Market Impact and Performance - The African swine fever significantly impacted DaChan, expanding its effects to Vietnam and affecting the pig breeding industry[21]. - The company reported a consistent growth in revenue and profitability in its feed business despite external challenges[21]. - The overall performance reflects the company's commitment to adapting to market conditions and enhancing operational efficiency[20]. - The Group is actively expanding its market share in exports to regions such as Hong Kong and Macau while maintaining its advantages in exports to Japan[25]. - The Group plans to enhance cooperation with farmers in breeding and meat chicken farming to improve overall profitability and risk resilience in response to the anticipated shortage of pork supply due to African swine fever[41]. Financial Performance - The overall gross profit of the Group was approximately RMB 392,482 thousand, representing an increase of approximately 15.8% compared to RMB 339,034 thousand in the same period last year[28]. - Profit attributable to shareholders of the Company was approximately RMB 13,210 thousand, reflecting a year-on-year increase of approximately 55.3% from RMB 8,505 thousand[28]. - The domestic feed segment's gross profit grew by approximately 7.2% year-on-year, while the Southeast Asian feed segment achieved a gross profit growth of 20.4% with a sales increase of approximately 5.6% year-on-year[32][33]. - The meat segment's gross profit increased by approximately 72.9% compared to the same period in 2018, driven by favorable market conditions in the first half of 2019[30]. - The Group's operating income for the meat segment increased by 30.3% year-on-year, reaching RMB 739,374,000 in the first half of 2019[44]. - Gross profit for the meat segment rose by 72.9% year-on-year to RMB 62,245,000, with a gross profit margin of 8.4%[44]. - The processed food segment's operating income grew by approximately 20.4% year-on-year, reaching RMB 911,264,000[58]. - The Group recorded a gross profit of approximately RMB 392,482 thousand, compared to RMB 339,034 thousand in the same period of 2018, reflecting an increase of approximately 15.7%[88]. - The profit for the period increased to RMB 37,213,000, up from RMB 21,433,000 in the previous year, representing a growth of 73.6%[91]. - Total comprehensive income for the period reached RMB 49,718,000, significantly higher than RMB 11,236,000 in the same period last year, marking a year-over-year increase of 342.5%[91]. Cost and Expenses - The Group's finance costs increased by approximately RMB 8,571 thousand due to rising borrowing rates year-on-year[38]. - The Group's interest expense increased to approximately RMB 23,734 thousand, representing a rise of approximately 56.5% compared to RMB 15,163 thousand in the same period of 2018[78]. - Administrative expenses decreased to RMB 139,215,000 in 2019 from RMB 148,140,000 in 2018, showing a reduction of about 6%[135]. - The group recorded a net loss of RMB 5,582,000 from other net gains/losses in 2019, a significant decline from a gain of RMB 21,065,000 in 2018[138]. Cash Flow and Assets - As of June 30, 2019, the Group's cash and bank deposits totaled approximately RMB 361,546 thousand, a decrease of approximately RMB 47,175 thousand compared to December 31, 2018[69]. - For the six months ended June 30, 2019, cash generated from operations was RMB 72,702 thousand, a significant improvement compared to a cash used of RMB 305,423 thousand in the same period of 2018[105]. - The net cash generated from operating activities was RMB 62,354 thousand, contrasting with a net cash used of RMB 315,425 thousand in the previous year[105]. - The total amount of other receivables and prepayments increased to RMB 502,127,000 as of 30 June 2019 from RMB 456,849,000 as of 31 December 2018, an increase of approximately 9.8%[190]. Segment Performance - The chicken meat segment generated revenue of RMB 1,007,317 thousand, up from RMB 771,482 thousand in 2018, reflecting a growth of about 30.6%[131]. - The livestock feeds segment reported revenue of RMB 2,390,460 thousand, compared to RMB 2,308,237 thousand in the previous year, indicating an increase of approximately 3.5%[131]. - The processed foods segment's revenue was RMB 911,264 thousand, a slight increase from RMB 803,784 thousand in 2018, showing a growth of around 13.4%[131]. - Livestock feeds segment gross profit rose to RMB 193,851 thousand from RMB 166,512 thousand, reflecting an increase of about 16.4%[131]. - Processed foods segment gross profit remained stable at RMB 136,386 thousand, slightly down from RMB 136,512 thousand in the previous year[131]. Strategic Initiatives - The management team proposed integrated actions for the meat segment, focusing on upgrades from farm to hardware improvements[22]. - The management team has emphasized the importance of a traceability system and food safety center as core competitive advantages supporting sustained growth[25]. - The Group's strategic focus includes optimizing internal management and expanding partnerships with breeding farms to enhance operational efficiency[41]. - The Group continues to invest in research and development for processed food to strengthen its core competitiveness[63].
大成食品(03999) - 2019 - 中期财报