Operations and Production - As of June 30, 2025, China Shengmu operates 34 farms with a total of 144,000 dairy cows, producing approximately 2,169 tonnes of fresh milk daily, and an annual production capacity of 600,000 tonnes of ecological organic raw milk[2][3]. - The annualized milk yield per milkable cow increased to 12.27 tonnes in 2025H1, reflecting a growth in productivity[21]. - The volume of raw milk sold reached 114.1 million tonnes, although this represents an 11.3% decrease compared to the previous period[24]. - The company focuses on high-end desert organic raw milk, organic A2 raw milk, and DHA raw milk, enhancing its product matrix to meet diverse customer demands[36]. - The annualized milk yield per milkable cow reached a historical high of 12.27 tonnes in the first half of 2025, up from 12.07 tonnes in mid-2024, contributing to a raw milk sales volume of 372,973 tonnes, a year-on-year increase of 6.3%[43][44]. Financial Performance - Revenue for the Group was RMB1,444,274,000, a decrease from RMB1,490,702,000 in the previous year, reflecting a decline of 3.1%[59]. - The average selling price of raw milk decreased to RMB3.87 per kilogram, an 8.9% decline year-on-year, while the average industry price fell to RMB3.08 per kilogram, down 11.7%[46][47]. - The overall gross profit margin for the first half of 2025 was 25.3%, a decrease of 1.2 percentage points from 26.5% in the same period last year[46][47]. - The loss from changes in the fair value of biological assets was RMB471.3 million, slightly up from RMB451.0 million in the same period of 2024[69]. - Other income and gains increased significantly to RMB166.5 million, up 233.7% from RMB49.9 million in the previous year, primarily due to government grants and the reversal of litigation provisions[70]. Cost Management - The three major expenses per kilogram of milk decreased to RMB 2.44 in 2025H1, down from RMB 2.67 in 2024H1[24]. - The Group's cost of sales per kilogram of milk was RMB2.89, a decrease of 7.4% year-on-year, primarily due to a reduction in feed costs, which fell to RMB2.33 per kilogram, down 7.3%[46][47]. - The total amount of administrative, selling, and financing expenses was RMB101.3 million, representing an 11.3% decrease year-on-year, with expense ratios standing at 7.0%[46][47]. - Finance costs decreased by 17.5% to RMB 19.4 million from RMB 23.5 million in 2024, attributed to increased financial interest subsidies from the government[85]. Market and Industry Trends - The dairy industry faced challenges with raw milk prices declining for three consecutive years, remaining at historically low levels, and production from large dairy enterprises decreased by 0.3% to 14.33 million tonnes[30][32]. - China's total raw milk production in the first half of 2025 was 18.64 million tonnes, reflecting a year-on-year increase of 0.5, while the average price of raw fresh milk dropped by 7.0% to RMB 3.04 per kilogram[35][38]. - The total import of dairy products increased by 5.7% year-on-year to 1.3825 million tonnes, with dried dairy products rising by 8.7% to 1.048 million tonnes[30][34]. - The Group aims to create the world's leading organic milk brand, aligning with its mission to promote agriculture and contribute to society[27][29]. Environmental and Sustainability Initiatives - 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][7]. - The company has transformed 350,000 mu of desert into high-quality pasture and planted over 98 million sand-fixing trees, creating a 220 square kilometer oasis[4][5]. - The Group achieved a "Level B" certification in the 2024 CDP rating, reflecting its commitment to ESG practices and sustainable ecological models[49]. - The Group's implementation of IFRS S2 established a disclosure system covering core indicators such as greenhouse gas emissions, setting a benchmark for climate information disclosure in the dairy industry[54]. Corporate Governance and Management - The Audit Committee is responsible for overseeing the financial reporting system, risk management, and internal control procedures, ensuring the effectiveness of the audit process[148]. - The Remuneration Committee determines human resources management policies and reviews remuneration packages for Directors and senior management[149]. - The Nomination Committee makes recommendations regarding candidates to fill vacancies on the Board[151]. - The Strategic and Sustainability Committee formulates the Company's long-term development strategy and considers environmental, social, and corporate governance matters[153]. Shareholder Information - As of June 30, 2025, Zhang Jiawang holds 173,328,580 shares, representing 2.07% of the company's issued ordinary shares[169]. - Start Great Holdings Limited and China Mengniu Dairy Company Limited each own 2,513,178,555 shares, accounting for 29.99% of the total shares[175]. - Nong You Co., Ltd. and its controlled corporations hold 1,301,651,000 shares, which is 15.53% of the total shares[175]. - The total number of issued shares as of June 30, 2025, is 8,381,295,229[176].
中国圣牧(01432) - 2025 - 中期财报