Adjusted profit before interest and tax increased 6.7% to 7.8% year-on-year compared to RMB 3,591 billion in 2022
On March 1, Youran Animal Husbandry (09858), the first upstream stock in the dairy industry, announced the 2023 annual performance forecast. The second half of the year's performance improved markedly. The performance of Youran Animal Husbandry is mainly affected by changes in the fair value of biological assets. Changes in fair value of biological assets are financial disclosure adjustments under international general accounting standards and will not affect the normal operation and production of the enterprise. According to the announcement, the adjusted profit before interest and tax (cash EBITDA) of Youran Animal Husbandry increased 6.7% to 7.8% year-on-year compared to RMB 3,591 billion in 2022, about RMB 3.832 billion to RMB 3,872 billion. There was no change in the fundamentals of Youran Animal Husbandry's good operating capacity.
Against the backdrop of the industry facing many serious challenges and tests, Youran Animal Husbandry has always insisted on optimizing the herd structure, and continues to dig deeper into business potential through technological empowerment and technological innovation. In 2023, Youran Animal Husbandry kept about 583,000 dairy cows, accounting for about 48.8% of adult cows, an increase of 2.4 percentage points over the previous year. The herd structure continued to be optimized, and the relatively young herd structure had more momentum and potential for development. On this basis, Youran Animal Husbandry continues to promote lean management. In 2023, the annual yield of adult cows at high quality fresh milk ranches (excluding Secosin) was about 12.3 tons, an increase of about 5.1% over the previous year. The feed business implemented product upgrades, innovation and structural optimization. The gross margin increased steadily compared to 2022, and the first county service center was established in the industry at the end of 2023 to promote the opening of link nodes and solve the “last mile” industry pain points. In terms of breeding business, Yuran Animal Husbandry Technology has cultivated the No. 1 dairy cow in the genome registered by the American Animal Breeding Association in China, and its competitive strength in the market has been further strengthened.