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Consumer Non-Durables

China Mengniu Dairy Co., Ltd.

Company Background

China Mengniu Dairy is a Chinese manufacturer and distributor of dairy products, including raw milk, yogurt, milk beverages, ice cream and milk powder. The state-owned company held the largest share of the domestic milk market until 2014. Mengniu Dairy became the first dairy products maker to be included on the Hang Seng Index in 2014.

In August 1999, Mengniu Dairy was established as a private company in Hohhot, the Inner Mongolia Autonomous Region. In 2009, however, China National Cereals, Oils and Foodstuffs (COFCO), China's largest state-owned agricultural conglomerate, acquired a stake in the company, becoming its biggest shareholder. It listed on the Hong Kong Stock Exchanges and Clearing (HKEX) in June 2004. It has more than 50 plants in over 20 provinces in China, with an annual production capacity of more than 8.1 million tons.

The company has formed strategic alliances with makers of dairy products in Denmark, France, the U.S. and New Zealand. In 2008, it was revealed that milk powder manufactured by Chinese dairy company Sanlu Group was contaminated with the toxic chemical melamine. Mengniu Dairy's milk powder was also found to be tainted with the substance, shaking the Chinese public's sense of safety regarding domestic milk powder.

It plans to expand its business overseas. In April, the company announced its strategic alliance with Shanghai Disney Resort, scheduled to open in the spring of 2016. It aims to increase its name recognition among overseas visitors by selling its own-brand milk and ice cream, along with other products, at the theme park.

Business Summary

China Mengniu Dairy Co., Ltd. is an investment holding company, which engages in the manufacture and distribution of dairy products. It operates through the following segments: Liquid Milk Products, Ice Cream Products, Milk Powder Products, and Others. The Liquid Milk Products segment produces and distributes ultra-high temperature milk, milk beverages, and yogurt. The Ice Cream Products segment offers its products under the Deluxe, Mood for Green, Ice+, and Suibian brands. The Milk Powder Products segment includes infant milk formula brand products such as Milex, Meimengyi, Ruipuen Oushi Series, Yashily Super a-Golden, Yashili Golden Ambery, Arla Merla, Arla Baby & Me, and Dumex Series. The Others segment comprises of cheese products, plant-based nutrition product, and trading business. The company was founded on February 16, 2004 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019 HKDUSD
Gross Profit33,653.06M4,295.11M
Operating income4,589.75M585.78M
Income before tax6,157.60M785.88M
Net income4,655.22M594.14M
Diluted EPS1.180.15
Dividends Per Share0.190.02
Total Assets87,851.58M11,274.87M
Total liabilities50,236.76M6,447.38M
Total equity32,587.23M4,182.24M
Operating cash flow8,361.06M1,067.11M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 60,473.25M 62,836.77M 69,364.65M 81,700.15M 89,613.25M
Gross Profit 18,950.56M 20,589.67M 24,451.87M 30,531.94M 33,653.06M
Operating income 2,824.59M 1,533.85M 3,725.90M 4,048.38M 4,589.75M
Income before tax 3,737.65M -539.09M 3,026.80M 4,563.37M 6,157.60M
Net income 2,919.85M -877.66M 2,361.33M 3,604.32M 4,655.22M
EBITDA 4,896.46M 3,631.29M 5,659.47M 6,187.12M 7,147.72M
Diluted EPS 0.74 -0.22 0.60 0.92 1.18
Dividends Per Share 0.16 0.10 0.14 0.20 0.19
Total Assets 60,454.10M 54,805.24M 69,792.36M 75,785.00M 87,851.58M
Total liabilities 28,326.99M 25,757.16M 36,364.06M 40,068.56M 50,236.76M
Total equity 26,419.73M 23,255.44M 27,135.19M 28,751.09M 32,587.23M
Operating cash flow 3,150.38M 5,752.57M 7,354.52M 8,725.91M 8,361.06M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 7,800.41M 8,094.95M 8,901.10M 10,424.20M 11,437.26M
Gross Profit 2,444.42M 2,652.46M 3,137.74M 3,895.60M 4,295.11M
Operating income 364.34M 197.59M 478.12M 516.53M 585.78M
Income before tax 482.11M -69.44M 388.41M 582.24M 785.88M
Net income 376.63M -113.06M 303.01M 459.87M 594.14M
EBITDA 631.59M 467.80M 726.24M 789.42M 912.25M
Diluted EPS 0.09 -0.02 0.07 0.11 0.15
Dividends Per Share 0.02 0.01 0.01 0.02 0.02
Total Assets 7,800.37M 7,068.77M 8,927.93M 9,679.60M 11,274.87M
Total liabilities 3,655.02M 3,322.15M 4,651.74M 5,117.73M 6,447.38M
Total equity 3,408.93M 2,999.48M 3,471.17M 3,672.22M 4,182.24M
Operating cash flow 406.36M 741.07M 943.75M 1,113.34M 1,067.11M

Valuation Measures

Dec 2019
Operating margin5.12%
Profit margin5.19%

Key executives

  • Chief Executive Officer & Executive Director: Min Fang Lu
  • Chief Financial Officer: Ping Zhang
  • Vice President-Research, Development & Innovation: Wei Zu Yu
  • Secretary & Financial Controller: Wai Cheong Kwok
  • Head-Investor Relations: Willow Wu


  • China State-Owned Assets Supervision & Admn Commission (31.2%)
  • Schroder Investment Management Ltd. (4.8%)
  • FIL Investments International (4.7%)
  • First State Investments (Hong Kong) Ltd. (3.8%)
  • FIL Investment Advisors (UK) Ltd. (2.6%)
  • T. Rowe Price International Ltd. (2.4%)
  • The Vanguard Group, Inc. (2.3%)
  • FIL Investment Management (Hong Kong) Ltd. (2.3%)
  • Schroder Investment Management (Hong Kong) Ltd. (1.4%)
  • BlackRock Fund Advisors (1.4%)

Contact Details

  • Website:
  • Address: 32/F, COFCO Tower, 2, 262 Gloucester Road, Hong Kong, Hong Kong
  • Phone: +852.2180.9050

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  • Inner Mongolia Mengniu Hi-tech Dairy Co., Ltd.
  • Tianjin New Value Supply Chain Co., Ltd.
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  • China Dairy Holdings Ltd.
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  • Easy Reach Investment Co., Ltd.
  • Vision Clear Ltd.
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  • China Mengniu Investment Co. Ltd.
  • China Mengniu International Co. Ltd.
  • Mengniu Dairy (Shenyang) Co. Ltd.
  • Bellamy's Australia Ltd.
  • China Modern Dairy Holdings Ltd.
  • Yashili International Holdings Ltd.
  • China Dairy (Mauritius) Ltd.
  • Mengniu Dairy (Ma'anshan) Co., Ltd.


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Last Updated on 20 Oct, 2020

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