Core Viewpoint - As of July 18, 160 stocks reached their 52-week highs, with notable performances from China New Economy Investment (00080), Aoyuan Group Equity (02905), and Zhong An Holdings Group (08462) showing high growth rates of 288.89%, 55.28%, and 50.00% respectively [1][2]. Summary by Category 52-Week High Performers - China New Economy Investment (00080) closed at 0.440, with a peak price of 0.700, achieving a growth rate of 288.89% [2]. - Aoyuan Group Equity (02905) closed at 0.218, with a peak price of 0.250, achieving a growth rate of 55.28% [2]. - Zhong An Holdings Group (08462) closed at 0.221, with a peak price of 0.228, achieving a growth rate of 50.00% [2]. - Other notable performers include Hualian International (00969) with a growth rate of 40.13% and Zhongke Bio (01237) with a growth rate of 37.25% [2]. Additional High Performers - Wanma Holdings (06928) closed at 0.550 with a growth rate of 30.43% [2]. - Lepu Biopharma-B (02157) closed at 7.940 with a growth rate of 24.54% [2]. - Other stocks with significant growth include ZhiJianYueDong (06860) at 17.14% and China Jindian Group (08281) at 17.12% [2]. 52-Week Low Performers - The document also lists stocks that reached their 52-week lows, with XI Ernan CO-U (09311) showing a decline of 16.10% [6]. - Other notable declines include XI Ernan CO (07311) at -12.62% and Haotian International Construction Investment (01341) at -5.70% [6].

Economic Overview - In 2024, China's GDP growth was 5%, but the economy faced significant challenges, including a decline in consumer confidence and spending, leading to a "consumption downgrade" trend[25]. - The dairy industry in China was among the ten "profit declining industries," with almost all listed dairy companies reporting revenue declines[25]. - The total sales volume of dairy products decreased by approximately 1.5% in 2024, following a 2% decline in 2023[25]. Dairy Production and Pricing - The total raw milk production volume in China decreased by 2.9% to approximately 40.8 million tons, down from 42.0 million tons in 2023[27]. - The national average raw milk price fell from RMB4.4/kg in August 2021 to RMB3.1/kg in December 2024, marking a 30% decrease over more than three years[25]. - The average selling price of raw milk decreased by 17.0%, from RMB4,268/ton to RMB3,541/ton[106]. - The average selling price of raw milk fell to RMB3,541/ton in 2024 from RMB4,268/ton in 2023, while the total sales volume increased to approximately 815,937 tons from 783,028 tons[134][140]. Dairy Industry Challenges - The number of dairy cows in China's 10 major milk production provinces reduced by 6.7% during the first three quarters of 2024[27]. - Approximately 1.2 million dairy cows were eliminated from the dairy industry in 2023 and 2024 combined[27]. - The number of scaled dairy farms in China dropped by 20% from 4,600 in 2022 to 3,700 by the end of 2024[84]. - China imported 2.6 million tons of various dairy products in 2024, representing a decrease of 9.6% year on year[87]. Company Performance - The company recorded a revenue of approximately RMB3,683.8 million for the reporting year, representing a decrease of 6.1% compared to 2023[68]. - Gross profit decreased by 30.7%, from approximately RMB708.5 million to RMB491.0 million, primarily due to a 17.0% decrease in raw milk selling price and a 16.4% decrease in beef cattle selling price[69]. - The company reported a net loss of approximately RMB1,269.3 million, mainly attributable to losses from changes in the fair value of other biological assets amounting to RMB1,260.6 million[69]. - Cash EBITDA for the year was approximately RMB513.3 million, a decrease of 32.6% compared to the previous year[67]. Beef Cattle Market - The demand for high-quality beef, particularly premium products like Wagyu beef, is anticipated to grow significantly[29]. - Beef cattle sales volume increased significantly by 64.5% to 19,415 tons, while the selling price decreased by 16.4%[68]. - The gross loss from the beef cattle business increased significantly to RMB90.0 million in 2024, compared to a gross loss of RMB3.6 million in 2023, primarily due to lower selling prices[155]. Financial Metrics - The basic and diluted loss per share for the Company was RMB 1.81 in 2024, compared to a loss of RMB 0.70 per share in 2023[179]. - The pre-tax loss for the reporting year was RMB 1,250.5 million, compared to RMB 470.0 million in 2023, representing a significant increase in losses[180]. - Net cash flows from operating activities for the reporting year were RMB 813.6 million, significantly higher than RMB 184.0 million in 2023[189]. Investment and Development - The company is focusing on sustainable development and has made continuous investments in research and innovation related to carbon emission reduction[98]. - Research and development expenses amounted to RMB 13.6 million in 2024, compared to nil in 2023, primarily generated by the feed mill[172]. Debt and Financing - As of December 31, 2024, the total secured bank loans amount to RMB 3,498,392,000, an increase from RMB 3,400,323,000 as of December 31, 2023, reflecting a growth of approximately 2.9%[200]. - The effective interest rate for current secured bank loans ranges from 3.90% to 4.80% in 2024, compared to 4.00% to 4.80% in 2023[200]. - The overall financial strategy appears focused on managing interest rates and loan maturities effectively to optimize capital structure[200].

Core Insights - The company reported a revenue of 3.684 billion yuan for the year ending December 31, 2024, representing a year-on-year decrease of 6.1% [2] - Gross profit was 491 million yuan, down 30.7% year-on-year, while net loss increased to 1.269 billion yuan, a rise of 159.7% [2] - The increase in losses is attributed to changes in the fair value of biological assets, but the company emphasizes that these losses are not cash losses and suggests focusing on gross profit and CASH EBITDA as more relevant performance indicators [2] Financial Performance - Revenue: 3.684 billion yuan, down 6.1% year-on-year [2] - Gross Profit: 491 million yuan, down 30.7% year-on-year [2] - Net Loss: 1.269 billion yuan, up 159.7% year-on-year [2] Operational Strategy - The company aims to reduce costs and improve efficiency in its dairy farm operations by increasing milk production per cow and lowering feed costs [2] - The company has effectively controlled raw milk production by increasing the elimination rate of milking cows and selling excess young cattle, leading to over 30% growth in finished milk sales [3] - In the beef business, the company is adjusting its cattle structure and launching its own beef brand to enhance profitability [3] Market Outlook - The company believes the dairy industry has passed its lowest point in the current cycle, with a noticeable reduction in supply-side capacity, and anticipates that the current cycle will end in the second half of this year [2] - The company expresses confidence in quickly restoring profitability and gaining a competitive edge once market conditions improve [3]

Financial Performance - The company reported a revenue of approximately RMB 3,683.8 million for the year ended December 31, 2024, representing a decrease of 6.1% compared to RMB 3,924.4 million in 2023[5]. - Gross profit fell by 30.7% to RMB 491.0 million, down from RMB 708.5 million, primarily due to a 17.0% decrease in raw milk prices and a 16.4% decrease in beef prices[6][7]. - The net loss attributable to the company was approximately RMB 1,269.3 million, a significant increase of 159.7% from a loss of RMB 488.8 million in the previous year[5][9]. - Cash EBITDA decreased by 32.6% to RMB 513.3 million from RMB 761.1 million in 2023[5]. - Basic loss per share increased by 158.6% to RMB (1.81) from RMB (0.70) in the previous year[5][9]. - The company reported a net loss of RMB 1,269,000 thousand for the year ended December 31, 2024[15]. - The company reported a pre-tax loss of RMB 1,260,646 thousand in 2024, compared to RMB 667,883 thousand in 2023, reflecting a significant increase in losses[34]. - The company reported a loss attributable to equity holders of RMB 1,269,287,000 in 2024, compared to a loss of RMB 488,791,000 in 2023, indicating a significant increase in losses[38]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was RMB 3,924,360,000, compared to RMB 3,683,841,000 for the year ended December 31, 2024, representing a decrease of approximately 6.1%[26]. - The raw milk segment generated external sales of RMB 3,341,602,000, while the beef segment generated RMB 361,992,000, and other businesses generated RMB 220,766,000 for the year ended December 31, 2023[26]. - Revenue from raw milk sales decreased to RMB 2,888,940 thousand in 2024 from RMB 3,341,602 thousand in 2023, representing a decline of approximately 13.5%[33]. - Revenue from raw milk business accounted for 78.4% of total revenue in the reporting year, down from 85.2% in 2023[54]. - Revenue from the beef business increased by 37.6% to RMB 497.9 million, accounting for 13.5% of total revenue[59]. Production and Sales Volume - The average annual milk production per cow increased by 2.9% to 14.0 tons, while the herd size decreased by 6.5% to 122,251 cows[5][7]. - The sales volume of raw milk increased by 4.2% to 815,900 tons, while the beef herd size decreased by 7.1% to 35,707[5][6]. - The total production of raw milk decreased by 2.9% to approximately 40.8 million tons in 2024, down from 42.0 million tons in 2023[49]. - The total sales volume of beef increased by 64.5% to approximately 19,415 tons, resulting in a 37.6% increase in beef sales revenue to RMB 497.9 million[67]. Asset and Liability Management - Total non-current assets decreased from RMB 8,434,586 thousand in 2023 to RMB 7,482,170 thousand in 2024, a decline of approximately 11.3%[11]. - Current liabilities increased from RMB 3,252,649 thousand in 2023 to RMB 3,642,059 thousand in 2024, an increase of about 12%[12]. - The net current liabilities amounted to RMB 1,252,154 thousand in 2024, compared to RMB 509,871 thousand in 2023, indicating a significant deterioration in liquidity[12]. - The total assets less current liabilities decreased from RMB 7,924,715 thousand in 2023 to RMB 6,230,016 thousand in 2024, a drop of approximately 21.4%[12]. - The total equity decreased from RMB 5,075,666 thousand in 2023 to RMB 3,807,512 thousand in 2024, a decline of approximately 25%[12]. Financing and Capital Expenditures - The company is actively pursuing financing measures to ensure sufficient funding from financial institutions and shareholders[15]. - The company is exploring other debt or equity financing arrangements to support operations[18]. - Capital expenditures for 2024 totaled RMB 1,632,278 thousand, a decrease from RMB 2,250,791 thousand in 2023, representing a reduction of approximately 27.4%[33]. - Financing costs increased to RMB 282,295 thousand in 2024 from RMB 268,948 thousand in 2023, marking an increase of about 4.9%[35]. Market Conditions and Strategic Decisions - The company decided to temporarily suspend the construction of the Chunyuan Ranch 4 due to the challenging operating environment in the dairy market, with the construction timeline extended to December 2025[8]. - The company continues to monitor the supply and demand situation in the raw milk market to make further decisions regarding the development timeline of Chunyuan Ranch 4[8]. - The company plans to enhance raw milk production and quality while negotiating better sales prices to improve financial performance[15]. - The company plans to enhance operational efficiency and diversify its customer base, anticipating a recovery in raw milk market balance by the second half of 2025[103]. ESG and Sustainability Initiatives - The company has integrated ESG concepts into its operations, establishing a governance structure to ensure business sustainability[107]. - The company achieved a reduction in greenhouse gas emissions to 0.81 tons of CO2 equivalent per ton of FPCM in 2024, a decrease of approximately 9.00% from the 2022 baseline[110]. - The company has set ambitious emission reduction targets of 10%, 28%, and 40% for FPCM production by 2025, 2030, and 2035, respectively[110]. - The company has signed sustainable development-linked loans totaling RMB 2.09 billion with financial institutions to enhance its ESG goals[110]. Governance and Compliance - The company has engaged an external independent internal control consultant to review its internal control procedures[113]. - The company has adopted the Corporate Governance Code as a basis for its governance practices since its listing date on December 30, 2022[113]. - The audit committee, consisting of one non-executive director and two independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending December 31, 2024[123].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $235 million for the interim period, representing a growth of 18% compared to the previous year[9]. - The company recorded a revenue of approximately RMB1,828.0 million for the six months ended June 30, 2024, representing a decrease of 1.0% compared to RMB1,845.6 million in the same period of 2023[17]. - The company’s total revenue decreased by 1.0% to RMB 1,827.965 million, down from RMB 1,845.610 million in the first half of 2023, despite a 4.9% increase in raw milk sales volume[68]. - Revenue from the beef cattle business was RMB 219.5 million, a 42.4% increase from RMB 154.2 million in the same period of 2023, accounting for 12.0% of total revenue[57]. - Revenue from the ancillary business surged by 132.8% to RMB 184.1 million, compared to RMB 79.1 million in the first half of 2023[59]. Profitability and Losses - Gross profit decreased by 29.9%, from approximately RMB312.5 million to RMB219.0 million, primarily due to a 15.8% decrease in raw milk selling price and a 16.8% decrease in beef cattle selling price[19]. - The net loss attributable to owners of the company was approximately RMB636.0 million, a significant increase of 104.8% compared to RMB310.5 million in the same period of 2023[16]. - Loss before tax was RMB 628.3 million, an increase of 107.0% from RMB 303.6 million in the same period of 2023[104]. - Cash EBITDA for the reporting period was RMB231.5 million, a decrease of 31.3% from RMB337.1 million in the previous year[16]. - The gross loss for the beef cattle business was RMB52.9 million in 1H2024, compared to a gross profit of RMB16.9 million in 1H2023, mainly due to a 16.8% decrease in the average selling price of beef cattle from approximately RMB32,012/ton to RMB26,643/ton[86][88]. Operational Efficiency and Strategies - The company has implemented new operational strategies aimed at reducing costs by 10% while maintaining product quality[9]. - The company continues to focus on improving operational efficiency and expanding its production capabilities across various locations[12]. - The company has decided to pause the construction of Pure Source Farm 4 temporarily while monitoring the raw milk market supply and demand situation[25]. - The company plans to enhance operational efficiency through advancements in genetic breeding technology and feed mill operations, aiming to increase productivity and reduce disease rates[135]. - Effective measures will be taken to lower feed costs while expanding the customer base and developing new customers[139]. Market Trends and Outlook - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 15% to 20% based on current market trends and user acquisition strategies[9]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of the fiscal year[9]. - The dairy sector in China is expected to benefit from government support aimed at the long-term growth of dairy-related industries[34]. - By mid-2025, the raw milk market is expected to restore supply and demand equilibrium, with significant small to mid-size dairy farms likely to be made redundant due to industrial consolidation[128]. - China remains a significant growth market for beef, with per capita consumption significantly lower than developed countries, indicating potential for increased demand[130]. Corporate Governance and Compliance - The company is committed to improving corporate governance practices, with new policies being introduced to enhance transparency and accountability[9]. - The Group has engaged an external independent internal controls consultant to review its internal control procedures and address identified deficiencies[176]. - The Company has committed to additional compliance training for Directors and key business function heads, with refresher training on Listing Rules provided in May 2024[177]. - The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[179]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance since the Listing Date[182]. Employee and Shareholder Information - Total employee remuneration expenses for the reporting period were approximately RMB196.7 million, representing a 4.6% increase compared to RMB188.0 million in the first half of 2023[124]. - The Group had 2,614 employees as of June 30, 2024, a slight decrease from 2,620 employees at the end of 2023[124]. - As of June 30, 2024, the total number of issued shares is 700,463,112[146]. - The interests of the Directors and Chief Executive in shares as of June 30, 2024, include 28,138,581 shares held by Tan Yong Nang, representing approximately 4.02% of the total shares[160]. - The maximum potential number of shares subject to the AAG Performance Share Plan (PSP) can vary from 0% to 200% based on key performance indicators achieved from January 1, 2022, to December 31, 2023[146].

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 1,827.965 million, a slight decrease of 1.0% compared to RMB 1,845.610 million in the same period of 2023[1][2] - Gross profit decreased by 29.9% to RMB 219.034 million from RMB 312.468 million in the previous year[1][2] - Net loss attributable to shareholders was RMB 636.013 million, significantly higher than the loss of RMB 310.479 million in the same period last year, primarily due to losses from changes in fair value of biological assets[1][4] - Cash EBITDA for the period was RMB 231.522 million, a decrease of 31.3% compared to RMB 337.107 million in the previous year[1][2] - Total revenue for the six months ended June 30, 2024, was RMB 2,097,562,000, a decrease of 3.5% from RMB 2,153,199,000 for the same period in 2023[12] - The company reported a pre-tax loss of RMB (628,343,000) for the six months ended June 30, 2024, compared to a pre-tax loss of RMB (303,579,000) for the same period in 2023[12] - The total equity as of June 30, 2024, was RMB 4,441,878,000, down 12.5% from RMB 5,075,666,000 as of December 31, 2023[8] - The group reported a pre-tax loss of RMB 636,013 for the six months ended June 30, 2024, compared to a loss of RMB 310,479 for the same period in 2023[23] - The pre-tax loss for the reporting period was RMB 628.3 million, a 107.0% increase from RMB 303.6 million in the same period last year[57] - The company's attributable loss was RMB 636.0 million, up 104.8% from RMB 310.5 million in the first half of 2023, primarily due to a decline in gross profit to RMB 219.0 million, down 29.9%[57] Sales and Production - Average annual milk production per cow increased by 2.2% to 13.7 tons, while the herd size grew by 4.8% to 130,229 cows[1][2] - Raw milk sales volume increased by 4.9% to 392,440 tons, while beef cattle herd size rose by 11.8% to 39,466[1][2] - Sales of raw milk amounted to RMB 1,424,316, while beef sales were RMB 219,508, and other sales were RMB 184,141 for the first half of 2024[14] - Total raw milk production increased by 9.5% to approximately 447,000 tons, up from 408,100 tons in the first half of 2023[32] - Total sales volume of raw milk increased by 4.9% year-on-year to approximately 392,440 tons, up from 374,034 tons in the first half of 2023, mainly due to higher average milk production per cow and contributions from the newly established Chunyuan Pasture 3[42] - Total beef sales volume surged by 71.0% to 8,239 tons, compared to 4,817 tons in the first half of 2023[35] Market Conditions - The decline in gross profit was attributed to a 15.8% decrease in raw milk prices and a 16.8% decrease in beef prices, despite a 19.2% reduction in feed costs[2][4] - The average selling price of raw milk decreased by approximately 27% from about RMB 4.4 per kg in August 2021 to about RMB 3.2 per kg by June 2024[28] - The overall dairy product output decreased by 3% to 14.33 million tons in the first half of 2024, with expectations of further decline in the second half[28] - The domestic beef market in China saw a 24% increase in beef imports from January to May 2024 compared to the same period in 2023, impacting local beef prices[30] Assets and Liabilities - As of June 30, 2024, total non-current assets amounted to RMB 8,053,572,000, a decrease of 4.5% from RMB 8,434,586,000 as of December 31, 2023[6] - Current assets totaled RMB 2,057,109,000, down 25% from RMB 2,742,778,000 as of December 31, 2023[6] - The net current liabilities were RMB (1,027,672,000), compared to RMB (509,871,000) as of December 31, 2023, indicating a worsening liquidity position[9] - The company’s non-current liabilities totaled RMB 2,584,022,000 as of June 30, 2024, down from RMB 2,849,049,000 as of December 31, 2023[7] Cash Flow and Financing - Net cash flow from operating activities was RMB 709.9 million, compared to RMB 221.2 million for the six months ended June 30, 2023[61] - Net cash used in investing activities was RMB 378.2 million, primarily from payments for biological assets of RMB 671.0 million and property, plant, and equipment of RMB 65.6 million[62] - Net cash used in financing activities was RMB 500.9 million, mainly due to repayment of interest-bearing bank loans of RMB 1,658.9 million[63] - Total interest-bearing bank loans amounted to RMB 3,047.3 million as of June 30, 2024, with actual interest rates ranging from 3.40% to 9.61%[64] Strategic Initiatives - The company has decided to temporarily suspend the construction of ChunYuan Ranch 4 while monitoring the supply and demand situation in the raw milk market[3] - The company is focusing on improving cash flow from operations to ensure sufficient working capital for the next 12 months[9] - The company has launched its own feed factory in March 2023, primarily supplying internal needs while selling some to external parties[31] - The company has initiated a breeding program for high-quality Wagyu cattle and plans to focus on selling premium beef products[70] - The company aims to achieve a milk production target of 14 tons in 2024, maintaining its leading position in China[73] Governance and Compliance - The company has committed to enhancing its governance framework, including hiring an external internal control consultant to review its internal control procedures[74] - The company has established a governance structure led by an Environmental, Social, and Governance (ESG) committee to oversee ESG strategy implementation[72] - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the corporate governance code[75]

Supplier and Customer Concentration - The top five suppliers accounted for approximately 19.7% of the Group's total trade purchases from continuing operations for the year ended December 31, 2023[5]. - The largest supplier accounted for 7.2% of the Group's total trade purchases from continuing operations for the year ended December 31, 2023[5]. - Sales to the top five customers represented approximately 66.2% of total revenue from continuing operations for the year ended December 31, 2023[6]. - The largest customer accounted for 30.3% of total revenue from continuing operations for the year ended December 31, 2023[6]. - The Company has a well-diversified customer base, including leading national and regional dairy product manufacturers[175]. - There are no material interests in any of the Group's five largest customers from Directors or shareholders owning more than 5% of the issued capital[176]. Performance Share Plan (PSP) and Remuneration - The AAG Performance Share Plan (PSP) allows for a maximum of 40 participants at any time[16]. - The Remuneration Committee administers the AAG PSP and has the authority to determine various conditions related to awards[18]. - Any individual participant's share grants under the AAG PSP shall not exceed 1% of the shares in issue[22]. - The maximum number of shares granted under the AAG Performance Share Plan (PSP) is limited to 5% of the issued shares as of the New Approval Date[46]. - The AAG PSP allows for the vesting of awards, with specific conditions set by the Remuneration Committee[29]. - The awards granted to directors include 566,470 shares for TAN Yong Nang, 629,000 shares for Edgar Dowse COLLINS, and 251,600 shares for YANG Ku, representing 0.08%, 0.09%, and 0.04% of issued shares respectively[32]. - A total of 910,200 shares are allocated to 36 other employees, accounting for 0.13% of the issued shares[32]. - The RSU Scheme aims to attract and retain skilled personnel by providing equity interests in the company[36]. - The plan mandates that any awards granted to directors or key executives must be approved by independent non-executive directors[51]. - The maximum aggregate number of new Shares that may be issued under the RSU Scheme is subject to a formula that considers the Scheme Mandate Limit and the number of Shares already issued[72]. - The vesting of Awards is subject to the satisfaction of performance conditions, and if not met, the Award will lapse automatically for the unvested portion[81]. - The AAG PSP was adopted on July 3, 2020, and amended on December 5, 2022, effective from the Listing Date[60]. - The Remuneration Committee has the discretion to cancel previously granted but unvested Awards and may grant new RSUs to the same grantee[86]. - The maximum number of new Shares that may be issued to any individual participant in a 12-month period is subject to specific limits[73]. - The final number of Shares subject to the Award can vary based on the achievement of key performance indicators, emphasizing the performance-based nature of the plan[65]. Financial Performance and Challenges - The Company may not be able to sustain its historical growth rates, and past performance may not indicate future results[13]. - The Group did not issue any bonds during the year ended December 31, 2023[147]. - There were no charitable donations made by the Group during the year ended December 31, 2023[148]. - The financial summary section of the annual report outlines key financial metrics and performance indicators for 2023[271]. - AustAsia Group Limited reported its annual results for the financial year ended December 31, 2023, amidst challenges in the dairy farming industry[197]. - The Chinese dairy farming industry is facing its most difficult situation in over a decade, characterized by raw milk oversupply, price decline, and cost increases[198]. - AustAsia aims to enhance production efficiency and quality as key strategies to overcome current industry challenges[198]. - The company emphasizes its commitment to providing high-quality raw milk and beef cattle to customers[198]. - AustAsia is focused on sustainable farming practices and high-quality standards to maintain competitiveness in the market[192]. - The management team and employees have shown continuous commitment and hard work during uncertain times, contributing to the company's resilience[192]. - AustAsia is positioned to continue growth in the promising dairy market by leveraging its operational efficiency[192]. - The company is committed to navigating through the challenges of 2023 with the support of its board and management team[192]. - AustAsia's strategic focus includes innovative measures to enhance its sustainable development capabilities[198]. Corporate Governance and Management - The Company recognizes the importance of maintaining good relationships with stakeholders, which is key to its success[3]. - The Company has established a remuneration committee to develop remuneration policy and review the structure for Directors and senior management[128]. - The Directors' service contracts have a term of up to three years, subject to retirement and rotation provisions[154]. - The Company has undergone changes in its board of directors, with new appointments and redesignations in 2023[181]. - The Company is actively involved in corporate governance, as highlighted in the corporate governance report[182]. - The management discussion and analysis section of the annual report provides insights into the Company's performance and strategic direction[180]. - The Company maintains relationships with several principal banks for its financial operations[183]. - The company must notify grantees of any awards in the event of a voluntary winding-up resolution being proposed[108]. Share Capital and Dividends - As of December 31, 2023, the total number of issued shares is 700,463,112[33]. - The issued share capital of the company was 700,463,112 shares as of December 31, 2023, following the issuance of 606,000 shares at HK$6.40 per share on January 30, 2023[114]. - The board does not recommend the distribution of a final dividend for the year ended December 31, 2023[120]. - There were no agreements that would lead to the issuance of shares or any outstanding share-linked agreements as of December 31, 2023[121]. - The company has not granted or agreed to grant any restricted share units under the RSU Scheme as of December 31, 2023[113]. - The RSU Scheme is valid for ten years from the listing date, expiring on December 30, 2032[101]. - The company is required to provide sufficient funds to the trustee to fulfill its obligations related to the awards[29]. - Awards that have lapsed or been encashed will not count towards the maximum aggregate number of new shares that may be granted under the AAG PSP[49]. - The maximum number of shares granted under the AAG Performance Share Plan (PSP) is limited to 5% of the issued shares as of the New Approval Date[46].

Financial Performance - The company recorded revenue of approximately RMB 3,924.4 million for the year ended December 31, 2023, representing a slight increase of 3.2% compared to 2022[3]. - The company reported a net loss of approximately RMB 488.8 million, primarily due to a loss of RMB 667.9 million from changes in the fair value of biological assets[15]. - The gross profit decreased by 19.8% to RMB 708.5 million, down from approximately RMB 883.0 million[15]. - The comprehensive loss for the year was RMB 501,623 thousand, a significant decrease from a comprehensive income of RMB 128,100 thousand in the previous year[40]. - The pre-tax loss for the year was RMB 469,951 thousand, compared to a profit of RMB 171,924 thousand in the previous year, highlighting a challenging financial environment[73]. - The company's basic and diluted loss per share was RMB 0.70 in 2023, compared to earnings of RMB 0.25 per share in 2022[191]. - The company reported a basic loss attributable to equity holders of the parent of RMB (488,791,000) for 2023, compared to a profit of RMB 158,079,000 in 2022[82]. Revenue and Sales - The company's revenue from mainland China for the year 2023 was RMB 3,924,360 thousand, compared to RMB 3,802,915 thousand in 2022, representing an increase of approximately 3.2%[54]. - In 2023, the total revenue reached RMB 3,924,360 thousand, an increase of 3.2% from RMB 3,802,915 thousand in 2022[56]. - Raw milk sales contributed RMB 3,341,602 thousand, slightly up from RMB 3,314,465 thousand in the previous year, while beef sales decreased to RMB 361,992 thousand from RMB 376,434 thousand[56]. - Other sales saw significant growth, increasing to RMB 220,766 thousand from RMB 112,016 thousand, marking a 96.7% rise[56]. - Total revenue from raw milk increased by 0.8% to RMB 3,341.6 million in 2023, driven by higher sales volume, despite a decline in average selling prices[155]. - The total sales volume of raw milk grew by 9.8% to approximately 783,028 tons, up from 712,767 tons in 2022[136]. - The total sales volume of beef increased by 4.1% to approximately 11,803 tons in 2023, while the average selling price per ton decreased by 7.6% to RMB 30,670[148]. Costs and Expenses - The direct material costs for the raw milk business increased by 8.2% to RMB 1,996.8 million, up from RMB 1,844.8 million in 2022[140]. - The total sales cost for raw milk business was RMB 353.58 million in 2023, up from RMB 283.06 million in 2022[181]. - The direct materials cost for the beef business increased by 27.6% to RMB 283.9 million in 2023, primarily due to the growth in beef sales volume[161]. - The company reported a significant increase in employee benefits expenses, totaling RMB 386,291 thousand compared to RMB 416,499 thousand in the previous year, indicating a focus on workforce investment[77]. - Administrative expenses decreased by 32.6% to RMB 225.6 million in 2023, attributed to the absence of one-time listing expenses and lower share-based payment expenses[166]. Assets and Liabilities - As of December 31, 2023, total non-current assets amounted to RMB 8,434,586 thousand, an increase of 3.55% from RMB 8,145,179 thousand in 2022[22]. - Current assets totaled RMB 2,742,778 thousand, up 5.68% from RMB 2,595,207 thousand in 2022[23]. - Total liabilities reached RMB 3,252,649 thousand, a significant increase from RMB 2,488,343 thousand in 2022, reflecting a growth of 30.76%[23]. - The company's net asset value decreased to RMB 5,075,666 thousand from RMB 5,573,801 thousand in 2022, representing a decline of 8.93%[23]. - The company's accounts payable decreased to RMB 785,309,000 in 2023 from RMB 1,058,287,000 in 2022, a reduction of approximately 25.8%[100]. - As of December 31, 2023, the company's net current liabilities amounted to approximately RMB 509,871,000, with available unused bank loan financing of about RMB 1,196,984,000 for the next 12 months[85]. Biological Assets and Production - The total value of biological assets was RMB 4,053,416 thousand, up from RMB 3,830,555 thousand in 2022, indicating a growth of 5.9%[22]. - The company recorded a significant loss of RMB 667.9 million from the fair value adjustment of biological assets in 2023, compared to a loss of RMB 158.2 million in 2022, largely due to declining milk prices[170]. - The average annual milk production per cow reached a new high of 13.6 tons, an increase of 2.3%[5]. - The company operates 11 large-scale modern dairy farms, with a total cow count of 130,802, an increase of 10.9% from 117,950 in 2022[131]. Financing and Cash Flow - The company’s financing costs increased to RMB 268.9 million from RMB 219.8 million in the previous year[9]. - The net cash flow from financing activities was RMB 910.75 million in 2023, significantly higher than RMB 296.54 million in 2022[176]. - The net cash flow from operating activities was RMB 183.96 million, a decrease from RMB 1,002.73 million in 2022[173]. - The net cash flow used in investing activities was RMB (1,220.1) million in 2023, compared to RMB (1,043.3) million in 2022[196]. Market Conditions - The average selling price of dairy products decreased by approximately 4% compared to December 2022, indicating intensified price competition among manufacturers[106]. - The total consumption of dairy products in China grew by about 3.4% in 2023, marking the slowest growth in over a decade[106]. - The company’s operational environment for dairy farms became more challenging in 2023, with raw milk prices dropping approximately 11% year-on-year, the largest decline in over a decade[107]. Legal and Regulatory - The company has filed a legal claim against Hebei Yuanfuda for unpaid milk supply amounting to RMB 7,223,812.5, pending resolution of criminal charges against the latter[199]. - The company is currently assessing the impact of recent amendments to liability classification regulations, which are not expected to have a significant effect on the consolidated financial statements[34].

Revenue and Sales Performance - The beef business reported a revenue of RMB 154.2 million for the first half of 2023, with a sales volume of 4,817 tons and an average selling price of RMB 32,012 per ton, compared to RMB 162.9 million, 4,933 tons, and RMB 33,017 per ton in 2022, indicating a revenue decrease of 5.3%[2]. - Revenue for the first half of 2023 was RMB1,845,610, reflecting a 1.9% increase compared to RMB1,810,503 in the same period of 2022[99]. - Revenue from the raw milk business accounted for 87.4% of total revenue, amounting to RMB1,612.3 million, a 2.3% increase YoY[141]. - The beef cattle business revenue was RMB154.2 million, a decrease of 5.3% YoY, with ASP dropping by 3.0% to RMB32,012/ton[117]. - The company’s raw milk sales volume for the first half of 2023 was 124,269 tons, reflecting an increase of 11.5% compared to 111,424 tons in the first half of 2022[73]. - The total raw milk sales volume increased by 10.7% year-on-year to approximately 374,034 tons in the first half of 2023[89]. Profitability and Financial Performance - Gross profit for the beef business increased to RMB 169 million in 2023, up 154.4% from RMB 66 million in 2022, primarily due to an increase in cattle numbers[5]. - Gross profit decreased by 29.5% to RMB312,468, down from RMB443,109 in the previous year[99]. - The company experienced a loss before tax of RMB303,579, compared to a profit of RMB201,038 in the same period of 2022, marking a significant decline[99]. - Adjusted net loss for the period was RMB 304.9 million, a decrease of 213.6% compared to a profit of RMB 268.4 million in 2022, mainly due to a 29.5% decline in gross profit and increased financing costs[15]. - Gross profit for the raw milk business decreased to RMB291.1 million, down 32.2% year-over-year from RMB429.1 million, with a gross profit margin dropping to 18.1% from 27.2%[151]. - Losses from changes in fair value of biological assets were RMB414.6 million, a significant decline from gains of RMB12.8 million in the previous year, attributed to higher feed costs and lower raw milk prices[152]. Costs and Expenses - The average feed cost per kilogram of raw milk increased to RMB 2.55 in 2023, up 7.1% from RMB 2.38 in 2022, impacting overall profitability[12]. - Direct materials costs for the raw milk business increased by 18.5% YoY to RMB1,008.3 million, primarily due to rising feed prices[147]. - Finance costs increased to RMB125.8 million, a 34.2% rise from RMB93.8 million, primarily due to higher average bank borrowings[182]. - Total employee remuneration expenses for the reporting period were approximately RMB188.0 million, up 1.6% year-over-year from RMB185.1 million in 2022[199]. Assets and Liabilities - The fair value of the beef cattle as of June 30, 2023, was RMB 477.5 million, a 25.6% increase from RMB 380.3 million at the end of 2022, attributed to a rise in cattle population[5]. - As of June 30, 2023, total interest-bearing bank borrowings amounted to RMB 2.67 billion, an increase from RMB 2.17 billion at the end of 2022, reflecting a higher debt level[32]. - The capital debt ratio increased to 80% in 2023 from 63% in 2022, indicating a higher reliance on debt financing[32]. - Total debt increased to RMB4.22 billion, up from RMB3.50 billion, with a gearing ratio rising to 80% from 63%[174]. - The biological assets were valued at RMB3.42 billion, a slight decrease of 1.0% year-over-year despite an increase in cattle head size[176]. Strategic Initiatives and Future Outlook - The company anticipates a challenging operating environment in the second half of 2023, with low consumer confidence, prompting strategic actions to navigate difficulties[26]. - The company is focused on expanding its dairy farm operations and diversifying its customer base[35]. - The company plans to utilize net proceeds from its global offering to build farm facilities and purchase equipment for Pure Source Farm 4, with construction expected to commence in April 2023[81]. - Despite challenges in the Chinese economy and dairy industry, the company remains confident in the long-term prospects of consumer markets and dairy products[200]. Other Income and Taxation - Other income rose to RMB 49 million in 2023 from RMB 26.4 million in 2022, driven by increased government subsidies and technical service fees[9]. - The total tax charge for the period was RMB 6,900,000, slightly up from RMB 6,890,000 in the previous year[48].

Financial Performance - The company recorded a net loss of approximately RMB 310.5 million, mainly due to a loss of RMB 414.6 million from changes in the fair value of other biological assets[9]. - The loss before tax was RMB 303.6 million, compared to a profit of RMB 201.0 million in the previous year, indicating a significant decline[15]. - The total comprehensive loss for the period was RMB 314.5 million, compared to a comprehensive income of RMB 181.7 million in the previous year[21]. - The gross profit decreased by 29.5% to RMB 312.5 million from approximately RMB 443.1 million, primarily due to operational efficiency challenges[37]. - The company's pre-tax loss was RMB 303.6 million, a decrease of 251.0% year-on-year, while the net loss attributable to shareholders was RMB 310.5 million, compared to a profit of RMB 194.1 million in 2022[96]. - EBITDA decreased to a loss of RMB 91.5 million, down 124.3% from a profit of RMB 376.1 million in 2022[101]. - Adjusted net loss decreased to RMB 304.9 million, compared to a profit of RMB 268.4 million in 2022, a decrease of 213.6%[104]. Revenue and Sales - Total revenue for the period was RMB 1,845.6 million, representing a 1.9% increase compared to RMB 1,810.5 million in 2022[15]. - Revenue from raw milk sales reached RMB 1,612,331 for the six months ended June 30, 2023, up from RMB 1,576,367 in the same period of 2022, indicating an increase of approximately 2.3%[54]. - The company's revenue for the reporting period increased by 1.9% year-on-year to RMB 1,845.6 million, compared to RMB 1,810.5 million in 2022[132]. - Total raw milk sales reached approximately 374,000 tons, representing a year-on-year increase of 10.7%[66]. - The total sales revenue from beef decreased by 5.3% to RMB 154.2 million, down from RMB 162.9 million in 2022, mainly due to a decline in sales volume and average selling price[153]. Cost and Profitability - The cost of feed per kilogram of raw milk rose by approximately 7.1% to RMB 2.55, impacting overall profitability[16]. - The total cost of sales for raw milk business was RMB 1,321.2 million, up from RMB 1,147.3 million in 2022, with direct material costs constituting 76.3% of total sales costs[138]. - The cost of raw milk direct materials was RMB 1,008.3 million, an increase of 18.5% compared to RMB 850.5 million in 2022, primarily due to rising feed prices and an increase in the number of breeding cows[156]. - The feed cost per kilogram for raw milk increased by 7.1%, but the company implemented measures to mitigate the impact of rising feed prices on sales costs[157]. Assets and Liabilities - As of June 30, 2023, the total non-current assets amounted to RMB 8,470,432 thousand, an increase from RMB 8,145,179 thousand as of December 31, 2022, representing a growth of 4%[22]. - The total current assets decreased to RMB 2,247,490 thousand from RMB 2,595,207 thousand, a decline of approximately 13.4%[22]. - The total liabilities for current liabilities were RMB 2,431,898 thousand, slightly down from RMB 2,488,343 thousand, indicating a decrease of about 2.3%[22]. - As of June 30, 2023, the total equity amounted to RMB 5,265,062, a decrease from RMB 5,573,801 as of December 31, 2022, reflecting a decline of approximately 5.5%[41]. - The total non-current liabilities increased to RMB 3,020,962 as of June 30, 2023, compared to RMB 2,678,242 as of December 31, 2022, representing a rise of about 12.8%[40]. Operational Efficiency - The average annual milk yield per cow increased to 13.4 tons, with a herd size of 124,269 cows, and raw milk sales volume grew by 10.7%[15]. - The average annual milk production per cow reached a new high of 13.4 tons, an increase of 3.1% during the reporting period[37]. - The company implemented systematic reviews and adjustments to feed formulas to mitigate cost pressures and improve gross margins[92]. - The self-owned premix feed plant commenced production in March 2023, which is expected to improve feed quality and help control feed costs[190]. - The company is focusing on enhancing operational efficiency and reducing greenhouse gas emissions per ton of raw milk produced[190]. Market and Industry Trends - The overall raw milk market is experiencing a significant oversupply, leading to declining gross profits and substantial losses across the industry[85]. - In the first half of 2023, the domestic raw milk supply is expected to grow at a compound annual growth rate (CAGR) of approximately 7.4%, reaching around 7.5 million dairy cows by 2025[61]. - The domestic milk production increased by 7.5% year-on-year in the first half of 2023, ranking first among major livestock categories[83]. - The beef consumption per capita in China remains significantly lower than in developed countries, indicating substantial growth potential in beef demand[165]. Corporate Governance and Future Plans - The company plans to change its presentation currency from USD to RMB to mitigate the impact of exchange rate fluctuations[10]. - The company aims to become one of the top three dairy farm operators globally in terms of operational efficiency and ecological sustainability[164]. - The company plans to commercialize embryo transfer services for external farms within the year, utilizing its core herd[128]. - The company plans to initiate a breeding program for high-quality Wagyu heifers and start embryo production and transfer in the second half of 2023[188]. - The company is committed to maintaining good corporate governance to provide long-term stable value for shareholders[196].