China Mengniu Dairy : Announcements and Notices - ANNOUNCEMENT OF THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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CHINA MENGNIU DAIRY COMPANY LIMITED ʕ਷ႆˬԪุϞࠢʮ̡*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2319)

ANNOUNCEMENT OF THE ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2021

HIGHLIGHTS

• • 2021 marked the commencement of the five-year strategy of the Group, "Creating a New Mengniu (Ύ௴ɓࡈอႆˬ)". During the year, the Group continued to promote product innovations and upgrades, branding enhancement, and expanded online and offline channels for omnichannel development. For the year ended 31 December 2021, the revenue of the Group amounted to RMB88,141.5 million (2020: RMB76,034.8 million), representing a year-on-year increase of 15.9%. Due to the increase in revenue and operating efficiency, profit attributable to owners of the Company increased by 42.6% year-on-year to RMB5,025.5 million (2020: RMB3,525.0 million).

• • In 2021, as the Group continued to drive product innovation, brand upgrade, and channel expansion for the room temperature, chilled, and fresh milk businesses, the revenue from the liquid milk business increased by 12.9% from last year to RMB76,514.4 million (2020: RMB67,751.0 million).

• • During the year, the ice cream business segment continued to focus on brands such as Suibian, Deluxe , and Mood for Green , promote product innovation and upgrade, and strengthen the sales basis in modern and new retail channels. To accelerate the business expansion in the Southeast Asian market, the Group acquired Aice, a leading ice-cream brand in Southeast Asia, at the end of March. Revenue for this segment for the year increased by 61.0% from last year to RMB4,240.2 million (2020: RMB2,633.7 million).

* For identification purposes only

• • Yashili, the domestic milk formula platform of the Group, focused on its brands such as Reeborne , an infant formula brand, and Yourui , an adult milk powder brand, whilst Bellamy's adhered to its brand positioning of "True Organic". Through market segmentation and expansion of sales channels, the revenue from the milk formula business increased by 8.2% from last year to RMB4,949.1 million (2020: RMB4,573.0 million).

• • During the year, grasping the growth opportunities in the cheese industry, the Group focused on children's cheese sticks, cheese snacks, cheese and butter for family consumption and other retail cheese products and provided professional dairy product solutions to customers in the foodservice channel. The cheese business grew rapidly in the retail and food service sectors. In July 2021, the Group became a substantial shareholder of Milkground, a leading cheese enterprise in China. In the future, through cooperating with Milkground, both the Group and Milkground will be able to gain advantages through sharing resources and together expand into the domestic and global cheese market with enormous potential.

• • Mengniu actively resonates with the national goal of "carbon neutrality", and pledged to be the first to achieve carbon neutrality in the dairy industry. The Group will announce its carbon emission reduction targets and roadmap in 2022. As of the end of the year, Mengniu had 22 factories rated as being a "National Green Factory" by the Ministry of Industry and Information Technology. Mengniu was awarded "China Charity Award", the highest government award in the philanthropic field of China, for its outstanding contribution to poverty alleviation and the fight against the COVID-19 epidemic.

The board (the "Board") of directors (the "Directors") of China Mengniu Dairy Company Limited (the "Company") is pleased to present the results of the Company and its subsidiaries (the "Group" or "Mengniu") for the year ended 31 December 2021, together with the comparative amounts.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2021

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2021

2021 RMB'000

2020 RMB'000

PROFIT FOR THE YEAR

OTHER COMPREHENSIVE INCOME/(LOSS)

Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods:

Exchange differences:

Exchange differences on translation of foreign operations Cash flow hedges:

Effective portion of changes in fair value of hedging instruments arising during the year Reclassification adjustments for gains included in the consolidated statement of profit or loss

Share of other comprehensive income/(loss) of associates

4,963,658

3,501,593

(607,784)

392,078

9,556 (56,058)

- (10,814)

9,556 (66,872)

(72,824) 10,666

Net other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods

(671,052) 335,872

Other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations Equity investments designated at fair value through other comprehensive income:

Changes in fair value

135,546 246,072

(74,800) 101,289

Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods

OTHER COMPREHENSIVE INCOME/(LOSS),

NET OF TAX

60,746 347,361

(610,306) 683,233

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Attributable to:

Owners of the Company Non-controlling interests

4,353,352 4,184,826

4,467,823 4,243,176

(114,471)

(58,350)

4,353,352

4,184,826

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2021

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