中国圣牧年度报告2023

Corporate Profile China Shengmu Organic Milk Limited (the “Company” or“Shengmu”, together with its subsidiaries, the“Group”) is an integrated “Forage Grass Planting, Cows Breeding” desert eco-organic circular raw milkenterprise, covering the entire value chain of the dairy industry, from forage grass planting and cowsbreeding to raw milk production. With a safe milk source base as the core, organic planting and breeding, high quality organic raw milk as the basis, Shengmuis able to secure partnerships with downstream emulsion companies. The Group currently owns 34 farms, which areclassified into organic milk farms, DHA milk farms, organic A2 milk farms and farms of raw milk with standard and highquality, with herd size of 148,000 cows and fresh milk yield of approximately 2,119 tonnes per day. Shengmu’s unique organiceco-sand treatment industry system in the Ulan Buh Desert has been selected by the United Nations Global Compact as thebest integrated practice for the “Sustainable Production and Consumption” category. Raw milk generated by the Company isalso the first in Mainland China that has obtained dual certifications of organic standards domestically and in the EU. 34DHAA214.82,119 Contents Corporate InformationLocation Map of Organic Production BaseChairman’s StatementHighlightsManagement Discussion and AnalysisReport of the DirectorsDirectors and Senior ManagementReport on Corporate Governance PracticesIndependent Auditor’s ReportConsolidated Statement of Profit or LossConsolidated Statement of Comprehensive IncomeConsolidated Statement of Financial PositionConsolidated Statement of Changes in EquityConsolidated Statement of Cash FlowsNotes to Financial StatementsFinancial Summary 256101231637195102103104106108111232 Corporate Information Board of DirectorsEXECUTIVE DIRECTORMr. ZHANG Jiawang(Chief Executive Officer) NON-EXECUTIVE DIRECTORS Mr. LU Minfang(Chairman)Mr. ZHANG PingMr. ZHAO JiejunMr. SUN QianMs. SHAO Lijun INDEPENDENT NON-EXECUTIVE DIRECTORS Mr. WANG LiyanMr. WU LiangMr. SUN Yansheng (CPA, ACG, HKACG) Company SecretaryMr. LI Kwok Fat(CPA, ACG, HKACG) Authorised Representatives Mr. ZHANG JiawangMr. LI Kwok Fat Audit Committee Mr. WANG Liyan(Chairman)Mr. ZHANG PingMr. WU Liang Remuneration Committee Mr. SUN Yansheng(Chairman)Mr. ZHANG PingMr. WU Liang Nomination Committee Mr. LU Minfang(Chairman)Mr. WANG LiyanMr. WU Liang Strategic and Sustainability Committee Mr. LU Minfang(Chairman)Mr. ZHANG JiawangMr. ZHAO JiejunMr. SUN Qian Registered Office P.O. Box 309Ugland HouseGrand Cayman, KY1-1104Cayman Islands P.O. Box 309Ugland HouseGrand Cayman, KY1-1104Cayman Islands Principal Place of Business in Hong Kong Room A, 32nd Floor COFCO Tower262 Gloucester RoadCauseway BayHong Kong 26232A Headquarter and Principal Place of Businessin China Food Industry ParkDeng Kou CountyBayannur CityInner Mongolia Autonomous RegionPRC 1432 Stock Code The Main Board of The Stock Exchange of Hong Kong Limited1432 Principal Share Registrar andTransfer Office Maples Fund Services (Cayman) LimitedP.O. Box 1093, Boundary HallCricket SquareGrand Cayman KY1-1112Cayman Islands Maples Fund Services (Cayman) LimitedP.O. Box 1093, Boundary HallCricket SquareGrand Cayman KY1-1112Cayman Islands Corporate Information Hong Kong Branch Share Registrar andTransfer Office 1617 Tricor Investor Services Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong Principal Bankers Export-Import Bank of ChinaBank of China LimitedBank of Communications Co., Ltd.Industrial Bank Co., Ltd.DBS Bank Ltd. Auditor Ernst & Young Legal Advisor LinklatersAllen & Overy AS TO CAYMAN ISLANDS LAWMaples and Calder http://www.youjimilk.com Websitehttp://www.youjimilk.com Location Map of Organic Production Base Chairman’s StatementChairman’s Statement 20231231 On behalf of the Board of Directors of the Company, I am pleased to present tothe shareholders the Annual Report for the year ended 31 December 2023 ofthe Company and its subsidiaries. 20233,383.66.5%EBITDA991.0 In 2023, the domestic demand for dairy products did not grow sufficiently,there was a phase of surplus of raw milk in the upstream, the market priceof raw milk continued to decline, and the cows breeding industry sufferedextensive losses. In the face of uncontrollable challenges in the industry, ChinaShengmu has risen to the challenge by strengthening its overall managementcapability and enhancing its operational efficiency, which has resulted in thesolid and robust development of the Group’s core business. During the year, theGroup recorded encouraging growth in herd size and quality, the average milkyield, total milk yield and revenue from raw milk sales. Revenue for the yearwas RMB3,383.6 million, representing a year-on-year increase of 6.5%. Whilethe industry was generally loss-making, the Group still maintained a relativelygood profitability, with cash EBITDA of RMB991.0 million, representing a year- 54.194.6 on-year increas