Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 7,291,767 thousand, representing a 36.4% increase from RMB 5,344,427 thousand in the same period of 2020[7]. - The profit before tax was RMB 1,216,671 thousand, a significant increase of 57.9% compared to RMB 770,547 thousand in the previous year[7]. - The net profit attributable to the owners of the company was RMB 935,275 thousand, reflecting a 27.9% increase from RMB 731,249 thousand in the same period of 2020[7]. - The company achieved a profit of RMB 1,188 million, a 59.6% increase compared to RMB 744 million for the six months ended June 30, 2020[10]. - The group recorded a gross profit of RMB 1,757 million for the six months ended June 30, 2021, compared to RMB 1,299 million for the same period in 2020, with a gross margin of 40.4% down from 40.7%[29]. - The net profit for the six months ended June 30, 2021, was RMB 1,187,518 thousand, representing a 60% increase compared to RMB 744,059 thousand in the prior year[69]. - The total comprehensive income for the period was RMB 1,229,514 thousand, compared to RMB 752,896 thousand in the same period last year[69]. - The group reported a profit before tax of RMB 1,217 million for the six months ended June 30, 2021, compared to RMB 771 million for the same period in 2020[33]. Revenue Breakdown - Raw milk business revenue reached RMB 4,351,943 thousand, up 36.3% from RMB 3,192,968 thousand year-on-year[7]. - Raw milk production rose by 23.2% from 769,260 tons for the six months ended June 30, 2020, to 947,764 tons during the reporting period[12]. - The feed business revenue grew by 37.2% from RMB 1,977 million to RMB 2,712 million, accounting for 37.2% of the company's total revenue[13]. - Sales of raw milk amounted to RMB 4,351,943 thousand, up from RMB 3,192,968 thousand, representing a 36.2% year-over-year growth[82]. - The sales of feed reached RMB 2,711,981 thousand, a 37.2% increase from RMB 1,977,149 thousand in the prior year[82]. Operational Growth - The number of dairy cows increased to 375,654, a growth of 30.9% from 287,045 in the previous year[7]. - The company operates 73 modern farms across 15 provinces in China, with 48 large-scale farms housing over 5,000 heads of livestock each[14]. - The company integrated acquired businesses, leading to improved operational efficiency and increased scale in its raw milk operations[11]. - The company is expanding its raw milk business by constructing new farms and a feed production base in multiple provinces, including Inner Mongolia and Shandong[23]. - The company completed the acquisition of all equity interests in Fonterra China Farms for a consideration of RMB 2,530 million on April 1, 2021[46]. Market Trends - The Chinese dairy product retail sales volume is projected to grow from 31.1 million tons in 2020 to 33.3 million tons in 2021, with a compound annual growth rate of 5.7% expected until 2025[8]. - The average raw milk price in China's top 10 producing provinces experienced double-digit growth during the reporting period due to increased downstream market demand[8]. - The market for dairy cow frozen semen is on the rise, driven by the need to expand herd sizes effectively, particularly with sexed frozen semen gaining popularity among Chinese farms[8]. Investment and Financing - The net cash used in investing activities for the reporting period was RMB 4,792 million, primarily due to payments for biological assets of RMB 1,759 million and acquisition of subsidiaries for RMB 2,490 million[41]. - The net cash generated from financing activities was RMB 4,338 million, mainly attributed to proceeds from global offerings of RMB 2,855 million and new bank borrowings of RMB 7,503 million[42]. - The company completed the acquisition of 100% equity in Fonterra (Yutian) Farm Co., Ltd. and Fonterra (Yingxian) Farm Co., Ltd. on April 1, 2021, enhancing its market presence[77]. Cash Flow and Liquidity - For the six months ended June 30, 2021, the net cash generated from operating activities was RMB 1,594 million, compared to RMB 1,238 million for the same period in 2020, representing an increase of 28.9%[40]. - The company's cash and cash equivalents increased to RMB 3,776,602 thousand as of June 30, 2021, up from RMB 1,594,505 thousand at the end of the same period in 2020, indicating a significant improvement in liquidity[75]. - Operating cash flow for the six months ended June 30, 2021, was RMB 1,594,270 thousand, compared to RMB 1,237,633 thousand for the same period in 2020, reflecting a growth of approximately 29%[75]. Shareholder Information - As of June 30, 2021, PAG Holdings Limited holds 1,934,013,555 shares, representing 50.96% of the total shares outstanding[56]. - Major shareholders include PAG Dairy GP I Limited with 1,562,429,904 shares (41.17%) and Yili with 1,320,800,000 shares (34.80%) as of June 30, 2021[56][59]. - The total number of issued shares as of June 30, 2021, is 3,795,404,000[58]. Future Outlook - The company has provided a performance guidance for the second half of 2021, expecting a revenue growth of 25% year-over-year[150]. - New product launches are anticipated to contribute an additional RMB 300 million in revenue by the end of 2021[150]. - The company plans to enter into strategic partnerships with local distributors to enhance supply chain efficiency, aiming for a 15% reduction in logistics costs[150]. - The company has set a target to achieve a net profit margin of 12% by the end of 2021, up from 10% in the previous year[150].