Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 10,054,941 thousand, representing a 10.8% increase from RMB 9,076,655 thousand in the same period of 2023[2]. - Gross profit for the period was RMB 2,848,892 thousand, compared to a loss of RMB 330,873 thousand in the previous year, marking a significant improvement of 36.1%[2]. - EBITDA for the period was RMB 2,623,640 thousand, reflecting a 45.3% increase from RMB 1,805,286 thousand in the prior year[2]. - Net profit before adjustments for biological asset fair value changes was RMB 1,804,038 thousand, a 77.0% increase from RMB 1,019,399 thousand in the same period last year[2]. - The company reported a net loss of RMB 466,707 thousand for the period, a significant reduction from a loss of RMB 1,243,568 thousand in the same period of 2023[5]. - The total comprehensive loss for the period was RMB 497,596 thousand, a decrease from RMB 1,398,494 thousand in the same period last year[5]. - The company reported a pre-tax loss of RMB 403,722 thousand for the six months ended June 30, 2023[18]. - The company reported a loss of RMB 2,270,745 thousand from the fair value of biological assets less cost of sales for the six months ended June 30, 2023[18]. - The company reported a net foreign exchange gain of RMB 203 thousand for the six months ended June 30, 2024, compared to a loss of RMB 725 thousand in 2023, indicating a positive turnaround[26]. - The company reported a total of RMB 563,188,000 in notes payable as of June 30, 2024, down from RMB 764,849,000 as of December 31, 2023, indicating a decrease of approximately 26.4%[46]. Revenue Breakdown - Revenue for raw milk sales reached RMB 7,320,419 thousand in 2024, up from RMB 6,156,918 thousand in 2023, representing a growth of approximately 18.9%[15]. - Revenue from raw milk sales reached RMB 6,901,033 thousand for the six months ended June 30, 2024, compared to RMB 5,978,328 thousand in the same period of 2023, representing an increase of approximately 15.4%[23]. - The company’s segment performance for raw milk business showed external customer revenue of RMB 7,320,419 thousand and inter-segment revenue of RMB 865,926 thousand[17]. - The group’s total segment revenue for the six months ended June 30, 2024, was RMB 9,076,655 thousand, with a segment performance of RMB 1,521,299 thousand[20]. - The revenue from the ruminant animal breeding systematic solutions segment was approximately RMB 2.73 billion, accounting for about 27.2% of the group's total revenue during the reporting period[51]. Cost and Expenses - Total sales cost amounted to RMB 9,328,073 thousand for the six months ended June 30, 2024, up from RMB 8,552,343 thousand in 2023, indicating a year-over-year increase of about 9.1%[24]. - The sales cost of raw milk business increased by 12.1% from RMB 4,414 million in mid-2023 to RMB 4,946 million during the reporting period, mainly due to the commissioning of new farms and an increase in the number of dairy cows[98]. - Administrative expenses increased by 3.8% from RMB 361 million to RMB 375 million, mainly due to increased insurance investments for new farms and additional cattle[108]. - The group’s employee benefits expenses, including salaries and allowances, totaled RMB 923,357 thousand for the six months ended June 30, 2024, compared to RMB 867,023 thousand for the same period in 2023[31]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 35,018,887 thousand, an increase from RMB 34,793,319 thousand as of December 31, 2023, representing a growth of approximately 0.65%[6]. - Current liabilities decreased to RMB 19,501,634 thousand from RMB 20,914,580 thousand, a reduction of about 6.73%[7]. - Non-current liabilities decreased to RMB 11,345,734 thousand from RMB 12,186,453 thousand, reflecting a decline of approximately 6.92%[7]. - The company's net asset value as of June 30, 2024, was RMB 12,601,099 thousand, down from RMB 13,098,695 thousand, a decrease of about 3.79%[7]. - The total amount of capitalized borrowing costs for qualifying assets was RMB 477,818 thousand for the six months ended June 30, 2024, compared to RMB 591,951 thousand in 2023, reflecting a decrease of approximately 19.3%[28]. Cash Flow - The net cash generated from operating activities was RMB 3,343 million for the first half of 2024, up from RMB 2,666 million in the same period last year[119]. - The net cash used in investing activities was RMB 3,958 million, primarily due to payments for biological assets, property, plant, and equipment[120]. - Net cash used in financing activities for the reporting period was RMB 2,199 million, primarily due to new bank and other borrowings of RMB 9,670 million and repayment of bank and other borrowings principal and interest of RMB 11,737 million[121]. - The group experienced a net decrease in cash and cash equivalents of RMB 2,813 million during the reporting period[119]. Operational Highlights - The company continues to focus on the production and sale of raw milk and related products, maintaining its core business strategy in the Chinese market[8]. - The annualized milk yield per cow (excluding heifers) increased to 12.6 tons, up 3.3% from 12.2 tons in the previous year[2]. - Raw milk production reached 1,796,950 tons for the six months ended June 30, 2024, representing a 25.0% increase compared to 1,437,138 tons in the same period of 2023[54]. - The total number of dairy cows increased by 3.2% to 601,294 as of June 30, 2024, from 582,739[53]. - The number of operational farms increased by 5 to 96 as of June 30, 2024, compared to 91 as of December 31, 2023[53]. Strategic Initiatives - The company has forecasted sufficient cash flow to meet its liabilities for at least the next 12 months, based on management's cash flow projections[10]. - The company is actively promoting digital management practices to enhance operational efficiency and reduce costs[49]. - The group is collaborating with Inner Mongolia Agricultural University on research to reduce methane emissions from dairy cows, leading to effective progress in the development of feed additives[62]. - The group has established a data-driven solution to enhance herd feeding efficiency, implementing lean management practices to improve production benefits[65]. - The group is committed to achieving carbon peak by 2030 and carbon neutrality by 2050, integrating sustainable development into its business strategy[89]. Governance and Compliance - The company has adopted corporate governance principles to promote effective internal control measures and enhance transparency and accountability to shareholders[133]. - The company established an Audit Committee in compliance with Listing Rule 3.21, consisting of three members, with the chair being an independent non-executive director possessing relevant professional qualifications[136]. - The company has formed an ESG Committee effective from August 23, 2024, to oversee ESG strategy planning, risk management, and policy setting[137]. - The company has established a comprehensive talent development system, integrating training and practical experience to cultivate elite talent[129].
优然牧业(09858) - 2024 - 中期业绩