Financial Performance - For the fiscal year ending December 31, 2023, the company reported a revenue of RMB 18,693,896, representing a year-on-year increase of 3.6% from RMB 18,050,761 in 2022[7]. - The gross profit for the same period was RMB 4,469,785, which is a 5.8% increase compared to RMB 4,223,722 in the previous year[7]. - The company experienced a net loss attributable to shareholders of RMB (1,049,980), contrasting with a profit of RMB 414,771 in 2022, indicating a significant change[7]. - The cash EBITDA for the year was RMB 3,851,418, up 7.3% from RMB 3,591,036 in 2022[7]. - The company's revenue increased by 3.6% from RMB 18,051 million in 2022 to RMB 18,694 million in the reporting period[27]. - The raw milk business generated approximately RMB 12.9 billion in revenue, an increase of 18.9% compared to 2022, accounting for 69.0% of the total revenue during the reporting period[28]. - The cost of sales increased by 3.2% from RMB 16,959 million in 2022 to RMB 17,499 million, primarily due to growth in the raw milk business[71]. - Gross profit rose from RMB 4,224 million in 2022 to RMB 4,470 million, with a gross margin improvement from 23.4% to 23.9%[74]. Production and Operations - The raw milk production reached 3,020,182 tons, a substantial increase of 27.1% from 2,377,156 tons in the previous year[7]. - The total number of dairy cows increased to 582,739 heads, marking a 16.7% rise from 499,451 heads in 2022[8]. - The number of breeding cows rose to 284,208, which is a 22.7% increase from 231,709 in the previous year[8]. - The annual milk yield per breeding cow (excluding certain breeds) was 12.0 tons, a year-on-year increase of 5.3%, with the company's premium fresh milk farms achieving a yield of 12.3 tons[17]. - The group added 14 operational farms during the reporting period, expanding its strategic layout in both existing and new farms, including the goat milk sector[40]. - The company has established a new milk goat farm with a planned stock of 50,000 goats, which will be the largest single milk goat farm in China[37]. - The company operates 15 feed production bases and 15 forage production bases, with high-quality alfalfa accounting for approximately 53% of self-produced forage[28]. Technological Development and Innovation - The company aims to enhance technological value and lead the high-quality development of China's dairy industry[2]. - The company is expanding its product offerings in the specialty fresh milk category, including goat milk, which is expected to enrich its product matrix[2]. - The group implemented energy-saving and emission-reduction projects, completing upgrades to 53 farms by replacing coal and biomass boilers with air source heat pumps[40]. - The group utilized its proprietary smart farm management system "Hui Mu Yun" for precise monitoring of cow health, improving operational efficiency and reducing costs[39]. - The company has initiated research projects on low-carbon emission technologies in collaboration with agricultural research institutions, focusing on reducing greenhouse gas emissions in livestock farming[42]. - The company has developed key technologies such as genetic evaluation, sex control, and embryo technology to enhance the breeding of top dairy cattle and ensure national genetic resource security[58]. Sustainability and Corporate Responsibility - The company plans to continue its strategic focus on sustainable development, aiming for carbon peak by 2030 and carbon neutrality by 2050[68]. - The company is actively addressing employment issues for local farmers, enhancing agricultural productivity and income through its industry and technology advantages[68]. - The company has implemented no-till carbon-sequestering sowing technology on approximately 53,000 acres during the reporting period[53]. - The company has established county-level livestock service centers to address industry pain points and promote high-quality development[49]. - The company received the first "Animal Health Carbon Footprint Certification" in China in October 2023[25]. Governance and Management - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors, with significant experience in the dairy industry[147]. - The company emphasizes strict internal control measures to enhance transparency and accountability to shareholders[159]. - The audit committee consists of three members, including two independent non-executive directors, ensuring oversight of financial reporting and internal controls[170]. - The company has a structured approach to board meetings, with all directors having access to necessary information and the ability to seek independent professional advice[169]. - The company has established appropriate insurance arrangements for directors and senior management against legal claims arising from corporate activities[168]. Market and Customer Relations - Revenue from the top five customers was RMB 13,671 million, accounting for 73.1% of total revenue, up from 64.0% in 2022[111]. - Sales to the largest customer, Yili Group, generated RMB 12,447 million, which constituted 96.5% of the total raw milk revenue, compared to 96.6% in 2022[111]. - The company has maintained a stable long-term cooperative relationship with its major customer, Yili Group[111]. - The company has established partnerships with universities to attract quality talent and enhance employee development[102]. Future Outlook and Strategic Initiatives - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth of 25%[154]. - A strategic acquisition of a local dairy producer is in progress, which is anticipated to enhance production capacity by 30%[153]. - The company is investing 100 million RMB in technology upgrades to improve supply chain efficiency and product quality[154]. - The management team emphasizes a focus on sustainability, aiming for a 40% reduction in carbon emissions by 2025[155].
优然牧业(09858) - 2023 - 年度财报