China Shengmu Organic Milk Limited provided earning guidance for the year ended 31 December 2020. The board of directors of the company to informed the shareholders of the Company and potential investors that, the company has benefited from the shortage of supply in the raw milk market in 2020, which results in increasing price of raw milk; meanwhile, there has been historically high output per milk able cow through internal management upgrade to improve operating efficiency and the sales of organic raw milk have achieved a double-digit increase due to the optimization of proportion of raw milk structure; the Group is expected to record more profit after tax for the second half of 2020 eating cash flow and improving external financing environment, the Company proactively adjusted its debt structure and repaid Mengniu entrusted loan of RMB 1.37 billion in full in advance on 24 December 2020. The interest-bearing liabilities have reduced to a reasonable level and the cost of capital has decreased significantly, which contribute to an improving structure of assets and liabilities. According to the assessment on the unaudited preliminary consolidated management accounts of the Group for the year ended 31 December 2020 together with the information available for the Board at present, the Company expects that it will record a consolidated profit attributable to equity owners for 2020 of not less than RMB 380 million, up by more than 13 times of 2019 (the same period of last year: the audited consolidated profit attributable to equity owners for the year ended 31 December 2019 was RMB 27.7 million).