Mission Statement, Vision, & Core Values (2026) of China Modern Dairy Holdings Ltd.

China Modern Dairy Holdings Ltd. blends scale, safety and sustainability into a clear ethos: with a herd of approximately 491,000 dairy cows producing 3.01 million tons of raw milk annually (as of December 31, 2024), the group's mission-"Raising healthy cows and safeguarding each and every drop of milk."-drives SGS‑certified practices like its pioneering "Zero-distance Integration of Forage Grass Planting, Cows Breeding, and Milk Processing within Two Hours" model and underpins a vision to "Deploy the whole industry chain, innovating with digital intelligence, and becoming a global dairy farming leader." Operating across 47 farm companies in 13 provinces, Modern Dairy pairs a 12‑year streak of Monde Selection Gold Prizes with recognition of its full life‑cycle low‑carbon farming model by the UN FAO in 2025, while core values-"Safety and health come first, execute with high standards and efficiency, unleash the potential, and be honest and credible."-shape investments in digital platforms, feed, forage and breeding to ensure traceability, product quality and long‑term growth

China Modern Dairy Holdings Ltd. (1117.HK) - Intro

• Herd size (Dec 31, 2024): ~491,000 dairy cows
• Annual raw milk production (2024): 3.01 million tons
• Operating footprint: 47 farm companies across 13 provinces and autonomous regions in Mainland China
• Certified operational model: 'Zero-distance Integration of Forage Grass Planting, Cows Breeding, and Milk Processing within Two Hours' (SGS certified)
• Quality recognition: Gold Prize, Monde Selection - 12 consecutive years
• Sustainability recognition: 2025 UN FAO recognition for 'Full Life-Cycle Low-Carbon Farming Model'

• Strategic expansion areas:
  • Intelligent digital platforms (precision farming, data-driven herd/forage management)
  • Feed and forage grass cultivation and supply chain integration
  • Dairy cow breeding and genetic improvement

• Mission
  • Provide safe, high-quality raw milk and dairy products through integrated, traceable farming and processing systems that prioritize animal welfare and food safety.

• Vision
  • To be the leading sustainable dairy platform in China, delivering low-carbon, technology-enabled dairy supply chains that meet rising domestic demand and international quality benchmarks.

• Core Values
  • Quality-first: Continuous investment in herd health, feed quality and processing standards (evidenced by 12 years of Monde Selection Gold awards).
  • Sustainability: Adoption of full life-cycle low-carbon farming recognized by UN FAO (2025).
  • Integration & Traceability: SGS-certified zero-distance model linking forage, breeding and processing within two hours to ensure freshness and control.
  • Innovation: Deployment of intelligent digital platforms and data analytics to optimize yield, reduce waste and scale efficiencies.
  • Scalability: Horizontal expansion via 47 farm entities across 13 regions to capture regional demand and optimize logistics.

China Modern Dairy Holdings Ltd. (1117.HK) - Overview

Mission Statement - 'Raising healthy cows and safeguarding each and every drop of milk.'

This mission encapsulates China Modern Dairy Holdings Ltd.'s enduring commitment to animal welfare, product safety, quality control and full-process traceability. It drives the company's integrated farming model - from forage grass to finished milk - and remains consistent across corporate communications and operational practices.

• Animal welfare: systematic herd health management, veterinary protocols, and welfare standards designed to optimize cow longevity and productivity.
• Product safety: multi-point quality control from on-farm milking to processing and cold-chain distribution to minimize contamination risk.
• Traceability: batch-level tracking linking forage inputs, farm of origin, milking records and finished-product distribution.
• Integrated model: vertically aligned operations - feed production, breeding, dairy farming, processing and logistics - to control inputs and outputs.

The mission informs measurable operational targets and performance metrics. Key operational and financial indicators (approximate, recent-year context) that reflect mission execution include:

Operational initiatives aligned to the mission:

• Forage-to-milk integration: dedicated forage production and contracts to stabilize feed quality and reduce exposure to contaminants.
• On-farm biosecurity and herd health programs: vaccination, nutrition management and regular veterinary monitoring to reduce disease risk and antibiotic usage.
• Cold-chain and processing upgrades: investments in refrigerated logistics and processing lines to preserve milk freshness and safety post-harvest.
• Traceability systems: digital records linking farm inputs and outputs to enable rapid recall or investigation if quality issues arise.

Examples of mission-driven metrics tracked routinely:

• Somatic cell count (SCC) and bacterial counts per milk batch
• Average daily milk yield per lactating cow
• Antibiotic residue test pass rates
• Cold-chain temperature compliance rates

Strategic alignment and investor context: the mission supports a vertically integrated, capital-intensive model aimed at delivering stable, traceable milk supply at scale. For detailed financial analysis tied to these operational commitments, see: Breaking Down China Modern Dairy Holdings Ltd. Financial Health: Key Insights for Investors

China Modern Dairy Holdings Ltd. (1117.HK) - Mission Statement

• Whole-industry integration: from breeding, farm operations, feed and herd health, to processing and cold-chain logistics.
• Digital intelligence: adoption of IoT sensors, precision feeding, automated milking systems, and centralized data platforms for herd performance and supply-chain optimization.
• Global leadership ambition: improving genetics and breeding programs, standardizing farm operations, and scaling best-practice models for possible international partnerships and exports.
• Sustainability and food safety: measures to reduce GHG emissions intensity, improve manure management, and ensure traceability across the supply chain.

• Precision farming rollout: sensors for rumination, automated feeders and milking parlors to raise yield per cow and reduce variability.
• Breeding and genetics: centralized genetics programs to improve milk yield, disease resistance and longevity metrics.
• Cold-chain and brand expansion: investments in refrigerated logistics and retail channels to increase fresh milk market share.
• Sustainability programs: targets to lower emissions intensity per liter of milk and improve manure-to-energy or composting conversion rates.

• "Deploying the whole industry chain" - reflected in vertical integration from genetics to retail and logistics.
• "Innovating with digital intelligence" - reflected in farm digitization initiatives and centralized analytics for herd management.
• "Becoming a global dairy farming leader" - reflected in scale, standardized operational models, and investments in breeding and R&D.

China Modern Dairy Holdings Ltd. (1117.HK) - Vision Statement

• Safety and health come first: product safety, animal welfare, and employee health are non-negotiable priorities embedded in daily operations.
• Execute with high standards and efficiency: standardized farm management, centralized quality control, and continuous improvement in yield and cost per kilogram of milk.
• Unleash the potential: invest in herd genetics, feed science, mechanization, and talent development to raise productivity per cow and expand value-added product lines.
• Be honest and credible: transparency in reporting, traceability systems, and adherence to regulatory and ethical standards to earn consumer and investor trust.

• Product safety and health: comprehensive QC labs, farm-to-product traceability, routine third-party testing, and GMP-compliant processing plants.
• High standards and operational efficiency: centralized SOPs, performance KPIs (milk yield per cow, somatic cell count targets), and benchmarking across farms to reduce variability.
• Unlocking potential: targeted training programs, incentive structures for farm managers, and pilot projects for automated milking and precision feeding.
• Integrity and credibility: periodic independent audits, regular investor disclosures, and a documented ethics policy guiding procurement and commercial conduct.

• Board and executive oversight: safety and quality KPIs are integrated into executive compensation and board reporting cycles.
• Decision-making: capital allocation prioritizes projects that improve food safety, animal welfare, and long-term supply reliability even when short-term margins are pressured.
• Employee culture: recruitment, training, and promotion emphasize adherence to safety protocols, operational excellence, and transparent communication.