Financial Performance - The company reported a significant increase in revenue, achieving a total of $235 million for the interim period, representing a growth of 18% compared to the previous year[9]. - The company recorded a revenue of approximately RMB1,828.0 million for the six months ended June 30, 2024, representing a decrease of 1.0% compared to RMB1,845.6 million in the same period of 2023[17]. - The company’s total revenue decreased by 1.0% to RMB 1,827.965 million, down from RMB 1,845.610 million in the first half of 2023, despite a 4.9% increase in raw milk sales volume[68]. - Revenue from the beef cattle business was RMB 219.5 million, a 42.4% increase from RMB 154.2 million in the same period of 2023, accounting for 12.0% of total revenue[57]. - Revenue from the ancillary business surged by 132.8% to RMB 184.1 million, compared to RMB 79.1 million in the first half of 2023[59]. Profitability and Losses - Gross profit decreased by 29.9%, from approximately RMB312.5 million to RMB219.0 million, primarily due to a 15.8% decrease in raw milk selling price and a 16.8% decrease in beef cattle selling price[19]. - The net loss attributable to owners of the company was approximately RMB636.0 million, a significant increase of 104.8% compared to RMB310.5 million in the same period of 2023[16]. - Loss before tax was RMB 628.3 million, an increase of 107.0% from RMB 303.6 million in the same period of 2023[104]. - Cash EBITDA for the reporting period was RMB231.5 million, a decrease of 31.3% from RMB337.1 million in the previous year[16]. - The gross loss for the beef cattle business was RMB52.9 million in 1H2024, compared to a gross profit of RMB16.9 million in 1H2023, mainly due to a 16.8% decrease in the average selling price of beef cattle from approximately RMB32,012/ton to RMB26,643/ton[86][88]. Operational Efficiency and Strategies - The company has implemented new operational strategies aimed at reducing costs by 10% while maintaining product quality[9]. - The company continues to focus on improving operational efficiency and expanding its production capabilities across various locations[12]. - The company has decided to pause the construction of Pure Source Farm 4 temporarily while monitoring the raw milk market supply and demand situation[25]. - The company plans to enhance operational efficiency through advancements in genetic breeding technology and feed mill operations, aiming to increase productivity and reduce disease rates[135]. - Effective measures will be taken to lower feed costs while expanding the customer base and developing new customers[139]. Market Trends and Outlook - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 15% to 20% based on current market trends and user acquisition strategies[9]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of the fiscal year[9]. - The dairy sector in China is expected to benefit from government support aimed at the long-term growth of dairy-related industries[34]. - By mid-2025, the raw milk market is expected to restore supply and demand equilibrium, with significant small to mid-size dairy farms likely to be made redundant due to industrial consolidation[128]. - China remains a significant growth market for beef, with per capita consumption significantly lower than developed countries, indicating potential for increased demand[130]. Corporate Governance and Compliance - The company is committed to improving corporate governance practices, with new policies being introduced to enhance transparency and accountability[9]. - The Group has engaged an external independent internal controls consultant to review its internal control procedures and address identified deficiencies[176]. - The Company has committed to additional compliance training for Directors and key business function heads, with refresher training on Listing Rules provided in May 2024[177]. - The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[179]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance since the Listing Date[182]. Employee and Shareholder Information - Total employee remuneration expenses for the reporting period were approximately RMB196.7 million, representing a 4.6% increase compared to RMB188.0 million in the first half of 2023[124]. - The Group had 2,614 employees as of June 30, 2024, a slight decrease from 2,620 employees at the end of 2023[124]. - As of June 30, 2024, the total number of issued shares is 700,463,112[146]. - The interests of the Directors and Chief Executive in shares as of June 30, 2024, include 28,138,581 shares held by Tan Yong Nang, representing approximately 4.02% of the total shares[160]. - The maximum potential number of shares subject to the AAG Performance Share Plan (PSP) can vary from 0% to 200% based on key performance indicators achieved from January 1, 2022, to December 31, 2023[146].
澳亚集团(02425) - 2024 - 中期财报