China's Mengniu Gained Net Profit Of CNY1.116 Billion In 2009

Chinese dairy maker Mengniu has published its annual financial report for 2009, stating that it gained net profit of CNY1.116 billion.

According to the report, Mengniu's operating revenue increased by 7.73% from CNY23.865 billion in 2008 to CNY25.71 billion; and its net profit reached CNY1.116 billion. Affected by the melamine scandal, Mengniu lost CNY949 million in 2008. In addition, its profit per share was CNY0.681. By the end of 2009, Mengniu's combined production capacity had reached 5.76 million tons.

Though both sales and net profit of the company showed increases, its milk powder business still made losses due to the impact of the melamine scandal. Statistics showed that of the three major businesses of Mengniu, the sales of liquid milk products reached CNY22.798 billion in 2009, contributing CNY1.649 billion to the total profit; sales of its ice cream products were CNY2.701 billion and made profit of CNY29.15 million; sales of other dairy products related to the manufacturing and sales of milk powder were CNY289 million and made losses of CNY11.9 million.

At the same time, the company announced that Niu Gensheng will be non-executive director, instead of executive director of the company, but he will still hold the position of chairman of the board of directors of the company. In the future, Niu will focus more on the strategic management and planning, and spend less time in the daily management.