CHINA SHENGMU ORGANIC MILK LIMITED 中國聖牧有機奶業有限公司 （於開曼群島註冊成立的有限公司） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 （股份代號：1432） (1) 董事辭任及委任 及 (2) 董事委員會組成變更 董事會謹此宣佈： (i) 趙傑軍先生已提呈辭任非執行董事及戰略及可持續發展委員會成員；及 (ii) 白鳳鳴先生已獲委任為非執行董事及戰略及可持續發展委員會成員。 白先生的履歷詳情載列如下。 白先生，48歲，研究生學歷，畢業於中山大學管理學院工商管理專業。白先生 現任中國蒙牛乳業有限公司（「蒙牛」，連同其附屬公司統稱「蒙牛集團」）常溫事 業部銷售管理中心總經理。 白先生自二零零零年加入蒙牛集團以來，深耕乳業銷售領域25年，從蒙牛集團 營銷中心城市經理起步，歷任全國百利包（一類乳製品包裝）項目經理，呼市分 公司經理，常溫華南大區經理，廣州子公司經理、深圳子公司經理等職務。 上述變更將自二零二五年十月六日 ...

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9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國聖牧有機奶業有限公司 呈交日期: 2025年10月3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) | 01432 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | HKD | | 0.00001 | HKD | | 300,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 30,000,000,000 | HKD | | 0.00001 | HKD | | 300,000 | 本月底法定 ...

Core Insights - The Chinese dairy industry has significant growth potential due to low per capita consumption compared to global averages and developed countries [3][4] - The government is increasing support for the dairy sector, with substantial financial allocations aimed at expanding production and improving quality [1][2] Industry Development - The Ministry of Agriculture and Rural Affairs reported a 5.2% year-on-year increase in fresh milk production and an 8.8% increase in dairy product output for the first three quarters of the year [1] - The average milk yield per cow increased by 400 kg to 7.8 tons, with large-scale farms achieving quality levels comparable to developed countries [1] - The revenue from large-scale dairy farming has rebounded to approximately 3,000 yuan per cow annually [1] Consumption Trends - Liquid milk sales grew by 7.1% year-on-year last year, while domestic infant formula sales surged from 14.5% to 21% [1] - The current consumption structure shows a predominance of liquid milk over dry dairy products, contrasting with developed countries where the ratio is approximately 7:3 [2][4] - Per capita dairy consumption in China is only one-third of the world average, half of that of developing countries, and one-seventh of developed dairy nations, indicating substantial room for growth [2][3] Challenges in Production - The competitiveness of domestic dairy farming is hindered by higher production costs, with feed prices approximately 60% above international averages [2][5] - The average scale of dairy farms is small, with many farms operating below optimal efficiency, leading to higher costs and reduced pricing power [5][6] Future Industry Direction - The focus on "scale" and "cost reduction" in dairy farming is expected to enhance industry concentration and profitability for leading companies [6] - The government aims to address production and consumption issues through a collaborative approach involving government guidance and enterprise participation [2] Investment Opportunities - Modern Dairy (01117.HK) is identified as a leading raw milk producer, with a significant portion of its revenue derived from milk sales [7] - China Shengmu (01432.HK) is noted for its organic milk production and has expanded into raw milk processing [8] - Major players like Mengniu (02319.HK) and Yili (600887.SH) are diversifying into new product categories beyond liquid milk, positioning themselves for future growth [9][10]

Core Viewpoint - The livestock sector in Hong Kong has experienced significant gains, with multiple companies showing substantial stock price increases on September 30. Group 1: Company Performance - YouRan Agriculture (09858.HK) saw a stock price increase of 10.26%, reaching HKD 3.33 [1] - China Shengmu (01432.HK) rose by 9.23%, with a stock price of HKD 0.355 [1] - Original Ecology Agriculture (01431.HK) increased by 3.39%, trading at HKD 0.305 [1] - Modern Agriculture (01117.HK) experienced a rise of 2.36%, with a stock price of HKD 1.3 [1]

Core Viewpoint - The livestock stocks are experiencing significant gains, with companies like Yuran Dairy, China Shengmu, and others seeing substantial increases in their share prices due to favorable market conditions and strategic agreements [1] Company Summaries - Yuran Dairy (09858) shares rose by 10.26%, reaching HKD 3.33 [1] - China Shengmu (01432) shares increased by 9.23%, reaching HKD 0.355 [1] - Original Ecology Dairy (01431) shares went up by 3.39%, reaching HKD 0.305 [1] - Modern Dairy (01117) shares rose by 2.36%, reaching HKD 1.3 [1] Industry Insights - Original Ecology Dairy announced an agreement with its controlling shareholder, China Feihe, to supply raw milk from 2026 to 2028, with proposed annual sales caps of RMB 3.1 billion, RMB 3.4 billion, and RMB 3.7 billion, which would account for 96% of total revenue [1] - The price of raw milk is expected to be no less than that offered to independent third-party customers [1] - Tianfeng Securities indicated that the current dairy cow capacity reduction may be nearing its end, with Q3 silage purchases potentially accelerating the clearing process, leading to a rebound in raw milk prices [1] - Beef prices may be at a turning point, but various factors such as funding, confidence, and environmental concerns could affect the willingness to restock, impacting future price increases [1] - Companies with cow resources or those adopting a "milk-meat linkage" model are expected to have stronger profitability [1] - Suggested companies to watch include Yuran Dairy, China Shengmu, Guangming Meat Industry, Modern Dairy, and Aoyuan Group [1]

Group 1 - The core viewpoint of the article highlights the rising stock prices of dairy companies, with significant increases observed in shares of YouRan Dairy, China Shengmu, and others [1] - YouRan Dairy's stock rose by 10.26% to HKD 3.33, while China Shengmu increased by 9.23% to HKD 0.355, indicating strong market interest in the sector [1] - Original Ecology Dairy announced a supply agreement with its controlling shareholder, China Feihe, for raw milk from 2026 to 2028, with proposed annual sales caps of RMB 3.1 billion, RMB 3.4 billion, and RMB 3.7 billion, representing 96% of total revenue [1] Group 2 - Tianfeng Securities noted that the current dairy cow capacity reduction may be nearing its end, with Q3 silage purchases potentially accelerating the clearing of marginal costs, leading to a rebound in raw milk prices [1] - Beef prices may be at an inflection point, but various factors such as funding, confidence, and environmental concerns could affect the willingness to restock, impacting future price increases [1] - Companies with cow resources or those adopting a "milk-meat linkage" model are expected to have stronger profitability, with recommendations to focus on YouRan Dairy, China Shengmu, Guangming Meat, Modern Dairy, and Aoyuan Group [1]

乳业股集体反弹，截至发稿，蒙牛乳业(02319)涨3.78%，报14.84港元；中国飞鹤(06186)涨3.36%，报4 港元；中国圣牧(01432)涨1.69%，报0.3港元。 财通证券（601108）指出，育儿补贴靴子落地，乳制品板块有望率先受益。华福证券指出，当前原奶价 格处于周期底部，9月12日行业原奶价格跌至3.03元/公斤，周环比持平，较周期高点累计下跌31%。原 奶亏损与现金流压力预计推动产能去化持续。随着产能去化传导至供给收缩，原奶价格周期有望后续企 稳回升。 消息面上，7月28日，国家育儿补贴制度实施方案公布，面向育儿家庭全国范围全面直接发放现金补 贴。从2025年1月1日起，每孩每年发放育儿补贴3600元，至其年满3周岁。9月18日，国家卫生健康委办 公厅、财政部办公厅印发关于育儿补贴制度管理规范(试行)的通知。 ...

Core Viewpoint - The dairy sector is experiencing a collective rebound, driven by the implementation of a nationwide cash subsidy for child-rearing families, which is expected to benefit the dairy products segment significantly [1] Group 1: Market Reaction - Mengniu Dairy (02319) shares rose by 3.78%, reaching HKD 14.84 - China Feihe (06186) shares increased by 3.36%, reaching HKD 4 - China Shengmu (01432) shares grew by 1.69%, reaching HKD 0.3 [1][1][1] Group 2: Policy Impact - On July 28, the national child-rearing subsidy implementation plan was announced, providing direct cash subsidies to families across the country - Starting from January 1, 2025, a subsidy of CNY 3,600 per child will be issued annually until the child turns three years old - On September 18, the National Health Commission and the Ministry of Finance issued a notice regarding the management norms for the child-rearing subsidy system (trial) [1][1][1] Group 3: Industry Analysis - According to Caitong Securities, the dairy products sector is expected to benefit first from the child-rearing subsidies - Huafu Securities noted that the current raw milk prices are at the bottom of the cycle, with prices dropping to CNY 3.03 per kilogram as of September 12, remaining stable week-on-week, and down 31% from the cycle peak - The ongoing losses in raw milk and cash flow pressures are expected to drive continued capacity reduction, which may lead to a stabilization and recovery of raw milk prices in the future [1][1][1]

Operations and Production - As of June 30, 2025, China Shengmu operates 34 farms with a total of 144,000 dairy cows, producing approximately 2,169 tonnes of fresh milk daily, and an annual production capacity of 600,000 tonnes of ecological organic raw milk[2][3]. - The annualized milk yield per milkable cow increased to 12.27 tonnes in 2025H1, reflecting a growth in productivity[21]. - The volume of raw milk sold reached 114.1 million tonnes, although this represents an 11.3% decrease compared to the previous period[24]. - The company focuses on high-end desert organic raw milk, organic A2 raw milk, and DHA raw milk, enhancing its product matrix to meet diverse customer demands[36]. - The annualized milk yield per milkable cow reached a historical high of 12.27 tonnes in the first half of 2025, up from 12.07 tonnes in mid-2024, contributing to a raw milk sales volume of 372,973 tonnes, a year-on-year increase of 6.3%[43][44]. Financial Performance - Revenue for the Group was RMB1,444,274,000, a decrease from RMB1,490,702,000 in the previous year, reflecting a decline of 3.1%[59]. - The average selling price of raw milk decreased to RMB3.87 per kilogram, an 8.9% decline year-on-year, while the average industry price fell to RMB3.08 per kilogram, down 11.7%[46][47]. - The overall gross profit margin for the first half of 2025 was 25.3%, a decrease of 1.2 percentage points from 26.5% in the same period last year[46][47]. - The loss from changes in the fair value of biological assets was RMB471.3 million, slightly up from RMB451.0 million in the same period of 2024[69]. - Other income and gains increased significantly to RMB166.5 million, up 233.7% from RMB49.9 million in the previous year, primarily due to government grants and the reversal of litigation provisions[70]. Cost Management - The three major expenses per kilogram of milk decreased to RMB 2.44 in 2025H1, down from RMB 2.67 in 2024H1[24]. - The Group's cost of sales per kilogram of milk was RMB2.89, a decrease of 7.4% year-on-year, primarily due to a reduction in feed costs, which fell to RMB2.33 per kilogram, down 7.3%[46][47]. - The total amount of administrative, selling, and financing expenses was RMB101.3 million, representing an 11.3% decrease year-on-year, with expense ratios standing at 7.0%[46][47]. - Finance costs decreased by 17.5% to RMB 19.4 million from RMB 23.5 million in 2024, attributed to increased financial interest subsidies from the government[85]. Market and Industry Trends - The dairy industry faced challenges with raw milk prices declining for three consecutive years, remaining at historically low levels, and production from large dairy enterprises decreased by 0.3% to 14.33 million tonnes[30][32]. - China's total raw milk production in the first half of 2025 was 18.64 million tonnes, reflecting a year-on-year increase of 0.5, while the average price of raw fresh milk dropped by 7.0% to RMB 3.04 per kilogram[35][38]. - The total import of dairy products increased by 5.7% year-on-year to 1.3825 million tonnes, with dried dairy products rising by 8.7% to 1.048 million tonnes[30][34]. - The Group aims to create the world's leading organic milk brand, aligning with its mission to promote agriculture and contribute to society[27][29]. Environmental and Sustainability Initiatives - China Shengmu's end-user brand organic milk won the Gold Award at the 17th Asia International Organic Product Expo, highlighting its commitment to sustainable practices[6][7]. - The company has transformed 350,000 mu of desert into high-quality pasture and planted over 98 million sand-fixing trees, creating a 220 square kilometer oasis[4][5]. - The Group achieved a "Level B" certification in the 2024 CDP rating, reflecting its commitment to ESG practices and sustainable ecological models[49]. - The Group's implementation of IFRS S2 established a disclosure system covering core indicators such as greenhouse gas emissions, setting a benchmark for climate information disclosure in the dairy industry[54]. Corporate Governance and Management - The Audit Committee is responsible for overseeing the financial reporting system, risk management, and internal control procedures, ensuring the effectiveness of the audit process[148]. - The Remuneration Committee determines human resources management policies and reviews remuneration packages for Directors and senior management[149]. - The Nomination Committee makes recommendations regarding candidates to fill vacancies on the Board[151]. - The Strategic and Sustainability Committee formulates the Company's long-term development strategy and considers environmental, social, and corporate governance matters[153]. Shareholder Information - As of June 30, 2025, Zhang Jiawang holds 173,328,580 shares, representing 2.07% of the company's issued ordinary shares[169]. - Start Great Holdings Limited and China Mengniu Dairy Company Limited each own 2,513,178,555 shares, accounting for 29.99% of the total shares[175]. - Nong You Co., Ltd. and its controlled corporations hold 1,301,651,000 shares, which is 15.53% of the total shares[175]. - The total number of issued shares as of June 30, 2025, is 8,381,295,229[176].

Industry Rating - The industry rating is maintained at "Outperform the Market" [2] Core Insights - The dairy sector is experiencing a significant supply contraction, with the potential end of capacity reduction in sight. The milk price has been declining for four years, leading to an industry loss for 1.5 years, resulting in an approximate 8% reduction in dairy cow capacity as of August 2025. The upcoming third-quarter silage feed procurement season may accelerate the clearing of livestock due to increased funding needs [4][27] - The beef sector is at a turning point in a super cycle, with domestic beef cattle capacity being fully cleared. The prolonged loss cycle has driven a deep reduction in breeding cows, which is expected to lead to a decline in beef cattle inventory starting in 2024. The supply of beef is anticipated to enter a contraction phase in the second half of 2025 [5][50] Summary by Sections Dairy Sector - Supply contraction is nearing its end, with milk prices expected to rebound due to a tightening supply-demand balance. The reduction in capacity is expected to stabilize by the end of 2025 or the first half of 2026, supported by seasonal demand during the upcoming holidays and long-term improvements in consumption driven by child-rearing subsidies [4][27] - The financial performance of dairy companies varies, with some showing resilience against falling milk prices due to unique business advantages, while others face significant pressure [6] - The dairy industry is characterized by a longer production cycle compared to other livestock, leading to a more prolonged adjustment period in capacity [6][27] Beef Sector - The beef cattle market is experiencing a super cycle, with a significant reduction in domestic beef cattle capacity. The prolonged loss cycle has led to a decrease in breeding cows, which will impact beef supply in the coming years [5][50] - External factors affecting beef supply are diminishing, with a long-term global beef supply gap emerging due to various pressures on major production areas [5] - The demand for beef is expected to grow steadily, driven by rising income levels and health consciousness among consumers, with a notable reliance on imported beef to meet domestic demand [50][51] Investment Recommendations - The report suggests focusing on companies that are well-positioned to benefit from the anticipated recovery in both the dairy and beef sectors. Specific companies to watch include China Shengmu, Guangming Meat Industry, and Fucheng Co., for beef, and Yuran Dairy, China Shengmu, and Modern Dairy for dairy [6][7]