Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 9,076,655 thousand, representing a 4.2% increase from RMB 8,706,955 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 2,093,170 thousand, slightly down by 0.2% from RMB 2,096,933 thousand year-on-year[2] - The company reported a loss attributable to owners of RMB (992,017) thousand, compared to a profit of RMB 219,326 thousand in the prior year, indicating a significant decline[2] - Cash EBITDA for the period was RMB 1,805,286 thousand, down 1.8% from RMB 1,837,606 thousand in the previous year[2] - The company experienced a significant loss before tax of RMB (1,206,320) thousand for the period, compared to a profit of RMB 233,406 thousand in the same period last year[5] - The basic and diluted loss per share was RMB (0.26) compared to earnings of RMB 0.06 in the previous year[6] - Total revenue for the six months ended June 30, 2023, increased by 10.5% to RMB 9,076,655 thousand from RMB 8,706,955 thousand in the same period of 2022[82] - Revenue from raw milk business grew by 18.0% to RMB 6,156,918 thousand, driven by a 24.4% increase in sales volume to 1,402,485 tons[82] Assets and Liabilities - Non-current assets totaled RMB 32,673,545 thousand as of June 30, 2023, compared to RMB 31,877,107 thousand at the end of 2022[7] - Current assets decreased to RMB 13,075,970 thousand from RMB 11,569,210 thousand at the end of 2022[7] - As of June 30, 2023, the company's net current liabilities amounted to RMB 9,577 million, compared to RMB 8,327 million as of December 31, 2022[11] - Total assets less current liabilities were RMB 23,096,545 thousand, a decrease from RMB 23,550,033 thousand in the previous year[8] - Non-current liabilities, including bank and other borrowings, increased to RMB 7,619,392 thousand from RMB 6,731,381 thousand year-over-year[8] - The company's net asset value decreased to RMB 13,212,037 thousand from RMB 14,751,129 thousand as of December 31, 2022[8] Cash Flow - The company anticipates sufficient cash flow to meet its liabilities for at least the next 12 months, supported by expected cash flows from operations and available bank loan financing of approximately RMB 5.8 billion[11] - Net cash generated from operating activities was RMB 2,666 million during the reporting period, up from RMB 1,862 million in mid-2022[102] - Net cash used in investing activities was RMB 6,694 million, primarily due to payments for biological assets and financial assets[102] - Net cash generated from financing activities was RMB 3,816 million, mainly from new bank and other borrowings[103] - The ending cash and cash equivalents decreased to RMB 1,243 million from RMB 3,013 million in the same period of 2022[101] Operational Metrics - The number of dairy cows increased by 20.6% to 539,400 from 447,335, with the proportion of breeding cows rising to 47.0% from 46.7%[2] - Raw milk production reached 1,437,138 tons, a 24.9% increase from 1,150,873 tons in the same period last year[52] - The average total bacterial count and somatic cell count of raw milk were significantly better than the standards set by China and international benchmarks[77] - The company operates 15 feed production bases and 15 forage production bases, with a total feed production of nearly 580,000 tons during the reporting period[50] Market and Industry Challenges - The company’s management highlighted the ongoing challenges in the dairy farming industry due to declining milk prices and high feed costs, impacting overall profitability[47] - The average price of fresh milk in major producing provinces was RMB 3.96 per kilogram, a decrease of approximately 5.7% compared to RMB 4.20 per kilogram in mid-2022[47] - The average price of raw milk decreased by 5.2% to RMB 4.39 per kilogram[52] Research and Development - The company is focusing on expanding its research and development capabilities in intelligent and digital farming technologies to enhance operational efficiency[47] - The company has established a leading research platform focused on dairy cow nutrition and health, enhancing the quality of its dairy products[58] - The company has developed a methane emission prediction model for dairy cows, aiming to reduce methane emissions by 10% below the average level while maintaining high yield and disease resistance[74] Employee and Management - The total number of full-time employees as of June 30, 2023, was 11,653, with technical staff comprising 21.0% and skilled workers making up 44.9% of the total[110] - Total salary expenses (excluding share-based payment expenses and retirement plan contributions) for the reporting period amounted to RMB 775 million, representing a 12.3% increase from RMB 690 million in the mid-2022 period[112] - The company has established partnerships with universities to attract and retain qualified employees, enhancing its talent supply chain[111] Governance and Compliance - The audit committee has reviewed the interim financial statements and discussed accounting policies and internal controls with senior management and auditors[114] - The company has established a nomination committee and a remuneration committee in addition to the audit committee[115] - The company strictly adhered to the standards set forth in the code of conduct for securities transactions by directors during the reporting period[114] Environmental and Social Responsibility - The company aims to peak carbon emissions by 2030 and achieve carbon neutrality by 2050, actively promoting fossil carbon and biological carbon reduction technologies[80] - The company has initiated 7 photovoltaic farm projects, promoting clean energy and reducing carbon emissions in its operations[57] - The company is actively researching carbon reduction technologies in dairy farming, collaborating with various research institutions to develop comprehensive carbon neutrality strategies[58]
优然牧业(09858) - 2023 - 中期业绩