YILI(600887)2024-08-29 09:43Financial Performance - Revenue for the first half of 2024 was RMB 59.70 billion, a decrease of 9.53% year-over-year[11] - Net profit attributable to shareholders was RMB 7.53 billion, an increase of 19.44% year-over-year[11] - Basic earnings per share (EPS) for the first half of 2024 was RMB 1.18, up 19.19% compared to the same period last year[11] - Operating cash flow for the first half of 2024 was RMB 5.33 billion, a decrease of 11.42% year-over-year[11] - Weighted average return on equity (ROE) was 13.18%, an increase of 1.32 percentage points compared to the same period last year[11] - The company achieved total operating revenue of 59.915 billion yuan and a net profit of 7.573 billion yuan in the reporting period[21] - Net profit after deducting non-recurring gains and losses decreased by 12.81% to 5.324 billion RMB[105] - Total operating income for the first half of 2024 was RMB 59.91 billion, a decrease of 9.5% compared to RMB 66.20 billion in the same period of 2023[110] - Operating costs for the first half of 2024 were RMB 53.28 billion, a decrease of 9.6% compared to RMB 58.94 billion in the same period of 2023[110] - Net profit for the first half of 2024 was RMB 8.75 billion, an increase of 19.4% compared to RMB 7.33 billion in the same period of 2023[110] - Net profit attributable to parent company shareholders reached RMB 7.53 billion, a 19.4% increase from RMB 6.31 billion in the previous year[111] - Total comprehensive income for the period was RMB 7.23 billion, up 12.8% from RMB 6.41 billion in the prior year[111] - Basic earnings per share increased to RMB 1.18, compared to RMB 0.99 in the previous year[111] - Parent company's net profit rose 30.3% to RMB 8.81 billion from RMB 6.77 billion in the prior year[113] - Investment income for the parent company surged 90.4% to RMB 5.78 billion from RMB 3.04 billion in the previous year[113] - Parent company's operating profit increased by 26.4% to RMB 9.20 billion from RMB 7.28 billion in the prior year[113] - Parent company's total comprehensive income grew 30.1% to RMB 8.81 billion from RMB 6.77 billion in the previous year[113] - Sales revenue from goods and services in the first half of 2024 was RMB 60.73 billion, a decrease of 9.6% compared to RMB 67.18 billion in the same period of 2023[114] - Net cash flow from operating activities in the first half of 2024 was RMB 5.33 billion, a decrease of 11.4% compared to RMB 6.01 billion in the same period of 2023[114] - Cash received from selling goods and providing services in the first half of 2024 was RMB 60.73 billion, a decrease of 9.6% compared to RMB 67.18 billion in the same period of 2023[114] - Cash paid for goods and services in the first half of 2024 was RMB 45.73 billion, a decrease of 11.8% compared to RMB 51.84 billion in the same period of 2023[114] - Net cash flow from investing activities in the first half of 2024 was negative RMB 2.71 billion, an improvement from negative RMB 11.09 billion in the same period of 2023[115] - Cash received from investments in the first half of 2024 was RMB 1.16 billion, an increase of 27.3% compared to RMB 910.88 million in the same period of 2023[115] - Cash paid for investments in the first half of 2024 was RMB 2.02 billion, a significant decrease of 77.4% compared to RMB 8.97 billion in the same period of 2023[115] - Net cash flow from financing activities in the first half of 2024 was negative RMB 1.15 billion, compared to positive RMB 8.85 billion in the same period of 2023[115] - Cash received from borrowings in the first half of 2024 was RMB 130.43 billion, a decrease of 14.6% compared to RMB 152.79 billion in the same period of 2023[115] - Cash and cash equivalents at the end of the first half of 2024 were RMB 44.24 billion, an increase of 19.6% compared to RMB 36.99 billion at the end of the first half of 2023[115] - Sales revenue from goods and services received in cash decreased to 54.06 billion yuan in the first half of 2024, compared to 60.26 billion yuan in the same period of 2023[116] - Net cash flow from operating activities significantly dropped to 1.32 billion yuan in the first half of 2024, down from 27.35 billion yuan in the first half of 2023[116] - Net cash flow from investing activities improved to 3.33 billion yuan in the first half of 2024, compared to a negative 7.45 billion yuan in the same period of 2023[116] - Net cash flow from financing activities was negative 2.99 billion yuan in the first half of 2024, an improvement from negative 14.17 billion yuan in the first half of 2023[116] - The company distributed dividends and profits amounting to 7.64 billion yuan in the first half of 2024[117] - The ending balance of cash and cash equivalents increased to 25.16 billion yuan by the end of the first half of 2024, up from 23.01 billion yuan at the end of the same period in 2023[116] - Total owner's equity decreased slightly to 56.76 billion yuan by the end of the first half of 2024, down from 57.32 billion yuan at the beginning of the period[117] - Owner's equity decreased by 653.9 million yuan in the first half of 2024, from 54.14 billion yuan to 53.49 billion yuan[119][120] - Comprehensive income for the period was 6.41 billion yuan, with 6.32 billion yuan attributable to parent company owners[119] - Profit distribution to shareholders amounted to 6.62 billion yuan[120] - Capital reserve decreased by 880.9 million yuan, mainly due to a reduction in owner's capital investment[119] - Treasury stock decreased by 370.5 million yuan[119] - Minority shareholders' equity increased by 185.7 million yuan[119] - Other comprehensive income showed a positive adjustment of 466,807.67 yuan[119] - Retained earnings decreased by 296.7 million yuan[119] - Other equity instruments increased by 60.1 million yuan[120] - The company's total assets stood at 53.49 billion yuan as of the end of the reporting period[120] - Total owner's equity at the end of the period increased to CNY 44.53 billion, up from CNY 43.46 billion at the beginning of the period[121] - Comprehensive income for the period amounted to CNY 8.81 billion[121] - Capital reserve increased by CNY 20.3 million during the period[121] - Retained earnings grew by CNY 1.18 billion, reaching CNY 23.04 billion at the end of the period[121] - Total owner's equity decreased by CNY 455.56 million compared to the previous period, ending at CNY 41.61 billion[122] - Comprehensive income for the period was CNY 6.77 billion[122] - Capital reserve decreased by CNY 941.01 million during the period[122] - Retained earnings increased by CNY 164.43 million, reaching CNY 20.36 billion at the end of the period[122] Assets and Liabilities - Total assets as of the end of the reporting period were RMB 149.89 billion, a decrease of 1.14% compared to the end of the previous year[11] - Overseas assets amounted to RMB 18.79 billion, accounting for 12.53% of total assets[33] - Contract liabilities decreased by 49.06% to RMB 4.43 billion, mainly due to reduced prepayments from distributors[30] - Long-term borrowings decreased by 36.89% to RMB 7.39 billion, with a significant portion reclassified as current liabilities[30] - Investments in associates and joint ventures increased slightly by 0.50% to RMB 4.43 billion, generating RMB 39.57 million in investment income[35] - Total assets decreased slightly to 1.499 trillion RMB, with current assets at 689.951 billion RMB and non-current assets at 808.950 billion RMB[106] - Total liabilities decreased to 93.13 billion RMB from 94.30 billion RMB year-over-year[107] - Short-term borrowings increased to 48.24 billion RMB from 39.75 billion RMB[107] - Accounts payable decreased to 13.25 billion RMB from 13.80 billion RMB[107] - Contract liabilities decreased to 4.43 billion RMB from 8.70 billion RMB[107] - Total current liabilities increased to 80.14 billion RMB from 76.86 billion RMB[107] - Long-term borrowings decreased to 7.39 billion RMB from 11.71 billion RMB[107] - Total non-current liabilities decreased to 12.99 billion RMB from 17.44 billion RMB[107] - Total assets increased to 122.99 billion RMB from 117.51 billion RMB[108] - Cash and cash equivalents increased to 25.43 billion RMB from 24.01 billion RMB[108] - Long-term equity investments increased to 53.77 billion RMB from 50.77 billion RMB[108] - Total liabilities as of June 2024 were RMB 78.46 billion, an increase of 6.0% compared to RMB 74.05 billion in June 2023[109] - Short-term borrowings as of June 2024 were RMB 12.31 billion, an increase of 101.4% compared to RMB 6.11 billion in June 2023[109] - Accounts payable as of June 2024 were RMB 12.29 billion, a decrease of 5.2% compared to RMB 12.96 billion in June 2023[109] - Contract liabilities as of June 2024 were RMB 4.01 billion, a decrease of 50.6% compared to RMB 8.12 billion in June 2023[109] - Long-term borrowings as of June 2024 were RMB 6.91 billion, a decrease of 37.7% compared to RMB 11.09 billion in June 2023[109] - Total equity as of June 2024 was RMB 44.53 billion, an increase of 2.5% compared to RMB 43.46 billion in June 2023[109] Business Operations - New product revenue accounted for 15.2% of total revenue, driven by products like "Anmuxi" probiotic yogurt and "Jinlingguan" organic HMOs infant formula[16] - Overseas business revenue increased by 4% year-over-year, with organic growth in Southeast Asia reaching 7% excluding currency effects[16] - The company accelerated digital transformation across the entire industry chain, leveraging AI, IoT, and big data, and launched the YILI-GPT model to enhance efficiency[16] - Domestic raw milk supply growth exceeded demand growth, leading to a short-term imbalance and downward pressure on retail prices[16] - The company operates in six major product categories: liquid milk, infant nutrition, adult nutrition, frozen beverages, yogurt, and cheese[14] - The company employs a centralized procurement model for raw materials to enhance bargaining power and capital efficiency[14] - The company utilizes a global production network, leveraging advantages in Asia, Oceania, and Europe to ensure high-quality product output[14] - The company focuses on digital marketing and content marketing to enhance brand awareness and reputation[14] - The company's overseas subsidiaries, such as THE CHOMTHANA COMPANY LIMITED and PT Yili Indonesia Dairy, focus on producing and selling products like milk powder and cheese globally[14] - Liquid milk business generated revenue of 36.887 billion yuan, maintaining the top market share in the industry[21] - The penetration rate of room-temperature liquid milk in household consumption increased by 0.8% year-on-year, with purchase frequency rising by 2.2%[17] - In lower-tier cities, the penetration rate of household consumption increased by 1.9% year-on-year, and purchase frequency rose by 2.4%[17] - The company's milk powder and dairy products business achieved revenue of 14.509 billion yuan, a year-on-year increase of 7.31%[22] - The company holds 919 domestic and international invention patents, an increase of 81 from the end of the previous year[20] - The company operates 81 production bases globally, with products sold in 60 countries and regions, and a total production capacity of 16.31 million tons per year[20] - The company's MSCI ESG rating was upgraded to AA, the highest among Chinese dairy companies[20] - The company launched the world's first room-temperature probiotic yogurt under the "Ambrosial" brand, addressing the challenge of maintaining active probiotics in long-shelf-life yogurt[22] - The company's "Golden Classic" brand continued to increase its market share, driven by organic product upgrades[22] - The company's infant formula retail sales market share increased by 1.7 percentage points year-on-year to 16.9%, with sales achieving growth against the trend[23] - Adult milk powder retail sales market share rose by 0.5 percentage points year-on-year to 24.3%, maintaining the top market position[23] - Cheese business offline retail sales market share reached 18.8%, up 1.2 percentage points year-on-year, with traditional channel retail sales market share increasing by 5.5 percentage points to 25.7%[23] - Cold beverage business revenue reached 7.322 billion yuan, maintaining the top market position[24] - The company successfully developed internationally leading probiotic encapsulation technology and commercialization equipment, achieving breakthrough results in promoting probiotic efficacy[25] - The company launched the dairy industry's first large model application, YILI-GPT, applying AI capabilities across core business areas[26] - Overseas ice cream brand Joyday was selected for the IOC global brand list in the food and beverage industry[26] - The company initiated the "Lactating Cow Yield Improvement Project" to lead high-quality development in the industry[26] - The company's 28 laboratories have obtained CNAS laboratory accreditation certificates, enhancing quality management and consumer satisfaction[24] - The company's "Jinlingguan" organic HMOs infant formula drove double-digit sales growth in the organic series[23] Investments and Financial Instruments - Dada Group's stock investment had an initial cost of 10,050,000.00 yuan, with a fair value change loss of -6,043,560.82 yuan, resulting in an ending book value of 3,708,554.47 yuan[38] - SenseTime Group's stock investment had an initial cost of 15,449,703.36 yuan, with a fair value change gain of 243,338.45 yuan, resulting in an ending book value of 2,001,069.10 yuan[38] - ANE Logistics' stock investment had an initial cost of 10,000,000.00 yuan, with a fair value change gain of 5,509,933.90 yuan, resulting in an ending book value of 32,028,020.29 yuan[38] - Inner Mongolia Yili Industrial Group's investment in private equity funds amounted to 1,534,379,413.42 yuan as of the reporting period[39] - Yili's commodity futures investment had a fair value change loss of -518,988.64 yuan, resulting in an ending book value of -416,362.71 yuan[40] - Yili's foreign exchange derivatives investment had an initial book value of 90,680,896.17 yuan, with a fair value change loss of -76,601,247.01 yuan, resulting in an ending book value of 12,804,417.96 yuan[40] - Yili's total derivative investments had a fair value change loss of -449,313.64 yuan, resulting in an ending book value of 12,388,055.25 yuan[40] - Yili's commodity futures and options generated a net loss of -44.93 million yuan, while foreign exchange derivatives generated a net loss of -1,294.31 million yuan[40] - Yili's derivative investments for hedging purposes had a total fair value change loss of -7,694.85 million yuan[41] - Yili's board approved derivative investments on April 30, 2024, and the shareholders' meeting approved them on May 21, 2024[41] - Hong Kong Jin Gang Trading Holdings Co., Ltd. reported a net loss of 4,444.67 million yuan with total assets of 3,104,216.32 million yuan and net assets of 1,733,129.25 million yuan[43] - Yili Finance Co., Ltd. achieved a net profit of 22,558.00 million yuan with total assets of 1,720,500.67 million yuan and net assets of 199,428.93 million yuan[43] - Inner Mongolia Sheng Tai Venture Capital Co., Ltd. recorded a net profit of 216,409.17 million yuan with total assets of 356,074.32 million yuan and net assets of 351,862.67 million yuan[43] - Ningxia Yili Dairy Co., Ltd. reported a net profit of 36,220.81 million yuan with total assets of 233,948.51 million yuan and net assets of 154,687.25 million yuan[43] Risk Management - The company faces supply risks due to potential fluctuations in imported raw material prices influenced by geopolitical and international trade policies[44] - Financial risks are heightened as the company's international strategy progresses, with increased exposure to exchange rate and trade policy fluctuations[44] - The company emphasizes the importance of food safety and continuously improves its global quality management system to mitigate product quality risks[44] - Two subsidiaries, Fuxin Yili Dairy Co., Ltd. and Zhumadian Yili Dairy Co., Ltd., were dissolved[44] Corporate Governance