Financial Performance - Revenue increased by 10.8% to RMB 10,054.9 million in the first half of 2024 compared to the same period in 2023[6] - Gross profit surged by 36.1% to RMB 2,848.9 million, with gross margin improving significantly[6] - Net loss attributable to owners narrowed by 66.6% to RMB 330.9 million[6] - Cash EBITDA grew by 45.3% to RMB 2,623.6 million[6] - Profit before biological asset fair value adjustment increased by 77.0% to RMB 1,804.0 million[6] - Revenue from raw milk business reached RMB 7.32 billion, accounting for 72.8% of total revenue, an increase of 18.9% compared to mid-2023[14] - Revenue from ruminant farming system solutions reached RMB 2.73 billion, accounting for 27.2% of total revenue[15] - Revenue increased by 10.8% from RMB 9,077 million in the first half of 2023 to RMB 10,055 million in the reporting period[48] - Gross profit margin rose to 28.3% from 23.1% in mid-2023, with raw milk business gross margin increasing to 32.4% from 28.3%, driven by lower procurement costs and improved operational efficiency[56] - Sales cost increased by 9.1% to RMB 9,328 million, mainly due to the growth in raw milk business and the impact of fair value adjustments on agricultural products[51][52] - Feed cost for high-quality and specialty raw milk decreased by 12.9% to RMB 2.17/kg, attributed to improved feed conversion rates and procurement cost control[53] - Revenue from ruminant farming solutions decreased by 6.3% to RMB 2,735 million, reflecting strategic adjustments in sales and cost control measures[50] - Other income increased by 46.8% to RMB 265 million, driven by higher subsidies and interest income[59] - Sales and distribution expenses increased slightly by 1.1% to RMB 305 million, but the ratio to revenue decreased to 3.0% from 3.3% due to efficient cost management[61] - Administrative expenses rose by 3.8% to RMB 375 million, mainly due to increased insurance costs for new farms and herds, but the ratio to revenue dropped to 3.7%[62] - Other expenses increased by 26.4% from RMB 38 million in mid-2023 to RMB 48 million in the reporting period, primarily due to increased R&D investment[63] - Financing costs decreased by 17.6% from RMB 562 million in mid-2023 to RMB 463 million in the reporting period, mainly due to optimized debt structure[63] - Pre-tax loss improved from RMB 1,206 million in mid-2023 to RMB 404 million in the reporting period[63] - Income tax expenses increased by 69.1% from RMB 37 million in mid-2023 to RMB 63 million in the reporting period, driven by growth in taxable business profits[63] - Net loss improved from RMB 1,244 million in mid-2023 to RMB 467 million in the reporting period, supported by increased raw milk sales volume, lower unit sales cost, and reduced financing costs[63] - Cash EBITDA increased from RMB 1,805 million in 2023 to RMB 2,624 million in the reporting period[67] - Operating cash flow increased from RMB 2,666 million in mid-2023 to RMB 3,343 million in the reporting period[72] - Investment cash outflow decreased from RMB 6,694 million in mid-2023 to RMB 3,958 million in the reporting period, mainly due to reduced payments for biological assets and financial assets[72] - Financing cash outflow was RMB 2,199 million in the reporting period, compared to an inflow of RMB 3,816 million in mid-2023, primarily due to higher repayments of bank and other borrowings[73] - Adjusted profit before biological asset fair value changes improved from RMB 1,019 million in mid-2023 to RMB 1,804 million in the reporting period[68] - The company's net leverage ratio increased to 180.8% as of June 30, 2024, up by 15.6 percentage points from 165.2% on December 31, 2023, primarily due to increased debt from strategic investments in dairy farms[76] - Capital commitments for property, plant, and equipment, as well as biological assets, decreased to RMB 1,253 million as of June 30, 2024, compared to RMB 1,617 million on December 31, 2023, reflecting reduced investment in dairy farm construction[77] - The company's total bank and other borrowings amounted to RMB 24,665,442 thousand as of June 30, 2024, with RMB 15,753,723 thousand due within one year[74] - The company's total full-time employees as of June 30, 2024, were 12,536, with 53.3% being skilled workers and 22.3% being technical staff[82] - The company has no significant contingent liabilities as of June 30, 2024[75] - The company's assets, including shares in subsidiaries and restricted bank deposits, were used as collateral for certain bank and other borrowings, with a total value of RMB 103 million[78] - The company faces foreign exchange risk due to intercompany balances denominated in foreign currencies, which are monitored and managed by dedicated personnel[79] - The company has no significant investments or capital asset plans beyond those disclosed in the interim report as of June 30, 2024[81] - The company entered into agreements with China Genetics Holdings, Ltd. and its subsidiary, involving the issuance of shares and the purchase of shares in a subsidiary, as disclosed in announcements dated February 19, 2024, and July 15, 2024[81] - The company focuses on talent development through partnerships with universities, dual-track career progression, and a comprehensive training system to enhance employee capabilities and organizational efficiency[83] - Total salary expenses (excluding share-based payment expenses and retirement plan contributions) increased by 6.0% to RMB 821 million compared to RMB 775 million in mid-2023[84] - The company completed a share subscription with China Genetics, issuing 97,323,833 shares at RMB 1.45 per share, totaling RMB 141,119,558, representing 2.50% of the enlarged issued share capital[85] - The company indirectly holds 66.86% of the issued shares of Saikexing following the completion of the share transfer[85] - Yili holds a 34.80% stake in the company through its controlled entities, making it the largest shareholder[88] - PAG and its related entities collectively hold a 30.58% stake in the company[88] - The company has fully utilized the net proceeds of RMB 2,711 million from its global offering, with 75% allocated to growth initiatives, 15% to purchasing cows for farms, and 10% to working capital and general corporate purposes[95] - As of June 30, 2024, the company had no treasury shares and did not engage in any buyback or sale of its listed securities during the reporting period[96] - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the deviation mentioned below[97] - Yuan Jun has been appointed as both Chairman and CEO of the company since June 14, 2024, deviating from the Corporate Governance Code's requirement for role separation[98] - The Audit Committee reviewed the unaudited interim financial statements and discussed accounting policies and internal controls with senior management and auditors[100] - The company established an ESG Committee effective August 23, 2024, responsible for ESG strategy, risk management, and policy formulation[101] - No interim dividend was recommended for the reporting period[102] - Wu Xiang resigned as Non-Executive Director and Chairman, effective June 14, 2024[102] - Yang Huicheng was appointed as a Non-Executive Director, effective June 14, 2024[102] - The company maintains an active investor relations policy, facilitating communication with institutional investors and analysts[103] - The interim financial statements were reviewed by Deloitte Touche Tohmatsu in accordance with International Standard on Review Engagements 2410[104] - The review did not identify any material misstatements in the interim financial statements prepared under IAS 34[104] - Revenue for the first half of 2024 reached RMB 10,054.941 million, a 10.8% increase compared to RMB 9,076.655 million in the same period of 2023[106] - Gross profit for the first half of 2024 was RMB 2,848.892 million, up 36.1% from RMB 2,093.170 million in the first half of 2023[106] - Net loss for the first half of 2024 was RMB 466.707 million, a significant improvement from the net loss of RMB 1,243.568 million in the same period of 2023[106] - Total assets as of June 30, 2024, were RMB 35,018.887 million, slightly higher than RMB 34,793.319 million at the end of 2023[107] - Total liabilities as of June 30, 2024, were RMB 19,501.634 million, a decrease from RMB 20,914.580 million at the end of 2023[107] - Equity attributable to the company's owners as of June 30, 2024, was RMB 11,469.470 million, down from RMB 11,830.718 million at the end of 2023[108] - Non-current assets increased to RMB 35,018.887 million as of June 30, 2024, compared to RMB 34,793.319 million at the end of 2023[107] - Current liabilities decreased to RMB 19,501.634 million as of June 30, 2024, from RMB 20,914.580 million at the end of 2023[107] - Net current liabilities stood at RMB 11,072.054 million as of June 30, 2024, compared to RMB 9,508.171 million at the end of 2023[108] - Total equity as of June 30, 2024, was RMB 12,601.099 million, a slight decrease from RMB 13,098.695 million at the end of 2023[108] - Operating cash flow for the six months ended June 30, 2024, was RMB 3,347,908 thousand, an increase from RMB 2,694,538 thousand in the same period in 2023[110] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 3,957,784 thousand, compared to RMB 6,694,176 thousand in the same period in 2023[110] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 2,198,596 thousand, compared to net cash generated of RMB 3,816,200 thousand in the same period in 2023[110] - The company's current liabilities exceeded current assets by RMB 11.1 billion as of June 30, 2024[111] - The company expects to have sufficient funds to meet its liabilities due within the next 12 months, relying on expected cash flows from operations, unused bank loan facilities, and the renewal of certain bank loans totaling approximately RMB 11 billion[111] - The company's total equity as of June 30, 2024, was RMB 12,601,099 thousand, compared to RMB 13,212,037 thousand as of June 30, 2023[109] - The company reported a net loss and total comprehensive expense of RMB 497,596 thousand for the six months ended June 30, 2024, compared to a net loss and total comprehensive expense of RMB 1,398,494 thousand in the same period in 2023[109] - The company received RMB 141,120 thousand in prepayments for the issuance of shares during the six months ended June 30, 2024[110] - The company made payments of RMB 142,923 thousand for the acquisition of additional interests in subsidiaries during the six months ended June 30, 2024[110] - The company's cash and cash equivalents decreased by RMB 2,813,273 thousand during the six months ended June 30, 2024, compared to a decrease of RMB 211,501 thousand in the same period in 2023[110] - Revenue from raw milk sales increased to RMB 7,320,419 thousand in H1 2024, up 18.9% from RMB 6,156,918 thousand in H1 2023[117] - Total revenue for H1 2024 reached RMB 10,054,941 thousand, an increase of 10.8% compared to RMB 9,076,655 thousand in H1 2023[117] - Revenue from feed sales decreased to RMB 2,436,934 thousand in H1 2024, down 7.7% from RMB 2,639,242 thousand in H1 2023[117] - Revenue from breeding products sales dropped to RMB 65,909 thousand in H1 2024, a 30.3% decrease from RMB 94,510 thousand in H1 2023[117] - Segment profit for raw milk business rose to RMB 2,023,803 thousand in H1 2024, up 53.6% from RMB 1,317,336 thousand in H1 2023[118][120] - Total segment profit increased to RMB 2,302,875 thousand in H1 2024, a 51.4% rise from RMB 1,521,299 thousand in H1 2023[118][120] - Pre-tax loss narrowed to RMB 403,722 thousand in H1 2024, significantly improved from RMB 1,206,320 thousand in H1 2023[118][120] - The company will apply revised IAS 7 and IFRS 7 standards for supplier financing arrangements starting January 1, 2024, affecting liabilities and cash flow disclosures[116] - Depreciation and amortization directly deducted from profit amounted to RMB 335,194 thousand in H1 2024[122] - Additions to non-current assets totaled RMB 3,403,381 thousand in H1 2024[122] - Revenue from raw milk sales to Customer A increased to RMB 6,901,033 thousand in 2024, up from RMB 5,978,328 thousand in 2023, reflecting a growth of 15.4%[125] - Total sales cost for raw milk after fair value adjustment rose to RMB 7,079,785 thousand in 2024, compared to RMB 5,996,779 thousand in 2023, an increase of 18.1%[126] - Other income, including government subsidies and rental income, totaled RMB 264,938 thousand in 2024, up from RMB 180,508 thousand in 2023, a significant increase of 46.8%[129] - Financing costs decreased to RMB 462,959 thousand in 2024 from RMB 561,950 thousand in 2023, a reduction of 17.6%[131] - The company's investment in associates amounted to RMB 1,167,607 thousand, with a share of losses from associates at RMB 26,882 thousand[124] - The fair value adjustment for raw milk costs increased to RMB 2,134,191 thousand in 2024 from RMB 1,583,197 thousand in 2023, a rise of 34.8%[126] - The company's total sales cost for feed after fair value adjustment was RMB 2,017,066 thousand in 2024, down from RMB 2,350,032 thousand in 2023, a decrease of 14.2%[126] - The company's total sales cost for breeding products decreased to RMB 44,105 thousand in 2024 from RMB 50,200 thousand in 2023, a reduction of 12.1%[126] - The company's total sales cost for dairy farming consumables increased to RMB 187,117 thousand in 2024 from RMB 155,332 thousand in 2023, a growth of 20.5%[126] - The company's total sales cost for the period was RMB 9,328,073 thousand in 2024, up from RMB 8,552,343 thousand in 2023, an increase of 9.1%[126] - The company's loss for the period was RMB 330,873 thousand, compared to RMB 992,017 thousand in the same period last year, representing a significant reduction in losses[136] - Total depreciation and amortization increased to RMB 660,018 thousand from RMB 532,873 thousand year-over-year, primarily driven by higher depreciation of property, plant, and equipment[135] - The company invested RMB 414,477 thousand in construction-in-progress for expanding dairy farming operations, a decrease from RMB 791,828 thousand in the same period last year[138] - Biological assets increased to RMB 14,699,973 thousand as of June 30, 2024, up from RMB 14,606,110 thousand at the end of 2023, with significant growth in dairy cattle and dairy goat populations[141] - Sales receivables increased to RMB 1,107,977 thousand (net of credit loss provisions) as of June 30, 2024, compared to RMB 792,071 thousand at the end of 2023, with 80.4% of receivables within 90 days[142][143] - The company recognized RMB 49,584 thousand in right-of-use assets from new lease agreements with terms ranging from 3 to 19 years[138] - Goodwill remained unchanged at RMB 672,014 thousand, with no impairment indicators identified for the acquired businesses[139][140] - Employee costs increased to RMB 923,357 thousand from RMB 867,023 thousand year-over-year, primarily due to higher salaries and allowances[135] - The company did not declare or pay any dividends for the interim period, maintaining the same policy as the previous year[137] - Accounts receivable from related parties increased to RMB 1,221,750 thousand as of June 30, 2024, up from RMB 1,099,751 thousand at the end of 2023[142] - Impairment losses under the expected credit loss model decreased to RMB 8,124 thousand in the first half of 2024, compared to RMB 17,525 thousand in the same period of 2023[147] - Prepay
优然牧业(09858) - 2024 - 中期财报