Sales and Revenue Performance - In 2024, the total sales volume of raw milk increased by 23.2% to 566,704 tons compared to 459,950 tons in 2023[10]. - Revenue from raw milk sales reached RMB 2,550.0 million, a 15.8% increase from RMB 2,201.9 million in 2023[10]. - Total fresh milk sales revenue reached RMB 2,552 million, a 15.5% increase from the same period in 2023[17]. - The total sales of raw milk increased by 15.5% to RMB 2,551.9 million for the year ending December 31, 2024, compared to RMB 2,208.6 million in 2023[29]. - The sales volume of raw cow milk rose by 23.2% to 566,704 tons, while the sales volume of raw sheep milk decreased by 67.2% to 306 tons[29]. Production and Livestock Management - China's milk production in 2024 was 40.79 million tons, a decrease of 2.8% year-on-year, indicating effective supply control[9]. - The average annual milk production per cow increased by 9.5% to 12.7 tons from 11.6 tons in 2023[21]. - The total number of dairy cows increased by 4.7% to 107,296 from 102,497 in 2023[23]. - The number of breeding cows rose by 23.8% to 49,330 from 39,861 in 2023[24]. - The company reported a total milk production of approximately 587,515 tons in 2024, up from 476,284 tons in 2023[168]. Financial Performance - Gross profit increased by 59.9% to RMB 944.6 million, with a gross margin improvement from 26.7% in 2023 to 37.0% in 2024[31]. - Other income and gains rose by 10.2% to RMB 158.7 million, attributed to increased interest income, government subsidies, and gains from the sale of a subsidiary[32]. - Administrative expenses decreased by approximately 17.4% to RMB 115.1 million, primarily due to reduced maintenance costs[33]. - The net profit for the year was RMB 296.7 million, a significant recovery from a net loss of RMB 339.7 million in 2023, with basic earnings per share of RMB 6.32[37]. - Cash inflow from operating activities was RMB 1,013.8 million, up from RMB 745.3 million in 2023[40]. Market and Industry Outlook - The outlook for 2025 suggests that milk prices may remain under pressure due to supply-side inventory issues despite improved consumer confidence[12]. - The dairy industry in China is expected to see gradual growth in consumption due to rising living standards and health awareness[26]. - The overall economic growth in China is projected at 5.0% for 2024, supporting the dairy sector's development[16]. - The company aims to enhance its competitive advantage in the dairy industry while optimizing production management efficiency[12]. Corporate Governance and Management - The board expresses gratitude to shareholders and acknowledges the contributions of the management team and employees over the past year[12]. - The company has a robust management team with diverse backgrounds in finance, production, and supply chain management[63][64]. - The board is responsible for overseeing business management and overall performance, ensuring necessary financial and human resources are in place[85]. - The company has a clear strategy for monitoring and improving corporate governance practices[81]. - The board has implemented an independence assessment mechanism to ensure strong independence and effective decision-making for shareholder protection[88]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an environmental, social, and governance (ESG) working group to manage ESG matters, with the board of directors responsible for identifying and assessing related risks[151]. - The company aims to enhance transparency and accountability in its ESG efforts, regularly reviewing performance against ESG-related goals[151]. - The company has committed to expanding its disclosure requirements in the ESG report, including key performance indicators and comparative data[149]. - The company emphasizes the importance of stakeholder engagement in identifying significant ESG issues[150]. - The company has implemented measures to comply with environmental regulations, focusing on reducing greenhouse gas emissions and waste management[164]. Employee and Workplace Management - The total number of full-time employees as of December 31, 2024, is 2,375, a slight decrease from 2,389 in 2023[186]. - The overall employee turnover rate for 2024 is approximately 47%, up from 34% in 2023[186]. - Employee training hours significantly increased to 3,030 hours in 2024 from 245 hours in 2023, with the percentage of trained employees rising to 15% from 3%[195]. - The company provided competitive compensation and benefits to attract and retain talent, including free meals and accommodation[196]. - The company has implemented strict health and safety measures, including regular disinfection and monitoring of production areas[191]. Technology and Innovation - The company emphasizes the importance of technological innovation and operational efficiency to strengthen its market position[12]. - The company plans to leverage technology and digital solutions to optimize production and reduce breeding costs, while also focusing on sustainable development[28]. - The company has invested in new technologies and product development to improve operational efficiency and product quality[65]. - The company aims to enhance digital breeding management to improve profitability and adapt to market demand changes[21]. Risk Management and Compliance - The board is responsible for maintaining an effective risk management and internal control system, assessing risks related to operations, environment, society, and governance (ESG)[129]. - The company has established strict internal control procedures and risk management systems, including annual risk assessments and audit plans[130]. - The independent auditor has confirmed their responsibility in the independent auditor's report for the consolidated financial statements[128]. - The company has established procedures to ensure the reliability of financial information and compliance with relevant laws and regulations[129]. - The company has implemented a whistleblowing policy for employees, customers, and suppliers to report misconduct confidentially, reviewed by the audit committee[133].
原生态牧业(01431) - 2024 - 年度财报