HK Stock Market Move | CH MODERN D(01117) rose over 3% during trading hours. It is expected that cash EBITDA will increase by 16% to 24% in the fiscal year 2024.

CH MODERN D (01117) rose more than 3% during trading hours. As of the time of writing, it was up 2.94% at HK$1.05, with a trading volume of HK$7.6043 million. On the news front, CH MODERN D announced that it expects to incur a net loss of between RMB 13.50 billion and 15.50 billion for the year ending December 31, 2024, compared to a net profit of RMB 1.85 billion for the year ending December 31, 2023. The group is expected to achieve a cash EBITDA of between RMB 29 billion and 31 billion for this year, an increase of between RMB 4 billion and 6 billion compared to the same period in 2023, representing a growth of 16% to 24%, showcasing the group's strong development resilience. The announcement stated that the group's cash EBITDA for this year is expected to see significant growth, mainly due to the following factors: - The group has continued to strengthen lean management of its ranches, focusing on increasing the proportion of core dairy cows and overall health level of cows, leading to significant improvements in key operational indicators for the year. As of December 31, 2024, the group's dairy cow scale exceeded 490,000, with the proportion of productive dairy cows in the total dairy cow population increasing to 51%. - To further diversify the group's raw milk product structure, the group has invested in and operated 5 large-scale organic raw milk ranches, continuously strengthening the core business foundation of raw milk; due to effective cost control, the decrease in sales cost per kilogram of milk was greater than the decrease in milk prices, resulting in an increase in gross profit margin and cash EBITDA levels; and the group continues to steadily develop its digital platform, feed, forage, and breeding businesses, effectively integrating resources, strengthening industry synergies, and forming a systematic solution for dairy farming. Furthermore, with a well-established industrial chain layout, strong business resilience, and an excellent management team, the group is able to achieve high-quality sustainable growth.