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Public company info - Lanzhou Zhuangyuan Pasture Co. Ltd. - H Shares , 01533.HK

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Lanzhou Zhuangyuan Pasture Co. Ltd. - H Shares, 01533.HK - Company Profile
Chairman Yao Gexian
Share Issued (share) 35,000,000
Par Currency Renminbi
Par Value 1.0
Industry Dairy Products
Corporate Profile Business Summary: The group is a leading dairy company in Gansu and Qinghai where the group’s operations and sales are primarily located and the group operate a vertically integrated business model. Performance for the year: Operating income decreased by 9.06% as compared to the year ended 31 December 2019. Gross profit decreased by 18.52% as compared to the year ended 31 December 2019. Profit for the year attributable to equity shareholders of the Company decreased by 79.63% as compared to the year ended 31 December 2019. Business Review We are one of the leading dairy companies in Gansu, Qinghai and Shaanxi where the Group's operations and sales are primarily located and the Group operate a vertically integrated business model. the Group's vertically integrated business model covers the critical stages of the dairy industry value chain, from dairy farming, to manufacturing, and then to marketing and sales of dairy products. the Group's dairy farming operations aim to ensure stable supply of high quality raw milk for the Group's dairy product manufacturing. the Group owned and operated 7 dairy farms as at 31 December 2020. the Group's strategy is to expand the herd size of dairy cows in the Group's self-operated dairy farms and existing collectively-operated dairy farms so as to maintain approximately 60% of the Group's raw milk requirement that could be sourced internally in the near future, which will enable the Group to achieve balanced, complementary yet diverse sources of raw milk supply to satisfy the Group's dairy product manufacturing need. the Group believe the Group's vertically integrated business model allows stringent control over each important process of dairy production and thereby guarantees the high quality and safety of the Group's dairy products. We offer a broad range of dairy products tailored to the needs and taste preferences of different consumer groups. the Group's principal products sold to retail consumers, mainly through distributors and sales agents, include (i) liquid milk products, which comprise pasteurised milk (i.e. fresh milk), UHT milk, modified milk and yogurt; and (ii) milk beverages. the Group place strong emphasis on the Group's product development to continuously develop new products that meet the evolving tastes and preference of the Group's consumers, which enables the Group to maintain the Group's leading position in the region. We are a major player in the sales of “Cold Chain Liquid Milk Products” (i.e. liquid milk product(s) that has a short shelf life between 3 days to 21 days and need to be stored at low temperature of 2˚C – 6˚C, which include pasteurised milk and yogurt products) in the Gansu, Qinghai and Shaanxi regional market. the Group believe that the Group are well positioned to compete in the Cold Chain Liquid Milk Product market in Gansu, Qinghai and Shaanxi due to the Group's close proximity to the local market and the Group's established local distribution network. the Group plan to continue to expand the Group's cold chain production capacity and distribution network to increase the sales of Cold Chain Liquid Milk Products in the Gansu, Qinghai and Shaanxi regional market and then further expand into other provinces in the northwestern China market. While focusing on the Cold Chain Liquid Milk Product market, the Group also leveraged on the Group's strong brand recognition in the regional market to continue to strengthen the sales of the Group's popular UHT milk products, thereby maintaining the Group's diversified product offerings. Going forward, the Group intend to continue the Group's efforts in the sales of the Group's UHT milk products and modified milk products that are popular among local customers to maintain the Group's diversified product offerings. Prospects: 1.The Group will continue to take the production of quality dairy products as the goal on the basis of a complete set of production facilities and processes such as large-scale concentrated farming, concentrated unified milking, specialized storage, transportation and processing of fresh milk and further improve the level of dairy farming through production demonstration and technology radiation; The Group will strengthen the cooperation with external professional dairy farming institutions with large farming scale, rich farming experience and high product quality to form balanced, complementary and diversified supply sources of fresh and raw milk while strengthening the construction of its own milk source base. the Group will continue to ensure the effective connection of safe and reliable milk source with dairy product processing link to achieve the security and controllability of product quality during the whole process. 2.The Group will continue to strengthen the study on the consumption behaviors of dairy products consumers within the region, perfect the formula of products and optimization configuration of processes and equipments on a consumer-oriented basis, make the products to own targeted and characteristic advantages, and establish a system of consumption analysis triggering research and development, research and development satisfying consumption demands under different scenarios and maintaining the loyalty of consumers to the brand with upgrading products. 3. The Group will further deepen and penetrate sales channels, increase the sinking efforts of sales channels, actively expand the markets of third-tier cities and rural areas and vigorously promote the in-depth development of channels, so as to consolidate and increase market share and enhance market occupancy rate. 4. The Company will continue to conduct various forms of on-the-job trainings, improve work skills, enhance work efficiency and tamp the construction of the middle-level team. The Group will strengthen the recruitment of professional talents with market qualifications or excellent skills and give full development space and positive incentive policies to ensure the stability of the talent team and the echelon construction of the talent reserve and enhance the core competitiveness of the group.

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