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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 2020 HKDUSD
Gross Profit32,175.66M4,148.48M
Operating income3,633.92M468.53M
Income before tax4,190.00M540.22M
Net income3,961.06M510.71M
Diluted EPS1.000.12
Dividends Per Share0.320.04
Total Assets95,024.60M12,255.15M
Total liabilities50,364.42M6,495.40M
Total equity39,105.54M5,043.37M
Operating cash flow7,322.72M944.13M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 62,836.77M 69,364.65M 81,700.15M 89,613.25M 85,439.84M
Gross Profit 20,589.67M 24,451.87M 30,531.94M 33,653.06M 32,175.66M
Operating income 1,533.85M 3,725.90M 4,048.38M 4,589.75M 3,633.92M
Income before tax -539.09M 3,026.80M 4,563.37M 6,157.60M 4,190.00M
Net income -877.66M 2,361.33M 3,604.32M 4,655.22M 3,961.06M
EBITDA 3,631.29M 5,659.47M 6,187.12M 7,147.72M 6,030.74M
Diluted EPS -0.22 0.60 0.92 1.18 1.00
Dividends Per Share 0.10 0.14 0.20 0.19 0.32
Total Assets 54,805.24M 69,792.36M 75,785.00M 87,851.58M 95,024.60M
Total liabilities 25,757.16M 36,364.06M 40,068.56M 50,236.76M 50,364.42M
Total equity 23,255.44M 27,135.19M 28,751.09M 32,587.23M 39,105.54M
Operating cash flow 5,752.57M 7,354.52M 8,725.91M 8,361.06M 7,322.72M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 8,094.95M 8,901.10M 10,424.20M 11,437.26M 11,015.97M
Gross Profit 2,652.46M 3,137.74M 3,895.60M 4,295.11M 4,148.48M
Operating income 197.59M 478.12M 516.53M 585.78M 468.53M
Income before tax -69.44M 388.41M 582.24M 785.88M 540.22M
Net income -113.06M 303.01M 459.87M 594.14M 510.71M
EBITDA 467.80M 726.24M 789.42M 912.25M 777.55M
Diluted EPS -0.02 0.07 0.11 0.15 0.12
Dividends Per Share 0.01 0.01 0.02 0.02 0.04
Total Assets 7,068.77M 8,927.93M 9,679.60M 11,274.87M 12,255.15M
Total liabilities 3,322.15M 4,651.74M 5,117.73M 6,447.38M 6,495.40M
Total equity 2,999.48M 3,471.17M 3,672.22M 4,182.24M 5,043.37M
Operating cash flow 741.07M 943.75M 1,113.34M 1,067.11M 944.13M

Valuation Measures

Dec 2020
Operating margin4.25%
Profit margin4.63%

Key executives

  • Chief Executive Officer & Executive Director: Min Fang Lu
  • Chief Financial Officer & Vice President: 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 (23.1%)
  • FIL Investments International (4.7%)
  • Schroder Investment Management Ltd. (4.4%)
  • First Sentier Investors (Hong Kong) Ltd. (3.8%)
  • FIL Investment Advisors (UK) Ltd. (2.7%)
  • The Vanguard Group, Inc. (2.4%)
  • T. Rowe Price International Ltd. (2.1%)
  • FIL Investment Management (Hong Kong) Ltd. (2.0%)
  • FIL Investment Management (Singapore) Ltd. (1.8%)
  • 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

Related Companies

  • Yashili International Infant Nutrition Co., Ltd.
  • Inner Mongolia Mengniu Hi-tech Dairy Co., Ltd.
  • Tianjin New Value Supply Chain Co., Ltd.
  • Zhibo Mofang (China) Co., Ltd.
  • Yashili International Group Ltd. (China)
  • Plant Base Ltd.
  • Wise Journey Pty Ltd.
  • Bright Treasure Pty Ltd.
  • Bright Rainbow Ltd.
  • Golden Stage Holdings Ltd.
  • Colour Vantage Ltd.
  • China Dairy Holdings Ltd.
  • Mengniu Dairy Jiaozuo Co., Ltd.
  • PT Mengniu Dairy Indonesia
  • Inner Mongolia Mengniu Shengmu High-tech Dairy Co., Ltd.
  • Easy Reach Investment Co., Ltd.
  • Vision Clear Ltd.
  • Mengniu Dairy (Hengshui) Co., Ltd.
  • Start Great Holdings Ltd.
  • Tian Jin New Value Supply Chain Co. Ltd.
  • Wuhan Mengniu Dairy Co., Ltd.
  • Future Discovery Ltd.
  • 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.


  • Hubei Juneyao Great Health Dairy Co., Ltd. Class A
  • China Modern Dairy Holdings Ltd.
  • Xinjiang Western Animal Husbandry Co., Ltd. Class A
Last Updated on 15 Oct, 2021

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