 million in 2022[77]. - The company reported a proposed final dividend of HKD 0.05 per share for the fiscal year 2023, down from HKD 0.06 in 2022, pending shareholder approval[147]. - The company has established a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[133]. Social Responsibility and Community Engagement - The company is committed to fulfilling its social responsibilities and contributing to a harmonious society while pursuing business growth[29]. - The company made charitable donations totaling RMB 6,406,000 in 2023, down from RMB 11,680,000 in 2022[155]. - The company continues to integrate sustainable development into its operations, aligning with the United Nations Sustainable Development Goals[145].

2024年3月29日 公司研究 23 年整体业绩承压，羊奶粉海外业务表现亮眼 ——澳优（1717.HK）2023 年年报点评 要点 增持（维持） 当 前价：2.35港元 事件：2024年3月28日，澳优发布2023年年报。23年实现营业收入73.8亿 元，同比-5.3%；归母净利润1.7亿元，同比-19.5%。其中，23H2实现营业收 入38.7亿元，同比-7.1%；归母净利润-0.1亿元，同比亏损扩大。 作者 分析师：陈彦彤 佳贝艾特海外营收强劲增长，国内仍有承压。受出生率持续走低和需求疲软的影 执业证书编号：S0930518070002 响，2023年中国婴配粉行业规模同比双位数下滑，公司奶粉业务亦受到影响。1） 021-52523689 分产品看，2023年公司牛奶粉/羊奶粉/私人品牌及其他产品/营养品分别实现收 chenyt@ebscn.com 入25.62/32.83/12.52/2.85亿元，分别同比-12.4%/-8.6%/+9.1%/+113.9%。① 分析师：汪航宇 牛奶粉：2023年牛奶粉收入同比下滑主要系市场规模萎缩影响。公司于23Q2 执业证书编号：S0930523070002 进一步 ...

Financial Performance - Revenue for the year ended December 31, 2023, decreased by RMB 413.5 million or 5.3% compared to the previous year[2] - Gross profit fell by RMB 540.2 million or 15.9%, resulting in a gross margin of 38.6%, down from 43.5%[3] - Profit attributable to equity holders decreased by RMB 42.1 million or 19.4%, totaling RMB 174.4 million[3] - EBITDA decreased by RMB 10.0 million or 2.1%, amounting to RMB 474.5 million[2] - The company reported a total comprehensive income of RMB 284.7 million for 2023, down from RMB 352.8 million in 2022[5] - The company reported a pre-tax profit of RMB 201,801 thousand for the year ended December 31, 2023, compared to RMB 251,277 thousand in the previous year, indicating a decline of approximately 19.6%[19] - Basic earnings per share for 2023 was RMB 9.70, down from RMB 12.08 in 2022[33] - The profit attributable to equity holders of the company for 2023 was RMB 174.4 million, a decrease of RMB 42.1 million or 19.4% from 2022, mainly due to intense competition in the Chinese formula milk market[70] Dividends - The proposed final dividend per share for 2023 is HKD 0.05, down from HKD 0.06 in 2022, representing a decrease of 16.7%[3] - The company plans to declare a final dividend of HKD 0.05 per ordinary share, down from HKD 0.06 in the previous year[27] - The board proposed a final dividend of HKD 0.05 per share for the fiscal year 2023, down from HKD 0.06 in 2022, pending shareholder approval[92] Assets and Liabilities - Total assets as of December 31, 2023, increased to RMB 10,033.8 million from RMB 9,796.1 million in 2022[6] - Total liabilities rose slightly to RMB 4,284.6 million in 2023 from RMB 4,231.0 million in 2022[7] - The company’s non-current assets increased to RMB 4,586,775 thousand in 2023 from RMB 3,990,786 thousand in 2022, representing a growth of about 14.9%[20] - Total liabilities as of December 31, 2023, were RMB 4,284,562 thousand, up from RMB 4,231,039 thousand in the previous year, reflecting a rise of about 1.3%[19] - As of December 31, 2023, the total assets amounted to RMB 10,033.8 million, with shareholders' equity at RMB 5,693.5 million, resulting in a debt-to-asset ratio of 3.3%[80] Cash Flow - The net cash flow from operating activities for 2023 was RMB 224.7 million, compared to a cash outflow of RMB 357.5 million in 2022[8] - The net cash flow from investing activities for the year ended December 31, 2023, was RMB (723,984) million[6] - The net cash flow generated from financing activities for the fiscal year 2023 was RMB 682.4 million, an increase from RMB 664.1 million in 2022, driven by net withdrawals of new bank loans totaling RMB 743.9 million[76] - The company’s cash and cash equivalents increased to RMB 2,037.6 million from RMB 1,861.9 million year-over-year[6] - The company’s cash and cash equivalents increased by RMB 166.2 million in 2023, compared to a decrease of RMB 417.4 million in 2022[73] Market and Business Segments - The company operates two reportable segments: Dairy Products and Related Products, and Nutritional Products, focusing on global and China markets respectively[16] - Revenue from external customers in the Chinese market was RMB 5,611,092 thousand, contributing significantly to the overall revenue[22] - The company is focused on expanding its market presence, particularly in China and Australia, through its nutritional products division[16] - The company maintained the number one market share for its own brand formula goat milk powder in China[42] - The international business for the goat milk powder brand achieved rapid growth, maintaining the global leading position[42] Product Development and Innovation - The company launched several new products, including the Kabrita Yuyue and the HiPro Nutritional Star, expanding its product offerings in the milk powder category[45] - The company launched several new products in 2023, including the Haipinokai 1897 and Nengliduo series, aimed at meeting diverse consumer nutritional needs and enriching the product portfolio[55] - The company’s nutrition products segment saw growth due to the merger with Jin Qi Group, which included probiotic business integration[53] - The launch of the new Aiyisen probiotic product line, including upgrades to existing products and the introduction of new ones, aims to meet the nutritional needs of children and adults, enhancing the brand's market presence[61] Awards and Recognition - The company received the "National May Day Labor Medal" and ranked 7th in the "Second New Hunan Contribution Award," highlighting its achievements in the nutrition and health industry[43] - The group received the "2023 Innovative Technology" award for its MP108 Lactobacillus rhamnosus strain, which aids in preventing various children's inflammations, showcasing its strong R&D capabilities[87] - The MSCI ESG rating for the group was upgraded from A to AA, making it the only company in China's food industry to achieve this rating at the time[87] Strategic Initiatives - The company is focusing on brand building through collaborations with major media platforms and community engagement initiatives to enhance brand image and consumer trust[54] - The establishment of the "Leading Sheep Club" has enhanced channel capabilities and market penetration, with a focus on expanding distribution in lower-tier markets[57] - The company aims for steady growth in its core self-owned brand milk powder business and expects continued rapid growth in its international business and nutritional products in 2024[49] Risks and Challenges - The company faces potential foreign exchange risks due to operations in multiple currencies, including RMB, HKD, EUR, USD, AUD, and TWD[82] - Interest rate risk is managed through interest rate cap agreements, with two contracts expiring on December 31, 2023, to mitigate the impact of floating interest rates[83]

Financial Performance - In the first half of 2023, the company recorded revenue of RMB 3,511.9 million, a slight decrease of RMB 133.7 million or 3.7% year-on-year[16] - The core business of self-owned brand formula milk powder recorded sales of RMB 2,765.8 million, a decline of RMB 200.8 million or 6.8% year-on-year[18] - The company's self-branded goat milk powder recorded sales of RMB 1,504.2 million, a decrease of RMB 230.7 million or 13.3% year-on-year, accounting for 42.8% of total revenue[21] - The profit attributable to equity holders decreased by 10.3% to RMB 184.6 million compared to the previous year[17] - Revenue for the six months ended June 30, 2023, was RMB 3,511,917 thousand, a decrease of 3.7% compared to RMB 3,645,604 thousand for the same period in 2022[84] - Gross profit for the same period was RMB 1,473,446 thousand, down from RMB 1,734,071 thousand, reflecting a gross margin decline[84] - Net profit attributable to equity holders was RMB 184,600 thousand, down from RMB 205,709 thousand, representing a decrease of 10.2%[84] Revenue Segmentation - The company's self-owned brand formula milk powder revenue increased by 2.4% year-on-year to RMB 1,261.6 million, contributing 36.0% to total revenue[19] - The nutrition products segment saw a revenue increase of 88.8% year-on-year to RMB 148.8 million, driven by the acquisition of Bioflag Nutrition Corporation Ltd. and a 36.3% increase in probiotic product sales[16] - Revenue from external customers in the dairy products segment was RMB 3,363,098 thousand, while the nutrition segment contributed RMB 148,819 thousand, totaling RMB 3,511,917 thousand[131] Cost and Expenses - The company's gross profit margin was pressured by high Dutch raw milk prices and the need to clear old inventory, but pre-tax profit increased by 3.3% to RMB 230.9 million[17] - Sales and distribution expenses as a percentage of revenue decreased to 27.4% from 31.3% in the same period last year, while administrative expenses fell to 9.5% from 10.5%[17] - The cost of raw materials and consumables used was RMB 1,627,933,000, an increase from RMB 1,405,322,000 in the previous year[135] Market and Product Development - The company aims to become the most trusted formula milk and nutrition health enterprise globally, focusing on sustainable value creation[10] - The company launched new products, including the "Hepinokai 1897" premium formula and the "Jiabai Aite" immune nutrition-focused goat milk powder, targeting post-pandemic health needs[25] - The company aims to focus on goat milk powder and high-end cow milk powder businesses to enhance user experience and achieve sales growth in China and globally[29] Strategic Initiatives - The company plans to increase investment in its probiotic division from 27.5% to approximately 61.1% to support continued growth[24] - The company aims to enhance its competitive edge and resource allocation through strategic adjustments and channel management[20] - The company plans to accelerate the development of the overseas goat milk powder market as part of its strategic initiatives[29] Financial Position - Total assets increased to RMB 10,603.1 million as of June 30, 2023, from RMB 9,796.1 million at the end of 2022, driven by investments in new facilities in the Netherlands[44] - The company's current ratio decreased to 1.28 times as of June 30, 2023, from 1.49 times at the end of 2022, primarily due to refinancing actions[45] - The company's interest-bearing bank loans and other borrowings increased to RMB 2,577.4 million as of June 30, 2023, compared to RMB 1,465.6 million as of December 31, 2022[50] Cash Flow and Financing - The net cash flow used in operating activities for the first half of 2023 was RMB (392,467) thousand, compared to RMB (489,085) thousand in the same period of 2022, indicating a decrease of approximately 19.7%[100] - The net cash flow from financing activities was RMB 924,549 thousand in the first half of 2023, a significant increase from RMB 272,387 thousand in the same period of 2022, reflecting a growth of approximately 239.5%[100] - The company issued new bank loans amounting to RMB 2,181,547 thousand in the first half of 2023, compared to RMB 247,544 thousand in the same period of 2022, indicating a substantial increase of approximately 780.5%[100] Governance and Compliance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's guidelines, ensuring accountability and transparency[68] - The audit committee has reviewed the interim financial statements for the first half of 2023, ensuring compliance with financial reporting standards[70] Employee and Management - The total employee cost for the first half of 2023 was RMB 714.7 million, compared to RMB 729.5 million in the same period of 2022[63] - The total number of full-time employees as of June 30, 2023, was 4,273, a slight increase from 4,290 as of December 31, 2022[63] Risk Management - The group is actively monitoring credit risk and has diversified its customer base to minimize concentration risk[59] - The company has implemented a hedging policy to manage foreign exchange risks associated with non-RMB denominated debts[57]

Financial Performance - Revenue for the six months ended June 30, 2023, decreased by RMB 133.7 million or 3.7% compared to the same period in 2022[2] - Gross profit decreased by RMB 260.7 million or 15.0%, resulting in a gross margin of 42.0%, down from 47.6%[3] - EBITDA increased by RMB 19.1 million or 5.5%, reaching RMB 363.7 million[3] - Profit attributable to equity holders of the company decreased by RMB 21.1 million or 10.3%, totaling RMB 184.6 million[3] - Total revenue for the six months ended June 30, 2023, was RMB 3,511,917 thousand, a decrease from RMB 3,645,604 thousand in the same period of 2022, representing a decline of approximately 3.7%[24] - The company reported a pre-tax profit of RMB 223,564 thousand for the period, reflecting operational efficiency despite revenue decline[21] - Profit attributable to equity holders of the company was RMB 184.6 million, a decrease of RMB 21.1 million or 10.3% compared to the first half of 2022, mainly due to a decline in gross margin[70] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 10,603.1 million, an increase from RMB 9,796.1 million as of December 31, 2022[8] - Non-current assets increased to RMB 4,815.8 million from RMB 4,433.6 million[8] - Current assets totaled RMB 5,787.3 million, up from RMB 5,362.5 million[8] - Total liabilities increased to RMB 4,713.8 million from RMB 4,231.0 million[9] - The company's equity attributable to equity holders increased to RMB 5,805.8 million from RMB 5,646.6 million[9] - The group’s total liabilities as of June 30, 2023, were RMB 4,713,849,000, with segment liabilities of RMB 2,071,799,000 in dairy products and RMB 486,332,000 in nutrition[20] - As of June 30, 2023, the group had outstanding borrowings of RMB 2,577.4 million, an increase from RMB 1,465.6 million as of December 31, 2022[78] Revenue Segmentation - For the six months ended June 30, 2023, total revenue reached RMB 3,511,917,000, with sales to external customers amounting to RMB 3,363,098,000 in the dairy products segment and RMB 148,819,000 in the nutrition segment[17] - Revenue from the dairy products segment was RMB 3,363,098 thousand, while the nutrition segment contributed RMB 148,819 thousand, indicating a significant reliance on dairy products for overall revenue[25] - The company's own brand formula milk powder revenue increased by 2.4% year-on-year to RMB 1,261.6 million, showing initial positive results from adjustments made in 2022[46] - The sales revenue of nutritional products grew by 88.8% year-on-year to RMB 148.8 million, driven by the acquisition of Bioflag Nutrition Corporation Ltd. and a 36.3% increase in sales of probiotic products[46] Expenses and Cost Management - Employee benefits expenses totaled RMB 714,737 thousand, slightly down from RMB 729,537 thousand in the previous year, showing cost management efforts[29] - The proportion of sales and distribution expenses to revenue decreased to 27.4% from 31.3% in the same period of 2022 (restated)[47] - The proportion of administrative expenses, including research and development costs, decreased to 9.5% from 10.5% in the same period of 2022 (restated)[47] - The group's net financial expenses increased to RMB 19.4 million in the first half of 2023 from RMB 11.2 million in the same period in 2022, mainly due to increased bank loans for capital expenditures[67] Taxation and Compliance - The company's income tax expense for the six months ended June 30, 2023, was RMB 54,807,000, compared to RMB 32,337,000 for the same period in 2022, representing a significant increase[32] - The effective tax rate rose to 23.7% in the first half of 2023, up from 14.5% in the same period last year, primarily due to the expiration of preferential tax rates for a key subsidiary[69] - The company has a tax rate of 25% for corporate income tax in mainland China, with a reduced rate of 15% for its subsidiary recognized as a high-tech enterprise until December 31, 2025[32] Corporate Governance - The board is committed to enhancing corporate governance standards to protect shareholder interests and improve performance[84] - The company has adopted the corporate governance code as per the listing rules, ensuring effective strategy formulation and implementation[85] - The audit committee, composed of three independent non-executive directors, oversees financial reporting, internal controls, and risk management effectiveness[87] Strategic Initiatives - The company plans to focus on high-end goat and cow milk powder businesses to enhance user experience and drive sales growth in China and globally[58] - The company aims to accelerate the development of its overseas goat milk powder market as part of its strategic initiatives[58] - The company is committed to reducing carbon emissions and establishing a sustainable green supply chain in response to global climate change[57] Market and Product Development - The company received FDA registration for its goat milk infant formula, which will be the first to meet U.S. nutritional and safety requirements, aiding future international expansion[46] - The company received the "2023 Innovative Technology" award for its MP108 strain, enhancing its R&D reputation and future probiotic business prospects[56] - The company implemented stricter inventory control measures for its goat milk powder brand to ensure long-term health and competitiveness[50]

Accounting Errors and Adjustments - The company identified and corrected eight accounting errors from previous years, impacting sales incentive plans, receivables, and inventory provisions[1]. - The adjustments related to error (i) were made in the interim financial statements for the six months ending June 30, 2022, following a detailed review of contract liability calculations[3]. - The audit committee confirmed that the adjustments for error (i) were correctly made and resolved all significant misstatements from prior years[5]. - The company has updated its accounting treatment for sales incentive plans to ensure compliance with relevant accounting standards[4]. - The adjustments made for error (i) reflect complex calculations and parameters that were not easily identifiable by the board[3]. - The company identified several errors in its financial statements, including understatements related to accounts receivable provisions and inventory reserves, which were attributed to credit losses and unsold products[7][8][9]. - The adjustments related to errors (ii) to (viii) were deemed not significant in nature and amount, leading the company to decide against restating prior financial statements[9][10]. - The audit committee confirmed that the adjustments related to errors (ii) to (viii) were correctly made and resolved all significant misstatements in prior financial reports[13]. Revenue and Profit Performance - The company reported a significant decline in revenue and profit performance due to market downturns, which was unexpected by the board[3]. Internal Control and Review - An internal control review has been initiated by the company, with an external consultant engaged to assess and improve the internal control and financial reporting systems, expected to take two to three months[14]. - The company is in the process of reviewing its internal controls[15]. - The company will provide updates regarding the internal control review results at an appropriate time[15]. Customer and Tax Adjustments - The company has reviewed the financial status of its customers and adjusted the expected credit loss amounts accordingly, ensuring no other anomalies were found in prior years' financial statements[11]. - The company has updated its calculations for income tax payable and deferred tax assets based on a review of past tax filings, ensuring compliance with tax regulations[12]. - The company has taken steps to ensure the accuracy of intercompany transaction eliminations, reviewing key assumptions and ensuring completeness[11]. - The company has reassessed long-term sick leave provisions for employees, updating estimates based on internal discussions and reviews[12]. - The company has conducted a thorough review of inventory to identify any significant inventory write-downs necessary due to nearing expiration dates[11]. Corporate Governance and Transparency - The company plans to correct all identified errors in its 2022 annual performance announcement and report, aiming for better corporate governance[10]. - The company is committed to transparency for shareholders and potential investors[15]. - No specific financial performance metrics or forecasts were disclosed in this announcement[15]. - Further details will be communicated to stakeholders in due course[15]. Board of Directors - The board of directors includes three executive directors and three independent non-executive directors[15]. - The chairman and CEO is Mr. Yan Weibin[15]. - The vice chairman is Mr. Sun Donghong[15]. - The board consists of a total of nine members[15]. - The announcement date is July 7, 2023[15].

Financial Performance - In 2022, the revenue from self-owned brand formula milk powder was RMB 2,923.5 million, a decrease of 28.6% compared to RMB 4,095.0 million in 2021[11]. - The revenue from self-owned brand goat milk powder was RMB 133.0 million in 2022, down 24.9% from RMB 177.1 million in 2021[12]. - The revenue from nutritional products increased to RMB 1,148.0 million in 2022, up 23.1% from RMB 933.9 million in 2021[12]. - Revenue decreased by 9.1% year-on-year to RMB 7,795.5 million, with gross profit down 18.3% to RMB 3,392.8 million[23]. - The company's gross profit for 2022 was RMB 3,392.8 million, a decrease of RMB 760.6 million or 18.3% compared to 2021, with a gross margin decline from 48.4% to 43.5%[62]. - The net profit attributable to shareholders dropped to RMB 216.5 million in 2022, down 71.7% from RMB 763.8 million in 2021[14]. - The group reported a net profit for 2022 of RMB 216.5 million, down from RMB 763.8 million in 2021, reflecting challenges in the market[80]. - The company's profit attributable to equity holders for 2022 was RMB 216.5 million, a decrease of RMB 547.3 million or 71.7% from 2021, primarily due to reduced revenue from self-branded formula milk products[75]. Market Challenges - The company faced challenges due to the decline in birth rates and intense competition in the Chinese infant formula market[22]. - In 2022, the overall scale of China's infant formula milk powder industry decreased by a single-digit percentage year-on-year due to a declining birth rate[45]. - The company's self-branded formula milk powder revenue decreased by RMB 1,171.5 million or 28.6%, primarily due to a decline in China's birth rate and intense competition[55]. Strategic Initiatives - Strategic mergers and acquisitions, research upgrades, and new product launches were highlighted as key achievements despite the difficult market conditions[22]. - The company aims to enhance brand building and sustainable development practices moving forward[22]. - The company completed the acquisition of multiple goat milk assets in the Netherlands, adding approximately 45,000 tons of fresh goat milk supply annually[29]. - The company is investing €140 million in a new infant formula base powder facility, expected to be completed this year[29]. - The company has entered a strategic collaboration with Yili Group, focusing on serving the Chinese market and accelerating global development[24]. - The company aims to enhance its global leadership in goat milk products by maintaining a dual-engine strategy focused on brand and channel development[60]. Product Development - New product launches include a range of infant formula products and special medical foods, expanding the product matrix in the special medical food sector[28]. - The company launched several new products, including the first lactose-free medical infant formula "Zhi Shu" and the first HMO mixed formula milk powder "Future Version" to enhance its product portfolio[56]. - The ultra-high-end segment (average price per kilogram exceeding RMB 420) recorded double-digit year-on-year growth, indicating a trend towards premiumization in the market[46]. Operational Efficiency - The sales and distribution expenses accounted for 27.8% of revenue in 2022, slightly down from 28.1% in 2021, indicating stable expense management[64]. - The company's inventory provision decreased by RMB 59.8 million, partially offsetting the decline in gross profit[62]. - The current ratio of current assets to current liabilities improved to 1.49 times as of December 31, 2022, compared to 1.40 times in 2021[81]. - Inventory turnover days decreased to 183 days in 2022 from 189 days in 2021, indicating improved production planning and logistics[82]. Governance and Management - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced and independent governance structure[114]. - The company has adopted the corporate governance code as per the listing rules, aiming to enhance shareholder rights and corporate accountability[112]. - The board believes that the new leadership structure, with the chairman also serving as CEO, will enhance strategic decision-making and operational efficiency[112]. - The company has appointed a new CEO, Yan Weibin, to respond to increasing competition in the Chinese infant formula market, effective January 27, 2023[129]. Sustainability and Community Engagement - The company has committed to sustainable development, with its 2021 sustainability report awarded an A rating by MSCI[34]. - The group reported a significant commitment to sustainable development, donating over RMB 27 million in cash or materials to support communities in China[188]. - The company continues to focus on reducing carbon emissions and establishing a sustainable green supply chain in response to global climate change[188]. Financial Management - The company has established a hedging policy to manage foreign exchange risks associated with currency fluctuations, particularly with the Euro and Australian Dollar[98]. - The company has entered into interest rate cap agreements with a notional amount of EUR 150.0 million to mitigate floating interest rate risks[101]. - The company is focused on enhancing cash flow from operations and increasing bank financing to support business development, particularly in expanding its nutritional product segment[96]. Employee and Training Programs - As of December 31, 2022, the total number of full-time employees was 4,290, a decrease from 4,896 in 2021, representing a reduction of approximately 12.4%[107]. - The group has established employee training programs through platforms like "Dairy Academy" and "Ausnutria University" to enhance staff development[188]. - The company has established various retirement benefit plans for employees in different regions, including mandatory provident funds in Hong Kong and defined contribution plans in the Netherlands, Australia, and New Zealand[107].

Financial Performance - Revenue for the year ended December 31, 2022, decreased by RMB 779.7 million or 9.1% to RMB 7,795.5 million compared to RMB 8,575.2 million in 2021[2] - Gross profit decreased by RMB 760.6 million or 18.3%, resulting in a gross margin of 43.5%, down from 48.4%[3] - EBITDA decreased by RMB 673.9 million or 58.2%, from RMB 1,158.4 million in 2021 to RMB 484.5 million in 2022[2] - Profit attributable to equity holders of the company decreased by RMB 547.3 million or 71.7%, from RMB 763.8 million in 2021 to RMB 216.5 million in 2022[3] - The proposed final dividend per share for the year 2022 is HKD 0.06, a decrease of 78.6% from HKD 0.28 in 2021[3] - The company reported a total comprehensive income of RMB 352.8 million for the year 2022, compared to RMB 424.4 million in 2021[6] - The pre-tax profit for the year ended December 31, 2022, was RMB 251,277 thousand, compared to RMB 890,651 thousand in 2021, showing a significant decline of approximately 71.8%[17] - The company's profit attributable to ordinary shareholders for 2022 was RMB 216,526,000, a decrease of 71.6% compared to RMB 763,794,000 in 2021[34] - The basic earnings per share for 2022 was RMB 0.12, down from RMB 0.44 in 2021, reflecting a significant decline in profitability[36] Assets and Liabilities - Total assets as of December 31, 2022, increased to RMB 9,796.1 million from RMB 9,632.5 million in 2021[7] - Non-current assets increased to RMB 4,433.6 million in 2022 from RMB 4,033.5 million in 2021[7] - Total liabilities decreased to RMB 4,231,039 thousand from RMB 4,701,390 thousand, a reduction of approximately 10% year-over-year[8] - Current liabilities totaled RMB 3,600,614 thousand, down from RMB 3,997,140 thousand, representing a decrease of about 10%[8] - Total equity increased to RMB 5,565,056 thousand from RMB 4,931,111 thousand, reflecting an increase of about 13% year-over-year[8] - The company’s total assets amounted to RMB 9,796,095 thousand, up from RMB 9,632,501 thousand, indicating a growth of about 2%[8] - The total liabilities as of December 31, 2022, were RMB 4,231,039 thousand, an increase from RMB 4,701,390 thousand in 2021, reflecting a decrease of approximately 10%[18] Cash Flow and Investments - Net cash flow from operating activities was negative RMB 357,537 thousand, compared to positive RMB 1,071,319 thousand in the previous year[9] - Cash and cash equivalents decreased to RMB 1,861.9 million in 2022 from RMB 2,262.2 million in 2021[7] - The company reported a net cash outflow from investing activities of RMB 723,984 thousand, compared to RMB 606,566 thousand in the previous year[9] - The company issued new shares, generating proceeds of RMB 739,024 thousand during the year[9] - The group reported a net cash outflow from operating activities of RMB 357.5 million in 2022, a significant decrease from a net inflow of RMB 1,071.3 million in 2021[85] - The group’s investment activities resulted in a net cash outflow of RMB 724.0 million in 2022, compared to RMB 606.5 million in 2021, primarily due to property, plant, and equipment purchases totaling RMB 571.5 million[86] Market and Product Performance - Revenue from the Dairy Products and Related Products segment was RMB 7,662,551 thousand, while the Nutrition segment generated RMB 132,961 thousand for the year ended December 31, 2022[17] - Revenue from the Chinese market for dairy products was RMB 6,436,059 thousand, while nutritional products generated RMB 127,497 thousand, leading to a total of RMB 6,563,556 thousand[23] - Revenue from the company's own brand formula milk powder decreased by RMB 1,171.5 million or 28.6%, primarily due to a decline in birth rates in China and intense competition[67] - Sales of the company's own brand goat milk powder increased by 6.6% year-on-year, with growth rates of 5.5% in China and 21.8% in overseas markets[50] - The company completed the acquisition of multiple goat milk assets in the Netherlands, adding approximately 45,000 tons of fresh goat milk supply annually[54] - The company launched several new products, including a range of infant formula and special medical foods, enhancing its product matrix in the special medical food sector[52][53] Challenges and Strategic Initiatives - The company faced challenges in 2022 due to the impact of the Russia-Ukraine conflict and declining birth rates in China[49] - Despite difficulties, the company achieved strategic acquisitions and launched new products during the year[49] - The overall market for infant formula in China has contracted, leading to intensified competition[49] - The company is committed to sustainable development practices and brand building as part of its long-term strategy[49] - The company plans to continue focusing on expanding its product offerings in the Dairy and Nutrition segments to enhance market presence[16] - The company is actively exploring opportunities for mergers and acquisitions to strengthen its market position and diversify its product portfolio[16] Corporate Governance and Compliance - The audit committee has reviewed the audited consolidated financial statements for the fiscal year 2022, including accounting principles and practices adopted by the company[104] - The company has confirmed compliance with the standard code for securities trading by all directors throughout 2022[102] - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors as of the announcement date[110] - The company has established written guidelines for senior management and employees regarding securities trading to ensure compliance with insider information regulations[102] Future Outlook - The company anticipates a gradual recovery in the consumer market in 2023, driven by national pro-birth policies and the end of pandemic restrictions[62] - The new national standards for infant formula are expected to lead to a new round of market consolidation, improving market order and reducing price chaos[62] - The company aims to enhance cash flow from operations and increase bank financing to support business development, particularly in expanding its nutritional product segment and constructing new facilities in the Netherlands[91]

Financial Performance - For the first half of 2022, the company reported revenue of RMB 3,630.2 million, a decrease of RMB 645.8 million or 15.1% compared to RMB 4,276.0 million in the same period of 2021[15]. - Gross profit for the first half of 2022 was RMB 1,709.0 million, down RMB 432.9 million or 20.2% from RMB 2,141.9 million in the first half of 2021[15]. - Profit attributable to equity holders was RMB 222.0 million, a decline of RMB 376.9 million or 62.9% from RMB 598.9 million in the same period of 2021[15]. - The revenue decline was primarily due to strategic adjustments in the sales of its own brand milk powder and increased support to distributors during challenging market conditions[38]. - The gross margin decreased from 50.1% in 2021 to 47.1% in 2022, attributed to increased discounts offered to distributors amid intense market competition[39]. - The profit attributable to equity holders for the first half of 2022 was RMB 222.0 million, a decrease of RMB 376.9 million or 62.9% compared to the same period in 2021[49]. - The company reported a total comprehensive income of RMB 221,988,000 for the six months ended June 30, 2022, compared to RMB 203,188,000 for the same period in 2021, showing an increase of 9.0%[106]. Sales and Market Trends - The core business of the company's own brand formula milk powder generated sales of RMB 2,951.2 million, a decrease of RMB 795.3 million or 21.2% year-on-year[16]. - Sales of the company's own milk powder decreased by RMB 770.7 million or 37.6% to RMB 1,279.3 million compared to RMB 2,050.0 million in the first half of 2021[17]. - The overall market demand for infant formula milk powder in China declined by 4.0% year-on-year in the first half of 2022, according to AC Nielsen data[15]. - The company's own brand formula milk powder accounted for 81.3% of total revenue, down from 87.6% in the same period of 2021[16]. - Revenue from the Chinese market was RMB 3,063,014 thousand, down 19% from RMB 3,775,940 thousand in the previous year[140]. Product Development and Innovation - 海普诺凯1897推出首款母乳低聚糖奶粉，标志着产品结构的重大升级[23]. - 佳贝艾特推出多款新产品，包括儿童成长营养配方羊奶粉，进一步拓展市场[23]. - The company has submitted a patent for goat milk protein peptides with DPP-V inhibition function, which won the "China Patent Award Excellent Award" and supports the development of diverse goat milk powder products[26]. - The company holds over 70 domestic and 50 international projects, with goat milk powder-related patents accounting for 50% of China's goat milk powder patents[26]. Strategic Initiatives - The company is actively adjusting sales strategies for its core brand, Haipinokai 1897, to provide fresher and higher-quality products while reducing inventory pressure on distributors[17]. - The company aims to strengthen its global supply chain and enhance brand competitiveness despite the challenges faced in the market[15]. - The company believes that the adjustments made to the distribution strategy will yield long-term benefits for its business[17]. - The company aims to reduce carbon emissions and establish a sustainable green supply chain as part of its commitment to corporate social responsibility[31]. - The company will continue to adhere to its core strategy of "Golden Decade" to drive growth and innovation in the market[34]. Financial Position and Assets - Total assets as of June 30, 2022, were RMB 9,377.4 million, a decrease of RMB 147.8 million from RMB 9,525.2 million at the end of 2021[50]. - The net asset value increased by RMB 504.2 million to RMB 5,963.5 million as of June 30, 2022, compared to RMB 5,459.3 million at the end of 2021[50]. - The current ratio improved to 2.03 times as of June 30, 2022, compared to 1.68 times at the end of 2021, mainly due to new shares issued[52]. - Cash and cash equivalents decreased to RMB 1,764.3 million from RMB 2,262.2 million at the end of 2021[56]. - The group had outstanding borrowings of RMB 1,271.9 million as of June 30, 2022, down from RMB 1,303.0 million as of December 31, 2021, with 47.7% of the borrowings due within one year[59]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules to enhance shareholder value and accountability[72]. - The audit committee has reviewed the interim report and the unaudited financial statements for the period[74]. - The company has established written guidelines for securities trading by senior management and employees to ensure compliance with regulations[73]. - The new share option plan was conditionally approved on May 26, 2022, allowing the board to grant options to selected participants, including employees and directors, for a total of up to 10% of the issued shares as of the approval date, equating to 180,854,584 shares[81]. Community Engagement and Social Responsibility - The company donated RMB 17.6 million worth of materials to support local communities and was awarded the "2021 Corporate Social Responsibility Industry Model Award" for the fourth consecutive year[31]. - The company remains cautiously optimistic about the industry outlook despite challenges, focusing on strengthening core business and brand, and enhancing global supply chain efficiency[32].