Core Viewpoint - The introduction of a new child-rearing subsidy policy in China is expected to significantly boost demand in the dairy industry, leading to notable stock price increases for major dairy companies [1] Group 1: Stock Performance - Dairy stocks have seen substantial gains, with Australia Asia Group (02425) rising by 35.62% to HKD 1.98, Modern Farming (01117) up 13.49% to HKD 1.43, and others like Original Ecology Farming (01431) and China Shengmu (01432) also experiencing increases [1] - The overall positive sentiment in the dairy sector is reflected in the stock performance of leading companies [1] Group 2: Policy Impact - The newly implemented child-rearing subsidy scheme will provide annual subsidies of CNY 3,600 per child for children under three years old starting January 1, 2025, potentially leading to an annual distribution of approximately CNY 100 billion [1] - This subsidy is expected to have a multiplier effect, enhancing demand for dairy products and benefiting the industry as a whole [1] Group 3: Market Dynamics - The current meat and milk cycle is favorable for livestock companies, with rising beef prices expected to improve profitability and cash flow for these firms [1] - Projections indicate that under a scenario where beef prices increase by 40% compared to 2024 levels, companies like Yuran Farming, Modern Farming, and China Shengmu could see revenue increases of CNY 440 million, CNY 340 million, and CNY 80 million respectively from cattle sales [1] - The upward trend in beef prices is anticipated to accelerate the clearing of social ranch inventories, positively impacting the supply of raw milk and subsequently influencing raw milk prices [1]

Group 1 - The Hong Kong dairy stocks experienced a significant rise, with Australia Asia Group increasing over 13%, China Shengmu up over 9%, Modern Dairy and Yurun Dairy rising nearly 8%, and Original Ecology Dairy up 4% [1] - The implementation of the "Childcare Subsidy System" starting January 1, 2025, will provide a subsidy of 3,600 yuan per child per year for families with children under three years old, which is expected to lower family costs and stimulate birth rates and consumption in infant families, particularly in lower-tier cities [1] - This policy is projected to benefit over 20 million families with infants, potentially driving demand for dairy products, especially infant formula [1] Group 2 - Huatai Securities reports that the Chinese dairy industry is undergoing a strategic transformation from "scale expansion" to "value enhancement," driven by global supply chain adjustments and consumption upgrades [1] - Solid dairy products like cheese and butter are becoming key drivers for innovation in the catering industry and the development of healthy food due to their high nutritional value and versatility [1] - The B-end dairy product market is estimated to exceed 40 billion yuan by 2024, with projections for the market size to reach 70.3 billion yuan by 2028, corresponding to a CAGR of 14.3% from 2025 to 2028 [1]

Group 1 - The core viewpoint of the article highlights the strong performance of Original Ecology Livestock (01431), with a notable stock price increase of 5.26% to 0.4 yuan per share as of 09:36 on August 12, indicating positive market sentiment towards the company [1] - Original Ecology Livestock is a leading player in China's dairy cattle industry, primarily engaged in the production of high-quality raw milk, with 12 farms located in Heilongjiang, Jilin, and Shaanxi provinces [1] - The company employs standardized operational procedures, including breeding, feed management, and creating comfortable living environments for cows, ensuring the production of raw milk that consistently exceeds EU quality standards, which allows for high-priced sales [1] Group 2 - As of the 2024 annual report, Original Ecology Livestock reported total revenue of 2.552 billion yuan and a net profit of 297 million yuan, reflecting its financial performance [2]

国泰海通证券指出，"国补"正式进入生育领域，测算年均发放育儿补贴约千亿，有望发挥乘数效应且有 加码可能，提振乳品等行业需求。招商证券也指出，生育补贴正式落地，政策力度符合此前预期、但靴 子落地仍是积极信号，体现政府对生育问题的高重视度。在全国政策落地与后续地方政策跟进的节奏 下，乳制品板块关注度有望提升。 本文源自：智通财经网 消息面上，7月28日，《育儿补贴制度实施方案》出台，方案为2025年1月1日起，对符合法律法规规定 生育的3周岁以下婴幼儿发放每孩每年3600元的补贴，至其年满3周岁。爱建证券指出，这一政策对降低 家庭生育成本、刺激出生率及婴幼儿家庭消费潜力有重大意义（特别是在低线城市），预计将惠及2000 多万婴幼儿家庭，有望直接拉动乳制品特别是婴幼儿奶粉消费。 乳业股午后拉升，截至发稿，中国圣牧(01432)涨12.66%，报0.445港元；优然牧业(09858)涨8.87%，报 4.05港元；现代牧业(01117)涨8.77%，报1.24港元；原生态牧业(01431)涨7.14%，报0.375港元。 ...

乳业股午后拉升，截至发稿，中国圣牧(01432)涨12.66%，报0.445港元；优然牧业(09858)涨8.87%，报 4.05港元；现代牧业(01117)涨8.77%，报1.24港元；原生态牧业(01431)涨7.14%，报0.375港元。 国泰海通证券指出，"国补"正式进入生育领域，测算年均发放育儿补贴约千亿，有望发挥乘数效应且有 加码可能，提振乳品等行业需求。招商证券也指出，生育补贴正式落地，政策力度符合此前预期、但靴 子落地仍是积极信号，体现政府对生育问题的高重视度。在全国政策落地与后续地方政策跟进的节奏 下，乳制品板块关注度有望提升。 消息面上，7月28日，《育儿补贴制度实施方案》出台，方案为2025年1月1日起，对符合法律法规规定 生育的3周岁以下婴幼儿发放每孩每年3600元的补贴，至其年满3周岁。爱建证券指出，这一政策对降低 家庭生育成本、刺激出生率及婴幼儿家庭消费潜力有重大意义（特别是在低线城市），预计将惠及2000 多万婴幼儿家庭，有望直接拉动乳制品特别是婴幼儿奶粉消费。 ...

Group 1 - Dairy stocks experienced a significant rise, with China Shengmu (01432) up 12.66% to HKD 0.445, YouRan Dairy (09858) up 8.87% to HKD 4.05, Modern Dairy (01117) up 8.77% to HKD 1.24, and Original Ecology Dairy (01431) up 7.14% to HKD 0.375 [1] - The implementation of the "Childcare Subsidy Implementation Plan" starting January 1, 2025, will provide a subsidy of HKD 3,600 per child per year for families with children under three years old, significantly reducing family childcare costs and stimulating birth rates and consumption potential in infant families, especially in lower-tier cities [1] - The annual distribution of childcare subsidies is estimated to be around HKD 100 billion, which is expected to have a multiplier effect and potentially increase demand in the dairy industry [1] Group 2 - The formal introduction of the national subsidy into the fertility sector reflects the government's high emphasis on fertility issues, with the dairy sector likely to see increased attention as national policies are implemented and followed by local policies [1] - The policy's alignment with previous expectations and its positive signal upon implementation indicate a strong governmental commitment to addressing fertility challenges, which is anticipated to boost the dairy product sector, particularly infant formula consumption [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 原生態牧業有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01431 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | HKD | | 0.01 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 50,000,000,000 | HKD | | 0.01 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD ...

Group 1 - The Ministry of Agriculture and Rural Affairs has issued a notice to accelerate the relief and high-quality development of the dairy industry, emphasizing the implementation of a whitelist system for dairy farms with good credit and operational levels [1] - Financial institutions are encouraged to innovate financial products like "silage loans" to meet the funding needs for silage feed storage, and eligible projects will be included in the agricultural infrastructure financing project reserve [1] - The notice also calls for effective connections between banks, government, and enterprises, promoting credit support through extensions and renewals, and ensuring that dairy cows and facilities can be used as collateral [1] Group 2 - CITIC Securities reports that dairy prices have been at historical lows for nearly four years, leading to widespread losses in the industry, with strong de-stocking intentions [2] - The report anticipates a gradual stabilization of dairy prices in the second half of the year, driven by increased demand for silage and rising culling prices, with a positive outlook for the dairy sector's valuation [2] - Guotai Junan Securities highlights the implementation of a national childcare subsidy program, estimating an annual issuance of around 100 billion, which is expected to boost demand for dairy products, particularly milk powder [2] Group 3 - Relevant Hong Kong stocks in the dairy industry include Ausnutria (01717), H&H International Holdings (01112), Mengniu Dairy (02319), Modern Dairy (01117), China Feihe (06186), Yurun Dairy (09858), and Original Ecology Dairy (01431) [3]

Group 1 - The Ministry of Agriculture and Rural Affairs has issued a notice to accelerate the relief and high-quality development of the dairy industry, emphasizing the implementation of a whitelist system for dairy farms with good credit and operational levels [1] - Financial institutions are encouraged to innovate financial products like "silage loans" to meet the funding needs for silage feed storage, and eligible projects will be included in the agricultural infrastructure financing project library [1] - The notice aims to strengthen the precise connection between banks, government, and enterprises, guiding financial institutions to provide credit support through extensions and renewals without blindly withdrawing or limiting loans [1] Group 2 - CITIC Securities reports that dairy prices have been at historical lows for nearly four years, leading to widespread losses in the industry, with a strong desire for de-stocking [2] - The demand for funding during the silage season is expected to be high, and the price of culling cows is rising, prompting weaker credit-qualified farms to accelerate de-stocking by trading cows for feed [2] - Guotai Junan Securities anticipates that the national childcare subsidy program, which is expected to distribute around 100 billion annually, will boost demand for dairy products, particularly milk powder, despite a projected decline in birth rates [2] Group 3 - Relevant Hong Kong stocks in the dairy industry include Ausnutria (01717), H&H International Holdings (01112), Mengniu Dairy (02319), Modern Dairy (01117), China Feihe (06186), Yurun Dairy (09858), and Original Ecological Dairy (01431) [3]

Sales and Revenue Performance - In 2024, the total sales volume of raw milk increased by 23.2% to 566,704 tons compared to 459,950 tons in 2023[10]. - Revenue from raw milk sales reached RMB 2,550.0 million, a 15.8% increase from RMB 2,201.9 million in 2023[10]. - Total fresh milk sales revenue reached RMB 2,552 million, a 15.5% increase from the same period in 2023[17]. - The total sales of raw milk increased by 15.5% to RMB 2,551.9 million for the year ending December 31, 2024, compared to RMB 2,208.6 million in 2023[29]. - The sales volume of raw cow milk rose by 23.2% to 566,704 tons, while the sales volume of raw sheep milk decreased by 67.2% to 306 tons[29]. Production and Livestock Management - China's milk production in 2024 was 40.79 million tons, a decrease of 2.8% year-on-year, indicating effective supply control[9]. - The average annual milk production per cow increased by 9.5% to 12.7 tons from 11.6 tons in 2023[21]. - The total number of dairy cows increased by 4.7% to 107,296 from 102,497 in 2023[23]. - The number of breeding cows rose by 23.8% to 49,330 from 39,861 in 2023[24]. - The company reported a total milk production of approximately 587,515 tons in 2024, up from 476,284 tons in 2023[168]. Financial Performance - Gross profit increased by 59.9% to RMB 944.6 million, with a gross margin improvement from 26.7% in 2023 to 37.0% in 2024[31]. - Other income and gains rose by 10.2% to RMB 158.7 million, attributed to increased interest income, government subsidies, and gains from the sale of a subsidiary[32]. - Administrative expenses decreased by approximately 17.4% to RMB 115.1 million, primarily due to reduced maintenance costs[33]. - The net profit for the year was RMB 296.7 million, a significant recovery from a net loss of RMB 339.7 million in 2023, with basic earnings per share of RMB 6.32[37]. - Cash inflow from operating activities was RMB 1,013.8 million, up from RMB 745.3 million in 2023[40]. Market and Industry Outlook - The outlook for 2025 suggests that milk prices may remain under pressure due to supply-side inventory issues despite improved consumer confidence[12]. - The dairy industry in China is expected to see gradual growth in consumption due to rising living standards and health awareness[26]. - The overall economic growth in China is projected at 5.0% for 2024, supporting the dairy sector's development[16]. - The company aims to enhance its competitive advantage in the dairy industry while optimizing production management efficiency[12]. Corporate Governance and Management - The board expresses gratitude to shareholders and acknowledges the contributions of the management team and employees over the past year[12]. - The company has a robust management team with diverse backgrounds in finance, production, and supply chain management[63][64]. - The board is responsible for overseeing business management and overall performance, ensuring necessary financial and human resources are in place[85]. - The company has a clear strategy for monitoring and improving corporate governance practices[81]. - The board has implemented an independence assessment mechanism to ensure strong independence and effective decision-making for shareholder protection[88]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an environmental, social, and governance (ESG) working group to manage ESG matters, with the board of directors responsible for identifying and assessing related risks[151]. - The company aims to enhance transparency and accountability in its ESG efforts, regularly reviewing performance against ESG-related goals[151]. - The company has committed to expanding its disclosure requirements in the ESG report, including key performance indicators and comparative data[149]. - The company emphasizes the importance of stakeholder engagement in identifying significant ESG issues[150]. - The company has implemented measures to comply with environmental regulations, focusing on reducing greenhouse gas emissions and waste management[164]. Employee and Workplace Management - The total number of full-time employees as of December 31, 2024, is 2,375, a slight decrease from 2,389 in 2023[186]. - The overall employee turnover rate for 2024 is approximately 47%, up from 34% in 2023[186]. - Employee training hours significantly increased to 3,030 hours in 2024 from 245 hours in 2023, with the percentage of trained employees rising to 15% from 3%[195]. - The company provided competitive compensation and benefits to attract and retain talent, including free meals and accommodation[196]. - The company has implemented strict health and safety measures, including regular disinfection and monitoring of production areas[191]. Technology and Innovation - The company emphasizes the importance of technological innovation and operational efficiency to strengthen its market position[12]. - The company plans to leverage technology and digital solutions to optimize production and reduce breeding costs, while also focusing on sustainable development[28]. - The company has invested in new technologies and product development to improve operational efficiency and product quality[65]. - The company aims to enhance digital breeding management to improve profitability and adapt to market demand changes[21]. Risk Management and Compliance - The board is responsible for maintaining an effective risk management and internal control system, assessing risks related to operations, environment, society, and governance (ESG)[129]. - The company has established strict internal control procedures and risk management systems, including annual risk assessments and audit plans[130]. - The independent auditor has confirmed their responsibility in the independent auditor's report for the consolidated financial statements[128]. - The company has established procedures to ensure the reliability of financial information and compliance with relevant laws and regulations[129]. - The company has implemented a whistleblowing policy for employees, customers, and suppliers to report misconduct confidentially, reviewed by the audit committee[133].