Ch Modern D (01117) released its six-month performance ending June 30, 2024. The group achieved revenue...
According to the announcement, the group is committed to the mission of "raising healthy cows and safeguarding every drop of good milk," and is dedicated to the health of the Chinese people. On the basis of expanding and strengthening the dairy farming business, the group is developing the entire industry chain, emphasizing digital innovation, and becoming a leader in global farming.
In the first half of 2024, in response to the challenging market environment, the group actively took various cost reduction and efficiency enhancement measures, firmly pursued a cost-leading strategy, actively controlled costs, and further enhanced the core competitiveness and ability to withstand industry cyclicality. During this period, the group optimized the structure of the cow population and increased the number of low-yield and low-efficiency cows for elimination in order to improve the milk yield per cow. In addition, the group further strengthened lean management of the pasture, focusing on improving the proportion of core cows and the health level of cows. As a result, major operating indicators have achieved significant improvements, and the core raw milk business has achieved stable development.
As of June 30, 2024, the group has invested in and operated 42 pasture companies in mainland China, covering 13 provinces and autonomous regions, and has raised a total of 0.4449 million dairy cows (as of June 30, 2023: 0.4186 million dairy cows), an increase of 6.3% year-on-year. The proportion of mature cows to total cows is 50.6% (as of June 30, 2023: 48.8%), an increase of 1.8 percentage points year-on-year, in line with the group's overall expansion strategy. The group will continue to improve the proportion of core cows by optimizing the feeding environment and the health of dairy cows to achieve sustained and steady growth in production.
The average annual yield and total milk production per mature cow have reached historical highs, and the sales revenue of raw milk has also increased. The average annual yield of mature cows reached 13 tons, an increase of 3.2% year-on-year, leading the industry. The total sales volume of raw milk reached 1.4 million tons, an increase of 13.4% year-on-year. The sales revenue of raw milk reached 5.112 billion yuan, an increase of 1.3% year-on-year. The gross margin of the group's raw milk business increased by 2.0 percentage points compared to the same period in 2023, and the gross profit of the raw milk business increased by 0.12 billion yuan, a growth of 8.4% compared to the same period in 2023.