Financial Performance - The group reported a net loss of RMB 264,077 thousand for the period, compared to a profit of RMB 52,660 thousand in the previous period[85]. - Revenue for the six months ended June 30, 2023, was RMB 1,081,881 thousand, an increase of 7.2% compared to RMB 1,009,035 thousand for the same period in 2022[112]. - Gross profit decreased to RMB 257.1 million for the six months ended June 30, 2023, down 5.5% from RMB 272.1 million for the same period in 2022, resulting in a gross margin decline from 27.0% to 23.8%[23]. - The company reported a loss before tax of RMB 264,077 thousand, compared to a profit of RMB 52,660 thousand in the previous year[112]. - The overall comprehensive loss for the period was RMB (270,036) thousand, compared to a comprehensive income of RMB 50,239 thousand in the previous year[111]. Cash Flow and Liquidity - The net cash inflow from operating activities was RMB 531.7 million for the six months ended June 30, 2023, down from RMB 668.8 million for the same period in 2022[29]. - Cash and cash equivalents at the end of the period were RMB 745,544 thousand, down from RMB 878,620 thousand in the previous year[116]. - Cash and cash equivalents increased to RMB 745,544 thousand as of June 30, 2023, compared to RMB 576,309 thousand as of December 31, 2022, marking an increase of 29.3%[127]. - The company has secured available credit facilities of approximately RMB 348,138,000 as of June 30, 2023, which remain unused[133]. Assets and Liabilities - As of June 30, 2023, the total assets amounted to RMB 5,108,837 thousand, with liabilities including interest-bearing bank and other borrowings at RMB 1,002,897 thousand[106]. - The total current liabilities decreased to RMB 1,598,280,000 as of June 30, 2023, down from RMB 1,661,422,000 as of December 31, 2022, indicating a reduction of 3.8%[127]. - The total non-current liabilities increased to RMB 1,324,771,000 as of June 30, 2023, compared to RMB 1,191,750,000 as of December 31, 2022, indicating an increase of 11.1%[127]. - The company has a net asset value of RMB 4,820,322,000 as of June 30, 2023, down from RMB 5,088,138,000 as of December 31, 2022, reflecting a decrease of 5.3%[127]. Operational Highlights - The group has established ten dairy farms in Heilongjiang Province and one in Jilin Province, with a total area of approximately 9,694,458 square meters[14]. - The group imported 9,390 dairy cows as of June 30, 2023, as part of its operational expansion[14]. - The total number of dairy cows increased to 101,313, up from 84,619 in the previous year, representing a growth of approximately 19.6%[49]. - The average annual milk production per cow is expected to improve as the group expands its herd size and enhances production management[52]. Cost and Expenses - The group reported a total sales cost of RMB 824.785 million for the six months ended June 30, 2023, compared to RMB 736.907 million for the same period in 2022, reflecting an increase of approximately 11.9%[22]. - Administrative expenses for the period were RMB 53.6 million, a reduction of approximately 20.7% compared to RMB 67.6 million for the same period in 2022[25]. - The cost of production and breeding was RMB 618,343,000, an increase from RMB 533,997,000 in the same period of 2022, representing a growth of approximately 15.8%[153]. - The total employee benefit expenses (excluding directors and key management personnel) were RMB 78,881,000 for the six months ended June 30, 2023, compared to RMB 73,346,000 in the same period of 2022, marking an increase of about 7.3%[153]. Market and Industry Insights - The global dairy market size reached USD 944.39 billion in 2022 and is projected to grow to USD 1,329.15 billion by 2027, indicating a significant market opportunity[44]. - China's milk production is expected to reach 4.227 million tons in 2023, reflecting a growth of 5% compared to the previous year[45]. - The international dairy price index fell to 118.7 points in May 2023, a year-on-year decrease of 17.7%, marking 11 consecutive months of decline[44]. - The group expects no significant decline in milk prices for the foreseeable future, indicating a stable outlook for its dairy operations[163]. Shareholder and Governance - The major shareholder, Mr. Leng Youbin, holds 3,342,320,920 shares, representing approximately 71.26% of the issued shares[75]. - The company has adopted a share option scheme to reward selected participants for their contributions since November 7, 2013[69]. - The company maintains high standards of corporate governance and has adhered to the corporate governance code as per the listing rules[95]. - The board has decided not to declare any interim dividends for the period ended June 30, 2023[60]. Future Plans and Investments - The group plans to allocate capital expenditures primarily towards the construction and investment of new farms as part of its future strategy[31]. - The group plans to utilize HKD 1,923 million from its IPO proceeds for the construction of new farms, with an additional HKD 384.6 million allocated for upstream operations[33]. - The unutilized net proceeds from the IPO amount to approximately HKD 347.8 million, expected to be used for upstream operations development by the end of 2024 due to ongoing market observations[63].
原生态牧业(01431) - 2023 - 中期财报