Investment Rating - The report maintains a "Strong Buy" rating for China Feihe (06186.HK) [1][2][3] Core Views - China Feihe is expected to benefit from a rebound in newborn numbers, leading to accelerated revenue growth in the second half of 2024. The company is improving its product structure, which is expected to enhance gross margins, despite a decrease in government subsidies and an increase in tax rates affecting net profit margins. The company has increased its cash dividend to 2.72 billion yuan, with a payout ratio of 76%, resulting in a dividend yield of approximately 5% [1][2][6] Financial Performance - For 2024, China Feihe's revenue is projected to be 20.75 billion yuan, representing a year-on-year increase of 6.2%, while net profit is expected to reach 3.65 billion yuan, up 11.1% year-on-year. The second half of 2024 is anticipated to show a revenue growth of 8.7% year-on-year [1][6][7] - The company achieved a gross margin of 66.3% in 2024, an increase of 1.5 percentage points year-on-year, driven by improvements in product structure and a decrease in raw material costs [6][7][12] - The earnings per share (EPS) forecast for 2025 and 2026 is 0.44 yuan and 0.49 yuan, respectively, with a current price-to-earnings (PE) ratio of 14 times for 2025 [1][2][7] Market Position - China Feihe's market share is steadily increasing, supported by ongoing investments in consumer education and a recovery in the infant formula sector. The company organized 920,000 face-to-face events in 2024, and online sales accounted for 22.9% of total revenue [1][2][6] Valuation Metrics - The current stock price is 6.59 HKD, with a total market capitalization of 59.8 billion HKD. The company has a return on equity (ROE) of 13.2% and a debt-to-asset ratio of 24.1% [3][6][12]

Core Viewpoint - China Feihe's 2024 annual performance report indicates a revenue of 20.75 billion yuan, a 6% year-on-year increase, and a net profit of 3.65 billion yuan, an 11% increase, driven by a structural recovery in the milk powder industry and increased consumer confidence in domestic products [1] Group 1: Financial Performance - In 2024, the revenue from infant formula products reached 19.06 billion yuan, growing by 6.6% compared to the previous year [1] - Other dairy products, including adult milk powder, liquid milk, and rice flour, generated revenue of 1.514 billion yuan, reflecting a 6.3% increase [1] - Revenue from nutritional supplements was 173 million yuan, marking a significant growth of 25.4% [1] Group 2: Market Position - According to Frost & Sullivan, Feihe has maintained the top sales position in the infant formula market in China for six consecutive years and globally for four years [1] Group 3: International Expansion - In 2024, Feihe accelerated its international expansion, with a strategic partnership established between its Canadian subsidiary and Munchkin, a U.S. baby products company [1] - The Canadian infant formula production facility officially commenced operations in September of the previous year [1] - Revenue from mainland China was 20.55 billion yuan, while revenue from the U.S. and Canada was 160 million yuan and 38.51 million yuan, respectively, all showing varying degrees of growth [1] Group 4: Research and Innovation - Continuous R&D innovation is identified as a core driver of Feihe's steady growth, with collaborations with top research teams from institutions like Peking University and Harvard BCH [2] - In 2024, Feihe added 153 new domestic and international authorized patents, bringing the total to 659 [2] - The company received the TPM award, often referred to as the "Nobel Prize" in manufacturing [2] Group 5: Product Development - Feihe launched new products such as "Supernova Cheese" to meet personalized nutritional needs across the lifecycle [2] - The company introduced a new technology for extracting whey protein, marking the beginning of a new era in functional nutrition [2] - Feihe's chairman emphasized the commitment to ongoing innovation in areas such as breast milk research and brain development [2]

Financial Performance - The group's revenue for the year ended December 31, 2024, was RMB 20,748.6 million, an increase of 6.2% compared to the previous year[2] - The group's gross profit for the same period was RMB 13,764.8 million, reflecting an 8.7% increase year-over-year[2] - The net profit for the year was RMB 3,654.1 million, which represents an 11.1% increase from the previous year[2] - Basic and diluted earnings per share were both RMB 0.39, up from RMB 0.37 in 2023[2] - The company reported a total comprehensive income of RMB 3,570.1 million for the year, compared to RMB 3,444.0 million in 2023[5] - The group’s profit before tax for 2024 was RMB 3,390,009,000, compared to RMB 3,570,125,000 in 2023, showing a decrease of approximately 5%[39] - The total tax expense for the year was RMB 1,895,606,000, an increase from RMB 1,559,940,000 in 2023, representing an increase of about 21%[35] - The group operated 42 Vitamin World USA retail stores in the U.S. as of December 31, 2024, employing 199 people, generating RMB 172.9 million in revenue from nutritional supplements[50] - Profit before tax increased by 14.4% from RMB 4,850.3 million in 2023 to RMB 5,549.7 million in 2024[66] - Net profit increased by 11.1% from RMB 3,290.4 million in 2023 to RMB 3,654.1 million in 2024[68] Dividends - The board proposed a final dividend of HKD 0.1632 per share, compared to HKD 0.1484 per share in 2023, totaling approximately HKD 1,479,775,000 (approximately RMB 1,351,924,000) for the interim dividend[2] - The company declared an interim dividend of HKD 0.1632 per share for 2024, up from HKD 0.1349 per share in 2023, which corresponds to approximately RMB 1.35 billion compared to RMB 1.14 billion in the previous year[36] - The dividend policy aims to distribute no less than 30% of the net profit for each fiscal year, depending on future investment plans[94] - The annual general meeting will be held on May 29, 2025, to discuss the proposed final dividend for 2024[95] - To qualify for the 2024 final dividend, all share transfer documents must be submitted by June 3, 2025[97] - The final dividend is expected to be paid to shareholders listed on June 5, 2025[97] Assets and Liabilities - Total assets less current liabilities amounted to RMB 29,134.7 million as of December 31, 2024, compared to RMB 28,812.4 million in 2023[6] - The company's non-current assets totaled RMB 13,477.1 million, slightly down from RMB 13,640.4 million in the previous year[6] - The company's cash and cash equivalents were RMB 9,321.2 million, down from RMB 10,440.9 million in 2023[6] - The total assets of the company as of December 31, 2024, were RMB 35,725,706, compared to RMB 36,194,678 in 2023, indicating a slight decrease[21] - The total liabilities for the year ended December 31, 2024, were RMB 8,318,321, a decrease from RMB 9,860,332 in 2023[21] Revenue Breakdown - Revenue from infant formula products reached RMB 19,061.6 million, accounting for 91.9% of total revenue, with a year-on-year growth of 6.6%[56] - Revenue from the mainland China market increased to RMB 20,545,954 in 2024, up from RMB 19,287,735 in 2023, representing a growth of 6.5%[23] - Sales to external customers in the raw milk segment amounted to RMB 154,290, while the dairy products and nutritional supplements segment generated RMB 20,594,260, contributing to a total of RMB 20,748,550[21] - The total revenue from e-commerce for 2024 was RMB 69,813,000, significantly up from RMB 21,659,000 in 2023, marking an increase of about 223%[32] Expenses - The cost of goods sold for 2024 was RMB 6,983,747,000, compared to RMB 6,868,850,000 in 2023, indicating an increase of about 1.7%[33] - Sales and distribution expenses increased by 7.0% to RMB 7,181.2 million, mainly due to higher advertising costs and online sales platform expenses[62] - Administrative expenses decreased by 4.6% to RMB 1,681.3 million, mainly due to reduced share-based payment expenses[63] - Other income and net gains decreased by 11.7% from RMB 1,659.5 million in 2023 to RMB 1,465.1 million in 2024, primarily due to reduced government subsidies[61] Market and Consumer Insights - The average disposable income in China reached RMB 41,314 in 2024, with a compound annual growth rate of 6.1% from 2019 to 2024, enhancing consumer purchasing power[43] - The number of newborns in China is projected to increase from approximately 9.5 million in 2024 due to supportive measures, despite a decline from 10.48‰ in 2019 to 6.77‰ in 2024[43] - The demand for high-end infant formula products is anticipated to grow, supported by rising disposable income and health awareness among consumers[43] - Urbanization and rising disposable income levels are expected to enhance consumer purchasing power, particularly in lower-tier cities and rural areas[43] Corporate Governance and Compliance - The company emphasizes its commitment to corporate governance and has adopted the corporate governance code as per the Hong Kong Stock Exchange[86] - The company has established an audit committee to oversee financial reporting and risk management, consisting of three members[91] - The company has confirmed compliance with the standards for securities trading by its directors during the reporting period[88] Strategic Initiatives - The company plans to continue expanding its overseas market presence, enhancing the global influence of the Feihe brand, and aims to position itself as a "global Feihe"[84] - The company is focusing on innovation in areas such as breast milk research, brain development research, and protein technology, aiming for breakthroughs in comprehensive nutrition[84] - The group is leveraging e-commerce platforms and its own website to directly sell products, targeting the younger generation of consumers[48] - The group aims to achieve an optimal balance of key components in infant formula by closely simulating the composition of breast milk from Chinese mothers[45]

长按即可免费加入哦 风险提示：本文所提到的观点仅代表个人的意见，所涉及标的不作推荐，据此买卖，风险自负。 作者： 只买消费垄断 来源：雪球 亿海国际2016年上市。当时不到3块钱。市值不到30亿。2015年公司收入8.4亿，利润1.25亿。当 时大概20多倍市盈率。很合理。 但是随后，其利润从1.25亿，连续高速增长到2019年的7.9亿利润，42亿收入，收入涨了5倍，利 润涨了6倍多。5年利润能涨6倍，是年35%的利润高增长。于是市场彻底疯了，给其1200亿市值。 市盈率150倍。股价从最低2.6涨到148. 涨了57倍。就是因为2020年的时候，市场一致预期这种高 速的利润增长会长期持续。 可是2020年突然来了疫情，海底捞火锅店生意受到影响，其利润暴跌。毛利率也从39%跌到 30%。2019年到2022年，连续3年利润停滞增长。市场又一致预期其利润未来无法增长。价格从 148最低跌到9块。现在也只有15块。是高点的10分之1. 市盈率从150倍跌到17倍。 其实现在的亿海国际利润和2020年差不多的。但是股价可以差10倍。公司还是那个公司。不是 2020年高估了，就是现在低估了。或者一直在高估。这个每个 ...

证 券 研 究 报 告 中国飞鹤（06186.HK）深度研究报告 强推（首次） 经营反转周期正展开 目标价：7.5 港元 [ReportFinancialIndex] 主要财务指标 | | 2023 | 2024E | | 2025E | 2026E | | --- | --- | --- | --- | --- | --- | | 营业收入（百万元） | 19,532 | 21,020 | | 22,801 | 24,325 | | YoY | -8.3% | 7.6% | | 8.5% | 6.7% | | 归母净利润（百万 元） | 3,390 | 3,875 | | 4,481 | 4,976 | | YoY | -31.4% | 14.3% | | 15.7% | 11.0% | | 每股盈利（元） | 0.37 | 0.43 | | 0.49 | 0.55 | | 市盈率（倍） | 14.6 | 12.8 | | 11.1 | 10.0 | | 市净率（倍） | 2.0 | 1.9 | | 1.7 | 1.6 | | 资料来源：公司公告， | 华创证券预测 | 注：股价为 2025 | 年 3 | ...

Investment Rating - The report maintains a "Buy" rating for China Feihe (6186 HK) with a target price of HKD 7.40 [7][8]. Core Views - The implementation of fertility stimulus policies is expected to enhance the birth rate and benefit leading infant formula companies like China Feihe [1][2]. - The infant formula industry is experiencing a rationalization of competition, with overall pricing stabilizing, which is expected to support revenue growth for the company [2][3]. - The company is anticipated to benefit from improved operational efficiency and reduced costs, leading to an increase in profit margins [3][4]. Summary by Sections Investment Rating - The investment rating for China Feihe is "Buy" with a target price set at HKD 7.40, reflecting an upward adjustment from a previous target of HKD 4.49 [4][7]. Market and Policy Environment - Recent government policies aimed at boosting birth rates include direct financial support for families, which is expected to positively impact the demand for infant formula [1][2]. - The number of newborns in China is projected to increase by 52,000 (+5.8%) in 2024, reaching 9.54 million [2]. Financial Performance and Projections - Revenue for 2024 is expected to reach RMB 20.84 billion, marking a 6.68% increase from the previous year, with net profit projected at RMB 3.83 billion [6][17]. - The company’s EPS is forecasted to grow from RMB 0.37 in 2023 to RMB 0.42 in 2024, and further to RMB 0.50 by 2026 [4][17]. - The report highlights a projected reduction in the company's expense ratio, which is expected to enhance profit margins [3][4]. Competitive Position - As a leading player in the infant formula market, China Feihe is well-positioned to capitalize on the recovery in industry demand and the consolidation of market share [3][4]. - The company has implemented digital management strategies to optimize inventory and pricing, which are expected to contribute to revenue growth in 2024 [3].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The implementation of fertility stimulus policies is expected to enhance the birth rate and benefit the leading infant formula company [1][2] - The company is positioned to benefit from industry demand recovery and increased market concentration, with anticipated revenue growth in 2024 [3] - The company has adjusted its profit forecasts upward, expecting EPS of 0.42, 0.46, and 0.50 RMB for 2024-2026, respectively [4] Summary by Sections Investment Rating - The target price is set at 7.40 HKD, with the current closing price at 5.93 HKD, indicating significant upside potential [8][7] Industry Outlook - The number of newborns in China is projected to increase by 52,000 (+5.8%) in 2024, reaching 9.54 million [2] - Local governments are rolling out child-rearing subsidies, which may be replicated in other provinces, positively impacting birth rates and infant formula consumption [2] Company Performance - The company is expected to achieve positive revenue growth in 2024, driven by improved inventory management and stable pricing of core products [3] - The gross margin is projected to improve due to declining raw material costs and effective cost control measures [3] - The company plans to distribute a mid-term dividend of 1.35 billion RMB in 2024, reflecting a high dividend payout ratio of 72% [3] Financial Projections - Revenue is forecasted to grow from 20,838 million RMB in 2024 to 22,775 million RMB in 2026, with a CAGR of approximately 4.10% [6] - Net profit is expected to increase from 3,832 million RMB in 2024 to 4,493 million RMB in 2026, with a CAGR of approximately 8.13% [6] - The company’s EPS is projected to rise from 0.42 RMB in 2024 to 0.50 RMB in 2026 [6]

Core Viewpoint - The best investment opportunities in stocks often arise during periods of significant uncertainty, where the perceived risk is high but the actual risk may be lower than expected [1]. Case Study 1: NetEase - In 2001, NetEase's stock price fell from 15 to 1 due to market panic and a lawsuit, despite having cash reserves of 5.6 billion, which was twice its market value of 3 billion [2][3]. - Investor Duan Yongping saw four angles of opportunity: cash reserves, talent acquisition, potential in the gaming industry, and the extreme drop in stock price [4]. - The investment was characterized by a low downside risk and high upside potential, leading to a significant profit when the company turned around [5]. Case Study 2: Kweichow Moutai - From 1998 to 2003, Moutai's stock price fell significantly due to industry-wide issues, with market sentiment predicting a decline in demand for baijiu [6]. - Moutai's production was limited, and even if the overall industry declined, it could still maintain sales due to its premium positioning [7]. - The investment was seen as having limited downside risk and unlimited upside potential, resulting in a substantial increase in profits and market value over the following years [8]. Case Study 3: Great Wall Motors - In 2008, Great Wall Motors faced losses and market skepticism as it shifted focus to SUVs, a segment that was only 5% of the market at the time [10]. - The strategic pivot was based on the belief that SUVs would become a significant market segment, similar to trends seen in the U.S. [11]. - The investment was characterized by high potential returns, leading to a dramatic increase in profits and market capitalization in subsequent years [12]. Case Study 4: Li Ning - In 2015, Li Ning returned to a struggling company facing significant losses and stock price declines [13][14]. - The brand's strength and the cyclical nature of the apparel industry provided a foundation for potential recovery [15][16]. - The investment proved successful, with significant profit growth and market value increase over six years [17]. Case Study 5: Brilliance China Automotive - Brilliance's stock price fell over 90% from 2017 to 2022 due to market concerns about the automotive industry and its financial health [18]. - Despite the challenges, the company held a significant stake in BMW China and had substantial cash reserves, presenting a unique investment opportunity [19][20]. - The investment was characterized by limited downside risk and significant upside potential, resulting in a strong recovery in stock price [21]. Case Study 6: Xiaomi Group - In 2021, Xiaomi announced its entry into the automotive sector, leading to skepticism and a sharp decline in stock price [21][22]. - However, Xiaomi's advantages included a strong IoT platform and a capable leadership team, suggesting potential for future growth [23][24]. - The investment was viewed as having a high probability of success at a low price point, indicating significant upside potential [25]. Case Study 7: China Feihe - China Feihe's stock price fell significantly due to declining birth rates and market pessimism about the infant formula industry [25][26]. - The company maintained strong revenue and cash flow, with a solid market position and potential for growth in both domestic and international markets [27][28]. - The investment was characterized by limited downside risk and substantial upside potential, making it an attractive opportunity [29][30][31][32][33][34].

Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [2]. Core Insights - The company reported a 3.7% year-on-year increase in revenue for H1 2024, reaching 10.095 billion, and a 10.5% increase in net profit, amounting to 1.875 billion [2]. - A mid-term dividend of 0.16 HKD per share was announced, with a payout ratio of 72% [2]. - The company has adjusted its profit forecasts for 2024 downwards due to declining birth rates and intense industry competition, projecting net profits of 3.69 billion, 3.86 billion, and 4.02 billion for 2024, 2025, and 2026 respectively [2][4]. - The company maintains a leading market share in the infant formula sector, with a total market share of 19.2% and offline market share of 22.7% [3]. Summary by Sections Financial Performance - For H1 2024, the company achieved a gross margin of 67.9%, up 2.56 percentage points year-on-year, contributing to a net profit margin of 18.6%, an increase of 1.15 percentage points [3]. - The revenue for 2024 is projected to be 20.476 billion, with a year-on-year growth rate of 5% [4]. - The net profit for 2024 is expected to be 3.691 billion, reflecting a 9% increase compared to the previous year [4]. Market Position - The ultra-premium infant formula segment saw a revenue increase of 19.6% to 7.14 billion, driven by the growth of the Star Flying series [3]. - The company has effectively managed its channel inventory, positioning itself to capture market share as smaller brands exit the market [3]. Profitability Metrics - The report indicates a decrease in sales expense ratio to 35%, down 0.52 percentage points, due to optimized marketing strategies [3]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 10x, 10x, and 9x respectively, compared to an average PE of 12x for comparable companies [2][4].

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 10,094.9 million, a 3.7% increase compared to the same period in 2023[4] - Gross profit increased by 7.8% to RMB 6,852.5 million in the first half of 2024, up from RMB 6,359.3 million in 2023[4] - Net profit attributable to shareholders rose by 18.1% to RMB 1,911.5 million in the first half of 2024, compared to RMB 1,618.7 million in the same period last year[4] - Basic and diluted earnings per share increased by 10.5% to RMB 0.21 in the first half of 2024, up from RMB 0.19 in 2023[4] - Revenue increased by 3.7% to RMB 10,094.9 million in the first half of 2024 compared to RMB 9,735.2 million in the same period of 2023[14] - Gross profit rose by 7.8% to RMB 6,852.5 million, with gross margin improving from 65.3% to 67.9% due to growth in the Starry Flight product series[16] - Net profit attributable to shareholders increased by 18.1% to RMB 1,911.5 million, with a profit margin of 18.9%[13] - Pre-tax profit increased by 24.4% from RMB 2,435.0 million in the first half of 2023 to RMB 3,029.4 million in the first half of 2024[22] - Net profit for the period grew by 18.1% from RMB 1,618.7 million in the first half of 2023 to RMB 1,911.5 million in the first half of 2024[24] - Revenue for the six months ended June 30, 2024, increased to RMB 10,094,947 thousand, up 3.7% from RMB 9,735,225 thousand in the same period last year[88] - Gross profit rose to RMB 6,852,455 thousand, a 7.8% increase compared to RMB 6,359,266 thousand in 2023[88] - Net profit attributable to owners of the parent company reached RMB 1,875,011 thousand, up 10.6% from RMB 1,695,913 thousand in the previous year[88] - Total comprehensive income for the period was RMB 1,886,699 thousand, compared to RMB 1,747,812 thousand in 2023[89] - Earnings per share (basic and diluted) for the period were RMB 0.21, compared to RMB 0.19 in the same period last year[88] - The company's profit before tax for the six months ended June 30, 2024, was RMB 3,029,435,000, an increase from RMB 2,435,048,000 in the same period in 2023[93] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 1,567,971,000, up from RMB 1,136,562,000 in the same period in 2023[93] - The company's pre-tax profit for the six months ended June 30, 2024, was RMB 3,242,492 thousand, compared to RMB 3,375,959 thousand in the same period in 2023, reflecting a decrease of 3.9%[108] - The company's profit attributable to ordinary equity holders for the six months ended June 30, 2024, was RMB 1,875,011 thousand, compared to RMB 1,695,913 thousand in the same period in 2023[115] Market and Industry Trends - The number of newborns in China decreased to approximately 9.0 million in 2023, down from 10.94‰ in 2018, with the number of children aged 0-3 dropping to 28.5 million[5] - China's per capita disposable income reached RMB 39,218 in 2023, with a compound annual growth rate of 6.8% from 2018 to 2023, driving demand for premium infant formula products[5] - The Chinese government's supportive policies, such as the "Three-Child Policy" and stricter national safety standards for infant formula, are expected to stabilize the market[6][7] - The premium infant formula segment is expected to grow due to urbanization, rising disposable income, and increased health awareness[5] Operational Highlights - The company's offline sales network generated 76.8% of total dairy product revenue, with over 2,800 distributors covering more than 80,000 retail outlets[9] - The company's production capacity reached over 363,000 tons annually, supported by 11 production facilities, including a newly licensed infant formula facility in Canada[10] - The company acquired over 1,430,000 new customers through approximately 460,000 face-to-face seminars held in the first half of 2024[11] - Nutritional supplement revenue from Vitamin World USA contributed RMB 81.3 million, accounting for 0.8% of total revenue[12] - Sales cost decreased by 4.0% to RMB 3,242.5 million, mainly due to lower raw material prices[15] - Sales and distribution expenses increased by 2.2% to RMB 3,535.4 million, driven by higher online and promotional activity costs[18] - Administrative expenses decreased by 2.5% to RMB 738.7 million, primarily due to reduced R&D costs[19] - The company's inventory decreased by RMB 102,725,000 in the six months ended June 30, 2024, compared to a decrease of RMB 14,134,000 in the same period in 2023[93] - Trade receivables and bills receivable decreased by RMB 123,240,000 in the six months ended June 30, 2024, compared to an increase of RMB 88,937,000 in the same period in 2023[93] - The company's depreciation of property, plant, and equipment increased to RMB 298,677,000 in the six months ended June 30, 2024, from RMB 259,403,000 in the same period in 2023[93] - The company's interest income increased to RMB 180,525,000 in the six months ended June 30, 2024, from RMB 151,047,000 in the same period in 2023[93] - The company's income tax paid increased to RMB 1,555,491,000 in the six months ended June 30, 2024, from RMB 1,317,360,000 in the same period in 2023[93] - Investment activities resulted in a net cash outflow of RMB 363.866 million in the first half of 2024, compared to a net cash inflow of RMB 2.311 billion in the same period of 2023[94] - The company purchased structural deposits worth RMB 4.645 billion in the first half of 2024, a significant increase from RMB 2.42 billion in the same period of 2023[94] - Redemption of structural deposits generated RMB 4.05 billion in cash inflow in the first half of 2024, down from RMB 5.263 billion in the same period of 2023[94] - The company's cash and cash equivalents decreased by RMB 203.744 million in the first half of 2024, compared to an increase of RMB 2.014 billion in the same period of 2023[94] - The company's cash and cash equivalents balance stood at RMB 7.21 billion as of June 30, 2024, down from RMB 7.581 billion as of June 30, 2023[94] - The company operates in two reportable segments: raw milk production and sales, and dairy products and nutritional supplements production and sales[98] - Total revenue for the six months ended June 30, 2024, reached RMB 10,094,947 thousand, compared to RMB 9,735,225 thousand in the same period in 2023, representing a 3.7% increase[99][104] - Revenue from external customers in Mainland China increased to RMB 9,987,364 thousand in 2024 from RMB 9,629,346 thousand in 2023, a 3.7% growth[102][105] - Revenue from the United States decreased to RMB 81,305 thousand in 2024 from RMB 105,879 thousand in 2023, a 23.2% decline[102][105] - Revenue from Canada was RMB 26,278 thousand in 2024, compared to no revenue reported in 2023[102][105] - Segment profit for the dairy products and nutritional supplements segment increased to RMB 2,894,421 thousand in 2024 from RMB 2,561,633 thousand in 2023, a 13% growth[99][101] - Total assets as of June 30, 2024, were RMB 35,609,185 thousand, slightly lower than RMB 36,194,678 thousand as of December 31, 2023[99][101] - Total liabilities as of June 30, 2024, decreased to RMB 8,565,478 thousand from RMB 9,860,332 thousand as of December 31, 2023, a 13.1% reduction[99][101] - Bank interest income increased to RMB 138,364 thousand in 2024 from RMB 112,069 thousand in 2023, a 23.5% increase[99][106] - Government grants related to income decreased to RMB 401,255 thousand in 2024 from RMB 517,622 thousand in 2023, a 22.5% decline[106] - The company recognized an impairment loss of RMB 85,925 thousand on property, plant, and equipment, and right-of-use assets due to losses incurred by a subsidiary[109] - Financial costs for the six months ended June 30, 2024, amounted to RMB 26,236 thousand, a slight decrease from RMB 27,347 thousand in the same period in 2023[110] - The company's tax expense for the six months ended June 30, 2024, was RMB 1,117,984 thousand, up from RMB 816,366 thousand in the same period in 2023[112] - The company acquired property, plant, and equipment worth RMB 332,733 thousand during the six months ended June 30, 2024, slightly lower than RMB 342,296 thousand in the same period in 2023[117] - The total number of dairy cows owned by the company as of June 30, 2024, was 109,696, an increase from 102,497 as of December 31, 2023[119] - The total value of dairy cows as of June 30, 2024, was RMB 2,304,520 thousand, compared to RMB 2,235,220 thousand as of December 31, 2023, showing an increase of RMB 69,300 thousand[123][124] - The value of lactating cows increased to RMB 1,230,810 thousand as of June 30, 2024, from RMB 969,000 thousand as of December 31, 2023, reflecting a growth of RMB 261,810 thousand[124] - The total inventory as of June 30, 2024, was RMB 2,139,247 thousand, a decrease from RMB 2,258,059 thousand as of December 31, 2023, primarily due to a reduction in feed and raw materials[128] - Trade receivables and bills receivable decreased to RMB 308,472 thousand as of June 30, 2024, from RMB 431,184 thousand as of December 31, 2023, indicating improved collection efficiency[129] - The fair value of biological assets classified as Level 3 was RMB 2,304,520 thousand as of June 30, 2024, compared to RMB 2,252,706 thousand as of December 31, 2023[127] - The company no longer held any dairy goats as of June 30, 2024, following the sale of a subsidiary, compared to a total of 4,752 dairy goats as of December 31, 2023[121][122] - The value of work-in-progress inventory increased significantly to RMB 1,054,892 thousand as of June 30, 2024, from RMB 676,838 thousand as of December 31, 2023, reflecting higher production activity[128] - The fair value change minus sales costs resulted in a loss of RMB 331,732 thousand for dairy cows in the first half of 2024, compared to a loss of RMB 731,461 thousand in the same period of 2023[124] - The company's trade receivables aged over three months decreased to RMB 33,058 thousand as of June 30, 2024, from RMB 25,766 thousand as of December 31, 2023, indicating better credit management[130] - Biological assets worth RMB 389,207 thousand were pledged for interest-bearing bank loans as of June 30, 2024, slightly down from RMB 391,283 thousand as of December 31, 2023[127] - Trade payables and bills payable decreased to RMB 1,642,060 thousand as of June 30, 2024, from RMB 1,838,223 thousand as of December 31, 2023[131] - Within trade payables and bills payable, 91.7% (RMB 1,505,086 thousand) were due within three months as of June 30, 2024[132] - Deferred revenue increased to RMB 672,501 thousand as of June 30, 2024, from RMB 632,893 thousand as of December 31, 2023[133] - Contract liabilities decreased to RMB 422,006 thousand as of June 30, 2024, from RMB 683,327 thousand as of December 31, 2023[133] - Capital commitments for construction and purchase of property, plant, and equipment increased to RMB 460,158 thousand as of June 30, 2024, from RMB 294,011 thousand as of December 31, 2023[136] - Sales of raw milk to companies controlled by the controlling shareholder increased to RMB 7,607 thousand in the first half of 2024, compared to RMB 3,183 thousand in the same period of 2023[137] - The total remuneration of key management personnel was RMB 21,913 thousand in the first half of 2024, slightly down from RMB 22,048 thousand in the same period of 2023[139] - Structured deposits increased to RMB 9,405,533 thousand as of June 30, 2024, from RMB 8,670,910 thousand as of December 31, 2023[140] - Interest-bearing bank and other borrowings decreased to RMB 1,267,805 thousand as of June 30, 2024, from RMB 1,377,750 thousand as of December 31, 2023[140] - The fair value of financial assets measured at fair value through other comprehensive income was RMB 1,800 thousand as of June 30, 2024, unchanged from December 31, 2023[143] - The fair value of structured deposits increased to RMB 9,405,533 thousand as of June 30, 2024, up from RMB 8,670,910 thousand as of December 31, 2023[143] - The fair value of interest-bearing bank and other borrowings decreased to RMB 1,260,282 thousand as of June 30, 2024, down from RMB 1,377,054 thousand as of December 31, 2023[145] - A 20% increase or decrease in the price-to-book ratio of comparable companies would result in a corresponding increase or decrease of approximately RMB 360,000 in the fair value of financial assets measured at fair value through other comprehensive income[144] Shareholder and Equity Information - Cold Youbin holds 587,516,458 shares, representing 6.48% of the company's total issued shares, through his controlled company Dasheng Limited[36][37] - Cold Youbin is deemed to have an interest in 3,889,911,881 shares held by Garland Glory Limited through the Cold Family Trust, representing 42.90% of the company's total issued shares[36][37] - Liu Hua holds 345,681,920 shares, representing 3.81% of the company's total issued shares, through the Liu Hua Family Trust[36][37] - Cai Fangliang holds 101,647,734 shares, representing 1.12% of the company's total issued shares, through his controlled company Adroit Shipping Limited[36][37] - Tu Fang'er holds 23,717,804 shares, representing 0.26% of the company's total issued shares, through the J.T. Living Trust[36][38] - Harneys Trustees Limited holds 4,461,740,357 shares, representing 49.21% of the company's total issued shares, as the trustee of the Cold Family Trust and Liu Hua Family Trust[41] - LYB International Holding Limited holds 3,889,911,881 shares, representing 42.90% of the company's total issued shares, through Garland Glory Holdings Limited[41] - Liu Shenghui holds 813,663,014 shares, representing 8.97% of the company's total issued shares, through controlled companies and as the founder of a discretionary trust[41] - Dasheng Limited holds 587,516,458 shares, representing 6.48% of the company's total issued shares, as the beneficial owner[41] - Harneys Trustees Limited holds interests in a total of 4,461,740,357 shares, including 3,889,911,881 shares held by the Leng Family Trust, 345,681,920 shares held by the Liu Hua Family Trust, and 226,146,556 shares held by the Liu Family Trust[42] - The company declared an interim dividend of HKD 0.1632 per share, totaling approximately HKD 1,479,775,478, to be paid by September 30, 2024[48] - The company maintains a dividend policy of distributing no less than 30% of the annual net profit to shareholders, subject to future investment plans[49] - The maximum number of shares that can be issued under the Pre-IPO Share Option Plan is 190,190,704 shares, representing approximately 2.10% of the company's total issued shares as of the date of this interim report