Business Overview

China Dairy Corporation ("China Dairy", ASX Code: CDC) is a manufacturer of fresh and raw milk, and its business operation is located in the famous agricultural products and dairy production provinces of northern China ---- Heilongjiang Province. The Company has approximate 500 employs currently, five farms and pastures in total, and 17,800,000 square meters of floor area. As of December 31, 2017, China Dairy had approximately 31,000 dairy cows, and nearly 22,000 dairy cows are sold to farmers and acquired profit sharing (commission discount).


Through a unique business model, the Company adhere to the high quality standards, which achieves a stable supply of fresh and raw milk. The company receives sales revenue from fresh and raw milk of dairy cows. (Owned and cooperative farmers owned).


As of December 31, 2017, the Company had about 31,000 dairy cows totally, of which nearly 24,000 cows were outsourced (entrusted raising) to local farmers for raising. The Company through stipulating that farmers use a unified feed method and strict quality control system, which ensure that the Company and farmers to produce consistent and high quality fresh and raw milk.


The cooperative farmers of the Company buy dairy cattle from China Dairy Co., Ltd. directly, which currently has nearly 22,000 cows. The Company will make a unified arrangements to sale the fresh and raw milk from farmers to customers, which can earn 20%-30% sales revenue from fresh and raw milk.