YILI(SH:600887)2023-08-28 16:00Financial Performance - Total assets of Yili Finance Company reached 1,170,369 million yuan, with a net profit of 13,545 million yuan[42] - Ningxia Yili Dairy Co., Ltd. achieved a net profit of 25,066 million yuan with total assets of 418,833 million yuan[42] - Inner Mongolia Jinhao Yili Dairy Co., Ltd. reported total assets of 407,668 million yuan and a net profit of 14,862 million yuan[42] - Inner Mongolia Huishang Internet Microfinance Co., Ltd. had total assets of 318,249 million yuan and a net profit of 3,727 million yuan[42] - Inner Mongolia Jinze Yili Dairy Co., Ltd. recorded total assets of 248,022 million yuan and a net profit of 4,093 million yuan[42] - Yili International Development Co., Ltd. reported total assets of 205,002 million yuan and a net loss of 3,094 million yuan[42] - New subsidiary Inner Mongolia Kangyijia Biotechnology Co., Ltd. had a net loss of 3,840.58 million yuan with an ending net asset of 1,445.65 million yuan[43] - Total revenue for the first half of 2023 reached RMB 66,197,383,636.74, an increase from RMB 63,463,321,946.48 in the same period last year[103] - Operating profit for the first half of 2023 was RMB 7,326,758,970.79, slightly higher than RMB 7,324,952,327.50 in the same period last year[103] - Net profit attributable to shareholders for the first half of 2023 was RMB 20,357,491,296.14, up from RMB 20,193,062,014.56 in the same period last year[102] - Revenue for the first half of 2023 reached RMB 59.25 billion, a slight increase from RMB 58.19 billion in the same period last year[106] - Net profit attributable to parent company shareholders was RMB 6.31 billion, up from RMB 6.13 billion in the previous year[104] - Basic earnings per share (EPS) for the first half of 2023 were RMB 0.99, compared to RMB 0.96 in the same period last year[104] - Operating profit for the first half of 2023 was RMB 7.28 billion, down from RMB 8.31 billion in the previous year[106] - Total comprehensive income for the first half of 2023 was RMB 6.41 billion, up from RMB 5.11 billion in the previous year[104] Financial Risks and Liabilities - The company faces industry risks due to uncertainties in domestic and international raw milk supply, import material prices, and overseas market expansion[44] - Financial risks are heightened by the company's international strategy, with potential impacts from exchange rates, trade policies, and tariffs[44] - Total liabilities increased to RMB 72,562,702,761.71 in the first half of 2023, up from RMB 54,380,044,549.66 in the same period last year[102] - Short-term borrowings rose to RMB 10,307,948,888.90 in the first half of 2023, compared to RMB 5,560,487,500.01 in the same period last year[102] - Long-term borrowings increased to RMB 15,260,289,000.00 in the first half of 2023, up from RMB 7,965,289,000.00 in the same period last year[102] - Total equity decreased to RMB 41,609,237,112.97 in the first half of 2023, down from RMB 42,064,797,288.18 in the same period last year[102] - Contract liabilities decreased to RMB 4,124,136,578.40 in the first half of 2023, compared to RMB 7,771,095,631.92 in the same period last year[102] Environmental and Sustainability Initiatives - The company reduced sludge production by 23.78% per ton of product in H1 2023, cutting 3,456 tons of sludge[66] - 41 sets of online water pollution monitoring systems were built, an increase of 8 sets compared to the previous year[66] - The solid waste recycling rate reached 92% in the reporting period[66] - Biogas recovery increased by 16% compared to the full year of 2022, reaching 1.14 million cubic meters[66] - The company installed 16 MW of photovoltaic capacity, with Longyou Yili Dairy becoming the largest single factory in the dairy industry for distributed photovoltaic installation[71] - 587 energy-saving and emission-reduction projects saved 36.89 million kWh of electricity, 2.01 million cubic meters of natural gas, and reduced carbon emissions by 38,200 tons[71] - The company achieved a water reuse rate of 11.69%, with 120 million tons of water saved in H1 2023[70] - 32 factories have been awarded the title of water-saving enterprises, with 8 new additions in the reporting period[71] - The company's MSCI ESG rating reached A, the highest among A-share listed dairy companies[71] - The company's subsidiary Ausnutria Dairy achieved an MSCI ESG rating of AA, the highest among Hong Kong-listed dairy companies[71] Research and Development - R&D expenses for the first half of 2023 were RMB 343,690,000.31, an increase from RMB 307,694,566.89 in the same period last year[103] - R&D expenses increased to RMB 279.67 million, up from RMB 235.31 million in the same period last year[106] Sales and Marketing - Sales expenses for the first half of 2023 were RMB 11,618,619,998.89, slightly lower than RMB 11,638,798,733.33 in the same period last year[103] - Sales expenses decreased to RMB 10.00 billion, down from RMB 10.36 billion in the previous year[106] Share Capital and Equity - Total owner's equity at the end of the period was CNY 40,059,547,215.38, an increase of CNY 1,466,598,957.10 compared to the beginning of the period[115] - Comprehensive income for the period was CNY 7,458,973,967.60[115] - The company repurchased and canceled 746,250 restricted shares in December 2019, reducing the total share capital to 6,096,378,858 shares[118] - The company issued 14,200,000 restricted shares in February 2017, increasing the total share capital to 6,079,000,108 shares[118] - The company repurchased and canceled 365,000 restricted shares in November 2018, reducing the total share capital to 6,078,127,608 shares[118] - The company repurchased and canceled 507,500 restricted shares in November 2017, reducing the total share capital to 6,078,492,608 shares[118] - The company issued 172,056,022 shares through stock option exercises in 2013, increasing the total share capital to 2,042,914,022 shares[117] - The company conducted a 10:10 capital reserve to share capital conversion in 2015, increasing the total share capital to 6,128,742,066 shares[117] - The company conducted a 10:5 capital reserve to share capital conversion in 2014, increasing the total share capital to 3,064,371,033 shares[117] - The company conducted a 10:10 capital reserve to share capital conversion in 2011, increasing the total share capital to 1,598,645,500 shares[117] Financial Instruments and Risk Management - The company uses bank acceptance bills for settlement, which have low credit risk and a historical default rate of zero, resulting in an expected credit loss rate of zero for these bills[157] - For commercial acceptance bills, the company calculates expected credit losses based on historical credit loss experience, current conditions, and future economic forecasts[157] - The company divides accounts receivable into different portfolios based on credit risk characteristics and calculates expected credit losses accordingly[159] - For other receivables, the company uses a "three-stage" model to calculate expected credit losses and divides them into portfolios based on credit risk characteristics[160][161] - Inventory is classified into categories such as raw materials, work-in-progress, and finished goods, and is initially measured at cost[162] - The company uses the weighted average method to value inventory when it is issued[162] - Inventory is assessed for impairment at the end of the period, and provisions for inventory write-downs are made based on the lower of cost or net realizable value[162] - The company uses the perpetual inventory system for inventory management[163] - Contract assets are recognized when the company has the right to receive consideration from customers, and expected credit losses are calculated using the same method as for financial instruments[164][165] - Non-current assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell[166][167] Food Safety and Quality Management - The company emphasizes the importance of food safety and continuously improves its global quality management system to mitigate product quality risks[44] Interest and Tax Expenses - Interest income rose to RMB 877.28 million, compared to RMB 705.00 million in the same period last year[106] - Income tax expenses increased to RMB 1.07 billion, up from RMB 959.97 million in the same period last year[104] - Other comprehensive income after tax was RMB 92.39 million, compared to a loss of RMB 1.03 billion in the previous year[104]