Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 9,076.7 million, representing a 4.2% increase compared to RMB 8,707.0 million in the same period of 2022[11]. - The company's gross profit for the same period was RMB 2,093.2 million, showing a slight decrease of 0.2% from RMB 2,096.9 million year-on-year[11]. - The company reported a loss attributable to owners of RMB 992.0 million, compared to a profit of RMB 219.3 million in the previous year, indicating a significant decline in profitability[11]. - The cash EBITDA for the period was RMB 1,805.3 million, down 1.8% from RMB 1,837.6 million in the same period last year[11]. - The company reported a net loss of RMB 1,243,568 thousand for the six months ended June 30, 2023, compared to a profit of RMB 200,121 thousand in the same period of 2022, indicating a significant decline[143]. - The company recorded a pre-tax loss of RMB 1,206 million during the reporting period, compared to a pre-tax profit of RMB 233 million in mid-2022[83]. - The net loss for the reporting period was RMB 1,244 million, primarily due to a decline in gross margin and increased losses from biological assets[85]. Revenue Breakdown - Raw milk business revenue reached approximately RMB 6.16 billion, representing an 18.0% increase compared to mid-2022, accounting for 67.8% of total revenue[20]. - Revenue from raw milk sales reached RMB 6,156,918 thousand, up 17.96% from RMB 5,219,010 thousand in the previous year[161]. - The average price of raw milk decreased by 5.2% to RMB 4.39 per kilogram, down from RMB 4.63[23]. - Revenue from raw milk sales increased to RMB 5,978,328 thousand in 2023, up from RMB 5,028,566 thousand in 2022, representing a growth of 18.9%[173]. - The feed business generated revenue of approximately RMB 2.64 billion, accounting for 29.1% of total revenue[22]. Operational Metrics - The number of dairy cows increased by 20.6% to 539,400 from 447,335, with the number of breeding cows rising by 21.4% to 253,633[11]. - The company operated 85 modern farms with a total dairy cow inventory of nearly 540,000, producing approximately 1.44 million tons of raw milk during the reporting period[20]. - The annual milk yield per cow reached 12.2 tons, a 7.0% increase from mid-2022, with the Inner Mongolia farm achieving 12.8 tons[20]. - The company produced nearly 580,000 tons of concentrated feed during the reporting period, with over 60% of alfalfa grass meeting top quality standards[22]. Investment and Expansion - The company has established 85 farms, 15 feed production bases, and 15 forage production bases, covering 17 provinces and municipalities in China[3]. - The company is expanding into goat milk production, with a new goat farm planned to house 50,000 goats, which will be the largest single goat farm in China[27]. - The company is constructing multiple new farms in key dairy-producing provinces, expected to commence operations in the second half of 2023[27]. - The company has initiated the construction of a new feed production base in Hebei, which will increase total production capacity to 1.82 million tons upon completion[38]. Research and Development - The company has established a leading R&D platform focused on dairy cow nutrition and health, enhancing the quality of raw milk products[31]. - The company developed key technologies such as the "A2 cow genetic identification method" and established a platform for new livestock stem cell technology and gene editing, enhancing its capabilities in dairy production[51]. - The company has a research and development team of nearly 400 people and has obtained 76 core patent technologies as of June 30, 2023, covering various business segments[55]. Financial Position - As of June 30, 2023, the company's total bank borrowings amounted to RMB 25,821.188 million, an increase from RMB 20,559.056 million at the end of 2022[99]. - The net leverage ratio increased to 189.0% as of June 30, 2023, up from 135.0% at the end of 2022, primarily due to increased borrowings for the expansion of dairy farms[101]. - The company's cash and cash equivalents decreased to RMB 1,243.330 million as of June 30, 2023, from RMB 3,013.284 million at the end of 2022[94]. - The total salary expenditure for the reporting period was RMB 775 million, an increase of 12.3% from RMB 690 million in the mid-2022 report[112]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has adopted all applicable code provisions[127]. - The audit committee has reviewed the interim financial statements and discussed accounting policies and internal controls with management[129]. - The company actively promotes investor relations and communication, engaging with institutional investors and financial analysts[137]. Market and Industry Trends - The average price of fresh milk in major producing provinces in China decreased by approximately 5.7% to RMB 3.96 per kilogram compared to RMB 4.20 per kilogram in mid-2022[17]. - The demand for high-quality breeding products remains strong, with imports of frozen bull semen increasing by 8.9% to 6.7171 million doses during the reporting period[17]. - The Chinese government has issued policies to support the dairy farming industry, enhancing barriers to entry and promoting modernization[18].
优然牧业(09858) - 2023 - 中期财报