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Royal Dairy and many other dairy companies suffered huge losses in the first half of the year!

Royal Dairy and many other dairy companies suffered huge losses in the first half of the year!

From July 9th to 10th, Royal Group, Manor Ranch, Tianrun Dairy, Miaokelando, and McGuire disclosed their performance forecasts for the first half of the year in advance. Let's take a look!

Royal Group

Royal Group expects a significant decline in performance from January to June 2024, with a net profit attributable to shareholders of listed companies of 1.00 million to 1.50 million, a year-on-year decrease of 99.53% to 99.30%, and an estimated basic earnings per share of 0.0012 to 0.0018 yuan.

The Company makes the above predictions based on the following reasons:

1. The main reason for the decline in the company's performance during the reporting period is that the company transferred the equity of its subsidiaries Yunnan Royal Lysil Dairy Co., Ltd. and Yunnan Royal Lysil Intelligent Dairy Co., Ltd. in the first half of 2023.

2. According to preliminary calculations, the impact of non-recurring gains and losses on the company's net profit attributable to shareholders of listed companies during the reporting period was about 20.3 million yuan, mainly due to the additional deduction of input tax included in the current profit and loss, government subsidies, etc.

3. During the reporting period, the company focused on the layout of special channels such as mother and child stores, and increased the Guangdong market, except for the transferred Yunnan Royal Lysil Dairy Co., Ltd. and Yunnan Royal Lysil Intelligent Dairy Co., Ltd., the dairy products and food revenue of other dairy sector subsidiaries increased by about 10% year-on-year, of which the Guangdong market increased rapidly year-on-year. During the reporting period, the company's "dairy buffalo provenance chip" strategy has made significant progress, under the leadership of the company, the first batch of 5,000 imported Pakistani high-quality milk buffalo embryos entered Nanning, which is the first overseas high-quality milk buffalo embryos introduced in the 67-year breeding history of the mainland dairy buffalo industry.

The company belongs to the beverage manufacturing industry.

The main business of Royal Group Co., Ltd. is dairy and information business, photovoltaic EPC business. The company's main products are low-temperature milk, room temperature milk, information services, information engineering, and distributed photovoltaic projects. The company's brand is well-known in southwest China. The "Lysil LESSON" brand was recognized as a "well-known trademark" by the State Administration for Industry and Commerce, and Lysil Dairy was rated as "China's Most Influential Brand Enterprise" by the China Dairy Industry Association.

Manor Ranch

Manor Ranch is expected to increase its losses from January to June 2024, with a net profit attributable to shareholders of listed companies of -95 million to -70 million yuan, a year-on-year decrease of 371.15% to 247.17%, and an estimated basic earnings per share of -0.49 to -0.36 yuan.

The Company makes the above predictions based on the following reasons:

1. During the reporting period, the supply of dairy products continued to expand, and the demand of the end consumer market slowed down.

2. The fierce competition in the market has led to the continuous expansion of the company's investment and the year-on-year increase in sales expenses.

3. During the reporting period, the company's overall cost increased and gross profit decreased significantly.

The company belongs to the beverage manufacturing industry.

Lanzhou Manor Ranch Co., Ltd. is mainly engaged in the production, processing, sales and dairy farming business of dairy products and milk-containing beverages, including pasteurized milk, sterilized milk, prepared milk, fermented milk, milk-containing beverages and other liquid dairy products with Holstein milk as the main raw material, respectively, mainly owning three dairy brands of "Manor Ranch", "Shenghu" and "Oriental Fresh Manor".

Tianrun Dairy

Tianrun Dairy expects a pre-loss in performance from January to June 2024, with a net profit attributable to shareholders of listed companies of -31 million to -26 million yuan, a year-on-year decrease of 124.64% to 120.67%.

The Company makes the above predictions based on the following reasons:

During the forecast period, the consumer demand in the mainland dairy market was sluggish, and at the same time, the supply of milk sources was oversupply, showing an imbalance between supply and demand, and the sales prices of raw milk and cattle continued to decline. Compared with the same period last year, during the forecast period, the company increased the disposal of low-yielding dairy cows and bulls to increase losses, the second was to make provisions for inventory decline and biological assets impairment in accordance with accounting standards, and the third was to increase losses by merging Xinnong Dairy. To sum up, the company's performance will be a loss year-on-year.

The company belongs to the beverage manufacturing industry.

Xinjiang Tianrun Dairy Co., Ltd.'s main business is the research and development, production and sales of dairy products, which are divided into three business segments: animal husbandry and breeding, dairy processing and marketing according to the upstream and downstream of the industrial chain. The company's main products are animal husbandry products, room temperature dairy products, and low temperature dairy products. The company is a key leading enterprise of national agricultural industrialization, a high-tech enterprise in the autonomous region, and the only dairy mobilization center set up by the National Economic Mobilization Office in Northwest China. Based on traditional dairy products, the company focuses on fermented milk and functional dairy products, leading fresh, strong room temperature, and breakthrough milk drinks. The company is a national key leading enterprise in agricultural industrialization.

Wonderland

Microcolando expects to achieve a net profit attributable to shareholders of the parent company of 65 million yuan ~ 90 million yuan in the first half of 2024, an increase of 36.4329 million yuan ~ 61.4329 million yuan year-on-year from 28.5671 million yuan in the same period last year, a year-on-year increase of about 128% ~ 215%.

The main reasons for the change in performance are:

During the reporting period, the company's gross profit margin increased compared with the same period last year due to factors such as the decrease in the company's raw material procurement costs. At the same time, the company actively promoted various measures to reduce costs and increase efficiency, the sales expense rate and management expense rate decreased year-on-year, coupled with the existence of minority shareholders' interests and other factors in the same period last year, the company's net profit attributable to shareholders of the parent company increased significantly year-on-year. During the reporting period, the company's net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses increased by about 1532%~2439% over the same period last year, mainly due to the decrease in government subsidies received by the company in the current period, and the low base of net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in the same period last year.

From January to December 2023, the composition of Microcolando's operating income is: dairy processing accounts for 85.72%, and trade accounts for 14.01%.

McGuire

The net profit attributable to shareholders of listed companies will be -68 million to -58 million yuan, a year-on-year decrease of 81.97% to 55.21%, and the basic earnings per share are expected to be -0.3905 to -0.3331 yuan.

The Company makes the above predictions based on the following reasons:

Due to the increase in the cost of self-generated fresh dairy farming in the first half of 2024, the loss of self-owned pastures will increase; In order to continue to recover the market and resist changes in the overall market cycle, an active marketing strategy was adopted in the first half of 2024, and a large amount of promotional and marketing expenses were invested, resulting in losses.

The company belongs to the beverage manufacturing industry.

The main business of McGuire Group Co., Ltd. is the manufacturing, distribution and bakery chain stores of dairy products and bakery products, as well as the research and development, processing and sales of holiday food, frozen drinks and other products. Among them, dairy products include four series of products: sterilized milk, prepared milk, milk-containing beverages and fermented milk; Baked goods include bread, cakes, Chinese and Western pastries, moon cakes and other products. As a governing unit of China Bakery and Confectionery Industry Association and a member of China Dairy Association, the company has presided over and participated in the formulation of a series of baked food industry standards. During the "Eleventh Five-Year Plan" period, the company was rated as a high-tech enterprise and was awarded the qualification of "postdoctoral workstation" by the Ministry of Human Resources and Social Security.