Financial Performance - For the six-month period ended June 30, 2023, operating income was RMB 1,643,416 thousand, representing a year-on-year increase of 2.7% compared to RMB 1,600,623 thousand in 2022[8]. - Revenue from sales of raw milk reached RMB 1,565,011 thousand, a 1.1% increase from RMB 1,548,581 thousand in the same period last year[8]. - Gross profit decreased by 18.4% to RMB 418,289 thousand from RMB 512,764 thousand in the previous year[8]. - Profit attributable to owners of the parent was RMB 23,327 thousand, down 89.8% from RMB 228,843 thousand in 2022[8]. - For the first half of 2023, the profit for the period was RMB 21,274,000, a decrease from RMB 243,242,000 in the same period of 2022[78]. - The total comprehensive income for the period was RMB 22,274,000, compared to RMB 221,135,000 in the first half of 2022[78]. - Profit before tax for the first half of 2023 was RMB 21,345, a significant decrease of 91.2% compared to RMB 243,242 in the same period of 2022[105]. - Loss arising from changes in fair value increased to RMB 286,085, up 45.0% from RMB 197,169 in the previous year[105]. Sales and Production - Sales volume increased by 9.2% to 340,086 tonnes compared to 311,565 tonnes in the first half of 2022[8]. - The average annualized milk yield per milkable cow increased by 3.9% to 10.94 tonnes/year from 10.53 tonnes/year in the previous year[8]. - The herd size grew by 2.6% to 139,897 heads from 136,344 heads in the first half of 2022[8]. - The proportion of organic raw milk sold increased by 9.2 percentage points from 71.5% in 2022H1 to 76.8% in 2023H1[55]. - The volume of raw milk sold in 2023H1 was 34,000 tonnes, reflecting a growth rate in cow herd size[55]. Market and Economic Context - In the first half of 2023, China's GDP grew by 5.5% year-on-year, with total retail sales of consumer goods increasing by 8.2%[28]. - The total volume of imported dairy products decreased by 12.9% year-on-year, equivalent to a reduction of 9,580,000 tonnes of fresh raw milk[33]. - The self-sufficiency rate of domestic milk sources accelerated due to rising costs of imported dairy products and the development of high-end domestic dairy products[33]. Assets and Liabilities - Total equity as of June 30, 2023, was RMB 4,180,051,000, down from RMB 4,261,682,000 as of December 31, 2022, indicating a decrease of about 1.9%[101]. - Non-current liabilities increased to RMB 1,122,279,000 as of June 30, 2023, compared to RMB 955,437,000 as of December 31, 2022, representing an increase of approximately 17.5%[101]. - The company's net assets decreased from RMB 4,261,682,000 as of December 31, 2022, to RMB 4,180,051,000 as of June 30, 2023, reflecting a decline of approximately 1.9%[101]. - The reserve accounts in the condensed consolidated statement of financial position totaled RMB 4,016,709,000 as of June 30, 2023, down from RMB 4,081,306,000 as of December 31, 2022[103]. Operational Efficiency and Strategy - The company continues to focus on its core business and aims to enhance operational efficiency amid challenging market conditions[90]. - The company aims to provide the highest quality desert organic milk globally, focusing on sustainable practices[36]. - The Group focuses on the production and sales of desert-based organic milk, aiming to enhance its product mix and profitability through the development of functional raw milk[200]. Shareholder and Capital Information - The share capital remained unchanged at RMB 69,000,000 as of June 30, 2023[101]. - Treasury shares held under the share award scheme increased to RMB (40,804,000) as of June 30, 2023, from RMB (26,188,000) as of December 31, 2022[101]. - The Group's capital commitments for property, plant, and equipment amounted to RMB 86.9 million as of June 30, 2023, significantly up from RMB 5.0 million as of December 31, 2022[121]. - The Group acquired assets at a cost of RMB 98.71 million during the six months ended June 30, 2023, compared to RMB 61.14 million in the same period of 2022[136]. Employee and Management Compensation - Short-term employee benefits for key management personnel amounted to RMB 4,527,000 for the six months ended June 30, 2023, compared to RMB 4,565,000 for the same period in 2022[175]. - The Group recognized a share award expense of RMB 15,046,000 for the six months ended June 30, 2023, compared to RMB 6,562,000 for the same period in 2022, with a total of 53,889,000 shares vested during this period[148]. Environmental and Compliance - The Group's operations were in compliance with applicable national and local environmental protection laws and regulations during the reporting period[183]. - The company's unique organic eco-sand treatment system has been recognized by the United Nations Global Compact as a best practice in sustainable production[38]. Financial Instruments and Risk Management - The carrying amounts of the Group's financial instruments approximate their fair values due to short-term maturities[179]. - The Group's credit risk is managed by trading only with recognized and creditworthy third parties, with no collateral generally required[196].
中国圣牧(01432) - 2023 - 中期财报