Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 1,827.965 million, a slight decrease of 1.0% compared to RMB 1,845.610 million in the same period of 2023[1][2] - Gross profit decreased by 29.9% to RMB 219.034 million from RMB 312.468 million in the previous year[1][2] - Net loss attributable to shareholders was RMB 636.013 million, significantly higher than the loss of RMB 310.479 million in the same period last year, primarily due to losses from changes in fair value of biological assets[1][4] - Cash EBITDA for the period was RMB 231.522 million, a decrease of 31.3% compared to RMB 337.107 million in the previous year[1][2] - Total revenue for the six months ended June 30, 2024, was RMB 2,097,562,000, a decrease of 3.5% from RMB 2,153,199,000 for the same period in 2023[12] - The company reported a pre-tax loss of RMB (628,343,000) for the six months ended June 30, 2024, compared to a pre-tax loss of RMB (303,579,000) for the same period in 2023[12] - The total equity as of June 30, 2024, was RMB 4,441,878,000, down 12.5% from RMB 5,075,666,000 as of December 31, 2023[8] - The group reported a pre-tax loss of RMB 636,013 for the six months ended June 30, 2024, compared to a loss of RMB 310,479 for the same period in 2023[23] - The pre-tax loss for the reporting period was RMB 628.3 million, a 107.0% increase from RMB 303.6 million in the same period last year[57] - The company's attributable loss was RMB 636.0 million, up 104.8% from RMB 310.5 million in the first half of 2023, primarily due to a decline in gross profit to RMB 219.0 million, down 29.9%[57] Sales and Production - Average annual milk production per cow increased by 2.2% to 13.7 tons, while the herd size grew by 4.8% to 130,229 cows[1][2] - Raw milk sales volume increased by 4.9% to 392,440 tons, while beef cattle herd size rose by 11.8% to 39,466[1][2] - Sales of raw milk amounted to RMB 1,424,316, while beef sales were RMB 219,508, and other sales were RMB 184,141 for the first half of 2024[14] - Total raw milk production increased by 9.5% to approximately 447,000 tons, up from 408,100 tons in the first half of 2023[32] - Total sales volume of raw milk increased by 4.9% year-on-year to approximately 392,440 tons, up from 374,034 tons in the first half of 2023, mainly due to higher average milk production per cow and contributions from the newly established Chunyuan Pasture 3[42] - Total beef sales volume surged by 71.0% to 8,239 tons, compared to 4,817 tons in the first half of 2023[35] Market Conditions - The decline in gross profit was attributed to a 15.8% decrease in raw milk prices and a 16.8% decrease in beef prices, despite a 19.2% reduction in feed costs[2][4] - The average selling price of raw milk decreased by approximately 27% from about RMB 4.4 per kg in August 2021 to about RMB 3.2 per kg by June 2024[28] - The overall dairy product output decreased by 3% to 14.33 million tons in the first half of 2024, with expectations of further decline in the second half[28] - The domestic beef market in China saw a 24% increase in beef imports from January to May 2024 compared to the same period in 2023, impacting local beef prices[30] Assets and Liabilities - As of June 30, 2024, total non-current assets amounted to RMB 8,053,572,000, a decrease of 4.5% from RMB 8,434,586,000 as of December 31, 2023[6] - Current assets totaled RMB 2,057,109,000, down 25% from RMB 2,742,778,000 as of December 31, 2023[6] - The net current liabilities were RMB (1,027,672,000), compared to RMB (509,871,000) as of December 31, 2023, indicating a worsening liquidity position[9] - The company’s non-current liabilities totaled RMB 2,584,022,000 as of June 30, 2024, down from RMB 2,849,049,000 as of December 31, 2023[7] Cash Flow and Financing - Net cash flow from operating activities was RMB 709.9 million, compared to RMB 221.2 million for the six months ended June 30, 2023[61] - Net cash used in investing activities was RMB 378.2 million, primarily from payments for biological assets of RMB 671.0 million and property, plant, and equipment of RMB 65.6 million[62] - Net cash used in financing activities was RMB 500.9 million, mainly due to repayment of interest-bearing bank loans of RMB 1,658.9 million[63] - Total interest-bearing bank loans amounted to RMB 3,047.3 million as of June 30, 2024, with actual interest rates ranging from 3.40% to 9.61%[64] Strategic Initiatives - The company has decided to temporarily suspend the construction of ChunYuan Ranch 4 while monitoring the supply and demand situation in the raw milk market[3] - The company is focusing on improving cash flow from operations to ensure sufficient working capital for the next 12 months[9] - The company has launched its own feed factory in March 2023, primarily supplying internal needs while selling some to external parties[31] - The company has initiated a breeding program for high-quality Wagyu cattle and plans to focus on selling premium beef products[70] - The company aims to achieve a milk production target of 14 tons in 2024, maintaining its leading position in China[73] Governance and Compliance - The company has committed to enhancing its governance framework, including hiring an external internal control consultant to review its internal control procedures[74] - The company has established a governance structure led by an Environmental, Social, and Governance (ESG) committee to oversee ESG strategy implementation[72] - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the corporate governance code[75]
澳亚集团(02425) - 2024 - 中期业绩