The net profit of modern animal husbandry increased by more than 40percent in the first half of the year, exceeding 190 million yuan

category:Finance
 The net profit of modern animal husbandry increased by more than 40percent in the first half of the year, exceeding 190 million yuan


As for the impact of the new coronavirus epidemic on the company, modern animal husbandry pointed out in the announcement that during the outbreak of the epidemic, the group strictly took various response measures to prevent the possible impact of the outbreak. Since the outbreak of the epidemic, in addition to the transportation and logistics in the initial stage of the outbreak, the groups ranches have maintained normal operation, raw milk production and sales have been stable, and the cattle and employees of the group have not been substantially affected. The company purchased about 1.4 million tons of silage corn in 2019, which provided sufficient resources for flexible adjustment of formula. During the epidemic period, Mengniu Dairy and new dairy, the companys strategic customers, strictly abide by the milk collection plan, ensuring the normal sales of raw milk of the company. Since the outbreak of the epidemic, the overall operation of the companys pasture and the production and sales of raw milk have maintained normal operation, and the cattle and employees have not been substantially affected.

Gao Lina, CEO and executive director of modern animal husbandry, told NetEase Finance that the companys raw milk prices in February and March were affected by the off-season sales and epidemic situation after the Spring Festival. With the steady progress of returning to work and production, the downstream dairy enterprises took timely promotion measures during the epidemic period. The channel inventory before the festival was basically digested in April and may this year, and the promotion strength was also significantly improved compared with February and March. In particular, the consumption rebound of high-end products and white milk in low-end cities led to the bottom rebound of milk prices, and the companys raw milk prices rebounded rapidly since April. Milk prices remained stable in the first half of this year and slightly increased compared with the same period in 2019.

For the future development of the company, modern animal husbandry plans to appropriately expand the group and build new pastures in the light of assets. The fixed assets are obtained by means of government investment and lease. On the premise of positive free cash flow and net profit, the company can enjoy the dividend of group expansion and milk price rise. Gao Lina pointed out to NetEase Finance and economics that the company will continue to promote large-scale, intelligent and ecological breeding, and stabilize the production mode of planting, breeding and integration. Milk, as a source of high-quality protein, helps to improve the bodys immunity. In the long run, the epidemic will promote the demand for domestic dairy products. In the face of the uncertainty of the external economic environment, the company will continue to improve the operation efficiency, such as optimizing feed formula, locking the purchase price, further reducing the cost, and further improving the unit yield of dairy cows. (Chen Junhong) source: Netease Financial Editor: Chen Hequn_ NB12679

Gao Lina pointed out to NetEase Finance and economics that the company will continue to promote large-scale, intelligent and ecological breeding, and stabilize the production mode of planting, breeding and integration. Milk, as a source of high-quality protein, helps to improve the bodys immunity. In the long run, the epidemic will promote the demand for domestic dairy products. In the face of the uncertainty of the external economic environment, the company will continue to improve the operation efficiency, such as optimizing feed formula, locking the purchase price, further reducing the cost, and further improving the unit yield of dairy cows. (Chen Junhong)