现代牧业二零二三年年报

Breakthroughs beyond limits, innovation embraces victories突破無止境，創新贏未來。 CORPORATE PROFILE China Modern Dairy Holdings Limited (the “Company” or “Modern Dairy”together with its subsidiaries, the “Group”) is the leading dairy farming operatorand raw milk producer in the People’s Republic of China (the “PRC”). ModernDairy operates 42 dairy farming companies in the PRC with dairy cows over450,000 heads and annualized milk yield of over 2.59 million tons. The Groupis a leading dairy farming operator and raw milk producer in terms of herd sizein the PRC. The Company initiated the production model of “Zero-distanceIntegration of Forage Grass Planting, Cows Breeding and Milk Processing withinTwo Hours”, which is the first in the PRC that applies integrated productionmodel with SGS certification. Modern Dairy’s products have been awardedthe Gold Prize of Monde Selection which is generally regarded as the “NobelPrize” in the food industry, for the past ten consecutive years. In recent years,our business segment has expanded to feed and forage, intelligent e-commerceplatform and dairy cows breeding. 42452592SGS 「牧育健康牛，守護每一滴好牛奶」“Raise healthy cows, safeguard each andevery drop of milk” CONTENTS HIGHLIGHTS (1)EBITDAi)ii)iii)iv)(2)(3)202312 3120221231 (1)Cash EBITDA is defined as earnings before finance costs and taxhaving added back: i) depreciation and amortisation charged toprofit and loss; ii) other gains and losses, net; iii) impairment lossesunder expected credit loss model, net of reversal; and iv) loss arisingfrom changes in fair value less costs to sell of dairy cows. (2)Free cash flow is defined as the net cash generated from operatingactivities less the net cash outflow from investing activities. (3)Equity attributable to owners of the Company at the year end dividedby the number of ordinary shares in issue as at 31 December 2023and 31 December 2022, respectively. DIVIDEND 0.004520220.0142 The Board recommended the payment of a final dividend ofRMB0.0045 per ordinary share (2022: RMB0.0142). HIGHLIGHTS: With the corporate vision of “establishing a whole dairy valuechain, innovating with digital intelligence, and becoming a globaldairy farming leader”, while focusing on the core business of rawmilk and driven by digitalization and ecological approaches, theGroup’s businesses cover the entire dairy value chain of the dairyindustry’s upstream sectors, including breeding, forage plantation,feeds, dairy farming and dairy value chain e-commerce platform.With an excellent management team, leading scientific researchand innovation, highly digitized intelligent value chain and efficientcost control, Modern Dairy has achieved organic synergy betweenits core raw milk business and new value chain businesses, whichhas empowered the overall business of our Group to developstably and robustly. •202312 3142450,56211.2%12.63.3%2559.4%102.643.2% •Strong Growth in Core Business:Raw milk production,being the core business of the Group, has performedsolidly. During the year, both the average annualised milkyield (“AMY”) per milking cow and the total milk yield havereached record highs, and there has also been a significantincrease in the herd size and sales revenue from raw milk.As of 31 December 2023, the Group had invested in andoperated 42 dairy farming companies in mainland China,and the number of dairy cows reached 450,562 heads,representing a yoy increase of 11.2%. The AMY per milkabledairy cow reached an industry-leading level of 12.6 tons as of31 December 2023, representing a yoy increase of 3.3%, andis expected to grow continuously. Total raw milk sold reached2.55 million tons during the year, representing a yoy increaseof 9.4%, with sales revenue amounting to RMB10,264 million,representing a yoy increase of 3.2%. •31.9535.9% •Strong Development of New Business:Along with lastyear’s successful acquisition of Aiyangniu (an e-commerceplatform company) and development of new businessesincluding Liangyuan Technology, Modern Feed, ModernGrassland and Meng Yuan Genetics etc., the Group’sbusinesses have expanded to the operation of valuechain e-commerce platform, forage and feed productionand premium cow semen sectors. These new businessescollectively contributed sales revenue of RMB3,195 millionfor the Group during the year, representing a yoy increase of35.9%. These new businesses have brought new sources ofprofit to the Group, and strengthened the vertical layout andsecurity of industry value chains, while synergizing with thecore business to build an industry-leading digital intelligencetechnology economic moat. •15.68202224.1420231231114.977.8% •Initial Results of Fund Controls:During the year, theGroup persistently strengthened its internal cost reductionand efficiency improvement control measures and activelyexplored external upstream and downstream synergiesto cope with the operational pressure from the industry.Moreover, the Group timely adjusted its working capitalmanagement strategy by reducing inv