China Modern Agricultural Information, a high-tech livestock company specializing in the production and sale of milk, has reported $29.8m revenue for the fiscal year ended 30 June 2012, an increase of 19%, compared to $25m during the same period a year ago.
The rise is primarily due to the sale of fresh raw milk, increased sales commissions from farmers and due to an increase in the number of adult cows cared for from the acquisition of Yulong Cattle.
China Modern Agricultural Information said that the acquisition of Yulong Cattle increased its number of the cows by 3,800 and improved production capacity by approximately 90 tons per day.
The price of milk, which has increased 72% to $ 0.53 per kg from $ 0.31 per kg in last year, also contributed to the rise in revenue.
Gross profit totaled $19.1m, up 46%, compared to $13.1m during the last fiscal year.
Net income totaled $17.4m, an increase of 96.6%, compared to $8.9m in the prior year period.
China Modern Agricultural Information chief executive officer Youliang Wang said despite an increase of feeding expenses, they were able to lower the cost of goods sold and improved gross profit margin to 64% from 52% by leasing grassland from local government and adopting a new business model.
"We believe the market for dairy products in China will grow rapidly for the long term, driven by China's economic growth, improved living quality and increased penetration of infant formula, which will in turn increase the demand for raw fresh milk production," he added.
"We will continue to aggressively seek other opportunities to fuel the growth of our business, while enhancing our relationship with the local government and farming community going forward."
