Financial Performance - Total revenue for 2019 reached RMB 5,514.2 million, an increase of 11.2% compared to RMB 4,956.8 million in 2018[7] - Net profit attributable to owners of the Company was RMB 341.3 million, a significant turnaround from a loss of RMB 496.1 million in the previous year, representing a change of 837.4%[7] - Cash EBITDA for 2019 was RMB 2,045.5 million, reflecting a 33.8% increase from RMB 1,528.4 million in 2018[7] - Free cash flow surged to RMB 1,023.2 million, a remarkable increase of 197.1% from RMB 344.4 million in 2018[7] - The gross profit margin before raw milk fair value adjustment increased by 6.6 percentage points to 38.1% in 2019, compared to 31.5% in 2018[49] - The Group's revenue for 2019 was RMB 5.514 billion, an increase of 11.2% from RMB 4.957 billion in 2018[51] - The gross profit margin (before fair value adjustments) improved by 6.6 percentage points to 38.1% in 2019, compared to 31.5% in 2018[51] - The Group's cash EBITDA for the reporting year was RMB2,045.5 million, a year-on-year increase of 33.8% from RMB1,528.4 million, with a cash EBITDA margin rising to 37.1% from 30.8%[125] - Profit attributable to owners of the Company was RMB341.3 million, compared to a loss of RMB496.1 million in 2018[125] Production and Yield - Annual raw milk yield reached 1.39 million tons, with an annualized milk yield of 10.6 tons per milkable cow, both setting new records[20] - In 2019, the total milk production reached 1.39 million tons, with the average annual yield per dairy cow hitting a record high of 10.6 tons[21] - The annual milk yield (AMY) per milkable cow rose to 10.6 tons in 2019, reflecting a year-on-year growth of 5.0% from 10.1 tons in 2018[49] - Total annual milk production reached 1.39 million tons in 2019, marking an 8.6% increase compared to 1.28 million tons in 2018[49] - The herd size increased to 233,618 heads, up from 231,530 heads in 2018, reflecting a growth of 2,088 heads[7] - The company operates 26 dairy farms with a total of 233,618 dairy cows across seven provinces in China[33] - The company plans to moderately increase herd size and improve raw milk yield to enhance market competitiveness[31] Cost Efficiency and Pricing - The cash cost per kilogram of raw milk fell to a record low of RMB 2.32, demonstrating improved cost efficiency[20] - The external average selling price (ASP) of raw milk increased to RMB4.04/kg in 2019, representing a year-on-year growth of 4.9% from RMB3.85/kg in 2018[49] - The cost of raw milk sold (excluding depreciation) decreased by 5.4% to RMB2,316/ton in 2019, down from RMB2,447/ton in 2018[105] - The unit cost of raw milk (excluding depreciation) was maintained at RMB 2.32/kg, down from RMB 2.45/kg in 2018, with feed costs decreasing by 6.3% to RMB 1.77/kg[52] Strategic Partnerships and Collaborations - The Company formed strategic partnerships with New Hope Dairy Company Limited, enhancing its upstream and downstream collaborations[20] - The introduction of New Hope Dairy as a strategic shareholder aims to strengthen the raw milk business and meet the growing demand in the high-end raw milk market in China[24] - The company established a joint venture with CITIC Environment Investment Group to enhance the management of energy projects and focus on upstream dairy farming[24] - The strategic cooperation with New Hope Dairy is expected to help establish more reliable raw milk customers and improve herd size flexibility[24] Market Trends and Demand - The demand for high-quality raw milk is expected to grow significantly due to consumption upgrades in first-tier cities and growth in lower-tier cities over the next three years[30] - The domestic demand for high-quality raw milk is expected to continue exceeding supply for the next few years[44] - The raw milk market is currently experiencing a shortage, which is expected to continue, with large-scale dairy farms becoming the main suppliers as small and medium-sized farms exit the market[153] Corporate Governance and Management - The Company has adopted the Corporate Governance Code and complied with its provisions throughout the year ended December 31, 2019, except for one non-executive director's absence at the annual general meeting[184] - The Board is collectively responsible for promoting the company's success and managing its affairs in a responsible manner[187] - The Company emphasizes high standards of corporate governance to safeguard shareholder interests[185] - The management team includes professionals with qualifications in finance, accounting, and animal husbandry, enhancing the company's operational capabilities[179][180][181] Social Responsibility and Community Support - The company donated dairy products worth up to RMB 10 million to support anti-pandemic efforts during the COVID-19 outbreak[27] - The Company donated "Modern Dairy" branded dairy products worth a total value of RMB 10 million to support frontline facilities during the COVID-19 pandemic[147] - The Company has implemented rigorous disease prevention and control measures to ensure employee health during the pandemic[147] Research and Development - The company has a strong focus on research and development in dairy nutrition, with Mr. Li holding a patent for a high-energy and high-protein supplementary feed for dairy cows[171] - The company is actively involved in national dairy programs, contributing to the improvement of dairy herd performance in China[171] - The company has established partnerships with international research centers to advance dairy technology and practices[170] Future Outlook - In 2020, the Company will focus on improving unit production, reducing costs, and enhancing operational efficiency to increase market competitiveness[154] - The Company aims to strengthen the coordination and integration of upstream and downstream operations to create a full-chain layout of raw milk production[154] - The Company is committed to creating greater value for shareholders while providing consumers with nutritious raw milk[154]
现代牧业(01117) - 2019 - 年度财报