Sales Performance - For the six months ended June 30, 2022, the total sales volume of raw milk increased from 179,824 tons in the same period of 2021 to 193,180 tons[17]. - Total fresh milk sales revenue for the period was RMB 1,009.0 million, representing a 20.5% increase compared to the first half of 2021[17]. - The total sales revenue of raw milk reached RMB 1,009.0 million, a 20.5% increase compared to RMB 837.4 million for the same period in 2021[32]. - Customer contract revenue for the six months ended June 30, 2022, was RMB 1,009,035 thousand, representing an increase of 20.5% compared to RMB 837,439 thousand for the same period in 2021[132]. - Sales of raw milk to related parties reached RMB 858,216,000 for the six months ended June 30, 2022, up from RMB 815,281,000 in the previous year[188]. Profitability - Gross profit for the period was RMB 272.1 million, an increase of 18.9% year-on-year[17]. - Net profit decreased by 46.3% to RMB 52.7 million, down from RMB 98.0 million in the same period last year[17]. - Gross profit increased to RMB 272.1 million, an 18.9% increase from RMB 229.0 million for the six months ended June 30, 2021[37]. - The company recorded a net profit of RMB 52,660 thousand for the six months ended June 30, 2022, down from RMB 98,032 thousand in the prior year, reflecting a decline of approximately 46.3%[108]. - The total comprehensive income for the period was RMB 50,239 thousand, down from RMB 97,935 thousand in the same period last year, a decrease of about 48.8%[108]. Costs and Expenses - The total sales cost for the period was RMB 736.9 million, with feed costs accounting for 72.5% of total sales costs[36]. - The cost of production and breeding reached RMB 533,997,000, representing a 22.4% increase from RMB 436,084,000 in the prior year[1]. - Administrative expenses increased by approximately 35.7% to RMB 67.6 million from RMB 49.8 million for the six months ended June 30, 2021, primarily due to higher wages and taxes[39]. - Employee benefits expenses amounted to RMB 73,346,000, up 41.8% from RMB 51,728,000 in the prior year[1]. Production and Capacity - As of June 30, 2022, the total number of dairy cows increased to 84,619 from 72,321 a year earlier, representing a growth of approximately 17.1%[25]. - The average annual milk production per cow was 10.9 tons, a 0.9% increase from 10.8 tons in the first half of 2021[24]. - The total number of mature lactating cows rose to 38,180 from 35,057, indicating a 6.0% increase[26]. - The total number of goats held as of June 30, 2022, was 6,669, including 5,064 lactating goats, indicating a stable inventory level[156]. Financial Position - As of June 30, 2022, the total non-current assets amounted to RMB 5,835,234 thousand, an increase of 13.8% from RMB 5,127,419 thousand as of December 31, 2021[112]. - The total liabilities increased to RMB 2,015,672 thousand as of June 30, 2022, compared to RMB 1,635,517 thousand as of December 31, 2021, indicating a rise of 23.3%[112]. - The total equity increased to RMB 5,108,837 thousand as of June 30, 2022, up from RMB 5,052,798 thousand as of December 31, 2021, reflecting a growth of 1.1%[112]. - Cash and cash equivalents at the end of the period were RMB 878,620 thousand, a decrease of 16.9% from RMB 1,057,615 thousand at the end of June 30, 2021[119]. Investments and Acquisitions - The group completed the acquisition of several assets, including goat breeding facilities and land use rights for farms, to expand its business in the rapidly growing goat milk powder market[65]. - The company acquired a business for RMB 135,883 thousand during the reporting period, marking a new strategic investment[119]. - The cash consideration for the acquisition amounted to RMB 135,883,000, resulting in a net cash outflow of RMB 135,958,000 when including transaction costs[184]. Corporate Governance - The board and management are committed to maintaining high standards of corporate governance, believing that transparency and responsible business conduct align with the long-term interests of the company and its shareholders[80]. - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period[80]. - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated interim results for the period[85]. Market Outlook - The average per capita dairy product consumption in China was 38.3 kg in 2021, which is about one-third of the world average, indicating significant growth potential[11]. - The Chinese government aims to increase national milk production to approximately 41 million tons by 2025, which will benefit large-scale dairy farms[12]. - The Chinese dairy market is expected to experience a comprehensive boom, supported by government initiatives to enhance raw milk self-sufficiency[31]. Cash Flow - The net cash inflow from operating activities was RMB 668.8 million, compared to RMB 315.8 million for the six months ended June 30, 2021[46]. - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 668,805 thousand, a significant increase of 111.2% compared to RMB 315,778 thousand for the same period in 2021[119].
原生态牧业(01431) - 2022 - 中期财报