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HK Bourse: Results Announcement From Yuanshengtai Dairy Farm Ltd. -6-

28 Aug 2017 3:32 am
                                                                           period ended         period ended 
                                                                           30 June 2017         30 June 2016 
                                                                               RMB'000              RMB'000 
Disposal of cow dung                                                                                        - 
Loss on disposal of items of property, plant and equipment                                                  - 
                                                                                  13,627                    - 
Loss of the Group for the Period 
Taking into account all the above factors and another factor that a loss on changes in fair value less cost to 
the sale of biological assets of RMB122.7 million was incurred in the Period (for the first half year of 2016: 
loss of RMB255.7 million) principally due to the drop in price of domestic raw milk, the Group's net loss 
for the Period was RMB17.2 million, as compared to a net loss of RMB135.6 million for the period ended 
30 June 2016. Basic loss per share was approximately RMB0.4 cent for the Period (for the same period of 
2016: basic loss per share of RMB3.5 cents). 
                                                   - 13 - 
Interim Dividend 
The Board has resolved not to recommend the payment of any interim dividend for the Period (30 June 
2016: nil). 
Share Option Scheme 
A share option scheme (the "Share Option Scheme") was adopted by a resolution in writing passed by the 
then shareholders of the Company (the "Shareholders") on 7 November 2013. 
Under the Share Option Scheme, the Directors may grant share options (the "Options") to subscribe for 
ordinary shares of the Company of HK$0.01 each (the "Shares") to eligible participants, including without 
limitation employees of the Group as well as directors of the Company and its subsidiaries. Options comprising 
a total of 148,850,000 underlying Shares were granted under the Share Option Scheme to certain employees 
of the Group and the Directors on 22 August 2014 and 8 December 2015, respectively. A total of 9,600,000 
Options were cancelled during the Period. 
Liquidity and Financial Resources 
For the Period, the Group's net cash inflow from operating activities amounted to RMB255.3 million, as 
compared to RMB198.9 million for the first half of 2016. 
The Company did not have any bank borrowings during the Period. 
Capital Structure 
As at 30 June 2017, the Company's issued share capital was HK$46,904,964 divided into 4,690,496,400 
Shares. The Company issued 781,749,400 new Shares at a price of HK$0.5 per Share during the Period 
pursuant to a placing of Shares completed on 13 January 2017. The net proceeds were intended to be used 
for importing heifers and calves from Australia and New Zealand and general working capital. 
Significant Investments Held and Future Plans for Material Investments and Capital Assets 
During the Period, the principal capital expenditures of the Group were related to construction of new farms 
and major maintenance and acquisition of additional equipment for its existing dairy farms. 
As part of the Group's future strategies, the Group's planned capital expenditures for its business operations 
will primarily be related to the construction and commencement of operations of its new dairy farms. The 
Group anticipates that its capital expenditures will be financed by cash generated from its operations, debt 
financing or bank loans, the net proceeds from the placing of new Shares under Shareholders' annual general 
mandate and the unutilized net proceeds from the issue of new Shares under the global offering as set out in 
the prospectus of the Company dated 14 November 2013 (the "Prospectus"). 
                                                   - 14 - 
Use of Proceeds from the Initial Public Offering 
The issued Shares first became listed on the Main Board of the Stock Exchange on 26 November 2013. 
Gross proceeds raised from the global offering in such connection amounted to about HK$3,298 million, 
and the net proceeds (after deduction of listing expenses and underwriting commissions, and excluding offer 
proceeds which were payable to selling shareholders (i.e. not receivable by the Company)) amounted to 
about HK$2,564 million. As of 30 June 2017, such net proceeds were spent broadly in accordance with the 
Company's plan as disclosed in the Prospectus, of which an aggregate of HK$1,850.1 million on construction 
of new farms, an aggregate of HK$256.4 million on working capital and general corporate purpose, and an 
aggregate of HK$36.8 million on development of upstream operations. The remaining balance was kept in 
banks and approved financial institutions in Hong Kong and the PRC. 
Material Acquisitions and Disposals of Subsidiaries 
During the Period, the Group did not have any material acquisitions and disposals of subsidiaries. 
Pledge of Assets 
As at 30 June 2017, no property, plant and equipment of the Group (31 December 2016: nil) were pledged 
as security for bank borrowings. 
Foreign Exchange Exposure 
Certain assets of the Group are denominated in foreign currencies such as United States dollar and Hong 
Kong dollar. The Group has not implemented any foreign currency hedging policy at the moment. However, 
continuous monitoring on the foreign exchange exposure is carried out by the management. 
Treasury Policies 
The Group adopts a conservative approach towards its treasury policies. The Group strives to reduce exposure 
to credit risk by performing ongoing credit evaluation of the financial conditions of its clients. To manage 
liquidity risk, the Board closely monitors the Group's liquidity position to ensure that the liquidity structure 
of the Group's assets, liabilities and commitments can meet its funding requirements. 
Capital Commitments and Contingencies 
Capital commitments of the Group as at 30 June 2017 were RMB119.6 million, which were for construction 
of our new farms and renewal of existing facilities. The Group did not have any significant contingent 
liabilities as at 30 June 2017. 
Employees and Remuneration Policies 
As at 30 June 2017, the Group had approximately 1,394 employees (31 December 2016: approximately 
1,380 employees), all of whom are located in the PRC. The remuneration and staff cost for the Period were 
RMB37.5 million (for the six-month period ended 30 June 2016: RMB39.3 million). 
                                                    - 15 - 
The salaries of the Group's employees largely depend on their type and level of work as well as their length 
of service with the Group. They receive social welfare benefits and other benefits including social insurance. 
As required by the PRC regulations on social insurance, the Company participates in the social insurance 
schemes operated by the relevant local government authorities, which include retirement pension, medical 
insurance, unemployment insurance, industrial injuries insurance and maternity insurance. In addition, the 
Group has opened its housing funds accounts and started contributions to housing funds since April 2013. 
The Directors and senior management of the Company receive compensation in the form of salaries, benefits 
in kind and/or discretionary bonuses relating to the performance of the Group. The Company also reimburses 
them for expenses which are necessarily and reasonably incurred for providing services to the Company 
or executing their functions in relation to its operations. The remuneration committee of the Board (the 
"Remuneration Committee") regularly reviews and determines the remuneration and compensation packages 
of the Directors and senior management. 
Further, the Remuneration Committee reviews and recommends to the Board for consideration and approval 
the remuneration and compensation packages of the Directors and senior management by reference to the 
salaries paid by comparable companies, time commitment and responsibilities of the Directors and performance 
of the Group. 
Event After Reporting Period 
The Group does not have any material subsequent event after the Period and up to the date of this announcement. 
Purchase, Sale or Redemption of the Company's Listed Securities 
                                                                      Reasons for fund 
                                                         Net proceeds raising and use of       Closing price of 
Date of completion           Fund raising activity             raised net proceeds            last trading date 
13 January 2017              Placing of                approximately All the net proceeds             HK$0.54 
                               781,749,400 new       HK$385.0 million are intended 
                               ordinary Shares                         to be used for 
                               at HK$0.50 each                         importing heifers 
                               to not less than                        and calves from 
                               six independent                         Australia and 
                               third parties                           New Zealand and 
                               under general                           general working 

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