Revenue and Sales Performance - The beef business reported a revenue of RMB 154.2 million for the first half of 2023, with a sales volume of 4,817 tons and an average selling price of RMB 32,012 per ton, compared to RMB 162.9 million, 4,933 tons, and RMB 33,017 per ton in 2022, indicating a revenue decrease of 5.3%[2]. - Revenue for the first half of 2023 was RMB1,845,610, reflecting a 1.9% increase compared to RMB1,810,503 in the same period of 2022[99]. - Revenue from the raw milk business accounted for 87.4% of total revenue, amounting to RMB1,612.3 million, a 2.3% increase YoY[141]. - The beef cattle business revenue was RMB154.2 million, a decrease of 5.3% YoY, with ASP dropping by 3.0% to RMB32,012/ton[117]. - The company’s raw milk sales volume for the first half of 2023 was 124,269 tons, reflecting an increase of 11.5% compared to 111,424 tons in the first half of 2022[73]. - The total raw milk sales volume increased by 10.7% year-on-year to approximately 374,034 tons in the first half of 2023[89]. Profitability and Financial Performance - Gross profit for the beef business increased to RMB 169 million in 2023, up 154.4% from RMB 66 million in 2022, primarily due to an increase in cattle numbers[5]. - Gross profit decreased by 29.5% to RMB312,468, down from RMB443,109 in the previous year[99]. - The company experienced a loss before tax of RMB303,579, compared to a profit of RMB201,038 in the same period of 2022, marking a significant decline[99]. - Adjusted net loss for the period was RMB 304.9 million, a decrease of 213.6% compared to a profit of RMB 268.4 million in 2022, mainly due to a 29.5% decline in gross profit and increased financing costs[15]. - Gross profit for the raw milk business decreased to RMB291.1 million, down 32.2% year-over-year from RMB429.1 million, with a gross profit margin dropping to 18.1% from 27.2%[151]. - Losses from changes in fair value of biological assets were RMB414.6 million, a significant decline from gains of RMB12.8 million in the previous year, attributed to higher feed costs and lower raw milk prices[152]. Costs and Expenses - The average feed cost per kilogram of raw milk increased to RMB 2.55 in 2023, up 7.1% from RMB 2.38 in 2022, impacting overall profitability[12]. - Direct materials costs for the raw milk business increased by 18.5% YoY to RMB1,008.3 million, primarily due to rising feed prices[147]. - Finance costs increased to RMB125.8 million, a 34.2% rise from RMB93.8 million, primarily due to higher average bank borrowings[182]. - Total employee remuneration expenses for the reporting period were approximately RMB188.0 million, up 1.6% year-over-year from RMB185.1 million in 2022[199]. Assets and Liabilities - The fair value of the beef cattle as of June 30, 2023, was RMB 477.5 million, a 25.6% increase from RMB 380.3 million at the end of 2022, attributed to a rise in cattle population[5]. - As of June 30, 2023, total interest-bearing bank borrowings amounted to RMB 2.67 billion, an increase from RMB 2.17 billion at the end of 2022, reflecting a higher debt level[32]. - The capital debt ratio increased to 80% in 2023 from 63% in 2022, indicating a higher reliance on debt financing[32]. - Total debt increased to RMB4.22 billion, up from RMB3.50 billion, with a gearing ratio rising to 80% from 63%[174]. - The biological assets were valued at RMB3.42 billion, a slight decrease of 1.0% year-over-year despite an increase in cattle head size[176]. Strategic Initiatives and Future Outlook - The company anticipates a challenging operating environment in the second half of 2023, with low consumer confidence, prompting strategic actions to navigate difficulties[26]. - The company is focused on expanding its dairy farm operations and diversifying its customer base[35]. - The company plans to utilize net proceeds from its global offering to build farm facilities and purchase equipment for Pure Source Farm 4, with construction expected to commence in April 2023[81]. - Despite challenges in the Chinese economy and dairy industry, the company remains confident in the long-term prospects of consumer markets and dairy products[200]. Other Income and Taxation - Other income rose to RMB 49 million in 2023 from RMB 26.4 million in 2022, driven by increased government subsidies and technical service fees[9]. - The total tax charge for the period was RMB 6,900,000, slightly up from RMB 6,890,000 in the previous year[48].
澳亚集团(02425) - 2023 - 中期财报