Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 3,179.7 million, representing a 12.4% increase from RMB 2,827.8 million in 2020[11] - Gross profit increased by 12.3% to RMB 1,181.6 million compared to RMB 1,052.0 million in the previous year[11] - Profit attributable to owners of the Company surged by 125.0% to RMB 496.7 million from RMB 220.7 million in 2020[11] - Cash EBITDA for the period was RMB 1,152.7 million, reflecting a 16.8% increase from RMB 986.9 million in 2020[11] - Basic earnings per share rose by 105.5% to RMB 7.13 from RMB 3.47 in the previous year[11] - For the six months ended June 30, 2021, the Group achieved a profit before tax of approximately RMB506.0 million, representing a year-over-year growth of 123.3% compared to RMB226.6 million in 2020[37] - Total comprehensive income for the period was RMB 504,522, up from RMB 230,250 in the prior year[180] - Basic earnings per share increased to RMB 7.13 cents from RMB 3.47 cents, indicating strong profitability growth[180] Operational Highlights - The herd scale increased to 251,876 heads, a growth of 6.8% from 235,877 heads in the previous year[11] - The average selling price (ASP) of raw milk increased to RMB4.39/kg, reflecting a year-over-year growth of 13.4% from RMB3.87/kg in 2020[38] - The Group's sales of raw milk reached RMB3,179.7 million, representing a year-over-year growth of 12.4% compared to RMB2,827.8 million in 2020[38] - The gross profit of the dairy farming business was RMB1,181.6 million, with a gross profit margin of 37.2%, maintaining the same margin as in 2020[38] - The annualized milk yield per head of milkable cow was 11.1 tons, with a total milk yield of 734 thousand tons during the reporting period[48] - The Group operates 26 dairy farms across seven provinces in China, with each farm housing close to or over 10,000 dairy cows[46] - The Group continues to enhance cow comfort and health through improved facilities and management practices, contributing to increased milk production[42] Strategic Initiatives - The acquisition of Fuyuan is expected to increase the Group's herd size to approximately 340,000 heads, enhancing competitiveness in the dairy farming industry[17] - Modern Dairy aims to double its herd size and milk production by 2025, targeting over 500,000 dairy cows and an annual production of 3.6 million tons of fresh milk[47] - The Group is focused on upstream dairy farming operations and developing self-branded liquid milk products in collaboration with China Mengniu Dairy Company Limited[37] - The Group is exploring new business opportunities, including developing the feed business, beef cattle business, and enhancing breeding techniques[135] - The Group has implemented the "Five-Year Leading Program" to align production plans with downstream demand and achieve rational expansion[136] Financial Position and Capital Management - The net gearing ratio improved significantly to 24.2% as of June 30, 2021, down from 66.4%[11] - The Company issued US$500 million 2.125% bonds due 2026, rated "BBB" by Standard & Poor's, to lower overall financing costs[17] - The Group's total equity as of June 30, 2021, was RMB 9,696.7 million, an increase from RMB 8,038.4 million as of December 31, 2020[97] - Total interest-bearing borrowings amounted to RMB 4,992.1 million as of June 30, 2021, all of which were bank borrowings[102] - The Group's available and unutilized credit facilities were approximately RMB 4,823.4 million as of June 30, 2021, compared to RMB 4,597.9 million as of December 31, 2020[97] Market and Economic Context - China's GDP grew by 12.7% year-over-year in the first half of 2021, with the first and second quarters recording growth rates of 18.3% and 7.9%, respectively[31] - The average market price of raw and fresh milk in the first half of 2021 was approximately RMB4.26/kg, representing a year-over-year growth of 15%[32] - The proportion of large-scaled dairy farming in China reached 67%, an increase of 3% year-over-year, with all large-scale farms adopting mechanized milking[32] - China's milk production grew by 7.6% year-over-year in the first half of 2021[32] - The introduction of favorable national policies, including the three-child policy, is expected to drive future growth in dairy demand[35] Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the reporting period, except for one non-executive Director's absence at the annual general meeting[157] - The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended 30 June 2021[165] - The financial statements are prepared in accordance with International Accounting Standards, ensuring compliance with applicable disclosure requirements[197] - The auditor's conclusion reinforces the integrity of the financial reporting process, which is vital for stakeholder trust[177] Shareholder Information - The Company issued 650,000,000 new shares at a placing price of HK$2.40 per share, raising approximately HK$1,552 million (approximately RMB1,295 million) for infrastructure development and herd expansion[64] - The total number of shares issued as of June 30, 2021, was 7,108,565,947[151] - China Mengniu Dairy Company Limited held a beneficial interest of 1,246,079,369 shares, accounting for 17.53% of the company's issued share capital[148] - The interests of substantial shareholders are recorded in compliance with the Securities and Futures Ordinance[147]
现代牧业(01117) - 2021 - 中期财报