YILI(SH:600887)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 63.21 billion, an increase of 12.29% compared to CNY 56.29 billion in the same period last year[9]. - The net profit attributable to shareholders for the first half of 2022 was CNY 6.13 billion, reflecting a growth of 15.23% from CNY 5.32 billion year-on-year[9]. - The net profit after deducting non-recurring gains and losses was CNY 5.89 billion, up 17.51% from CNY 5.01 billion in the previous year[9]. - The company achieved total revenue of 63.463 billion yuan, a year-on-year increase of 12.31%, and a net profit of 6.139 billion yuan, up 15.40% from the previous year[22]. - The liquid milk business generated revenue of 42.892 billion yuan, a growth of 1.14%, while the milk powder and dairy products segment saw revenue of 12.071 billion yuan, increasing by 58.28%[22]. - The company reported a net profit of 3,101.01 million RMB for the period, with a registered capital of 18,085.46 million HKD[43]. - The company’s total comprehensive income for the first half of 2022 was CNY 7.46 billion, an increase from CNY 6.43 billion in the first half of 2021[95]. - The company's net profit for the first half of 2022 was ¥7.10 billion, compared to ¥6.29 billion in the same period of 2021, indicating a growth of 12.9%[92]. Assets and Liabilities - The company's total assets increased by 15.91% to CNY 118.19 billion compared to CNY 101.96 billion at the end of the previous year[9]. - The total liabilities amounted to RMB 67.35 billion, up from RMB 53.17 billion, which is an increase of approximately 26.6%[88]. - The company's equity attributable to shareholders decreased slightly to RMB 46.81 billion from RMB 47.71 billion, a decline of about 1.9%[88]. - Short-term borrowings surged to RMB 22.54 billion, compared to RMB 12.60 billion at the beginning of the year, marking an increase of around 79.0%[88]. - The company's total liabilities at the end of the reporting period were approximately CNY 21.07 billion, indicating a manageable debt level[102]. Cash Flow - The company reported a net cash flow from operating activities of CNY 5.53 billion, down 12.74% from CNY 6.34 billion in the same period last year[9]. - The total cash inflow from operating activities for the first half of 2022 was CNY 66.13 billion, an increase of 10.4% compared to CNY 59.60 billion in the same period of 2021[96]. - The net cash flow from investment activities was negative at CNY -9.12 billion, worsening from CNY -3.90 billion in the same period last year[97]. - The ending balance of cash and cash equivalents was CNY 33.49 billion, up from CNY 21.15 billion at the end of the first half of 2021[97]. Research and Development - Research and development expenses increased by 21.04% to ¥307.69 million, driven by the merger with Ausnutria Dairy[30]. - The company is investing approximately $50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[130]. - The company has implemented a digital transformation strategy to enhance its online and offline channel collaboration, responding effectively to changing consumer demands[15]. Market Expansion and Product Development - International business revenue increased by 58% compared to the same period last year, reflecting successful overseas market expansion[15]. - The company continues to focus on high-growth segments such as organic dairy products and cheese snacks, with these areas growing over 20% year-on-year[15]. - The company launched new products such as AMX 0 sugar strawberry and AMX Xinjiang cantaloupe, which performed well in the market[24]. - The company plans to expand its market presence by entering three new regions by the end of 2023, aiming for a 10% increase in market share[128]. Environmental and Social Responsibility - The company strictly adheres to environmental protection laws and has not experienced any pollution incidents or penalties during the reporting period[50]. - The company has implemented measures to reduce environmental impact, including monitoring of ammonia nitrogen levels[54]. - The company donated a total of CNY 46.8 million in student milk to support children's health and dreams as part of the "Yili Nutrition 2030" initiative[66]. - The company actively responded to natural disasters by providing nutritional supplies to affected areas, including during the Sichuan earthquake and Guangdong floods[67]. Corporate Governance - The company has undergone changes in its board of directors, with Li Feng being elected as a new director[47]. - The company has not faced any major litigation or arbitration matters during the reporting period[69]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[68]. Financial Ratios and Performance Metrics - The company's current ratio decreased by 11.21% to 1.03 compared to the previous year-end[86]. - The debt-to-asset ratio increased by 9.28% to 56.99% compared to the previous year-end[86]. - The interest coverage ratio decreased by 17.46% to 13.76 compared to the previous year[86]. Investment and Acquisitions - The acquisition of Ausnutria Dairy led to a significant increase in trading financial assets, which rose by 256.81% to ¥132,779,590.61[34]. - A strategic acquisition of a smaller competitor is anticipated to close by Q4 2022, expected to increase overall revenue by 8%[131]. Compliance and Risk Management - The company has implemented a risk response mechanism to adapt to global pandemic and macroeconomic changes, ensuring timely supply of products and materials[27]. - The company is actively monitoring industry risks related to supply and demand of fresh milk, import raw material prices, and market demand growth[45].