Financial Performance - For the six months ended June 30, 2024, the company sold 3,925,495 heads of commodity pigs, an increase from 3,111,692 heads in the same period of 2023, representing a growth of approximately 26.1%[2] - Revenue for the six months ended June 30, 2024, was RMB 9,407,081 thousand, up 25.3% from RMB 7,504,846 thousand in the same period of 2023[3] - The company reported a profit before tax of RMB 1,791,714 thousand, a significant recovery from a loss of RMB 2,352,631 thousand in the prior year[3] - Basic and diluted earnings per share for the period were RMB 4.54, compared to a loss of RMB 6.03 per share in the same period of 2023[3] - The gross profit for the six months ended June 30, 2024, was RMB 1,165,948 thousand, compared to a gross loss of RMB 387,606 thousand in the same period of 2023[5] - The fair value change of biological assets for the period was RMB 1,428,256 thousand, recovering from a loss of RMB 1,235,470 thousand in the previous year[5] - For the six months ended June 30, 2024, the company reported revenue of RMB 9,407,081,000, a 25.4% increase from RMB 7,504,846,000 for the same period in 2023[10] - The sales of live pigs and related products generated RMB 7,449,257,000, up from RMB 5,842,287,000, reflecting a growth of 27.5%[10] - The net profit after fair value adjustment of biological assets for the first half of 2024 was RMB 1,791 million, compared to a net loss of RMB 2,353 million in the same period of 2023[28] - The overall gross margin improved from -5.2% in the first half of 2023 to 12.4% in the first half of 2024, due to rising prices and effective cost management[35] Assets and Liabilities - The company's non-current assets increased to RMB 11,235,532 thousand as of June 30, 2024, from RMB 10,807,632 thousand at the end of 2023[6] - Current biological assets rose significantly to RMB 5,374,938 thousand from RMB 3,846,424 thousand, indicating a growth of approximately 39.8%[6] - The company's cash and cash equivalents increased to RMB 3,489,545 thousand from RMB 2,544,830 thousand, reflecting a growth of approximately 37.0%[6] - The net current liabilities improved to RMB (205,411) thousand from RMB (1,564,020) thousand, indicating a significant reduction in liabilities[6] - The company's net asset value increased to RMB 5,649,944,000 as of June 30, 2024, compared to RMB 3,855,063,000 as of December 31, 2023, marking a growth of 46.5%[7] - Total equity rose to RMB 5,649,944,000, up from RMB 3,855,063,000, indicating a significant increase of 46.5%[7] - As of June 30, 2024, the company's total bank loans and other borrowings amounted to approximately RMB 6,399 million, an increase from RMB 6,099 million as of December 31, 2023[47] - The net debt to equity ratio decreased to 102.1% as of June 30, 2024, from 156.5% as of December 31, 2023, reflecting improved financial stability[49] Operational Highlights - The company's slaughterhouses in Yibin and Meishan have commenced operations, with an annual slaughter capacity exceeding 2 million pigs, expanding the business into fresh meat production[24] - The company has implemented a vertical integration model covering the entire supply chain from feed production to sales, enhancing control over food quality and safety[20] - The breeding stock's genetic performance has improved significantly over the years, contributing to better production efficiency in the pig farming segment[21] - The company’s business segments include pig farming, poultry, and auxiliary products, with a focus on optimizing breeding and production processes[20] - The pig segment revenue for the first half of 2024 was RMB 7,449 million, reflecting a year-on-year growth of 27.5%[29] - The poultry segment revenue was RMB 1,543 million in the first half of 2024, a 0.9% increase year-on-year, driven by a 7.1% rise in average selling prices[31] - The auxiliary products segment saw a revenue increase of 211.5% to RMB 414 million, attributed to the development of fresh meat business[32] Cost and Expenses - The company incurred employee costs of RMB 675,938,000 for the six months ended June 30, 2024, compared to RMB 542,875,000 for the same period in 2023, representing a rise of 24.5%[13] - The cost of biological assets sold was RMB 7,805,937,000, slightly up from RMB 7,750,529,000, reflecting a marginal increase of 0.7%[14] - The company’s finance costs totaled RMB 231,154,000 for the six months ended June 30, 2024, down from RMB 240,095,000 in the previous year, a decrease of 3.9%[12] - Research and development expenses were RMB 111,760,000, a slight decrease from RMB 114,944,000 in the same period last year, showing a decline of 2.8%[14] Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems[68] - The audit committee reviewed the unaudited interim financial statements for the six months ending June 30, 2024, and found existing systems effective and sufficient[69] - KPMG conducted a review of the interim financial results without any modifications, ensuring compliance with Hong Kong accounting standards[70] - The company emphasizes its commitment to high standards of corporate governance and compliance with applicable laws and regulations[65] Future Plans and Investments - The company aims to steadily expand core business capacity and increase production of yellow-feathered broilers, driving growth in both the pig and poultry segments[60] - The company plans to optimize feed formulas and precision feeding to reduce breeding costs while ensuring optimal growth conditions for pigs[61] - The net proceeds from the global offering amount to approximately HKD 952.5 million, with 50% allocated to expanding existing pig and yellow-feathered chicken breeding businesses[64] - 15% of the proceeds will be used to develop food processing businesses, amounting to approximately HKD 142.9 million[64] - 10% of the proceeds, approximately HKD 95.3 million, will be invested in R&D and information technology systems[64] Dividends and Share Capital - The company will not declare any interim dividend for the six months ending June 30, 2024, consistent with the previous period[63] - The company has submitted an application to convert approximately 61,944,501 domestic shares (about 15.93% of total issued share capital) into H-shares, which were approved for listing on January 22, 2024[62]
德康农牧(02419) - 2024 - 中期业绩