Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 6,633.4 million, an increase of 17.8% compared to RMB 5,632.1 million in the same period last year[4]. - Net profit decreased by 59.0% to RMB 217.9 million from RMB 531.1 million in the same period last year[4]. - Gross profit for the same period was RMB 1,520,752 thousand, down 8.1% from RMB 1,654,823 thousand in 2022[7]. - The group reported a total segment profit of RMB 459,431 thousand for the six months ended June 30, 2023, compared to RMB 876,963 thousand for the same period in 2022[18]. - The basic and diluted earnings per share for the six months ended June 30, 2023, were calculated based on a profit of RMB 209,288,000, a decrease of 58.8% from RMB 507,688,000 for the same period in 2022[31]. - Profit attributable to owners of the company for the six months ended June 30, 2023, was RMB 209.3 million, a decrease of 58.8% from RMB 507.7 million in 2022[67]. Revenue Breakdown - Revenue for the six months ended June 30, 2023, was RMB 6,633,422 thousand, an increase of 17.8% compared to RMB 5,632,126 thousand for the same period in 2022[7]. - Revenue from raw milk business reached RMB 5,044,062 thousand, up from RMB 4,858,036 thousand, reflecting a growth of 3.8% year-over-year[16]. - The offline feed business generated revenue of RMB 1,105,624 thousand, a significant increase of 42.7% from RMB 774,090 thousand in the previous year[16]. - The digital platform business contributed RMB 483,736 thousand in revenue, marking its first reporting period since its establishment[16]. - Revenue from mainland China accounted for RMB 6,493,234 thousand, representing an increase of 17.9% from RMB 5,507,656 thousand in the prior year[16]. Production and Operations - The total milk production reached 1,249,000 tons, representing an 8.4% increase from 1,152,000 tons year-on-year[4]. - The company’s herd size increased to 418,596 heads, a growth of 9.4% compared to 382,693 heads in the previous year[4]. - The average annual milk yield per cow was 12.6 tons, a 2.4% increase from 12.3 tons year-on-year[4]. - The average selling price of raw milk decreased by 4.4% to RMB 4.09 per kilogram, down from RMB 4.28 per kilogram in 2022[49]. - The total sales volume of raw milk increased by 8.6% to approximately 1,233,400 tons, compared to 1,135,080 tons in 2022[49]. Cash Flow and Financial Position - Operating cash flow increased by 70.2% to RMB 2,182.9 million, up from RMB 1,282.2 million year-on-year[4]. - The company achieved a free cash flow of RMB 896.7 million, compared to a net outflow of RMB 559.3 million in the previous year[4]. - Total assets as of June 30, 2023, were RMB 22,733,767 thousand, an increase from RMB 20,353,194 thousand as of December 31, 2022[10]. - The company’s cash and cash equivalents amounted to RMB 2,377,402 thousand as of June 30, 2023, compared to RMB 2,125,628 thousand at the end of 2022[9]. - The net gearing ratio as of June 30, 2023, was 80.6%, down from 85.2% as of December 31, 2022, indicating improved financial leverage[68]. Expenses and Costs - The total cost of sold feed and farm materials increased to RMB 1,495,190,000, compared to RMB 683,167,000 in the previous year, indicating a rise of approximately 118.5%[25]. - The sales cost for raw milk was RMB 3,617.5 million, reflecting a year-on-year increase of 9.8% due to higher sales volume and feed prices[52]. - The overall sales cost for the group rose to RMB 5,112.7 million, a 28.5% increase from RMB 3,977.3 million in 2022[52]. - Financial expenses for the period were RMB 260.4 million, up from RMB 153.8 million in 2022, with interest-bearing borrowings accounting for RMB 212.3 million, reflecting a 26.7% increase year-on-year[66]. - Administrative expenses increased to RMB 379.1 million for the six months ended June 30, 2023, up from RMB 318.4 million in 2022, primarily due to the growth in employee numbers and related compensation[62]. Investments and Future Plans - The company aims to achieve a dairy cow inventory of over 500,000 heads and an annual fresh milk production target of 3.6 million tons by 2025[76]. - The group is focused on integrating ecology and technology, enhancing its comprehensive business capabilities and management levels[75]. - The company has successfully integrated new businesses, including a digital platform for livestock trading, which generated RMB 483.7 million in revenue during the period[44]. - The group continues to implement a three-year strategic plan focused on cost leadership and operational efficiency, achieving better-than-expected performance across key operational metrics[44]. Employee and Operational Metrics - As of June 30, 2023, the group employed 8,817 employees, an increase of 11.9% from 7,876 employees in the previous year[73]. - Total employee costs (excluding share-based payment expenses) for the reporting period were approximately RMB 601.4 million, representing an 18.3% increase from RMB 508.4 million in 2022[73]. - The group has adopted a retirement benefits plan for employees in Hong Kong and complies with local laws for mainland employees[74]. Risk Management and Compliance - The group has implemented a credit risk management system, reviewing customer credit limits and transaction amounts biannually[74]. - The audit committee consists of two independent non-executive directors and one non-executive director, overseeing financial reporting and risk management[81]. - The group has completed the review of the interim financial statements for the six months ending June 30, 2023, in accordance with the Hong Kong Accounting Standards[82].
现代牧业(01117) - 2023 - 中期业绩