Listed Company Information
 

MENGNIU DAIRY<02319> - Results Announcement

China Mengniu Dairy Company Limited announced on 06/04/2005:
(stock code: 02319 )
Year end date: 31/12/2004
Currency: RMB
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2004    from 01/01/2003
                                     to 31/12/2004      to 31/12/2003
                               Note  ('000      )       ('000      )
Turnover                           : 7,213,827          4,071,468         
Profit/(Loss) from Operations      : 439,618            305,950           
Finance cost                       : (29,086)           (12,900)          
Share of Profit/(Loss) of 
  Associates                       : 32                 738               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 319,393            164,372           
% Change over Last Period          : +94.3     %
EPS/(LPS)-Basic (in dollars)       : 0.357              0.192             
         -Diluted (in dollars)     : 0.285              N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 319,393            164,372           
Final Dividend                     : RMB 0.0585         N/A
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Final Dividend                   : 25/05/2005         to 30/05/2005 bdi.
Payable Date                       : 08/07/2005
B/C Dates for Annual         
  General Meeting                  : 25/05/2005         to 30/05/2005 bdi.
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   
  
Remarks:

i)      GROUP REORGANIZATION AND BASIS OF PRESENTATION

The Company was incorporated in the Cayman Islands on 16 February 2004 as 
an exempted company with limited liability. The shares of the Company have 
been listed on The Stock Exchange of Hong Kong Limited (the ''Hong Kong 
Stock Exchange'') with effect from 10 June 2004.

Pursuant to a group reorganization scheme (the ''Reorganization'') to 
rationalize the structure of the Group in preparation for the public 
listing of the Company's shares on the Hong Kong Stock Exchange, the 
Company acquired the entire issued share capital of China Dairy Holdings, 
the then holding company of the subsidiaries comprising the Group, and 
thereby became the holding company. Further details of the Group 
Reorganization are set out in the Company's prospectus dated 1 June 2004.

The Reorganization involved companies under common control and, for 
accounting purposes, the Group is regarded and accounted for as a 
continuing group. Accordingly, the consolidated financial statements have 
been prepared using the pooling of interests method of accounting as if 
the Company has always been the holding company of the Group. On this 
basis, the Company has been treated as the holding company of the 
companies comprising the Group for the financial years presented rather 
than from the date of acquisition of China Dairy Holdings.

In the opinion of the directors, the financial statements, prepared on the 
above basis, present fairly the results, cash flows and the state of 
affairs of the Group as a whole.

ii)    EARNINGS PER SHARE

The calculation of basic earnings per share for the current year is based 
on the net profit from ordinary activities attributable to shareholders 
for the year of RMB319,393,000, and the weighted average of 893,965,000 
ordinary shares in issue during the year.
 
The weighted average number of shares used to calculate the basic earnings 
per share for the year ended 31 December 2004 includes the additional
250,000,000 ordinary shares issued upon the listing of the Company's shares 
on the Stock Exchange on 10 June 2004 and 110,524,942 ordinary shares 
issued upon conversion of the convertible instrument on 20 December 2004.  
The comparative number of shares used to calculate the basic earnings per 
share for the year ended 31 December 2003 represents the pro forma issued 
share capital of the Company, comprising 143,654 ordinary shares and 
749,856,346 ordinary shares issued for the Reorganization.  

The calculation of basic earnings per share for the year ended 31 December 
2003 is based on the net profit from ordinary activities attributable to 
shareholders for the year of RMB164,372,000, and after the deduction of 
the dividend entitlement of the holders of the non-voting convertible 
redeemable preferred shares of RMB20,377,000, as set out in note (iii) 
below, and the weighted average of 750,000,000 ordinary shares assumed to 
have been in issue during the year ended 31 December 2003.

The calculation of diluted earnings per share is based on the net profit 
from ordinary activities attributable to shareholders for the year of RMB
319,393,000 and the weighted average of 1,118,851,000 ordinary shares in 
issue during the year, being the weighted average number of ordinary 
shares outstanding during the year, adjusted for the effects of dilutive 
potential ordinary shares outstanding during the year.

A reconciliation of the weighted average number of shares used in 
calculating the basic and diluted earnings per share is as follows:

                                                2004    2003
                                                000'    000'

Weighted average number of ordinary shares
  for the purpose of basic earnings per
  share calculation                             893,965 750,000
                                                        -------

Weighted average number of ordinary shares,
  assuming issued at conversion of convertible
  instrument during the year                    224,886 
                                                --------

Weighted average number of ordinary shares
  for the purpose of diluted earnings per
  share calculation                             1,118,851       
                                                =========

Diluted earnings per share has not been shown for the year ended 31 
December 2003 as the non-voting convertible redeemable preferred shares of 
the Group outstanding during that year had an anti-dilutive effect on the 
basic earnings per share.

iii)    DIVIDEND

                                                2004    2003
                                                RMB'000 RMB'000
Proposed final dividend - RMB 5.85 cents 
 per ordinary share                             64,966  -
Interest on convertible instrument              15,087  -
Dividend paid by China Dairy Holdings to 
 the then shareholders of       
   - ordinary shares                            -       41,483
   - non-voting convertible redeemable 
       preferred shares                         -       20,377
                                                ------- ---------
                                                80,053  61,860
                                                ======= =========

The proposed final dividend for the year is subject to the approval of the 
Company's shareholders at the forthcoming annual general meeting.