YILI(SH:600887)2014-08-29 16:00Financial Performance - The company achieved operating revenue of CNY 27.29 billion in the first half of 2014, representing a 13.59% increase compared to the same period last year[18]. - The net profit attributable to shareholders was CNY 2.29 billion, marking a 31.93% increase year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 2.09 billion, which is a significant increase of 91.05% compared to the previous year[18]. - Basic earnings per share increased to CNY 0.75, a rise of 19.05% compared to the same period last year[19]. - Operating profit surged by 90.66% to CNY 2.50 billion from CNY 1.31 billion year-on-year[25]. - The company reported a net profit margin of 11.1% for the first half of 2014[84]. - The company reported a net profit of 13,413.42 million RMB for its financial subsidiary, indicating strong financial management[42]. - The company reported a total profit of ¥2,684,481,678.13, an increase of 79.6% compared to ¥1,495,444,942.81 in the previous period[85]. - The net profit attributable to the parent company for the first half of 2014 was CNY 2,292,872,763.54, reflecting a strong performance in profitability[95]. Assets and Liabilities - The company's total assets reached CNY 39.40 billion, up 19.85% from the end of the previous year[18]. - Total liabilities increased to CNY 22.50 billion, up from CNY 16.56 billion, representing a growth of 35.8% year-over-year[80]. - Current liabilities rose to CNY 20.61 billion, compared to CNY 15.52 billion, marking an increase of 32.8%[80]. - The total equity attributable to shareholders increased to CNY 16.70 billion from CNY 16.13 billion, a growth of 3.5%[80]. - The total assets of the company reached RMB 39,401,987,433.22, an increase from RMB 32,877,387,559.54, which is a growth of approximately 20.5%[79]. Cash Flow - The net cash flow from operating activities decreased by 81.93% to CNY 588.49 million[18]. - The company reported a significant decrease in financing cash flow, down 54.60% to CNY 3.32 billion compared to CNY 7.30 billion in the previous year[25]. - Cash flow from operating activities generated a net amount of ¥588,494,091.14, a decrease from ¥3,256,629,152.08 in the previous period[89]. - The total cash and cash equivalents at the end of the period reached CNY 9,166,414,023.36, compared to CNY 5,079,317,238.18 at the end of the previous year[93]. Investments and Projects - The company has made strategic investments in New Zealand for milk powder projects and established partnerships with DFA in the USA and Wageningen University in the Netherlands to enhance global supply chain control[23]. - The company has ongoing projects in various regions, including a new liquid milk project in Hebei with an investment of RMB 37,551.77 million, which is 100% completed[38]. - The dairy powder project has reached 75.53% completion with a cumulative investment of 88,795 million RMB, reflecting significant progress in product development[43]. - The project for the modern dairy technology demonstration park in Hohhot has a planned investment of RMB 9,085.55 million, with actual investment of RMB 3.60 million in the current period, achieving 44.10% of the expected return[37]. Shareholder Information - The company distributed cash dividends of 1,634,331,217.60 RMB to shareholders, amounting to 8.00 RMB per 10 shares, following the 2013 annual shareholders' meeting[45]. - The company has a total of 1,021,457,011 shares after a capital reserve increase, with a new total share capital of 3,064,371,033 shares[45]. - The company had a total of 69,138 shareholders at the end of the reporting period[67]. - The largest shareholder, Hohhot Investment Co., Ltd., held 9.31% of the shares, totaling 190,176,942 shares[67]. Strategic Initiatives - The company is advancing its internationalization strategy and has established a European R&D center to improve its brand influence globally[23]. - The company plans to expand its market presence and invest in new product development to drive future growth[84]. - The company is focusing on enhancing its operational efficiency and exploring potential mergers and acquisitions to drive growth[99]. Compliance and Governance - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[57]. - The company’s governance structure complies with the Company Law and relevant regulations, with no discrepancies noted[58]. - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting a true and complete picture of its financial status[108]. Research and Development - Research and development expenses rose by 36.64% to CNY 30.09 million, driven by innovations in nutrition research and process development[25]. - The Yili R&D Center in the Netherlands has a registered capital of 50 million euros, with a net asset of 415.48 million RMB and a net loss of 4.25 million RMB[42]. Market Performance - Revenue from the liquid milk segment grew by 15.29% to CNY 20.71 billion, while costs increased by 11.23%[30]. - The company achieved a revenue increase of 15.16% in North China and 11.81% in South China[31].