Investment Rating - Buy rating maintained for the company [1] Core Views - The company's liquid milk segment shows steady growth, with fresh milk maintaining a strong market position [3] - The acquisition of Miaokelanduo significantly boosted the cheese business revenue [3] - Gross margin continues to improve due to lower raw milk prices and product structure upgrades [3] - The company's channel advantages and rapid new product iterations are expected to further enhance market share [4] Financial Performance - Total revenue for 2023 reached 990.95 billion yuan, a 6.62% year-on-year increase [3] - Net profit attributable to shareholders was 4.809 billion yuan, a 9.31% year-on-year decrease [3] - Gross margin for 2023 was 37.15%, up 1.85 percentage points year-on-year [3] - Sales expenses increased, with the sales expense ratio rising to 25.54%, up 1.41 percentage points [3] Business Segments - Liquid milk revenue in 2023 was 82.071 billion yuan, a 4.86% year-on-year increase [3] - Cheese business revenue surged by 229.81% to 4.357 billion yuan, mainly due to the Miaokelanduo acquisition [3] - Ice cream and milk powder segments showed mixed performance, with ice cream revenue up 6.62% and milk powder down 1.56% [3] Future Outlook - The company is expected to achieve net profits of 5.436 billion, 5.983 billion, and 6.483 billion yuan in 2024, 2025, and 2026, respectively, with year-on-year growth rates of 13.04%, 10.05%, and 8.36% [4] - The PE ratios for 2024, 2025, and 2026 are projected to be 12, 11, and 10 times, respectively [4] Market Position - The company's fresh milk business outperformed the industry, with the "Daily Fresh" brand maintaining its leading position in the high-end fresh milk market [4] - The company's organic series achieved double-digit growth, and the white milk product structure continued to upgrade [4]

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of HKD 25, compared to the current price of HKD 17.08 [1][3][11]. Core Views - The company achieved a revenue of HKD 98.624 billion in 2023, representing a year-on-year increase of 6.51%. Operating profit was HKD 6.171 billion, up 13.8%, while net profit attributable to shareholders decreased by 9.31% to HKD 4.809 billion [1][11]. - The second half of 2023 saw revenue of HKD 47.506 billion, a 5.87% increase year-on-year, with net profit rising by 15.28% to HKD 1.789 billion [1][11]. - The company focuses on quality growth, with a target of mid-single-digit revenue growth for 2024 and an operating profit margin (OPM) increase of 30-50 basis points [1][11]. Financial Summary - Total revenue for 2023 was HKD 98,624 million, with a projected growth rate of 6.5% for 2024 [1][11]. - Net profit for 2023 was HKD 4,809 million, with an expected growth of 13.5% in 2024 [1][11]. - Earnings per share (EPS) are forecasted at HKD 1.39 for 2024, with a PE ratio of 11 times [1][11]. - The company’s total assets were HKD 115.220 billion in 2023, with a debt-to-asset ratio of 56% [4][11].

[Table_Title] 证券研究报告 业绩表现稳健，总裁实现交接 公司研究 [Table_ReportDate] 2024年3月28日 [Table_ReportType] 公司点评报告 [T事ab件le：_S公um司ma发ry布] 2023年业绩公告。2023年，公司实现营收人民币986.24 [蒙Ta牛bl乳e_业Sto(c2k3A1n9dR.aHnKk)] 亿元，同比+6.5%，实现归母净利润48.09亿元，同比-9.31%。其中，23H2 公司实现营收 475.05 亿元，同比+5.9%；实现归母净利润 17.89 亿元，同 投资评级 比+15.3%。 上次评级 [马Ta铮b le _ A u t食ho品r]饮 料行业首席分析师 点评： 执业编号：S1500520110001 联系电话：13392190215 ➢ 全年收入表现平稳，细分品类呈现分化。尽管行业增速有所放缓，公司 邮 箱：mazheng@cindasc.com 全年收入同比+6.5%（包含妙可蓝多并表）。分品类看，液态奶产品表现 出色，营收同比+4.9%；冰淇淋受东南亚市场增长拉动，营收同比 +6.6%；奶粉业务受市场整体影响，营收同 ...

Investment Rating - The report maintains a "Buy" rating for the company, with the target price currently under review [1][3][16]. Core Insights - The company reported a revenue and net profit growth of 5.9% and 15.3% year-on-year for 2H23, respectively. Excluding the impact of the merger with Miaokelando, the comparable revenue growth for the year was 2.9% [1]. - The dividend payout ratio has increased from 30% to 40%, indicating a positive outlook on cash flow and profitability [1]. - The company aims for revenue growth in the low to mid-single digits for 2024, with an operational profit margin improvement target of 30-50 basis points [1]. - Despite a slowdown in industry growth, the company is focusing on high-quality development and optimizing its product mix, particularly in high-end liquid milk and cheese segments [1]. Financial Summary - For FY23E, the company expects sales revenue of RMB 99,315 million, with a year-on-year growth of 7.3%. The net profit is projected to be RMB 5,883.2 million, reflecting a 10.9% increase [2][9]. - The company anticipates a continued improvement in gross margin, with a forecasted gross profit of RMB 36,151 million for FY23E, translating to a gross margin of 36.4% [9][13]. - The earnings per share (EPS) for FY23E is estimated at RMB 1.49, with a price-to-earnings (P/E) ratio of 11.8 [2][9]. Business Strategy - The company has identified that a price-for-volume strategy is not suitable for current development, emphasizing the importance of maintaining quality [1]. - The company plans to enhance its digital marketing and channel strategies to adapt to changing consumer behaviors, particularly in the cheese segment [1]. - The company is cautious about expanding overseas due to geopolitical risks, despite strong growth in its Southeast Asian ice cream business [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 98.624 billion yuan for 2023, representing a year-on-year increase of 6.5%. However, the net profit attributable to shareholders decreased by 9.3% to 4.809 billion yuan, slightly below expectations [3][4] - The company is undergoing a leadership transition with a veteran taking over as CEO, which is expected to lead to a stable transition and new development phase for the company [4] Financial Performance Summary - Total revenue for 2023 was 98.624 billion yuan, with a year-on-year growth of 6.51%. The operating profit margin (OPM) increased by 0.4 percentage points to 6.26% [3] - The company’s gross profit margin improved by 1.85 percentage points to 37.15% in 2023, while the net profit margin decreased by 0.85 percentage points to 4.88% [3] - Capital expenditures decreased by 17.8% to 4.17 billion yuan, and the dividend payout ratio is expected to increase from 30% to 40% [3] Product Performance Summary - The company experienced a product structure upgrade, with liquid milk and ice cream showing better performance than the industry average. Liquid milk revenue grew by 4.86% year-on-year [3] - The company expects the revenue growth of its premium products to continue, with low-temperature products performing better than the industry average [3] Future Earnings Forecast - The revenue forecast for 2024-2026 has been adjusted to 101.1 billion yuan, 105.6 billion yuan, and 110.6 billion yuan, with year-on-year growth rates of 3%, 4%, and 5% respectively [4] - The net profit forecast for the same period has been revised to 5.6 billion yuan, 6.1 billion yuan, and 6.6 billion yuan, with year-on-year growth rates of 17%, 9%, and 8% respectively [4]

Investment Rating - The investment rating for Mengniu Dairy is "Buy" with a target price of HKD 21.50, indicating a potential upside of 25.9% from the current price of HKD 17.08 [1][10]. Core Insights - Despite facing market headwinds, Mengniu Dairy has shown resilience with a 6.5% year-on-year sales growth in 2023, although net profit decreased by 9.3% to RMB 4.809 billion, falling short of consensus expectations by 14% [1][2]. - The company has experienced an increase in gross margin by 185 basis points to 37.2% due to lower raw milk costs, which also contributed to a slight increase in operating profit margin [1][2]. - The guidance for 2024 is disappointing, with expected sales growth in the low to mid-single digits, which is below previous expectations of 7.5% [2]. Financial Overview - Revenue for 2023 is projected at RMB 98.624 billion, with a year-on-year growth of 6.5% [3][11]. - Net profit for 2023 is expected to be RMB 4.809 billion, reflecting a decrease of 9.1% compared to the previous year [3][11]. - The company anticipates a slight expansion in operating profit margin by 30-50 basis points for 2024, while gross margin is expected to improve due to declining raw milk prices [2][11]. Segment Performance - The liquid milk segment, particularly high-end products like "Telunsu" and low-temperature yogurt, has shown strong performance, while ice cream and milk powder segments have faced challenges [1][6]. - Sales growth by category in 2023: liquid milk +5%, ice cream +7%, milk powder -2%, cheese +230% (excluding "Miaokelando" which saw a decline of 68%), and other products -32% [1][6]. - The high-end product trend continues, with fresh milk sales increasing by 16% year-on-year for premium offerings [1][6]. Future Projections - Revenue projections for 2024 are set at RMB 103.644 billion, with expected growth of 5.1% [3][11]. - The forecast for net profit in 2024 is RMB 5.482 billion, indicating a recovery with a growth rate of 14% [3][11]. - The company plans to increase its dividend payout ratio from 30% to 40% [1][2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 22.80 HKD per share, compared to the current price of 18.96 HKD [4]. Core Insights - The company reported a revenue of 98.624 billion RMB for 2023, representing a year-on-year increase of 6.51%, while the net profit attributable to shareholders was 4.809 billion RMB, down 9.31% year-on-year [2][3]. - The liquid milk segment continued to show steady growth, with revenue reaching 82.071 billion RMB, up 4.86% year-on-year. The premium product line, including organic series, maintained over 10% growth, contributing to structural upgrades [2][3]. - The company increased its dividend payout ratio to 40% for 2023, up from 30% in 2022, reflecting a commitment to returning value to shareholders [2][3]. Financial Summary - Revenue for 2023 was 98.624 billion RMB, with a growth rate of 6.51%. The projected revenue for 2024 is 102.723 billion RMB, indicating a growth rate of 4.16% [3]. - The net profit attributable to shareholders for 2023 was 4.809 billion RMB, with a forecasted increase to 5.503 billion RMB in 2024, representing a growth rate of 14.43% [3]. - The company's gross margin improved by 1.85 percentage points to 37.15% in 2023, driven by lower milk prices and structural upgrades [2][3].

Financial Performance - The group achieved a revenue growth of 6.5% to RMB 98.624 billion in 2023[2] - Operating profit increased by 13.8% year-on-year to RMB 6.171 billion, with an operating profit margin improvement of 0.4 percentage points to 6.3%[2] - The net profit for the year was RMB 4.887 billion, a decrease from RMB 5.185 billion in the previous year[6] - Basic earnings per share decreased to RMB 1.220 from RMB 1.342 year-on-year[5] - The total comprehensive income for the year was RMB 4.755 billion, compared to RMB 4.307 billion in the previous year[6] - The adjusted profit before tax for the group was RMB 6,303,713, with a net profit of RMB 4,886,975 after tax expenses of RMB 1,425,212[17] - The pre-tax profit for the current year is RMB 6,312,187 thousand, down from RMB 6,502,353 thousand in the previous year, reflecting a decrease of 2.9%[29] - Net profit attributable to equity shareholders decreased by 9.3% to RMB 4.8092 billion, with basic earnings per share of RMB 1.220, down 9.1% year-on-year[63] Market Position and Share - The group maintained its leading market share in low-temperature yogurt for 19 consecutive years, while liquid milk market share continued to expand[2] - The liquid milk segment generated revenue of RMB 82,071,069, accounting for the largest share of total revenue[17] - The liquid milk business generated revenue of RMB 94,335,586 thousand in 2023, up from RMB 87,997,985 thousand in 2022, indicating a growth of about 7.5%[22] - The low-temperature business achieved continuous growth, maintaining the number one market share for nineteen consecutive years, with probiotic beverage market share also showing an upward trend[43] - The fresh milk business achieved significant growth, outperforming the industry with a continuous profit for three years, driven by the high-end brand "Daily Fresh" leading the premium fresh milk market share[45] - The basic fresh milk segment maintained the number one market share for three consecutive years, with the launch of the "Daily Bone Strength" high-calcium milk and "Nourishing Beauty" iron-zinc milk targeting the aging population[46] Product Development and Innovation - The company launched China's first liquid protein nutritional supplement and became the first Chinese dairy company to independently develop human milk oligosaccharides (HMO)[3] - The group established the world's first fully digitalized dairy factory and launched the global first large language model in the nutrition and health field, MENGNIU.GPT[3] - The company is focusing on innovation in product categories, with new product growth rates significantly increasing and improved profit structures[44] - The infant formula segment focused on the "Ruibuen" brand, launching the world's first infant formula with MLCT structure fat, enhancing product offerings under the new national standards[47] - Key product launches include A2β-casein milk and lactose-free milk, targeting specific consumer needs[68] - The health nutrition segment launched tailored products for the elderly, focusing on whey protein and essential minerals, addressing the growing demand for adult milk powder[48] Financial Management and Investments - The total amount of share repurchase during the year was HKD 795.6 million, with a proposed final dividend of RMB 0.489 per share, totaling RMB 1.924 billion, an increase of 21.0% year-on-year[2] - Total capital expenditure for the year was RMB 6,277,598 thousand, compared to RMB 4,855,867 thousand in the previous year, reflecting an increase of approximately 29.2%[20] - The company plans to focus on R&D innovation, brand building, and digital transformation in 2024, aiming to enhance product structure and business balance[78] - The company has established a comprehensive salary system linked to business performance, granting 6,626,176 restricted stock awards during the year[76] Sustainability and Corporate Responsibility - The company is committed to sustainable practices, launching products with reduced packaging carbon footprints and promoting a "better organic" concept[41] - The company is committed to its "GREEN" strategy and "dual carbon" goals, with initiatives to reduce carbon emissions across the supply chain[74] - Mengniu has planted 97 million trees in Ulan Buh Desert, contributing to the transformation of over 200 square kilometers of desert into green land[74] - The establishment of the world's first fully intelligent dairy factory in Ningxia is expected to achieve an annual output of 1 million tons and generate RMB 10 billion in revenue[58] - The company received ISO 37301 and GB/T35770 compliance management system certifications, marking it as the first dairy enterprise globally to achieve such certifications[75] Operational Efficiency - The company continues to monitor performance across its operating segments to inform resource allocation and performance evaluation decisions[16] - The company is actively optimizing its channel structure and enhancing operational management efficiency through integrated management and centralized factory layouts[44] - Sales and distribution expenses increased by 12.7% to RMB 25.1922 billion, accounting for 25.5% of total revenue[62] - The company has recognized a deferred tax expense of RMB 164,341 thousand for the current year, down from RMB 376,195 thousand in the previous year, indicating a significant reduction of 56.3%[29] Shareholder Returns - The proposed final dividend for the current year is RMB 0.489 per ordinary share, up from RMB 0.402 per share in the previous year, marking a 21.6% increase[31] - The total declared and paid ordinary share dividends for the current year amount to RMB 1,588,015 thousand, compared to RMB 1,506,669 thousand in the previous year, which is an increase of 5.4%[31] - The board of directors proposed a final dividend of RMB 0.489 per share for the year ending December 31, 2023, compared to RMB 0.402 per share for 2022[86]

Financial Performance - For the six months ended June 30, 2023, the Group's revenue was RMB 51,118.5 million, representing a year-on-year increase of 7.1% from RMB 47,722.3 million in 2022[13]. - Gross profit for the same period was RMB 19,630.2 million, reflecting a year-on-year increase of 12.4% from RMB 17,458.8 million[13]. - Profit attributable to owners of the Company decreased by 19.5% to RMB 3,020.5 million, down from RMB 3,751.4 million in 2022[13]. - Operating profit increased by 29.9% year-on-year to RMB 3,274.9 million, with an operating profit margin rising to 6.4%, up from 5.3% in 2022[14]. - Basic earnings per share decreased by 19.4% to RMB 0.765, down from RMB 0.949 in 2022[13]. - EBITDA decreased by 5.6% to RMB 5,178.3 million, with an EBITDA margin of 10.1%, down 1.4 percentage points from the previous year[115]. - Income tax expense increased by 27.7% to RMB 644.3 million, with an effective tax rate of 17.4%, up 5.2 percentage points from 12.2% in 2022[119]. - Capital expenditure for the six months ended June 30, 2023 was RMB 1,887.2 million, a decrease of 15.0% year-on-year[122]. - Net borrowings as of June 30, 2023 were RMB 28,795.4 million, an increase from RMB 26,342.8 million as of December 31, 2022[121]. - The Group's finance costs were RMB 727.1 million, representing approximately 1.4% of revenue, an increase of 0.3 percentage points year-on-year[126]. Market Position and Growth - The Company ranked 8th in the "Global Dairy Top 10" in 2023 and was the only Chinese FMCG brand with double-digit growth in brand value, which increased by 15% year-on-year[2]. - Mengniu's revenue growth was supported by a progressive recovery in domestic consumer demand, with dairy product sales improving month by month[28]. - The overall domestic demand for dairy products and end-market sales steadily rebounded, driven by increased consumer emphasis on nutrition and health[14]. - Mengniu ranked among the top eight in the 2023 "Global Dairy Top 20" list published by Rabobank, solidifying its status as the youngest company within the global dairy industry's top ten[33][34]. - Mengniu's total annual production capacity increased to 13.60 million tons as of June 30, 2023, from 12.91 million tons in December 2022[164]. Product Innovation and Development - Mengniu developed the rare nutritional ingredient HMO, becoming the first domestic dairy company to independently develop it, with plans for future industrialization[19]. - The Group launched China's first liquid protein nutritional supplement, M-ACTION Sports Protein Drink, entering the sports nutrition market[19]. - Mengniu launched the YO!FINE DIARY high-end yogurt brand, introducing new flavors and expanding its product line to include set yogurts and chunky fresh fruit pulp products[45][46]. - Mengniu's focus on product innovation and brand communication has driven the expansion of Milk Deluxe's leading market share within the high-end milk sector[37]. - Mengniu has been collaborating with technical partners and industry leaders to enhance R&D resources and explore new fields within the dairy industry, aiming for sustainable growth[77]. Sustainability and Corporate Responsibility - Mengniu announced industry-leading carbon-neutral goals and joined the global initiative to grow, restore, and conserve one trillion trees[22]. - The Group's sustainable development efforts were recognized as the "Most Improved Enterprise in the Industry" in the inaugural "Sustainability Yearbook (China Edition)" by S&P Global[170]. - In 2022, Mengniu achieved a reduction of 180,000 tons of CO2e through its "Net Zero Carbon Emission" policy[169]. - The Group has planted 97 million trees in the Ulan Buh Desert as part of its "Zero Deforestation by 2030" initiative[165]. - The Group aims to achieve net-zero emissions through international cooperation and emphasizes research investments in high-quality dairy and nutritional products[177]. Strategic Initiatives - The Group's strategic focus on "Greener, More Nutritious and Smarter" initiatives contributed to stable and high-quality growth in its core business[14]. - The "2025 Value Sharing" strategy aims to create a complete dairy industry value chain, enhancing efficiency and sustainability in the raw milk industry[90]. - The Group will continue to optimize operational strategies and expand its product matrix to cultivate global brand influence[181]. - The Group's ranches adhered to the "Mengniu Ranch Quality and Safety Management System," ensuring 100% compliance with stringent access controls and enhancing food safety[93]. - The "Smart Ranch Management Platform" was adopted, utilizing cloud computing, IoT, and AIoT technologies for granular management of dairy cattle throughout their lifecycle[94]. Consumer Engagement and Market Expansion - As of June 2023, Mengniu's online membership exceeded 65 million, reflecting its successful expansion in new retail channels[40][41]. - The room temperature business unit extended its presence to 26,000 townships, covering over 800,000 distribution points, enhancing its market penetration rate[41]. - Mengniu's ice cream business introduced the Strawberry Soft Core Crispy Skin ice cream and developed new cheese-flavored ice cream products, winning the "Innovative and Imaginative" award in the second Mengniu Innovation Contest[63][64]. - Mengniu's ice cream brand Suibian has introduced new flavors, including Strawberry Chocolate Crunch, enhancing product variety and consumer appeal[151]. - The Group's cooperative farms have successfully re-utilized manure, promoting organic circulation in farming practices[169]. Employee and Corporate Governance - The total cost of employees amounted to approximately RMB4,424.1 million in the first half of 2023, compared to RMB4,061.4 million in 2022[171]. - As of June 30, 2023, the Group employed approximately 46,355 employees, with total employee costs amounting to RMB 4.424 billion, an increase from RMB 4.061 billion in 2022[173]. - In the first half of 2023, the Group granted 6,626,176 restricted shares to its employees as part of its performance-based remuneration system[176]. - The Group has been approved to build a "national high-skilled personnel training base" and is the first in China's dairy industry to obtain self-certification for vocational skill levels[175].

Financial Performance - For the first half of 2023, the company's revenue reached RMB 51.118 billion, a year-on-year increase of 7.1% compared to RMB 47.722 billion in 2022[2] - Operating profit grew by 29.9% to RMB 3.275 billion, with an operating profit margin rising to 6.4%, up 110 basis points from 5.3% in 2022[2] - The total comprehensive income for the first half of 2023 was RMB 2.895 billion, down from RMB 3.317 billion in the same period of 2022[7] - The basic earnings per share attributable to ordinary shareholders was RMB 0.765, compared to RMB 0.949 in the previous year[6] - The adjusted profit before tax for the company was RMB 3,703,278 thousand, compared to RMB 4,147,733 thousand in the previous year, indicating a decrease of approximately 10.7%[16] - The company reported a net profit of RMB 3,058,988 thousand for the period, down from RMB 3,643,099 thousand in the same period last year, reflecting a decline of about 16.0%[16] - Net profit attributable to equity shareholders decreased by 19.5% to RMB 3.0205 billion, with basic earnings per share of RMB 0.765, down 19.4% year-on-year[60] - Income tax expense increased by 27.7% to RMB 644.3 million, with an effective tax rate of 17.4%, up 5.2 percentage points year-on-year[61] Assets and Liabilities - As of June 30, 2023, total non-current assets amounted to RMB 82,612,072 thousand, an increase from RMB 81,036,131 thousand as of December 31, 2022, representing a growth of 1.95%[8] - Current assets totaled RMB 40,881,664 thousand, up from RMB 36,777,074 thousand, indicating an increase of 8.45%[9] - Total liabilities increased to RMB 73,372,324 thousand from RMB 67,761,407 thousand, reflecting a rise of 8.67%[9] - Net current assets improved significantly to RMB 6,785,722 thousand, compared to RMB 3,623,822 thousand, marking an increase of 87.67%[9] - The company's total assets as of June 30, 2023, amounted to RMB 123,493,736 thousand, an increase from RMB 117,813,205 thousand as of December 31, 2022[16] - The total equity attributable to shareholders was RMB 50,121,412 thousand, slightly up from RMB 50,051,798 thousand, showing a marginal increase of 0.14%[10] - The company's long-term borrowings increased to RMB 31,031,326 thousand from RMB 26,106,255 thousand, representing a rise of 18.36%[9] Revenue Breakdown - The liquid milk business generated revenue of RMB 41,640,229 thousand, accounting for approximately 81.5% of total revenue, while the ice cream business contributed RMB 4,308,698 thousand, representing about 8.4%[15] - Total revenue from customer contracts reached RMB 51,118,523 thousand, with liquid milk business contributing RMB 41,640,229 thousand, accounting for approximately 81.5% of total revenue[18] - The ice cream business generated RMB 4,308,698 thousand, representing about 8.4% of total revenue, while the milk powder and cheese businesses contributed RMB 1,894,213 thousand and RMB 2,256,051 thousand respectively[18] Market Position and Growth - The company maintained its position as one of the top 10 global dairy companies, ranking 8th in the "2023 Dairy Industry Top 20" by Rabobank[4] - The company reported a steady growth in liquid milk business, with an increase in market share for ambient liquid milk during the first half of 2023[37] - The company maintained strong demand resilience for room temperature pure milk, achieving the largest market share in the white milk segment[39] - The low-temperature division secured the number one market share for the 19th consecutive year, focusing on functional, delicious, and nutritious yogurt products[40] - The high-end brand "Daily Fresh" in the fresh milk category experienced double-digit growth, solidifying its position as the leading high-end fresh milk brand[41] Innovation and Product Development - The company achieved significant breakthroughs in innovative business, with its flagship products leading market growth, including a top market share in the liquid milk segment[2] - The company launched China's first liquid protein nutritional supplement, entering the sports nutrition sector, and developed rare nutritional component HMO, which has passed safety assessments[4] - The company launched new products, including a blueberry-flavored PET bottle yogurt series and a cold brew fresh coffee latte, to meet diverse consumer needs[42] - The company upgraded its senior nutrition product line, focusing on bone health and muscle maintenance for the elderly[44] - The company has developed a new formula for its senior milk powder series, focusing on bone health and muscle maintenance for older adults[73] Sustainability and Corporate Responsibility - The company has set industry-leading carbon neutrality goals and joined the World Economic Forum's initiative to plant a trillion trees, committing to a "zero deforestation" target across its supply chain[4] - The company is committed to achieving "carbon peak by 2030 and carbon neutrality by 2050" as part of its sustainable development strategy[75] - The company has planted 97 million trees in the Ulan Buh Desert, contributing to its goal of "zero deforestation by 2030" and mitigating supply chain deforestation risks[75] - The group has achieved a total of 27 factories recognized as national-level green factories, with energy consumption reduced by 43% compared to conventional factories[76] Digital Transformation and Technology - The company is focusing on digital transformation across the entire industry chain, from farming to consumer end[38] - The company introduced the AI-driven MENGNIU.GPT model, providing personalized nutrition and health services to families, enhancing consumer health management[55] - The company is enhancing its digital transformation strategy, emphasizing data-driven decision-making and consumer-centric approaches[55] Employee and Governance - The company’s employee benefits expenses, including salaries for directors and senior management, amounted to RMB 4,424,102 thousand, reflecting an increase from RMB 4,061,412 thousand in the previous year[22] - The audit committee consists of three independent non-executive directors: Mr. Li Hengjian (Chairman), Mr. Ye Lide, and Mr. Ge Jun[86] - The board of directors includes three executive directors, three non-executive directors, and three independent non-executive directors[89] Shareholder and Market Engagement - The company did not recommend the distribution of an interim dividend for the first half of 2023, consistent with the previous year[27] - The company repurchased a total of 13,074,000 shares at a total cost of HKD 419,334,350 during the reporting period[83] - The company expresses gratitude to shareholders and employees for their support and hard work[89]