Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 1,567,692 thousand, a decrease of 4.6% compared to RMB 1,643,416 thousand in the same period of 2023[1] - Sales revenue for the same period was RMB 1,490,702 thousand, down 4.7% from RMB 1,565,011 thousand year-on-year[1] - The company reported a gross profit of RMB 394,509 thousand, reflecting a decline of 5.7% from RMB 418,289 thousand in the previous year[1] - The EBITDA profit increased by 9.8% to RMB 404,740 thousand, compared to RMB 368,563 thousand in the prior year[1] - The company reported a net loss of RMB 145,510,000 for the six months ended June 30, 2024, compared to a profit of RMB 21,274,000 for the same period in 2023, representing a significant decline in performance[7] - Total comprehensive loss for the period amounted to RMB 149,510,000, a stark contrast to the comprehensive income of RMB 22,274,000 in the previous year[7] - The group reported a loss attributable to equity holders of the parent company of RMB (143,681) thousand for the six months ended June 30, 2024, compared to a profit of RMB 23,327 thousand for the same period in 2023[24] Assets and Liabilities - Non-current assets totaled RMB 6,407,815,000 as of June 30, 2024, showing an increase from RMB 6,361,869,000 at the end of 2023[8] - Current assets decreased to RMB 1,649,276,000 from RMB 2,155,042,000, indicating a reduction in liquidity[8] - The company's cash and bank balances increased to RMB 626,622,000 from RMB 552,429,000, reflecting improved cash management[8] - The net current liabilities improved to RMB 660,223,000 from RMB 867,205,000, suggesting better short-term financial health[13] - Total liabilities decreased from RMB 4,236,255,000 at the end of 2023 to RMB 4,082,483,000 as of June 30, 2024, indicating a reduction in overall debt[10] - The company's equity attributable to shareholders decreased from RMB 4,023,068,000 to RMB 3,872,507,000, reflecting a decline in shareholder value[11] Operational Highlights - The sales volume for the period was 350,848 tons, representing a growth of 3.2% from 340,086 tons in the same period last year[1] - The average annual milk yield per cow reached 12.07 tons, an increase of 10.3% from 10.94 tons year-on-year[1] - The company has completed the construction of an intelligent farm in Ulanqab and Desert Base, which is now operational with approximately 3,800 dairy cows[2] - The company imported about 4,600 high-quality young Holstein cows during the period, enhancing the quality of its herd[2] - The company operated 34 farms as of June 30, 2024, with a total herd size of 148,101, showing a slight increase from 148,029 at the end of 2023[33] - The average selling price of raw milk for the group was RMB 4.25 per kilogram, a year-on-year decrease of 7.7%[35] Cost and Efficiency - The cost of goods sold for the six months ended June 30, 2024, was RMB 1,096,193 thousand, down from RMB 1,146,722 thousand in the same period of 2023[20] - The cost of milk sales per kilogram decreased by RMB 0.25 to RMB 3.12 per kilogram, with feed costs at RMB 2.51 per kilogram, down RMB 0.24 year-on-year[35] - The gross profit margin for the first half of the year was 26.5%, nearly unchanged from 26.7% in the same period of 2023[35] - The group increased the culling rate of low-efficiency cows, resulting in a 4.1% decrease in the self-breeding expansion rate[36] - The cost of sales for raw milk was RMB 1,096.2 million, down 4.4% from RMB 1,146.7 million in 2023, benefiting from improved operational efficiency and lower feed costs[40] Sustainability and ESG Initiatives - The company has joined the World Business Council for Sustainable Development (WBCSD), marking a significant step in its commitment to sustainability[3] - The group received the "ESG Disclosure Contribution Pioneer Award" for its outstanding performance in ESG and sustainability efforts[38] - The group successfully issued a green loan of RMB 100 million, marking a significant step in ESG financing in Inner Mongolia[38] Management and Governance - The company has implemented a long-term share incentive plan with a total allocation of RMB 105,000,000 over three years, with the third batch of RMB 35,000,000 granted to 62 selected participants in April 2024[28] - The audit committee consists of two independent non-executive directors and one non-executive director, with Mr. Wang Liyan as the chairman[67] - Ernst & Young has agreed to the financial data presented for the six months ending June 30, 2024, but does not provide any guarantees regarding the performance announcement[68] Market Context - In the first half of 2024, China's GDP reached RMB 61,683.6 billion, growing by 5.0% year-on-year, while retail sales of consumer goods increased by 3.7% to RMB 23,596.9 billion[29] - The dairy industry faced challenges with a 3.0% year-on-year decline in production from large-scale dairy manufacturers, totaling 14.33 million tons in the first half of 2024[29] - The average price of raw milk in major producing provinces was RMB 3.3 per kg in June 2024, down 13.7% year-on-year, marking the longest continuous decline in 28 months[30]
中国圣牧(01432) - 2024 - 中期业绩