Company Overview

2023-08-10 15:25:52
 
China Shengmu Organic Milk Limited, the largest organic dairy company in the country, produces desert organic raw milk in a circular way integrating planting, and raising. The business covers the entirevalue chain of the dairy industry, including pasture growing, dairy farming, and raw milk processing. In July 2014, the Company successfully listed on the main board of the HKEX (stock code:1432), becoming the world's first stock in the organic raw milk industry and the first domestic raw milk brand to be certified by organic standards of China andthe EU. With the safe milk source base as the core, the Company adopts an organic approach to pasture growing and dairy farming, produces high-quality organic raw milk, and consolidates partnerships with downstream liquid milk product enterprises. 
 
 
Since its inception, China Shengmu, with the visionof developing into a top brand in the global organic milk industry, has always adhered to the core values of "Integrity, Excellence, Pragmatism, and About Us Passion." The Company has innovatively combined desert governance with circular agriculture, taken advantage of the favorable geographical conditions and natural environment of the Ulan Buh Desert to improve the ecological environment and develop the sand industry on a large scale, and thus formed an organic industry chain. It has become a pioneer in China s organic circular industry in the desert and the world's largest producer of desert organic raw milk. As the dairy industry speeds its modernization, capital, talent, and other essential resources are rapidly concentrated in the leading enterprises. In the process of industry transformation, China Shengmu has put forward a new development philosophy, adhering to the concept of "Youth, Openness, Reform" and jointly promoting "Sustainable and Common Development" of the industry to build a top brand in the global organic milk industry.
 
Major Achievements in 2022
 
Environmental Performance
 
Transformed 230,000 mu of desert into high-quality pastures and 220 square kilometers of desert into oasis and planted more than 97 million trees;

Won the Innovation in Climate Action Award of the International Dairy Federation (IDF);

Included as a best practice example in New Nature Economy Report Series released by the World Economic Forum;

Included as a best practice example for desertification control in Sustainable Consumption in China: Businesses in Action released at COP27 in Sharm el-Sheikh, Egypt; and

Responding to the Carbon Disclosure Project (CDP) for the first time, with rating C on the climate change questionnaire and rating B on the forest questionnaire, leading the livestock industry

Social Performance

14 ranches (including 9 organic ranches) of Shengmu were rated as S;

6 ranches of Shengmu (including 5 organic ranches) were certified by China Good Agricultural Practice (GAP);

2 testing centers were certified to ISO/IEC17025 by CNAS; 

Lead a group of 5,786 farmers, covering 236,500 mu of forage crops, helped drive an aggregate income increase of RMB1.5937 million; 

Supported 377 upstream and downstream partners in the dairy value chain, and won the 2022 Value Chain Management Award;

Made RMB6.3 million worth of cash and in-kind donations to charities, and received a charity award from Inner Mongolia Federation of Industry and Commerce for our support for charities during the pandemic; and 

40,907 employees participated in online and offline professional and technical training.

Governance Performance

Revenue was RMB3.363 billion, up 7.8% year on year;

The total number of dairy cows on our farms stood at 136,344, of which 92,075 were organic dairy cows, a year-on-year increase of 15.6%; the number of nonorganic dairy cows was 44,269;

The annualized unit yield of adult cattle was 10.5 tons/head, up nearly 2.4% year on year;

Built 33 ranches, including 20 organic pastures (including one A2 ranch) and 13 non-organic ranches (including three DHA ranches);

Organized 13 training sessions on integrity, compliance, anti-corruption, safety and health;

Issued the first ultra-short bond with a principal amount of RMB100 million in the Chinese mainland, which was the first corporate social responsibility bond issued in China

Occupied a place on the 2022 GoldenBee CSR List as a “Leading Example of CSR” ;

Our CEO Mr. Zhang Jiawang was named SDG Pioneer by the United Nations Global Compact;

Won the Digital Innovation Award at the Digital Services Conference of the STIF2022 International Science and Technology Innovation Festival; 

Won the 2022 Dingge Value Chain Management Award; 

Received the honorary title “Leading Company in the Industrialization of Agriculture and Animal Husbandry in China” ;and 

Received the Certificate of Excellence issued by the Hong Kong Investor Relations Association (HKIRA).