Revenue and Profitability - Revenue for the six months ended June 30, 2022, reached RMB 8,706,955 thousand, a 19.4% increase from RMB 7,291,767 thousand in the same period of 2021[9]. - Adjusted profit attributable to the company's owners was RMB 437,123 thousand, a decrease of 61.7% compared to RMB 1,142,013 thousand in the prior year[9]. - EBITDA for the period was RMB 1,837,606 thousand, reflecting a 12.3% increase from RMB 1,636,448 thousand in the previous year[9]. - The company reported a net profit of RMB 200,121 thousand, a significant decrease from RMB 1,187,518 thousand in the previous year, representing an 83.2% decline[110]. - Gross profit decreased from RMB 2,139 million in 2021 to RMB 2,097 million in 2022, with a gross margin decline from 29.3% to 24.1%[57][59]. Business Operations and Growth - Raw milk business revenue was RMB 5,219,010 thousand, up 19.9% from RMB 4,351,943 thousand year-on-year[9]. - The company operates 75 farms covering 16 provinces and regions, with a dairy cow stock of nearly 450,000[11]. - The company achieved double-digit growth in both feed business and dairy farming consumables revenue, with breeding income doubling during the reporting period[12]. - The company is strategically expanding in regions with high population density and economic potential, focusing on building new farms and feed production bases[12]. - The company launched a new organic fresh milk product, enhancing the functional component conversion efficiency and total output of specialty fresh milk[12]. Production and Supply Chain - The company's raw milk production reached 1.15 million tons, and concentrated feed production was 640,000 tons during the reporting period[12]. - The total production of ruminant animal feed reached 7.24 million tons, an increase of 2.8% compared to the mid-2021 period[15]. - The company established 25 demonstration farms nationwide, with annual milk production per cow increasing by 4.8% compared to mid-2021[27]. - The company has established a high-quality forage planting base covering over 210,000 mu of land in Inner Mongolia[11]. - The company launched new feed products, including a specialized camel feed, to fill market gaps and improve the nutrition and health of dairy cows[25]. Financial Management and Investments - Financing costs increased by 72.1% from RMB 298 million in 2021 to RMB 512 million in 2022, attributed to higher interest on convertible bonds and bank loans[66]. - The company reported a net cash inflow from financing activities of RMB 3,736,490 thousand, compared to RMB 4,338,447 thousand in the previous year, reflecting a decrease of 13.9%[45]. - As of June 30, 2022, total bank borrowings amounted to RMB 13,613,427,000, an increase of 44.5% from RMB 9,456,114,000 as of December 31, 2021[76]. - The company has begun construction of feed production bases in Heilongjiang and Hebei, aiming for a total production capacity of 2 million tons[30]. - The company has initiated a strategic performance transformation project to enhance organizational activation and employee motivation[85]. Market and Competitive Landscape - The national average price of fresh milk in major producing provinces was RMB 4.20 per kilogram, a decrease of 1.4% compared to the mid-2021 period[14]. - The company reported a 33.4% increase in the import value of frozen bull semen, totaling $51.17 million, reflecting strong domestic demand for high-quality breeding products[15]. - The company is focused on expanding its market presence and enhancing its product offerings in the dairy sector[118]. - Major customer A generated revenue of RMB 5,028,566 thousand from raw milk sales, RMB 51,334 thousand from feed sales, and RMB 7,357 thousand from breeding products for the six months ended June 30, 2022[138]. - The company is integrating supply chain advantages to expand into new businesses such as vaccines and agricultural inputs, enhancing automation in dairy farming[33]. Sustainability and Corporate Governance - The company is committed to sustainable development, integrating ecological strategies into its business operations and establishing a long-term mechanism for sustainability[44]. - The company has established a carbon accounting model for the entire dairy industry chain, achieving leading greenhouse gas emissions levels for raw milk in 2021[45]. - The company is advancing electrification and new energy construction in its farms, with electric loaders expected to reduce greenhouse gas emissions by approximately 72% compared to diesel vehicles[46]. - The company is focused on digital transformation and automation in financial and human resource management to enhance operational efficiency and risk management[43]. - The company is committed to maintaining strict corporate governance and has adopted all applicable code provisions during the reporting period[101]. Employee and Talent Management - Total employee count as of June 30, 2022, was 10,835, with technical staff making up 21.5% and skilled workers 41.6% of the workforce[83]. - The company aims to attract and retain qualified employees through continuous improvement in talent assurance, capability building, and compensation management[84]. - Total salary expenses (excluding share-based payments and retirement plan contributions) amounted to RMB 690 million, an increase from RMB 536 million in the same period of 2021[85]. - The company plans to build a talent development system to accelerate the construction of an efficient and agile workforce for future growth[49]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the reporting period[82].
优然牧业(09858) - 2022 - 中期财报