Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 9,735,225 thousand, a slight increase of 0.6% compared to RMB 9,672,823 thousand in the same period of 2022[7]. - Gross profit for the same period was RMB 6,359,266 thousand, representing a decrease of 2.7% from RMB 6,536,625 thousand year-on-year[7]. - The company's net profit for the period was RMB 1,618,682 thousand, down 28.8% from RMB 2,272,056 thousand in the previous year[7]. - Basic and diluted earnings per share were both RMB 0.19, a decrease of 24% compared to RMB 0.25 in the same period of 2022[7]. - Total comprehensive income for the period was RMB 1,747,812 thousand, compared to RMB 2,343,911 thousand in the prior year, reflecting a decrease of 25.5%[141]. - The group’s profit before tax for the six months ended June 30, 2023, was RMB 1,695,913,000, a decrease of 24.8% compared to RMB 2,255,887,000 for the same period in 2022[184]. - The total tax expense for the period was RMB 816,366,000, down 15.1% from RMB 962,692,000 in the prior year[181]. Market Trends - The Chinese infant formula market is expected to maintain stable retail sales value despite a declining birth rate, with the number of newborns projected to decrease at a slower rate from 2023 to 2027 due to supportive policies[9]. - Increased consumer confidence in the quality of domestic infant formula products is expected to drive production and sales, meeting diverse consumer needs[10]. - The high-end infant formula segment is anticipated to grow, driven by rising disposable income and health awareness, with per capita disposable income reaching RMB 36,883 in 2022[10]. - Urbanization and rising disposable income are expected to enhance purchasing power, allowing consumers in lower-tier cities and rural areas to afford higher-quality infant formula products[10]. Operational Highlights - The company held approximately 480,000 face-to-face seminars, acquiring over 1,120,000 new customers in the six months ended June 30, 2023[19]. - The company operates a distribution network with over 2,800 offline customers covering more than 94,000 retail points, generating 77.8% of total revenue from dairy products[14]. - The company has a designed annual production capacity of approximately 327,000 tons across its eleven production facilities as of June 30, 2023[16]. Expenses and Costs - Selling and distribution expenses rose by 10.1% to RMB 3,459.9 million, accounting for 35.5% of total revenue[21]. - The group's sales cost increased by 7.6% from RMB 3,136.2 million for the six months ended June 30, 2022, to RMB 3,376.0 million for the six months ended June 30, 2023, primarily due to changes in the product mix[24]. - Administrative expenses increased by 15.4% from RMB 656.7 million for the six months ended June 30, 2022, to RMB 757.5 million for the six months ended June 30, 2023, primarily due to higher R&D costs[29]. Cash Flow and Financial Position - As of June 30, 2023, the group had cash and cash equivalents of RMB 11,128.2 million, primarily consisting of cash on hand and bank deposits[38]. - The company reported a net cash inflow from financing activities of RMB (1,434,234) thousand, compared to RMB (90,931) thousand in the previous year, indicating a decline in financing cash flow[151]. - The total cash and bank balances were RMB 11,489,944 thousand, up from RMB 10,754,301 thousand year-over-year, marking an increase of approximately 6.83%[151]. Shareholder Information - As of June 30, 2023, the company has a total of 9,068,251,704 shares issued, with key executives holding significant stakes, including 42.90% by the founder through a family trust[57]. - The founder, Mr. Leng Youbin, holds 587,516,458 shares directly and through controlled entities, representing 6.48% of the total shares[60]. - Harneys Trustees Limited holds 4,461,740,357 shares, representing 49.20% of the company's equity[64]. Governance and Compliance - The board of directors has confirmed compliance with corporate governance codes during the reporting period, ensuring transparency and accountability[52]. - The company is dedicated to maintaining strong internal controls and effective governance practices to enhance operational integrity[51]. - The independent auditor's report was issued on August 28, 2023[138]. Future Plans and Investments - The company has no specific plans for significant investments or acquisitions of capital assets but will continue to seek new business development opportunities[46]. - The company aims to utilize the remaining net proceeds by December 31, 2025, as outlined in the prospectus[73]. - The company is focusing on developing a new generation of infant formula tailored for Chinese babies, leveraging active nutritional elements from the 47° North latitude milk source[48]. Stock Options and Share Awards - The 2020 stock option plan allows for a maximum of 134,000,100 shares to be granted, representing 1.48% of the total shares issued as of the report date[97]. - The 2023 Share Award Scheme was adopted on May 25, 2023, aimed at recognizing and rewarding contributions to the group's growth and attracting suitable talent[113][114]. - The maximum number of shares that can be awarded under the 2023 Share Award Scheme is capped at 10% of the company's issued share capital as of May 25, 2023, which equates to 906,825,170 shares[119].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was RMB 9,735.2 million, an increase of 0.6% year-on-year[2] - The group's gross profit for the same period was RMB 6,359.3 million, a decrease of 2.7% year-on-year[2] - The group's profit for the period was RMB 1,618.7 million, a decrease of 28.8% year-on-year[2] - Basic earnings per share for the company were RMB 0.19, down from RMB 0.25 in the same period last year[3] - Total comprehensive income for the period was RMB 1,747.8 million, compared to RMB 2,343.9 million in the previous year[5] - The group reported a pre-tax profit of RMB 2,435,048 thousand for the six months ended June 30, 2023, compared to RMB 3,234,748 thousand in the same period of 2022, showing a decrease of about 24.7%[24] - The group's net profit decreased by 28.8% from RMB 2,272.1 million for the six months ended June 30, 2022, to RMB 1,618.7 million for the six months ended June 30, 2023[58] - Income tax expenses decreased by 15.2% from RMB 962.7 million for the six months ended June 30, 2022, to RMB 816.4 million for the six months ended June 30, 2023, due to the reduction in profit before tax[57] Assets and Liabilities - Non-current assets totaled RMB 13,428.8 million as of June 30, 2023, compared to RMB 13,286.1 million at the end of 2022[6] - Current assets amounted to RMB 21,543.8 million, a decrease from RMB 22,229.7 million at the end of 2022[6] - Current liabilities were RMB 6,755.5 million, down from RMB 7,459.7 million at the end of 2022[6] - The company's net asset value was RMB 25,830.8 million as of June 30, 2023, compared to RMB 25,474.9 million at the end of 2022[7] - The total assets of the group as of June 30, 2023, amounted to RMB 34,972,576 thousand, compared to RMB 35,515,773 thousand at the end of 2022, indicating a decrease of about 1.53%[18] - Total liabilities as of June 30, 2023, were RMB 9,141,784 thousand, down from RMB 10,040,830 thousand at the end of 2022, representing a reduction of approximately 8.95%[18] - The group's asset-liability ratio increased from 0.33 as of December 31, 2022, to 0.40 as of June 30, 2023[62] Revenue Breakdown - Revenue from external customers in mainland China was RMB 9,629,346 thousand for the six months ended June 30, 2023, compared to RMB 9,573,781 thousand in 2022, indicating an increase of about 0.58%[21] - For the three months ended June 30, 2023, the company reported revenue of RMB 1,583,551 thousand, compared to RMB 1,728,024 thousand for the same period in 2022, indicating a decrease of approximately 8.4%[35] - The retail sales value of the Chinese infant formula market is expected to remain stable despite the declining birth rate, driven by increased consumer confidence and preferences for quality products[36] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2023, was RMB 3,375,959 thousand, up from RMB 3,136,198 thousand in 2022, reflecting an increase of approximately 7.65%[24] - The cost of sales increased by 7.6% to RMB 3,375.9 million from RMB 3,136.2 million, primarily due to changes in the product mix[49] - Selling and distribution expenses increased by 10.1% to RMB 3,459.9 million, mainly due to higher costs associated with offline activities and promotions[52] - Administrative expenses rose by 15.4% to RMB 757.5 million, primarily due to increased research and development costs[53] - Financial costs surged by 127.4% to RMB 27.3 million, attributed to increased interest-bearing loans from the parent company[55] Market and Industry Trends - The number of newborns in China decreased to approximately 9.6 million in 2022, down from 12.95‰ birth rate in 2016, reflecting a significant decline in the target demographic for infant formula[36] - The average annual disposable income in China reached RMB 36,883 in 2022, with a compound annual growth rate of 7.3% from 2017 to 2022, which is expected to drive demand for high-end infant formula products[37] - The Chinese government aims to maintain a self-sufficiency level of 60% for domestically produced infant formula, promoting local production and quality standards[38] - The new national safety standards for infant formula, effective from February 22, 2023, impose stricter regulations on protein, carbohydrates, and micronutrients, benefiting leading companies in the industry[39] - Urbanization and rising disposable income levels are enhancing consumer purchasing power, particularly in lower-tier cities and rural areas, which are increasingly able to afford higher-quality infant formula[37] Corporate Governance and Compliance - The company has adopted the corporate governance code as its own governance standard, ensuring transparency and accountability to shareholders[69] - The company emphasizes the importance of effective internal control measures to ensure compliance with applicable laws and regulations[69] - The audit committee has been established in accordance with listing rules, consisting of three members, including the chairman, Mr. Fan Yonghong[74] - The independent review of the interim financial information for the six months ended June 30, 2023, was conducted by Ernst & Young in accordance with the relevant standards[75] Future Plans and Strategies - The company is focusing on developing a new generation of infant formula that is more suitable for Chinese consumers, leveraging the unique resources from the 47° north latitude[68] - The company aims to expand into four major business areas: maternal and infant, children and adolescents, health food, and nutrition health, creating a comprehensive product family for all life stages[68] - The company has committed to a green and sustainable development model, actively contributing to rural revitalization and fulfilling social responsibilities[68] - The company is committed to enhancing its core capabilities, including unique resource endowments and integrated online and offline supply chain capabilities[68] Dividends - The company declared a final dividend of HKD 0.1721 per share, totaling approximately RMB 1.42 billion for the year ended December 31, 2022[29] - The company declared an interim dividend of HKD 0.1349 per share, totaling approximately HKD 1,223,021,059 (equivalent to about RMB 1,122,598,800) for the six months ended June 30, 2023[73] - The interim dividend represents 60% of the profit for the six months ended June 30, 2023, based on a policy to distribute no less than 30% of net profit for each financial year[73] - The company plans to maintain a dividend policy of distributing at least 30% of net profit for future financial years, depending on future investment plans[74]

Financial Performance - In 2022, China Feihe Limited reported revenue of RMB 21,310.9 million, a decrease of 6.4% from RMB 22,776.3 million in 2021[9]. - Gross profit for 2022 was RMB 13,950.6 million, down 12.9% from RMB 16,007.6 million in the previous year[9]. - Net profit decreased by 28.4% to RMB 4,948.1 million in 2022, compared to RMB 6,914.9 million in 2021[9]. - The company's revenue decreased by 6.4% from RMB 22,776.3 million in 2021 to RMB 21,310.9 million in 2022, primarily due to a decline in birth rates in mainland China and increased competition in the industry[36]. - The gross profit fell by 12.9% from RMB 16,007.6 million in 2021 to RMB 13,950.6 million in 2022, with the gross margin decreasing from 70.3% to 65.5%[41]. - Profit before tax decreased by 31.1% from RMB 9,672.3 million in 2021 to RMB 6,663.1 million in 2022[47]. - Income tax expenses decreased by 37.8% from RMB 2,757.4 million in 2021 to RMB 1,715.0 million in 2022, reflecting the decline in profit before tax[48]. - Other income and net gains decreased by 30.7% from RMB 1,974.0 million in 2021 to RMB 1,368.6 million in 2022, mainly due to reduced government subsidies[42]. - Administrative expenses rose by 27.1% from RMB 1,208.0 million in 2021 to RMB 1,535.0 million in 2022, primarily due to increased employee and R&D costs[44]. Assets and Equity - Total assets increased to RMB 35,515.8 million in 2022 from RMB 31,481.4 million in 2021[6]. - Total equity reached RMB 25,474.9 million in 2022, up from RMB 22,403.4 million in 2021[6]. - China Feihe's non-current assets amounted to RMB 13,286.1 million in 2022, reflecting growth from RMB 11,511.8 million in 2021[6]. - Cash and cash equivalents amounted to RMB 9,335.9 million as of December 31, 2022, primarily consisting of cash on hand and bank deposits[52]. Market Position and Strategy - The company maintained a strong market position, achieving 45 new product registrations for infant formula, leading the industry[10]. - The company aims to continue expanding its market presence and enhancing its brand value through strategic upgrades and innovation[8]. - The company is focused on creating a competitive brand and aims to become a century-old enterprise with international competitiveness[22]. - The company has a distribution network of over 2,700 offline customers covering approximately 94,000 retail points, generating 83.0% of total revenue from dairy products through offline sales[30]. - The company plans to expand its product range to cover four major business areas: maternal and infant nutrition, children's nutrition, adult nutrition, and health foods[21]. - The company aims to leverage the trend of Chinese modernization and expand its product offerings in the infant formula market, focusing on "fresh active nutrition" tailored for Chinese babies[63]. Research and Development - The company published 12 international SCI papers and received over 60 invention patent applications, demonstrating its commitment to R&D[10]. - China Feihe has been recognized for its research capabilities, leading the national "14th Five-Year" key research project on new infant formula technology based on Chinese breast milk[12]. - The company achieved a strategic upgrade to "fresh active nutrition," creating formula that better suits the physical constitution of Chinese babies[12]. - The company aims to innovate with a new generation of infant formula that focuses on the first 1,000 days of life, using active nutritional extracts from the 47° North golden milk source[21]. Corporate Social Responsibility and Sustainability - The company has implemented a green low-carbon development strategy, with three projects producing organic fertilizers that enhance soil quality over tens of thousands of acres[17]. - China Feihe's ESG rating was upgraded from BBB to A in 2022, marking the highest rating achieved by a Chinese food company[18]. - The company has initiated a public welfare campaign in collaboration with the Heilongjiang Provincial Education Department, benefiting 330,000 students[19]. - The company is committed to sustainable development and social responsibility, actively supporting rural revitalization and building a "common prosperity industrial chain" for higher quality growth[63]. Governance and Management - The board of directors includes experienced members such as Mr. Leng Youbin, who has over 30 years in the dairy industry and has been with the company since 2013[67]. - The company has a strong focus on financial management, with Mr. Liu Hua serving as CFO since 2013 and overseeing significant financing activities, including its listing on the NYSE in 2009[70]. - The company is set to re-elect several directors at the upcoming annual general meeting, ensuring continuity in leadership[65]. - The board of directors consists of eleven members, including four executive directors, three non-executive directors, and four independent non-executive directors, ensuring effective governance[192]. - The company has adopted corporate governance codes to promote effective internal controls and enhance transparency and accountability to shareholders[188]. Shareholder Information - Major shareholder Mr. Leng holds 4,477,428,339 shares, representing 49.29% of the company's equity[123]. - Harneys Trustees Limited, as a trustee, holds 4,461,740,357 shares, accounting for 49.12% of the equity[123]. - The percentage of shares held by the top five shareholders accounts for over 70% of the total equity, indicating concentrated ownership[123]. - The company has a diverse shareholder base, with multiple entities holding significant stakes, including Morgan Stanley entities with a combined total of 1,586,000,000 shares[123]. Future Outlook - The company has set a sales target of RMB 35 billion for 2023 and aims for a 15% compound annual growth rate from 2024 to 2028, although it anticipates challenges due to declining birth rates and increasing competition[50]. - The company plans to use HKD 2,621.9 million for offshore debt repayment, with an expected completion date by December 31, 2025[106]. - The company is focused on developing new products and technologies to meet consumer demands in the nutrition sector[72].

Financial Performance - The group's revenue for the year ended December 31, 2022, was RMB 21,310.9 million, a decrease of 6.4% compared to the previous year[2]. - The group's gross profit for the same period was RMB 13,950.6 million, down 12.9% year-on-year[2]. - The net profit for the year was RMB 4,948.1 million, representing a decline of 28.4% from the previous year[2]. - Basic earnings per share were RMB 0.55, compared to RMB 0.77 in 2021[3]. - Total comprehensive income for the year was RMB 5,110.0 million, down from RMB 6,844.6 million in the previous year[6]. - Adjusted profit before tax for the dairy products and nutritional supplements segment was RMB 6,361,014 thousand, compared to RMB 9,409,000 thousand in the previous year, indicating a decrease of approximately 32.5%[18][20]. - The group's pre-tax profit for 2022 was RMB 1,390,035 thousand, an increase from RMB 1,251,683 thousand in 2021, representing a growth of about 11.1%[33]. - The group's pre-tax profit decreased by 31.1% from RMB 9,672.3 million in 2021 to RMB 6,663.1 million in 2022[63]. - The net profit for the year fell by 28.4% from RMB 6,914.9 million in 2021 to RMB 4,948.1 million in 2022[65]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.1721 per share, in addition to an interim dividend of HKD 0.1131 per share paid in October 2022, totaling approximately HKD 1,005.5 million[2]. - For the year ended December 31, 2022, the company declared an interim dividend of HKD 0.1131 per ordinary share, totaling approximately RMB 877 million, a decrease from RMB 2.21 billion in 2021[36]. - The company plans to distribute a final dividend of HKD 0.1721 per share, totaling approximately HKD 1,560,732,507, subject to shareholder approval[87]. - The company intends to maintain a dividend policy of distributing no less than 30% of net profit for future fiscal years, depending on investment plans[87]. - The company has implemented a share repurchase program that will expire at the next annual general meeting, reflecting its commitment to shareholder value[80]. Assets and Liabilities - Non-current assets totaled RMB 13,286.1 million, an increase from RMB 11,511.8 million in 2021[7]. - Current assets amounted to RMB 22,229.7 million, compared to RMB 19,969.6 million in the previous year[7]. - The company reported a total liability of RMB 10,040,830 thousand, up from RMB 9,078,054 thousand in the previous year, representing an increase of approximately 10.6%[18][21]. - Total assets as of December 31, 2022, amounted to RMB 35,515,773 thousand, an increase from RMB 31,481,424 thousand in 2021, reflecting a growth of approximately 12.9%[18][21]. - The company's total assets as of December 31, 2022, were RMB 25,474.9 million, with a debt-to-asset ratio of 0.33[69]. Revenue Breakdown - The raw milk segment generated external sales of RMB 349,079 thousand, while the dairy products and nutritional supplements segment contributed RMB 20,961,854 thousand, totaling RMB 21,310,933 thousand in external sales[18]. - Revenue from dairy products and nutritional supplements in mainland China was RMB 20,753,386 thousand in 2022, down from RMB 21,102,465 thousand in 2021, indicating a decrease of approximately 1.7%[24]. - The revenue from infant formula products was RMB 19,932.3 million, accounting for 93.5% of total revenue, down 7.4% from RMB 21,515.3 million in 2021[54]. Expenses and Costs - The group's total sales cost for 2022 was RMB 7,360,333 thousand, compared to RMB 6,768,676 thousand in 2021, reflecting an increase of approximately 8.7%[33]. - The cost of sales increased by 8.7% from RMB 6,768.7 million in 2021 to RMB 7,360.3 million in 2022, mainly due to rising raw material costs and increased promotional expenses[55]. - Selling and distribution expenses decreased by 2.7% from RMB 6,729.3 million in 2021 to RMB 6,545.4 million in 2022, attributed to lower promotional activity costs[59]. - Administrative expenses increased by 27.1% from RMB 1,208.0 million in 2021 to RMB 1,535.0 million in 2022, primarily due to rising employee and R&D costs[60]. Corporate Governance and Compliance - The company emphasizes the importance of corporate governance and has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring effective internal controls and transparency[78]. - The company has established an audit committee to oversee financial reporting and risk management[85]. - The company’s auditor, Ernst & Young, has reviewed the financial statements for the year ended December 31, 2022[86]. Market and Industry Outlook - The retail sales value of the infant formula market in China is expected to remain stable despite a decline in newborn numbers, supported by government policies[42]. - The company anticipates a recovery in newborn numbers by 2025, returning to levels seen in 2021, due to supportive measures from the three-child policy[42]. - The demand for high-end infant formula in China is expected to drive the entire infant formula industry, supported by a 7.3% CAGR in per capita disposable income from 2017 to 2022, reaching RMB 36,883 in 2022[43]. - The increasing urbanization rate and rising disposable income will enhance consumer purchasing power, particularly in lower-tier cities and rural areas, leading to higher consumption of premium infant formula products[43]. - New national safety standards for infant formula were introduced, imposing stricter regulations on protein, carbohydrates, and micronutrients, benefiting leading companies in the industry[44]. Strategic Initiatives - The company aims to maintain strict control over trade receivables to minimize credit risk, with specific credit terms typically ranging from one to three months[39]. - The group is focusing on e-commerce sales to capture the rapid growth in this sector, particularly targeting younger consumers[47]. - The group is constructing a new production facility in Qiqihar to further enhance its production capabilities[48]. - The company plans to expand into four major business areas: prenatal, infant, children, and health food, creating a comprehensive product family that supports health from birth to longevity[77]. - The company is committed to sustainable development and green circular economy practices, aiming to enhance rural revitalization and fulfill social responsibilities[77]. Share Repurchase and Financial Strategy - The company has repurchased a total of 27,155,000 shares at an aggregate price of approximately HKD 175.9 million during the reporting period, reducing the total issued shares to 9,068,251,704[80]. - The board believes that the share trading price does not reflect the intrinsic value and business outlook of the company[82]. - The net proceeds from the global offering amounted to approximately HKD 6,554.7 million, with specific allocations for debt repayment, business expansion, and acquisitions[84]. - The company allocated HKD 1,721.2 million for offshore debt repayment and HKD 327.7 million for Vitamin World USA's business expansion[84]. - The company plans to utilize the remaining unallocated proceeds from the global offering as outlined in the prospectus[84].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 9,672,823 thousand, a decrease of 16.2% compared to RMB 11,543,762 thousand in 2021[5] - Gross profit for the same period was RMB 6,536,625 thousand, down 22.7% from RMB 8,457,088 thousand in 2021[5] - Profit for the period was RMB 2,272,056 thousand, representing a decline of 39.7% from RMB 3,765,254 thousand in 2021[5] - Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.25, a decrease of 40.5% compared to RMB 0.42 in 2021[5] - Other income and net gains decreased by 15.8% from RMB 901.0 million to RMB 758.8 million, mainly due to reduced government subsidies and interest income[18] - Profit before tax decreased by 38.7% from RMB 5,281.1 million for the six months ended June 30, 2021, to RMB 3,234.7 million for the six months ended June 30, 2022[23] - Income tax expense decreased by 36.5% from RMB 1,515.8 million for the six months ended June 30, 2021, to RMB 962.7 million for the six months ended June 30, 2022, due to the decrease in profit before tax[24] - Net profit decreased by 39.7% from RMB 3,765.3 million for the six months ended June 30, 2021, to RMB 2,272.1 million for the six months ended June 30, 2022[25] Market Outlook - The Chinese infant formula milk powder market is expected to maintain stable retail sales value due to increasing consumer confidence and preference for domestic products[6] - The high-end infant formula segment is projected to drive growth, supported by rising disposable income, which reached RMB 35,128 in 2021, with a CAGR of 8.1% from 2016 to 2021[6] - Favorable government policies, including the promotion of domestic infant formula and the implementation of supportive measures for the three-child policy, are expected to benefit the industry[7] - The market for infant formula is anticipated to expand as urbanization and disposable income rise, particularly in lower-tier cities and rural areas[6] Company Strategy and Operations - The company aims to enhance its product offerings in response to stricter national safety standards for infant formula introduced in 2021[7] - The company is focused on innovation and meeting diverse consumer needs in the infant formula sector, driven by increasing quality management in the dairy industry[6] - The company aims to optimize its product offerings to better suit the needs of Chinese consumers, focusing on a diverse range of products at various price points[8] - The company is constructing two new production facilities to enhance production capacity, which is currently designed for an annual output of approximately 267,000 tons[10] - The company is focusing on digital transformation, enhancing its core competitiveness through big data, cloud computing, IoT, and 5G technologies[34] - The company aims to create a new vertical e-commerce ecosystem targeting maternal and infant health needs, integrating online communities, transactions, and logistics[34] Financial Position and Shareholder Information - As of June 30, 2022, the company had cash and cash equivalents of RMB 10,323.8 million, primarily consisting of cash on hand and bank deposits[27] - As of June 30, 2022, the company's interest-bearing bank and other borrowings amounted to approximately RMB 972.0 million[28] - The company's debt-to-equity ratio increased from 0.42 as of December 31, 2021, to 0.45 as of June 30, 2022[29] - The company has a total of 8,905,216,000 shares issued as of June 30, 2022[40] - Mr. Leng holds 587,516,458 shares, representing 6.60% of the company's equity[40] - The family trust of Mr. Leng holds 3,889,911,881 shares, accounting for 43.68% of the company's equity[40] - The major shareholder Harneys Trustees Limited holds 4,461,740,357 shares, which is 50.10% of the company's equity[45] Research and Development - The company plans to enhance its research and development capabilities, focusing on innovative nutritional products tailored for Chinese infants, and aims to strengthen collaborations with top research institutions[33] - The company aims to enhance its product offerings through internal R&D to closely mimic the composition of breast milk, catering to a diverse customer base with various price points[155] Social Responsibility and Sustainability - The company is committed to sustainable development, aligning with national carbon reduction goals and promoting a green low-carbon industry[36] - The company is actively engaging in social responsibility initiatives, including educational support and community welfare programs[36] - The company emphasizes a commitment to social responsibility, engaging in various charitable activities to support rural revitalization and public health[183] Employee and Management Information - The company has 9,138 full-time employees, with the majority located in China[49] - The total remuneration for key management personnel was RMB 24,794,000 for the six months ended June 30, 2022, compared to RMB 20,239,000 for the same period in 2021, reflecting an increase of approximately 22.5%[134] Recent Developments - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2022[31] - There have been no significant post-reporting events since June 30, 2022[37]

Financial Performance - Revenue increased from RMB 18,592.5 million in 2020 to RMB 22,776.3 million in 2021, representing a year-on-year growth of 22.5%[10] - Gross profit rose from RMB 13,480.3 million in 2020 to RMB 16,007.6 million in 2021, reflecting an 18.7% year-on-year increase[10] - Net profit decreased from RMB 7,436.6 million in 2020 to RMB 6,914.9 million in 2021, but excluding the one-time gain from the acquisition of Original Ecology Livestock Co., net profit increased by 21.2%[10] - Total equity increased to RMB 22,403.4 million in 2021 from RMB 19,185.5 million in 2020[8] - The company's profit before tax decreased by 2.3% from RMB 9,900.5 million in 2020 to RMB 9,672.3 million in 2021, but increased by 21.2% excluding the bargain purchase gain from the acquisition of a subsidiary[43] - Income tax expenses increased by 11.9% from RMB 2,463.9 million in 2020 to RMB 2,757.4 million in 2021, reflecting higher taxable profits[44] - Net profit decreased by 7.0% from RMB 7,436.6 million in 2020 to RMB 6,914.9 million in 2021[45] - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a year-over-year growth of 20%[21] - The company provided a positive outlook for 2022, projecting a revenue growth of 25% and aiming to reach 1.875 billion[21] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 31,481.4 million, up from RMB 28,322.8 million in 2020[8] - Total liabilities decreased to RMB 9,078.1 million in 2021 from RMB 9,137.3 million in 2020[8] - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 12,361.2 million, with RMB 1,255.6 million proposed for the final dividend[94] - The company's net debt as of December 31, 2021, was calculated based on interest-bearing bank and other borrowings of approximately RMB 934.2 million[49] - The company's debt-to-equity ratio improved from -0.50 on December 31, 2020, to -0.42 on December 31, 2021[50] Research and Development - The company established multiple high-level research platforms in collaboration with 12 academicians and experts across five major fields, enhancing its technological capabilities[11] - The company published four international SCI papers and obtained three invention patents in 2021, contributing to its research and development efforts[11] - The latest product "Xing Fei Fan Zhuo Rui" incorporates advanced research findings, aiming to provide fresher and more suitable formulas for Chinese infants[11] - Research and development efforts are focused on innovative dairy products, with a budget increase of 30% allocated for the upcoming year[64] - Research and development investments increased by 10% in 2021, focusing on enhancing product quality and safety[21] Market Presence and Strategy - The company aims to build world-class smart factories and digital agriculture models, enhancing fresh value across the supply chain[18] - The company is positioned as a pioneer in the Chinese infant formula market, emphasizing its brand as "more suitable for Chinese babies" through innovative marketing strategies[28] - The company has expanded its e-commerce presence to capture the growing online sales market, particularly among younger consumers[25] - The company is expanding its market presence in North America, targeting a 25% increase in market share by the end of the next fiscal year[64] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share in the region by 2025[21] Corporate Governance - The board of directors consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors[186] - The company has established an audit committee to oversee its financial reporting and compliance with international financial reporting standards[93] - The independent directors bring extensive experience from various sectors, including finance and dairy, enhancing the company's governance and strategic direction[78] - The company has adopted corporate governance principles to enhance transparency and accountability, ensuring compliance with applicable laws and regulations[183] - The company has received annual independence confirmations from all independent non-executive directors, ensuring compliance with listing rules[189] Sustainability and Social Responsibility - The company is committed to sustainable development, implementing projects to reduce emissions and promote clean energy[16] - The company donated over 500 million RMB in cash and materials for various charitable activities[18] - The company was awarded the "National Charity Award" by the Ministry of Civil Affairs in 2021[18] - The board believes that good corporate governance standards are key to protecting shareholder interests and enhancing corporate value[183] - The company advocates for environmental responsibility and has established an environmental management system to enhance resource efficiency and reduce pollution[178] Employee and Management - The company had 9,091 full-time employees as of December 31, 2021, an increase from 7,385 employees as of December 31, 2020[160] - The company aims to provide a high-quality work environment and attractive compensation packages to retain and motivate employees[160] - The management team includes experienced professionals, such as the CEO and Chairman, who has been with the company since August 1996, and the CFO, who has been with the company since November 2000[79] - The management team is responsible for the overall development strategy and business planning of the group, ensuring alignment with market trends and opportunities[79] - The company provides competitive salaries and a healthy work environment to motivate employees and supports their career development through training[181] Risks and Compliance - The company faces various financial risks, including interest rate risk, credit risk, foreign exchange risk, and liquidity risk, which are actively managed[168] - The company emphasizes the importance of product quality and reliability, facing risks related to contamination or defects during production and transportation[173] - The company has allocated sufficient resources to ensure compliance with regulatory requirements and maintain good relationships with regulatory authorities[167] - The company has established long-term stable relationships with distributors and conducts regular inspections to ensure compliance with sales and marketing policies[181] - The company has implemented appropriate directors and officers liability insurance to protect against legal claims arising from business operations[195]

® KB 中國飛鶴有限公司 China Feihe Limited (於開曼群島註冊成立的有限公司) 股份代號: 6186 * * * 2020 l<#3 l kes. 程轉益加 है। 幼儿配方奶粉 臻能 (12-36月龄,3段) 幼儿配方奶粉 幼儿配方奶版 幼儿配方奶粉 (12-36月龄,3段) (12-36月龄, 3段) 5 游览 目錄 2 3 4 | --- | --- | |-------|--------------------------| | | | | | 公司資料 | | | 財務概要 | | | 管理層討論與分析 | | 15 | 其他資料及企業管治 | | 28 | 獨立審閱報告 | | 29 | 中期簡明綜合損益表 | | 30 | 中期簡明綜合全面收益表 | | 31 | 中期簡明綜合財務狀況表 | | 33 | 中期簡明綜合權益變動表 | | 34 | 中期簡明綜合現金流量表 | | 36 | 中期簡明綜合財務資料附註 | | | 釋義 | 51 公司資料 董事會 執行董事 冷友斌先生（董事長兼首席執行官） 劉華先生 蔡方良先生 涂芳而女士 張國華先生 非執行董事 高煜先生 陳國 ...

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