Production and Capacity - By the end of the reporting period, China Shengmu owned 34 farms with a total of 144,000 dairy cows and a daily fresh milk production of approximately 2,015 tonnes, achieving an annual production capacity of 600,000 tonnes of ecological organic raw milk[4]. - As of December 31, 2024, the Group owned 144,448 cows, including 62,842 milkable cows, and sold a total of 699,803 tonnes of raw milk, representing a slight decrease of 1.6% year-on-year[25][26]. - The Group produced 2,015 tonnes of raw fresh milk per day in 2024, with 21 organic certified farms contributing 1,534 tonnes per day[52][55]. - The Group's herd size increased by 5.7% to 156,481 cows as of December 31, 2024[53][56]. - The average milk yield per milkable cow reached 12.05 tonnes in 2024, representing a year-on-year increase of 0.67 tonnes[58]. Financial Performance - Revenue for the year was RMB 3,126.2 million, reflecting a year-on-year decrease of 7.6% due to declining raw milk prices[25][26]. - The total sales revenue for 2024 was RMB 3,126.2 million, representing a year-on-year decrease of 7.6% from RMB 3,383.6 million in 2023[90]. - The gross profit for 2024 was RMB 925.9 million, down from RMB 1,025.0 million in 2023, with a gross profit margin of 29.6% compared to 30.3% in the previous year[94]. - The average sales price of the Group's comprehensive raw milk was RMB 4.47/kg, reflecting a year-on-year decrease of RMB 0.29/kg[63]. - The loss attributable to owners of the parent company was RMB 65.5 million in 2024, a decrease of RMB 151.6 million compared to a profit of RMB 86.1 million in 2023[121]. Cost Management - The cost of sales per kilogram of milk decreased by 5.2% year-on-year, benefiting from lower feed prices and internal cost control measures[25][26]. - The sales cost per kilogram of milk in 2024 was RMB 3.14/kg, with feed costs at RMB 2.54/kg, representing a year-on-year decrease of RMB 0.11/kg[64]. - Administrative expenses decreased by 8.3% year-on-year to RMB 152.6 million in 2024, accounting for 4.88% of sales revenue[105]. - Selling and distribution expenses decreased by 21.8% to RMB 49.1 million from RMB 62.7 million in 2023 due to cost optimization strategies[100]. Sustainability and Ecological Initiatives - The company has transformed 350,000 mu of desert into high-quality pasture and planted over 98 million sand-fixing trees, creating a robust ecological environment[3]. - China Shengmu's end-user brand organic milk won the Gold Award at the 17th Asia International Organic Product Expo, highlighting its commitment to sustainable practices[6]. - The company has built 11 reservoirs, 9 organic manure fermentation plants, and 1 bio-organic fertilizer processing plant to support its ecological initiatives[3]. - The Group's unique ecological model integrates desert governance with the organic dairy industry, contributing to sustainable development[79]. - The Group was recognized by the United Nations Global Compact for its best practices in "Sustainable Production and Consumption"[6]. Market Trends and Industry Challenges - The dairy industry in China is experiencing increased concentration, with small and medium-sized farms being phased out, leading to a dominance of large-scale and standardized farms[21]. - The supply-demand situation in the industry remains severe, but the Group maintains a firm belief in refining management and aligning with government strategies[156]. - In 2024, China's total raw milk production was 40.79 million tonnes, a year-on-year decrease of 2.8%, marking the first decline since 2018[49][50]. - The average price of raw fresh milk in primary producing regions was RMB 3.11/kg by the end of December 2024, a decrease of 15.0% compared to the previous year[49][50]. Strategic Focus and Future Outlook - Looking forward to 2025, the Group anticipates improved consumption growth in dairy products, supported by government initiatives to boost consumption[33]. - The Group's strategic focus includes sustainable development and enhancing corporate value amidst industry challenges[28][30]. - The Group aims to ensure the growth of Mengniu's Deluxe Desert Organic business with high quality as a core business goal for 2025[156]. - The Group will focus on comprehensive cost control, efficiency improvement, environmental protection upgrading, and water resource guarantee to achieve operational breakthroughs[156]. Debt and Financing - The gearing ratio was maintained at 50.7%, with a credit facility of RMB 10 billion, ensuring solid liquidity[28][30]. - The proportion of long-term loans increased to 57.3% in 2024, up from 51.4% in 2022[38]. - The annual average financing rate decreased to 2.44% in 2023 from 2.67% in 2022[40]. - The Group maintained a credit limit of RMB 10 billion in 2024, with a stable credit utilization rate of less than 30%[124]. Employee and Operational Efficiency - The Group's total employee costs decreased to RMB 326.8 million in 2024 from RMB 377.4 million in 2023, despite a reduction in total employees from 2,701 to 2,217[84]. - The Group's refined cost management and risk governance capabilities were enhanced through its digitalization efforts[74]. - The Group's "Cow Identification + AI Model Algorithm" and the industry-level "Cow Milk Calibration Model" achieved over 95% accuracy, enhancing individual cow efficiency management[74]. Awards and Recognition - The Group's organic products won the Gold Award at the Asian Organic Expo, reinforcing its commitment to high-quality organic practices[73]. - The Group achieved 100% ESG disclosure for three consecutive years and received a comprehensive "B-level" certification from the Carbon Disclosure Project (CDP) in climate change, water security, and forest risk[79]. - The Group's Electronic Records Management System won the "Digital Intelligence Pioneer Product - Best Practice Award," accelerating its digital transformation[74].
中国圣牧(01432) - 2024 - 年度财报