Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CHINA MENGNIU DAIRY COMPANY LIMITED ʕ਷ႆˬԪุϞࠢʮ̡*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2319)

ANNOUNCEMENT OF THE ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2020

HIGHLIGHTS

  • • During the year, the Group had successfully overcome the challenges the COVID-19 Epidemic (the "Epidemic") brought. By grasping market opportunities as the Epidemic eased, it was able to drive high quality growth of its business. For the year ended 31 December 2020, the revenue of the Group amounted to RMB76,034.8 million (2019: RMB79,029.9 million), representing a year-on-year decrease of 3.8%. Excluding the revenue of Shijiazhuang Junlebao Dairy Co., Ltd. ("Junlebao"), which was disposed of in 2019, and of Bellamy's Australia Limited ("Bellamy's"), which was acquired in 2019, the revenue of Comparable Businesses (the "Comparable Businesses" in this announcement excludes Junlebao and Bellamy's) of the Group for the year amounted to RMB75,003.1 million (2019: RMB67,817.3 million), representing a year-on-year increase of 10.6%.

  • • Profit attributable to owners of the Company amounted to RMB3,525.0 million (2019: RMB4,105.4 million), representing a year-on-year decrease of 14.1%. The decline in profit was mainly due to the following actions taken in the first quarter of 2020: (i) the Group had incurred additional expenses on epidemic prevention to safeguard the health and safety of its employees, and to ensure the resumption of work and production; (ii) the Group had incurred additional marketing and sales expenses to reduce inventories in its distribution channels in order to accelerate the resumption of normal sales, and (iii) the Group had actively fulfilled its corporate social responsibilities and had made cash and dairy product donations to more than 10,000 hospitals and relevant epidemic control organizations.

* For identification purposes only

  • • Despite facing dire challenges of the Epidemic, Mengniu managed to resume operation and production quickly, and actively developed new retail channels, including e-commerce platforms, O2O home delivery service, community group purchase and WeChat social groups, to speed up integration of on- and off-line sales networks. As such, the Group's business started to see a strong rebound in the second quarter of 2020.

  • • To maintain the healthy and sustainable development of its industrial chain, Mengniu accepted from ranchers all fresh raw milk that passed quality checks during the Epidemic and strengthened cooperation with upstream and downstream business partners. The Group also donated money and products to frontline healthcare and medical personnel helping the fight against the Epidemic. Dairy products were sent to major healthcare institutions in Wuhan and across China. As a result, the good reputation of Mengniu brand improved notably.

  • • During the year, Mengniu moved up two places to the eighth place on the "Global Dairy Top 20" list. In addition, it was selected as a constituent stock in the Hang Seng Corporate Sustainability Index ("HSSUS"). It is the only Chinese food producer in the HSSUS.

The board (the "Board") of directors (the "Directors") of China Mengniu Dairy Company Limited (the "Company") is pleased to present the results of the Company and its subsidiaries (the "Group" or "Mengniu") for the year ended 31 December 2020, together with the comparative amounts.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2020

2020

2019

Notes

RMB'000

RMB'000

REVENUE

4

76,034,844

79,029,856

Cost of sales

(47,405,564)

(49,351,242)

GROSS PROFIT

28,629,280

29,678,614

Other income and gains

4

1,204,786

4,100,888

Selling and distribution expenses

(21,540,925)

(21,536,054)

Administrative expenses

(3,132,947)

(3,319,414)

Impairment losses on financial and

contract assets, net

(156,876)

(248,355)

Loss on disposal of financial assets measured at

amortised cost

(22,385)

(14,008)

Other expenses

5

(1,764,510)

(3,691,877)

Interest income

1,084,613

1,104,791

Finance costs

7

(572,255)

(644,202)

Share of profits and losses of:

A joint venture

(37,413)

(9,160)

Associates

463,418

184,224

PROFIT BEFORE TAX

6

4,154,786

5,605,447

Income tax expense

8

(653,193)

(1,309,532)

PROFIT FOR THE YEAR

3,501,593

4,295,915

Attributable to:

Owners of the Company

3,525,044

4,105,437

Non-controlling interests

(23,451)

190,478

3,501,593

4,295,915

EARNINGS PER SHARE ATTRIBUTABLE

TO ORDINARY EQUITY HOLDERS OF

THE COMPANY (EXPRESSED IN RMB

PER SHARE)

10

Basic

0.897

1.049

Diluted

0.892

1.046

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2020

2020 RMB'000

2019 RMB'000

PROFIT FOR THE YEAR

OTHER COMPREHENSIVE INCOME/(LOSS)

Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods:

Exchange differences:

Exchange differences on translation of foreign operations Cash flow hedges:

Effective portion of changes in fair value of hedging instruments arising during the year Reclassification adjustments for gains included in the consolidated statement of profit or loss

Share of other comprehensive income of associates

3,501,593

4,295,915

392,078

184,390

  • (56,058) (18,423)

    (10,814)

    -

  • (66,872) (18,423)

10,666

4,832

Net other comprehensive income that may be reclassified to profit or loss in subsequent periods

335,872 170,799

Other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations Equity investments designated at fair value through other comprehensive income:

Changes in fair value

246,072

-

101,289 (3,191)Net other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods

347,361 (3,191)OTHER COMPREHENSIVE INCOME, NET OF TAX

683,233 167,608

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Attributable to:

Owners of the Company Non-controlling interests

4,184,826 4,463,523

4,243,176 4,251,525

(58,350)

4,184,826

211,998 4,463,523

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China Mengniu Dairy Company Limited published this content on 25 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2021 00:16:03 UTC.