On March 27, Mengniu released the annual report of 2011. The report showed that the revenue in 2011 reached RMB 37.3878 billion Yuan which increased by 23.5%; the gross profit reached RMB 9.5922 billion Yuan which increased by 23.2% comparing to the same period of last year; net profit owing to the group company reached RMB 1.5893 billion Yuan, and the earning per stock was RMB 0.908 Yuan. In 2011, facing to the cost pressure caused by inflation, Mengniu strengthened infrastructure and progressed farm strategy so as to speed up the control over nationwide good quality milk supply market, strengthen quality management and keep steady growth of the performance. 

 

    By relying on China’s market demand of dairy products, Mengniu launched several premium products to meet consumers’ demand and explored the market. In 2011, the growth of liquid milk increased by 25.4% to RMB 33.7 billion Yuan which covered the largest share of 90.1%. The ice cream business also upgraded to trend the premium end with growth rate of 4.7% to RMB 3.2586 Yuan which covered 8.7% of the overall revenue of the group company. Yogurt business increased by 65.9% to RMB 4.554 billion Yuan. Regarding other aspects, Mengniu-Arla put a brand-new milk powder category to the market which had already yielded good rewards.

 

    Brand image construction is a focus work which is quite important to Mengniu’s development, and is also the source of good quality products. As the earliest enterprise that spent a lot on milk supply construction, Mengniu’s advantage in milk played an irreplaceable role in the sustainable development. The annual report showed that in 2011, Mengniu dedicated in reliable milk supply construction and technical service system so as to help milk collection community improve milk quality and further control the quality milk source. At present, Mengniu uses 8,000 tons of fine quality milk from dairy farms for processing and becomes the largest milk collection dairy company in China and even in Asia. 

 

    Quality test, as one of key links in quality control, is reinforced by Mengniu. Relevant data shows that Mengniu has independently set up two departments for raw milk quality test and finished quality test, which will test food safety items for each batch of products, and results from two departments build inter-supervision relation to guarantee the food safety. 

 

    Mengniu’s top managers particularly points out that they should deeply recognize that our management level needs to further improve. For Mengniu, the year 2012 is undoubtedly a key year of quality improvement. Mengniu will go on reinforcing the raw milk quality construction and promote the brand image through quality system management.