China Shengmu Organic Milk Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2021. For the six months, it is expected that the Group will record a profit of not less than RMB 270 million for the six months ended 30 June 2021 from the unaudited consolidated interim results, representing a year-on-year increase of not less than 60% from the unaudited consolidated interim results was approximately RMB 166 million. The expected growth in profit for the Current Reporting Period is mainly attributable to (i) the year-on-year increase in the average sales price of raw milk; (ii) the significant year-on-year increase in the sales volume of organic milk, the Company's advantageous resource; (iii) the gross profit margin of raw milk sales remained stable and the gross profit of sales increased as compared to the Last Reporting Period; and (iv) the Group's debt structure continued to be optimized, and financing costs recorded a substantial decrease as compared to the Last Reporting Period.