Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 2,570.1 million, representing a 4.1% increase from RMB 2,468.3 million in 2018[17]. - Profit attributable to owners of the Company was RMB 124.9 million, a significant turnaround from a loss of RMB 140.3 million in the previous year, marking a 265.2% change[17]. - Net operating cash inflow rose by 20.6% to RMB 855.6 million compared to RMB 709.5 million in 2018[17]. - Free cash flow surged by 151.3% to RMB 351.1 million from RMB 139.7 million in the prior year[17]. - Basic profit per share improved to RMB 2.05 from a loss of RMB 2.30, reflecting a change of 4.35[17]. - The Group achieved earnings of approximately RMB133.7 million and net free cash inflow of RMB351.1 million during the Reporting Period, marking a successful turnaround from losses to profits[37]. - The Group recorded total revenue of RMB2,570 million for the Reporting Period, representing an increase of 4.13% year-on-year compared to RMB2,468 million in 2018[90]. - Revenue from the dairy farming business increased by 9.64% year-on-year, with raw milk sales volume rising by 7.09% to 667.7 thousand tons[91]. Production and Yield - Gross profit before raw milk fair value adjustments increased by 22.1% to RMB 898.1 million from RMB 735.4 million[17]. - The annualized milk yield per milkable cow increased by 2.9% to 10.6 tons per head from 10.3 tons[17]. - Total milk yield for the period was 68.2 thousand tons, up 7.2% from 63.6 thousand tons in 2018[17]. - The herd scale increased slightly to 226,861 heads from 225,782 heads, a growth of 0.5%[17]. - Total milk production during the Reporting Period reached 682,000 tons, reflecting a year-on-year growth of 7.23%[39]. - The average milk yield per milkable cow increased to 10.6 tons in 2019, up by 2.91% year-on-year, while total milk yield grew by 7.23% to 682,000 tons compared to 636,000 tons in 2018[55][56]. - The Group operates 26 dairy farms with a total of 226,861 dairy cows across seven provinces in mainland China[28]. Cost Management - The Group successfully reduced the unit cost of raw milk (excluding depreciation) to RMB 2.31/kg, a decrease of 4.55% from RMB 2.42/kg in 2018, despite rising feed prices due to the Sino-US trade war[44]. - Direct feed costs decreased to RMB 1.78/kg from RMB 1.89/kg, representing a year-on-year decrease of 5.82%[44]. - Total feed cost for the reporting period was RMB1,225 million, approximately the same as RMB1,221 million in 2018, indicating effective cost control[99]. - The cash cost of raw milk sold (excluding depreciation) decreased by 4.58% year-on-year to RMB2,311/ton in 2019, down from RMB2,422/ton in 2018[100]. Quality and Recognition - Modern Dairy's pure milk was awarded the Gold Prize of Monde Selection for the sixth consecutive year[17]. - The Group's brand, Modern Dairy, has been recognized as a "Strategic Partner of China's Aerospace Industry," highlighting its premium quality[18]. - The Group's raw milk quality is among the top rankings globally, comparable to imported milk products in key indicators[81]. - Four products from the Group were awarded the Gold Prize at Monde Selection 2019, with pure milk winning the Gold Prize for the sixth consecutive time[81]. Strategic Initiatives - The introduction of walnut milk in July 2019 marks the Group's expansion into new product offerings[31]. - The Company launched new high-calcium pure milk and walnut milk products in early 2019 and July 2019, respectively, enhancing its product portfolio[48]. - The Group's unique integration model of forage planting, cow breeding, and milk processing positions it as the largest producer of raw fresh milk in mainland China[51]. - The Group focuses on high-standard environmental protection policies and rigorous epidemic prevention measures to ensure sustainable development[73]. - The Group aims to maintain its leading position in the dairy industry by adhering to food safety, environmental protection, and epidemic prevention[171]. Shareholder and Financial Structure - The Company entered into a subscription agreement with New Hope Dairy Co., Ltd, agreeing to issue 276,228,409 subscription shares at HK$1.3535 per share, raising approximately RMB709 million[82][85]. - Following the completion of the subscription, New Hope will hold 9.28% equity interests in the Company, becoming the second largest strategic shareholder[85]. - As of June 30, 2019, the total interest-bearing debt was RMB6,919.5 million[129]. - The Group's net gearing ratio was 96.4% as of June 30, 2019, compared to 95.0% a year earlier[128]. - The Group had a capital commitment of RMB29.1 million related to the acquisition of property, plant, and equipment as of June 30, 2019, an increase from RMB7.8 million as of December 31, 2018[158]. Employee and Social Responsibility - The Group's farms provide multiple job opportunities nationwide, effectively alleviating rural surplus labor pressure and increasing local farmers' income[170]. - The Group's social responsibility initiatives include direct donations and support for local economic development[170]. - As of June 30, 2019, the Group had 4,959 employees, an increase from 4,735 employees as of December 31, 2018[164].
现代牧业(01117) - 2019 - 中期财报