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].

根据报告，截至2024年12月31日，澳亚集团实现收入36.84亿元，同比减少6.1%；毛利为4.91亿元，同比减少30.7%；亏损净额为12.69亿元，同比增加 159.7%。 澳亚集团在报告中解释称，亏损的增加主要归因于生物资产公允价值变动。 对于公允价值评估模型是否对市场风险高估的问题，澳亚集团对GPLP犀牛财经表示，其采用的生物资产公允价值评估模型与同行业上市公司中基本一致。 3月31日，知名乳制品企业澳亚集团发布2024年业绩公告。 "一旦行情出现好转，我们有信心会迅速恢复盈利能力，并占有更有利的竞争地位"。澳亚集团相关负责人告诉GPLP犀牛财经，澳亚集团一直致力于拥有最 佳的牧场运营效率，过去多年蝉联国内奶牛单产榜首，且"澳亚牧场"在乳制品行业中享有很好的品牌优势。 此外，在原料奶产销和肉牛业务方面，澳亚集团方面表示，2024年，公司通过加大挤奶牛淘汰比例和出售过剩青年牛等方法，有效控制了原奶产量，同时加 大下游成品奶销售力度，实现了成品奶销售额同比超30%的增长。肉牛业务方面，通过调整肉牛牛群结构，打造多元化客户群，启动自有的下游牛肉品牌， 以巩固优质肉牛供应商地位，提升肉牛业务盈利能力。 "这 ...

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].

(Incorporated in the Republic of Singapore with limited liability) （於新加坡共和國註冊成立的有限公司） Stock Code 股份代號 : 2425 2024 Interim Report 中期報告 * For identification purpose only 僅供識別 Contents 目錄 | --- | --- | --- | |-------|------------------------------------------------------------------------------------|---------------------------------| | | | | | 2 | Corporate Information | 公司資料 | | 7 | Locations of Production Units | 生產單位地點 | | 8 | Highlights | 摘要 | | 12 | Management Discussion and Analysis | 管理層討論與分析 | | 37 | ...

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]

Suppliers Customers The Group recognizes the importance of maintaining a good relationship with its stakeholders, including Shareholders, employees, suppliers, business partners are key to the Group success. The Group will continue to ensure effective communication and maintain good relationship with each of its key stakeholders. The suppliers of the Company are categorised into (i) suppliers of feed and feed additives and (ii) other suppliers (such as suppliers of farming equipment, veterinary medicines, v ...

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].

下表載列我們業務於所示報告期間的毛利及毛利率明細： 一般而言，本集團的盈利能力在正常經營狀況下會隨著原料奶價格的下降而相應 下降。 於報告期間，本集團原料奶業務的毛利為人民幣291.1百萬元（2022年：人民幣 429.1百萬元），同比減少32.2%，這主要是由於原料奶的售價下降及產生的飼料成 本增加。本集團原料奶業務的毛利率減少至18.1%（2022年：27.2%），這主要是由 於2023年的原料奶平均售價下降及飼料價格上升。 來自其他生物資產公允價值減銷售成本變動的虧損 來自其他生物資產公允價值減銷售成本變動的虧損為人民幣414.6百萬元（2022 年：收益人民幣12.8百萬元）。重大虧損乃主要由於推算生物資產公允價值的假設 中採用了更高的飼料成本及更低的原料奶價格。 截至2023年6月30日止六個月，每千克原料奶的飼料成本上漲，加之原料奶的平 均售價降低，導致報告期間錄得的公允價值虧損增加。 | --- | --- | --- | |------------------------------------------------------------------------------------|- ...

Financial Performance - Adjusted EBITDA for the reporting year was USD 130.7 million, a decrease of 25.7% from USD 175.9 million in 2021[16]. - Profit before tax for the year was USD 25.4 million, a decline of 76.2% compared to the previous year[17]. - The company recorded a loss of USD 23.4 million from changes in the fair value of biological assets, an increase of 107.1% from USD 11.3 million in 2021[20]. - Gross profit decreased to USD 130.7 million, primarily due to a 7.4% decline in the average selling price of raw milk to USD 688 per ton[16]. - Profit for the year fell by 77.6% to USD 23.4 million, compared to USD 104.6 million in 2021, reflecting the challenging operating environment[84]. - The Group's total gross profit margin decreased to 23.2% in 2022 from 33.7% in 2021, reflecting the impact of lower raw milk prices and increased feed costs[169][170]. Revenue and Sales - AustAsia achieved a solid revenue growth of 7.8% in 2022, reaching approximately $563 million, primarily driven by a 20.9% increase in raw milk sales volume compared to 2021[34]. - In 2022, the company's revenue increased by 7.8% to USD 562.8 million, compared to USD 521.9 million in 2021[78]. - Revenue from raw milk sales rose by 12.0% year-on-year to USD 490.5 million, up from USD 438.0 million in 2021[141]. - Revenue from the beef cattle business accounted for 9.9% of total revenue, reaching USD 55.7 million, representing a 10.3% increase compared to 2021[119]. - Revenue from ancillary businesses decreased significantly to approximately USD 16.6 million in 2022, down from USD 33.4 million in 2021, primarily due to COVID-19 related lockdowns[130]. Production and Operations - The Group's raw milk production volume and sales volume reached the highest level in its history in 2022, solidifying its position as the 3rd largest raw milk producer in China's dairy farm operating industry according to Frost & Sullivan[34]. - The average milk yield (AMY) per milkable cow reached 13.3 tons in 2022, maintaining the top rank for 8 consecutive years in terms of operational efficiency[36]. - The herd size of dairy cows increased by 11.1% to 117,950 heads in 2022, up from 106,174 heads in 2021[79]. - The herd size of beef cattle grew by 16.5% to 29,615 heads in 2022, compared to 25,414 heads in 2021[79]. - The total volume of beef cattle sold was 11,338 tons, representing a 22.1% increase in sales volume[119]. Costs and Expenses - Finance costs increased to USD 32.5 million, representing a year-over-year increase of 50.3% from USD 21.6 million in 2021[13]. - Other expenses rose to USD 6.8 million, a significant increase of 386% from USD 1.4 million in 2021, mainly due to foreign exchange losses[12]. - Feed costs per kilogram of raw milk increased by 16% to RMB 2.44 in 2022, compared to RMB 2.10 in 2021, contributing to the decline in gross profit[83]. - Direct feed costs increased by 34.7% from USD 202.7 million in 2021 to USD 273.0 million in 2022[112]. - The cost of sales increased by 12.0% from USD 438.0 million in 2021 to USD 490.5 million in 2022[112]. Sustainability and Environmental Impact - The company aims to minimize its environmental impact and has set medium to long-term sustainability targets, focusing on improving operational efficiency and reducing GHG emissions per ton of raw milk produced[45]. - AustAsia is committed to exploring new technologies and facilities to increase resource usage efficiency and waste management, including the potential use of green energy for production activities[45]. - In 2022, AustAsia signed a 5-year sustainability-linked club loan of RMB1.05 billion to finance the construction of two new dairy farms in Dezhou, Shandong[49]. - AustAsia signed contracts for 1 photovoltaic power generation project and 4 biogas power generation projects in 2022 to optimize energy structure and reduce GHG emissions[47]. Financing and Investments - Net cash flows used in investing activities amounted to USD 167.3 million, primarily due to payments for biological assets of USD 170.7 million and property, plant, and equipment of USD 92.4 million[9]. - The Group's interest-bearing borrowings increased to USD311.9 million in 2022 from USD267.98 million in 2021, reflecting the need for additional financing[184]. - Net cash flows generated from financing activities were USD44.5 million, driven by new bank borrowings of USD163.7 million and gross proceeds from an IPO of USD25.2 million[187]. - The Group anticipates funding needs related to Pure Source Farm 3, which is set to commence operations in 2023[192]. Market Trends and Challenges - The dairy farming industry in China faced significant pressure from rising feed costs due to global price increases, impacting profit margins[98][101]. - Imported milk products in China saw an 18% decline in volume for the first time in over a decade, attributed to high prices and weaker demand[89][99]. - The Chinese government aims for domestic raw milk production to reach 41 million tons by 2025, with an average milk yield of 9 tons per cow[97][100].