Xinjiang Tianrun Dairy (600419)2024-05-08 10:33Financial Performance - In 2023, the company achieved a revenue of 2.714 billion CNY, representing a year-on-year growth of 12.62% [2] - The net profit attributable to shareholders was 142 million CNY, a decrease of 27.71% compared to the previous year [3] - In Q1 2024, the company reported a revenue of 640 million CNY, a growth of 1.47% year-on-year, while the net profit was 4.5435 million CNY, down 91.74% from the previous year [3] Market Challenges - The dairy industry and upstream livestock farming have been in a downturn, with increased costs and an imbalance in supply and demand [2] - The market competition has intensified, affecting sales and profitability [3] Strategic Initiatives - The company acquired Xin Nong Dairy to shift from competition to collaboration, enhancing sales and product optimization [3] - A new factory in Shandong is set to start production by the end of November 2023, focusing on the "Jiali" brand [3] - The company plans to complete a 200,000-ton dairy processing project by the end of 2024, funded by its own resources and convertible bonds [3] Sales and Marketing Efforts - Increased investment in traditional and new media marketing, particularly on platforms like Douyin [3] - The company is actively recruiting distributors and enhancing its sales team to penetrate the southern Xinjiang market [5] - Plans to launch new products, including organic milk and A2-β milk, to capture market share [4] Operational Adjustments - The company is focusing on optimizing its cattle herd structure by eliminating low-yield cattle to reduce feeding costs [4] - Ongoing efforts to adjust market management strategies based on sales performance and growth potential in key regions [5]