Financial Performance - Operating income for the six-month period ended June 30, 2022, was RMB 1,600,623, representing a 6.7% increase from RMB 1,499,620 in the same period of 2021[11]. - Revenue increased by 7.1% to RMB 1,548,581 compared to RMB 1,446,189 in the previous year[11]. - Gross profit decreased by 6.3% to RMB 512,764 from RMB 547,290 year-on-year[11]. - Profit for the period was RMB 243,242, down 10.4% from RMB 271,471 in the prior year[11]. - Basic earnings per share decreased by 12.9% to RMB 0.027 from RMB 0.031[11]. - The gross profit margin was 33.1%, reflecting a year-on-year decrease of 4.7 percentage points[29]. - Profit before tax was RMB 243,242, down 10.5% from RMB 271,702 in the same period last year[144]. - Profit attributable to owners of the parent for the Reporting Period was RMB 228,843, compared to RMB 259,275 in the prior year, reflecting a decrease of 11.7%[144]. - Total comprehensive income for the period was RMB 221,135, down from RMB 271,499 in the previous year, representing a decline of 18.5%[145]. Sales and Production - Sales volume increased by 8.2% to 311,565 tonnes compared to 287,856 tonnes in the previous year[11]. - The Group sold a total of 311,565 tonnes of raw milk, representing an increase of 8.2% compared to the prior period[29]. - Total quantity of raw milk sold increased from 28.8 million tonnes in 2021H1 to 31.2 million tonnes in 2022H1, marking a significant increase[15]. - The average milk yield per milkable cow improved by 2.3% to 10.53 tonnes/year from 10.29 tonnes/year[11]. - The size of the herd grew by 6.8% to 130,802 head from 122,518 head[11]. - The number of organic farms increased to 20, with an average daily organic fresh milk production of 1,364 tonnes[17]. - The proportion of organic raw milk sales increased to 71.5%, representing a growth of 20.9% compared to the prior period, with total sales of organic raw milk reaching 223,000 tonnes[17]. Cost and Expenses - The full cost of milk production was RMB 3.3/kg, with feed costs accounting for RMB 2.7/kg, representing a 6.6% increase compared to the prior period[32]. - The Group's cost of sales increased by 15.2% to RMB 1,035.8 million, driven by significant increases in bulk feed prices[49]. - Selling and distribution expenses amounted to RMB 23.5 million, a slight decrease from RMB 25.3 million in 2021[54]. - Administrative expenses increased to RMB 66.6 million, up RMB 19.0 million from RMB 47.6 million in 2021, due to enhanced employee incentives and management salaries[55]. Assets and Liabilities - Total current assets as of June 30, 2022, were RMB 1,975.7 million, a decrease from RMB 2,049.8 million at the end of 2021[67]. - Total current liabilities as of June 30, 2022, were RMB 2,694.2 million, down from RMB 2,862.7 million at the end of 2021[67]. - The Group's total equity as of June 30, 2022, was RMB 4,107.9 million, up from RMB 3,889.2 million as of December 31, 2021[70]. - The net gearing ratio decreased to 28.0% as of June 30, 2022, from 29.5% as of December 31, 2021, representing a drop of 1.5 percentage points[70]. - Trade receivables increased by RMB 23.9 million or 9.7% compared to the end of last year[67]. Strategic Initiatives and Recognition - The company’s dual-carbon strategy was recognized by the World Economic Forum as a case study in its "New Nature Economy Report Series" in January 2022[19]. - The unique organic eco-sand treatment system was selected as one of the "Corporate Best Practices for Achieving the Sustainable Development Goals" by the United Nations Global Compact in March 2022[19]. - The Group was awarded the title of "2022 Corporate Social Responsibility - Leading Enterprise" at the 17th China Corporate Social Responsibility Forum in July 2022[19]. - The Group's carbon neutral management and ESG initiatives have been recognized as industry benchmarks, with the CEO being named a "2022 United Nations' SDG Pioneer" in China[41]. Future Outlook - The Group aims to double the sales of organic raw milk by 2025 compared to 2020 levels, leveraging support from major shareholder Mengniu Group[83]. - In the second half of 2022, the Group will focus on cow expansion rates, milk production, cost control, and innovation in raw milk products[87]. - The Group aims to establish its first zero-carbon farm and introduce zero-carbon raw milk to the market as soon as possible[88]. Governance and Compliance - The Company has established a Strategic and Sustainability Committee to formulate long-term development strategies and address environmental, social, and corporate governance matters[95]. - The Audit Committee has reviewed the unaudited interim results for the Reporting Period, ensuring compliance with accounting standards and internal control systems[93]. - All Directors have confirmed compliance with the Model Code for Securities Transactions during the Reporting Period[96]. Shareholder Information - The Board did not recommend the payment of an interim dividend for the reporting period[91]. - As of June 30, 2022, Start Great Holdings Limited holds 2,513,178,555 shares, representing 29.99% of the company's total shares[117]. - The total number of shares that may be issued under the Share Option Scheme shall not exceed 10% of the total shares in issue on the Listing Date, which is 635,440,000 shares, approximately 7.58% of the issued share capital[122].
中国圣牧(01432) - 2022 - 中期财报