Investment Rating - The investment rating for the company is "Buy" [1][7] Core Views - The company achieved a revenue of 20.1 billion yuan in FY24, representing a year-on-year increase of 7.5%, with a shareholder loss of 0.691 billion yuan, an improvement from a loss of 1.050 billion yuan in the same period last year [2] - The raw milk business showed strong growth, while the ruminant animal breeding solutions business faced challenges, with revenues of 15.1 billion yuan and 5 billion yuan respectively for FY24, reflecting year-on-year changes of +17.0% and -13.7% [3] - The company’s cash EBITDA for FY24 reached 5.32 billion yuan, a significant increase of 38.3% year-on-year, indicating strong operational performance despite accounting losses from biological asset impairments [4] - The raw milk price is expected to enter a reversal cycle, with the company positioned to benefit as a leading player in the industry, anticipating a recovery in demand alongside supply-side adjustments [5] Summary by Sections Revenue and Profitability - The company’s revenue for FY24 was 20.1 billion yuan, with a projected revenue of 10.05 billion yuan for H2 FY24, showing a year-on-year increase of 4.6% [2] - The gross margin for FY24 was 28.8%, an increase of 4.9 percentage points year-on-year, attributed to lower raw material prices and improved operational management [4] Business Segments - The raw milk segment achieved a revenue of 15.1 billion yuan in FY24, with a volume of 3.6695 million tons, a year-on-year increase of 24.6%, while the average selling price (ASP) decreased by 6.1% to 4.12 yuan/kg [3] - The company has increased its dairy cow inventory to 622,000 heads, a year-on-year increase of 6.7%, enhancing its production capacity [3] Future Outlook - The company has adjusted its revenue forecasts for FY25 and FY26 to 22.25 billion yuan and 24.49 billion yuan respectively, with an additional forecast for FY27 at 25.79 billion yuan [6] - The expected earnings per share (EPS) for FY25 and FY26 have been revised to 0.17 yuan and 0.28 yuan respectively, with a new forecast for FY27 at 0.38 yuan [7]

Financial Performance - For the year ended December 31, 2024, the company's revenue reached RMB 20,096.16 million, representing a 7.5% increase from RMB 18,693.90 million in 2023[13] - Gross profit for the same period was RMB 5,782.99 million, a significant increase of 29.4% compared to RMB 4,469.79 million in 2023[13] - The company reported a loss attributable to owners of RMB 690.89 million, which is a 34.2% improvement from a loss of RMB 1,049.98 million in 2023[13] - Cash EBITDA for the year was RMB 5,324.91 million, reflecting a 38.3% increase from RMB 3,851.42 million in the previous year[13] - The gross profit margin improved to 28.8% in 2024, up from 23.9% in 2023[20] - The company achieved a revenue growth of 7.5% year-on-year, reaching RMB 20,096 million, with gross profit increasing by 29.4% to RMB 5,783 million[30] - The raw milk business generated approximately RMB 15,100 million in revenue, a 17.0% increase compared to the previous year, accounting for 75.1% of the total revenue[56] - The company reported a revenue of RMB 20,096 million for the period, representing a 7.5% increase from RMB 18,694 million in 2023[55] - The net loss for the 2023 period was RMB 1,453 million, while the reporting period showed a loss of RMB 861 million, representing a year-on-year reduction of 40.7%[147] Production and Operations - The production of high-quality fresh milk and specialty fresh milk totaled 3,747,448 tons, with new product categories including sheep milk introduced[6] - The company expanded its herd size, operating 97 farms and managing 621,568 dairy cows and 19,164 goats as of December 31, 2024[6] - The production of controlled embryos increased by 75.7% year-on-year, exceeding 25,000 units, establishing the company as a leader in high-yield dairy cow breeding in China[6] - The annualized milk yield per cow (excluding special breeds) increased to 12.6 tons, up 5.0% from 12.0 tons in 2023[13] - The number of operational farms increased to 97, with a total dairy cow inventory exceeding 620,000, and the proportion of breeding cows rose by 3.5 percentage points to 52.3%[31] - The annual yield per breeding cow increased by 5.0% year-on-year to 12.6 tons, with the yield at the Saikexing farm rising by 8.8%[31] - Raw milk production reached 3,747,448 tons, a 24.1% increase from 3,020,182 tons in the previous year[61] - The company established a new goat farm with a planned capacity of 50,000 heads, which is the largest single goat farm in China[60] Cost Management and Efficiency - The cost of raw milk feed decreased to RMB 2.10 per kilogram, down from RMB 2.45 in 2023[21] - The average price of raw milk decreased by 5.9% year-on-year, yet raw milk business revenue grew by 17.0%[33] - The average price of fresh milk in major producing provinces decreased by 13.5% to RMB 3.32 per kilogram during the reporting period[53] - The company implemented lean management practices, resulting in a 14.3% reduction in feed costs per kilogram of raw milk[65] - The group’s total borrowings amounted to RMB 24,256 million as of December 31, 2024, down from RMB 26,259 million in 2023[162] Research and Development - R&D investment increased by 76% year-on-year, resulting in 91 core patents and participation in the formulation of 6 national and local standards[40] - The company developed the "Breeding No. 1 Chip," enhancing genetic evaluation accuracy and efficiency for dairy cows, leveraging a breeding big data platform with 9 million DHI production data sets and 30,000 phenotype identification data sets[103] - The company holds 91 core patent technologies and has launched 12 new patents during the reporting period, enhancing its technological barriers[108] - The company is advancing multiple key projects in agricultural biotechnology and dairy breeding, including the efficient production and transplantation of sex-controlled embryos[108] Sustainability and Environmental Initiatives - The company has built 11 photovoltaic pastures and upgraded energy equipment in 54 pastures, achieving a carbon credit of 49,600 tons[43] - The company aims to achieve peak carbon emissions by 2030 and carbon neutrality by 2050, actively implementing carbon reduction measures and developing carbon asset projects[117] - The group received a carbon neutrality certificate, becoming the first "zero-carbon factory" in China's feed industry, setting a benchmark for green transformation[81] - The company has implemented 11 photovoltaic farm projects, with 5 achieving green electricity self-use, significantly enhancing energy efficiency[68] Market and Customer Relations - The group reported revenue from its top five customers of RMB 15,979 million, representing 79.5% of total revenue, an increase from 73.1% in 2023[195] - Sales to the largest customer, Yili Group, generated revenue of RMB 14,323 million, accounting for 94.8% of the group's total raw milk revenue, down from 96.5% in 2023[195] - The company has maintained a long-term strategic partnership with Yili Group, ensuring stable revenue streams[195] Employee and Corporate Governance - The group’s employee count as of December 31, 2024, was 12,930, with skilled personnel making up 53.1% of the total[178] - The group has established a three-tier talent development system focusing on management delivery, competency training, and expert cultivation[181] - The company has established an Environmental, Social, and Governance (ESG) committee to assess and enhance its ESG performance[193] - The group has complied with all relevant laws and regulations without any significant violations during the reporting period[194]

Summary of the Conference Call Company Overview - The conference call was held by YouRan Dairy, focusing on the company's annual performance and future outlook for 2024. The call included presentations from the CEO and CFO, followed by a Q&A session [1][20]. Key Points Industry Context - The raw milk industry faced significant challenges in 2024, with a decrease in dairy product consumption and a prolonged oversupply situation. Raw milk prices have been declining for three consecutive years [1][3]. - The overall sales of dairy products in China decreased by 27% in 2024, with production down by 1.9% according to Nielsen data and National Bureau of Statistics [3][12]. - The number of dairy cows in the country decreased by approximately 5% in 2024, leading to a 9% decline in total raw milk production in the last quarter of the year [3][12]. Financial Performance - YouRan Dairy achieved a revenue of nearly 20.1 billion RMB in 2024, a year-on-year increase of 7.5%. The gross profit margin improved by 4.9 percentage points to 28.8% [2][13]. - The company reported a net loss of 690 million RMB, a reduction of 34.2% compared to the previous year's loss of 1.05 billion RMB [13][19]. - Cash flow from operations increased significantly, reaching 5.32 billion RMB, up 38.3% from 3.85 billion RMB in 2023 [13][17]. Operational Highlights - The average price of raw milk sold by YouRan was 4.12 RMB per kilogram, a decrease of 5.9% compared to the previous year, which is lower than the industry average price drop of 13.5% [5][16]. - The company maintained a gross margin of 32.7% for its raw milk business, reflecting effective cost control measures [6][15]. - YouRan's solution business revenue reached 5 billion RMB, with a gross margin of 16.8%, indicating a positive trend in this segment despite overall sales volume pressure [6][17]. Strategic Initiatives - YouRan Dairy is focusing on technological innovation and sustainable practices, having been recognized in the S&P Global Sustainability Yearbook [2][12]. - The company is enhancing its operational efficiency through improved management practices and the promotion of exemplary farm management models [4][6]. - YouRan is also expanding its product offerings in the feed sector, with a focus on developing new feed products and enhancing its brand portfolio [6][7]. Future Outlook - The company anticipates continued industry consolidation and expects to optimize production capacity in response to market pressures [12][23]. - There is an expectation for a recovery in the dairy market in the second half of 2025, driven by consumer confidence and government stimulus policies [23][24]. - YouRan aims to maintain its competitive edge through ongoing technological advancements and strategic management of its resources [12][19]. Additional Insights - The company has implemented a comprehensive quality management system to ensure product quality and compliance with industry standards [10][11]. - YouRan's focus on sustainable development includes the construction of solar-powered farms and the establishment of a carbon credit system [11][12]. - The management emphasized the importance of maintaining a balanced pricing strategy for both regular and specialty milk products, adapting to market conditions while ensuring profitability [42][43]. This summary encapsulates the key discussions and insights from the conference call, highlighting YouRan Dairy's performance, strategic direction, and the broader industry context.

Summary of Yuran Dairy's Conference Call Company Overview - **Company**: Yuran Dairy - **Year**: 2024 Key Financial Performance - **Total Revenue**: Increased by 7.5% to 21 billion CNY [3] - **Overall Gross Margin**: Improved by 4.9 percentage points to 28.8% [3] - **Raw Milk Revenue**: 15.1 billion CNY, up 17% year-on-year; gross profit of 4.914 billion CNY, up 33.8% [3] - **Solution Business Revenue**: 5 billion CNY with a gross margin of 16.8% [3] - **Average Annual Yield**: Increased by 5% to 12.6 tons per farm [3] Industry Insights - **Milk Production Capacity**: National milk production capacity is on a downward trend [5] - **Consumer Stimulus Policies**: Expected to improve supply-demand balance [5] - **Cost Structure**: Cost of milk sold per kilogram is 2.77 CNY, with feed costs accounting for 76% [6] - **Raw Material Prices**: Slight fluctuations expected in 2025 due to weak demand [6] Operational Efficiency - **Cost Control**: Yuran Dairy maintains cost targets through technical measures and operational optimization [7][8] - **Long-term Contracts**: Agreements with major clients ensure stable pricing and volume [3][18] Future Outlook - **Production Goals for 2025**: Targeting an average yield of 13 tons, with expected double-digit growth in production [5][11] - **Capital Expenditure**: Expected to decrease to under 600 million CNY in 2025 [22] - **Cow Herd Growth**: Anticipated to reach over 650,000 by the end of 2025 [12] Market Dynamics - **Milk Price Trends**: Prices are expected to stabilize above 2 CNY per kilogram in 2025, reflecting improved supply-demand dynamics [13] - **Impact of Tariffs**: Tariffs have limited impact on soybean meal prices; corn is primarily sourced domestically [6][10] - **Industry Consolidation**: Larger farms are better positioned to manage costs compared to smaller farms [9][16] Challenges and Risks - **Net Loss**: Company reported a net loss of 1.69 billion CNY, though this represents a 34% reduction in losses year-on-year [4] - **Cash Flow**: Cash flow improved significantly, with free cash flow turning positive [4] Strategic Initiatives - **Acquisition Strategy**: No major acquisitions planned; focus on organic growth and herd expansion [23] - **Dividend Policy**: Future dividends will depend on cash flow performance [25] Conclusion Yuran Dairy has demonstrated resilience in a challenging market, achieving growth in revenue and operational efficiency while navigating cost pressures and market dynamics. The company is well-positioned for future growth with strategic initiatives aimed at enhancing production and maintaining financial stability.

Summary of the Conference Call for YouRan Dairy Industry Company Overview - **Company**: YouRan Dairy - **Industry**: Dairy Products Key Points and Arguments 2024 Performance - YouRan Dairy faced challenges in the dairy product sales market due to lower-than-expected demand and deep structural adjustments in the industry. However, the company implemented a high-quality development strategy and lean management, resulting in overall positive business and financial indicators. - The total revenue for 2024 increased by 7.5% year-on-year, reaching 20.1 billion yuan, with a gross margin improvement of 4.9 percentage points to 28.8% [3][4] - Revenue from existing businesses was 15.1 billion yuan, a year-on-year increase of 17%, with gross profit rising by 33.8% to 4.94 billion yuan [3] Market Outlook for 2025 - YouRan Dairy anticipates a recovery in the dairy product market in the second half of 2025, achieving a basic balance between supply and demand, primarily benefiting from consumer stimulus policies and improvements in the domestic economy [3][5] - The company aims for a double-digit growth in cow structure and production, targeting an average yield of 13 tons per cow while maintaining stable gross margins and improving free cash flow [3][5] Government Policies - The government has introduced support policies to alleviate industry losses caused by falling milk prices, but the effectiveness of these measures depends on local government financial conditions. The national dairy revitalization strategy has significantly increased total production and self-sufficiency rates, but weak consumer demand continues to create supply-demand imbalances [3][6] Supply and Demand Dynamics - As of the end of 2024, the national dairy cow inventory was approximately 6.2 million heads. To achieve supply-demand balance, at least 300,000 breeding cows need to be reduced. In 2024, about 120,000 heads were reduced, but the pace of culling remains slow [3][7] - The average breeding cost has increased, with total costs around 3.5 yuan/kg, while milk prices have fallen below 3 yuan, leading to expanding losses. Slight increases in feed costs and rising beef prices may accelerate the culling of dairy cows [3][8] Price Trends - In the first quarter of 2025, spot milk prices showed a slight recovery compared to the fourth quarter of 2024, while yogurt prices remained stable [3][10][11] - The company expects a decrease in forage costs in 2025, but an increase in soybean meal and other feed costs. Overall, commodity prices are expected to remain weak with slight fluctuations [3][12] Production Cost Management - The cash cost for YouRan Dairy is 2.62 yuan, below the industry average, indicating a position near the breakeven point. The company aims to reduce production costs below 2 yuan by enhancing yield and optimizing procurement strategies [3][21][29] Strategic Developments - YouRan Dairy plans to invest in four new farms in 2025, focusing on high-quality fresh milk production. The company has also completed the construction of facilities for specialty milk products, such as goat milk [3][19] - The company’s solutions business generated 5.1 billion yuan in revenue, with a gross margin improvement of 3.4 percentage points to 16.8% [4][23] Market Share and Competitive Position - YouRan Dairy has increased its market share within the Yili group from approximately 30% in 2023 to a higher percentage in 2024, reflecting rapid sales growth [3][16] Long-term Strategic Planning - The company aims for stable growth over the next 2-3 years, focusing on maintaining operational efficiency and adjusting strategies based on overall industry conditions [3][33] Challenges and Risks - The dairy industry has faced continuous losses over the past three years, with deepening losses in 2024. The government’s support for family farms and cooperatives is crucial to stabilize basic production capacity [3][30] - Domestic milk prices are significantly lower than international prices, which may impact the domestic self-sufficiency rate and compel local dairy companies to enhance production efficiency [3][31][32] Conclusion - YouRan Dairy is navigating a challenging market environment with strategic initiatives aimed at improving operational efficiency, managing costs, and capitalizing on government support to stabilize and grow its business in the coming years [3][33]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][5][6] Core Insights - The company is a leading player in the domestic dairy farming industry, benefiting from a cyclical recovery in the market [4][6] - The company has a strong market position with a significant increase in market share from 19% to approximately 26% from 2019 to 2024 [6] - The company is expected to see a rebound in raw milk prices due to a reduction in supply and an increase in demand driven by government policies [6][9] - The company has a diversified product matrix, including organic and specialty milk products, which contribute to higher profit margins compared to regular milk [6][9] Financial Data and Forecasts - Revenue projections for the company are as follows: - 2023: 18,694 million CNY - 2024: 20,096 million CNY - 2025: 21,766 million CNY - 2026: 23,712 million CNY - 2027: 25,879 million CNY - Year-on-year growth rates for revenue are projected to be 3.6% in 2023, 7.5% in 2024, 8.3% in 2025, 8.9% in 2026, and 9.1% in 2027 [5][6] - Net profit is expected to turn positive by 2025, with projections of 679 million CNY in 2025, 1,748 million CNY in 2026, and 2,945 million CNY in 2027 [5][6] - The company’s gross margin is projected to improve from 23.9% in 2023 to 33.92% by 2027 [5][6] Industry Analysis - The domestic raw milk supply is characterized by a significant reduction in dairy cattle numbers, with a projected decline of 4.5% in Holstein cattle by 2024 [6][9] - The competitive landscape of the dairy industry is fragmented, with the top five companies holding a market share of approximately 19% [6][9] - The company benefits from a stable demand from its major shareholder, Yili Group, which accounts for about 95% of its raw milk revenue [6][9] Valuation Metrics - The company is expected to trade at a P/E ratio of 16-20 times by 2025, with a target price range of 3.00 to 3.75 HKD per share [6][9]

Summary of Yuran Dairy's Conference Call Company Overview - **Company**: Yuran Dairy - **Industry**: Dairy Industry Key Points and Arguments Milk Price Performance - Yuran Dairy's average milk price for 2024 is 4.12 CNY per kilogram, compared to the national average of 3.32 CNY per kilogram, indicating a smaller decline in milk prices than the industry average due to the company's raw milk structure advantages [3][4] - The company benefits from a cost-plus pricing model for specialty fresh milk, which constitutes 29% of its production, and higher prices in southern pastures [3][4] - Forecasts suggest that the proportion of specialty fresh milk will slightly decrease to 25%-28% in the coming years, while the production growth rate of high-quality fresh milk may exceed that of specialty fresh milk [3][4] Cost Structure and Financials - The sales cost of milk is 2.77 CNY per kilogram, with feed costs accounting for 76% (2.1 CNY) [3][5] - Cash costs are approximately 2.62 CNY per kilogram, and total expenses for heifer costs are around 4.8 billion CNY [5] - The company aims to achieve a milk yield of 13 tons per cow by 2025 and reduce sales costs to below 2.7 CNY [3][16] Market Dynamics and Policy Impact - Demand-side policies aimed at stimulating consumption may accelerate the cycle reversal but could also delay the exit of small and medium-sized farms [6][7] - The dairy industry faces a supply-demand imbalance, with a long-term reliance on imports for about 30% of raw materials [7][8] - The government emphasizes ensuring basic production capacity and encouraging high-quality development to address the reliance on imports [7][8] Fair Value Adjustments - In 2024, the company experienced a significant fair value adjustment of 3.92 billion CNY, primarily due to differences in the depreciation accounting method for breeding cows under international accounting standards [9][10] - The valuation of breeding cows decreased from approximately 31,000 CNY to 26,000 CNY per head, impacting the overall biological asset value [9][10] Future Outlook - The company anticipates a reduction in capital expenditures in 2025, with a focus on returning value to shareholders through dividends based on positive free cash flow [18][19] - The company repaid 2 billion CNY in loans in 2024 and expects further improvements in financing costs in 2025 [19] - The overall gross profit target for 2025 is expected to remain stable despite potential declines in milk prices in the first half of the year [17] Competitive Positioning - Yuran Dairy's diversified raw material structure leads to higher feed costs compared to competitors, but the company benefits from higher margins during milk price upcycles due to its high-quality milk proportion [15][21] - The company maintains a stable relationship with major clients like Yili, which accounted for 94% of its raw milk revenue in 2024 [24] Industry Trends - The rise in global dairy prices, particularly for bulk powder, is attributed to inflation and rising costs abroad, which may support domestic demand and reduce imports [25][26] Additional Important Insights - The company’s operational efficiency and management improvements are expected to provide further cost optimization opportunities [16] - The dairy industry is undergoing a transition from rapid scale expansion to a focus on high-quality development, aligning with national strategic goals [8]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [1][9] Core Views - The company has shown strong growth in raw milk business and effective cost control, with a revenue increase of 7.5% year-on-year to 20.1 billion yuan in 2024, despite a net loss of 6.91 billion yuan due to non-cash items [5][6][9] - The cash EBITDA increased significantly by 38.3% to 5.325 billion yuan, with a cash EBITDA margin of 26.5%, up 5.9 percentage points year-on-year [5] - The raw milk business revenue reached 15.101 billion yuan, a 17.0% increase, contributing 75.1% to total revenue, with total raw milk production rising by 24.2% to 3.75 million tons [6] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 20.1 billion yuan, with a year-on-year growth of 7.5% [5] - The adjusted profit showed a strong performance, with cash EBITDA of 5.325 billion yuan, reflecting a significant increase of 38.3% [5] - The gross margin improved by 4.9 percentage points to 28.8% [5] Business Segments - The raw milk segment experienced robust growth, with revenue of 15.101 billion yuan, a 17.0% increase, and total production of 3.75 million tons, up 24.2% [6] - The feed solutions segment faced short-term pressure, with revenue declining by 13.7% to 4.995 billion yuan [7] - The premium feed business saw a 44.5% increase in sales for beef and sheep, indicating a breakthrough in non-dairy feed markets [7] Future Outlook - The company anticipates a gradual recovery in raw milk prices and an increase in production, with projected revenues of 21.856 billion yuan, 22.886 billion yuan, and 23.642 billion yuan for 2025, 2026, and 2027 respectively [9][11] - The earnings per share (EPS) are expected to improve from -0.06 yuan in 2025 to 0.23 yuan in 2027 [9][11]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [1][9] Core Views - The company has shown strong growth in raw milk business and effective cost control, with a revenue increase of 7.5% year-on-year to 20.1 billion yuan in 2024, despite a net loss of 6.91 billion yuan due to non-cash items [5][6] - The cash EBITDA increased significantly by 38.3% to 5.325 billion yuan, with a cash EBITDA margin of 26.5%, up 5.9 percentage points year-on-year [5] - The raw milk business revenue reached 15.101 billion yuan, a 17.0% increase, contributing 75.1% to total revenue, with total raw milk production rising by 24.2% to 3.75 million tons [6] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 20.1 billion yuan, with a year-on-year growth of 7.5% [5] - The adjusted profit showed a strong performance, with cash EBITDA of 5.325 billion yuan, reflecting a significant increase of 38.3% [5] - The gross margin improved by 4.9 percentage points to 28.8%, while the selling and administrative expense ratios slightly decreased [5] Business Segments - The raw milk segment experienced robust growth, with revenue of 15.101 billion yuan, a 17.0% increase, and total raw milk production reaching 3.75 million tons [6] - The company optimized its cost structure, reducing feed costs by 14.3% to 2.10 yuan per kilogram [6] - The solutions segment faced short-term pressure, with a revenue decline of 13.7% to 4.995 billion yuan [7] Future Outlook - The company anticipates a gradual recovery in raw milk prices and an increase in production, with projected revenues of 21.856 billion yuan, 22.886 billion yuan, and 23.642 billion yuan for 2025, 2026, and 2027 respectively [9][11] - The earnings per share (EPS) are expected to improve from -0.06 yuan in 2025 to 0.23 yuan in 2027, indicating a positive trend in profitability [9][11]

Core Viewpoint - The article discusses the performance and competitive advantages of YouRan, highlighting its revenue growth, milk production, and unique market positioning through specialty milk products supported by Yili [3][4][5]. Financial Performance - YouRan's raw milk revenue reached 15.1 billion RMB in 2024, up 17% from 12.9 billion RMB in 2023, while raw milk production increased to 3.75 million tons, a 24.1% rise from 3.02 million tons in the previous year [3]. - The average price of raw milk was 4.12 RMB per kg, down 5.9% from 4.38 RMB, indicating that revenue growth did not keep pace with production growth [3]. - The company reported a loss in the second half of the year due to a 5 billion RMB impairment charge on property and equipment, primarily because of reduced sales in the feed business [6]. Market Positioning - YouRan's milk price is significantly higher than the national average, which has been around 3.15 RMB, due to its specialty milk products and support from Yili [4][5]. - The company has expanded its dairy herd to 622,000 cows, a 27% increase compared to Modern Dairy's 490,000 cows, and has introduced 20,000 goats for specialty milk production [5]. Operational Insights - The proportion of breeding cows increased to 52.3%, which is expected to lower costs in the future, although growth rates may slow down [5]. - The feed business saw a decline in revenue from 5.8 billion RMB last year to 5 billion RMB this year, indicating operational challenges [6]. Profitability Metrics - The gross profit margin for raw milk improved to 32.7% in 2024, up nearly 4 percentage points from 28.6% in 2023, reflecting better cost management despite lower sales volumes [11]. - EBITDA and pre-impairment profits showed significant growth, but comparisons with mid-year results indicate that earlier performance was even stronger [12].