Financial Performance - For the six months ended June 30, 2023, the Group reported revenue of RMB 6,633.4 million, representing a year-over-year increase of 17.8% compared to RMB 5,632.1 million in 2022[6]. - The net profit for the same period decreased by 59.0% to RMB 217.9 million from RMB 531.1 million in 2022[6]. - The Group's sales revenue for the first half of 2023 reached RMB 6,633.4 million, a year-on-year increase of 17.8% compared to RMB 5,632.1 million in 2022[71]. - The profit attributable to the owners of the Company for the period was RMB 209.3 million, a decrease of 58.8% compared to RMB 507.7 million in 2022[171]. - Basic earnings per share were approximately RMB 2.66 cents, down from RMB 6.46 cents in 2022, while diluted earnings per share were approximately RMB 2.65 cents, down from RMB 6.45 cents[171]. Milk Production and Yield - The herd size increased to 418,596 heads, a year-over-year growth of 9.4% from 382,693 heads[10]. - The annualized average yield per milkable dairy cow reached 12.6 tons, reflecting a year-over-year increase of 2.4%[10]. - Total milk yield for the period was 1.249 million tons, representing an 8.4% increase from the previous year[10]. - The production of raw milk was reported at 1,250,000 tons, reflecting an 8.7% increase from the previous year[29]. - The total sales volume of raw milk increased by 8.6% year-over-year to approximately 1.233 million tons, compared to 1.135 million tons in 2022[127]. New Business Segments - New business segments, including forage and feed production, contributed sales revenue of RMB 1.59 billion, marking a year-over-year increase of 105%[16]. - Sales revenue from new business segments amounted to RMB 1,589.4 million, marking a significant year-on-year increase of 105.3% from RMB 774.1 million in 2022[128]. - Revenue from the feeds and forage business reached RMB 1,105.6 million, which is a year-on-year increase of 42.8%[71]. - The Group successfully acquired Inner Mongolia Aiyangniu Technology Co., Ltd. in June 2022, expanding its business into the digital intelligence platform for the industry value chain, generating RMB 483.7 million in revenue during the period[71]. Cash Flow and Financial Stability - Net cash inflow from operating activities surged by 70.2% to RMB 2.182 billion, compared to RMB 1.282 billion in the same period last year[11]. - The Group achieved a net free cash inflow of approximately RMB 896.7 million, a significant turnaround from a net outflow of RMB 559.3 million in the prior year[6]. - Net cash inflow from operating activities was RMB 2,182.9 million, an increase of RMB 900.7 million year-over-year from RMB 1,282.2 million[174]. - Net cash outflow from investing activities decreased to RMB 1,286.2 million from RMB 1,841.5 million in 2022, a reduction of RMB 555.3 million[175]. Cost and Profitability - The Group's cost of sales rose to RMB 5,112.7 million, representing a year-over-year increase of 28.5% from RMB 3,977.3 million in 2022[133]. - The gross profit margin for the raw milk business decreased to 28.3% in 2023 from 32.2% in 2022[139]. - The gross profit of the Group's raw milk business was RMB 1,426.6 million, a year-on-year decrease of 8.8% from RMB 1,563.9 million, with a gross profit margin of 28.3%, down 3.9 percentage points from 32.2%[141][146]. Environmental and Sustainability Initiatives - The Group is committed to innovating with digital intelligence to become a global leader in dairy farming[65]. - The company aims to reduce carbon emissions by 7%, 15%, and 20% by the end of 2025, 2030, and 2035 respectively, using 2021 as the base year[111][114]. - The company has established a green recycling industrial chain that includes forage planting, cow breeding, fertilizer treatment, biogas power generation, and returning fertilizer to the field[105][106]. - The Group's commitment to environmental sustainability includes optimizing feed formulas and reducing greenhouse gas emissions through various measures[68]. Market and Industry Trends - In the first half of 2023, China's dairy industry saw milk production reach 8.34 million tons, representing a year-over-year increase of 8.59%[58]. - The average import price of alfalfa was US$566.5 per ton, a year-over-year increase of 21%[58]. - In the first half of 2023, Mainland China imported 1.5536 million tons of various dairy products, a year-over-year decrease of 12.9%, with an import value of US$7.016 billion, down 4.7%[59]. Corporate Governance and Recognition - Modern Dairy was awarded a "BBB" investment grade credit rating by Standard & Poor's, indicating stable outlook and confidence in the company's financial stability[18]. - The company has been recognized as one of the "Top 20 Leading Agricultural Industrialization Enterprises in Anhui Province," highlighting its contributions to agricultural practices[117]. - Modern Dairy was awarded the Gold Prize of Monde Selection for the tenth consecutive year, indicating strong recognition of its premium quality branded milk[112].
现代牧业(01117) - 2023 - 中期财报