The Board of China Mengniu Dairy Co. Ltd. announced that on 20 May 2013, Mengniu entered into the framework agreement with Danone Group for the proposed sino-foreign equity joint venture arrangement for the Chilled Business in the Territory. Mengniu and Danone will each implement a restructuring plan for their respective Chilled Business in the Territory and it is proposed that the Joint Venture, which will effectively be held as to 80% and 20% by Mengniu and Danone respectively at Completion, will comprise 12 JV Companies and the JV Holdco. The Joint Venture arrangement constitutes a deemed disposal of 20% of the Mengniu Chilled Business Subsidiaries and an acquisition by the Group of the Danone Chil ed Business Subsidiaries, which, subject to the final terms of the Definitive JV Documents including finalization of the amount of contribution by each party and auditing of each party's Chilled Business in the Territory, may constitute a discloseable transaction of the company under the Listing Rules. The terms of the Definitive JV Documents are subject to further negotiations and agreement between Mengniu and Danone. The Board will make appropriate announcement if and when necessary in accordance with the Listing Rules to keep the market informed of the development with regard to the Joint Venture. The Board wishes to emphasize that the Joint Venture arrangement and the entering into the Definitive JV Documents between Mengniu and Danone are subject to conditions. Shareholders of the company and/or investors should note that the Joint Venture contemplated under the Framework Agreement may or may not proceed.

The board of directors of China Mengniu Dairy Co. Ltd. announced that Mr. Xie Tao has tendered his resignation as an independent non-executive director of the company with effect from 1 April, 2013 to focus on other personal commitments. He has also resigned as the chairman of the audit committee and remuneration committee of the company and as a member of the nomination committee. The Board announced the appointment of Mr. Wu Kwok Keung Andrew as the company's independent non-executive director and chairman of the audit committee of the company with effect from 1 April, 2013.

China Mengniu Dairy Co. Ltd. reported audited consolidated earnings results for the year ended December 31, 2012. For the year, the company reported revenue of RMB 36,080,353,000 against RMB 37,387,844,000 a year ago. The decrease was mainly attributable to the drop in sales volume, partially offset by the price increase as a result of the optimization of product mix. Meanwhile, revenue of key brands including Milk Deluxe, Champion, Future Star Milk and Fruit Milk Drink has maintained fast growth since their launching into the market, all of which recorded double- digit increase in 2012, while Youyi C enjoyed three-digit growth during the year. Profit from operating activities was RMB 1,494,317,000 against RMB 1,896,461,000 a year ago. Profit before tax was RMB 1,685,034,000 against RMB 2,060,630,000 a year ago. Profit attributable to owners of the company was RMB 1,257,148,000 or RMB 0.711 per diluted share against RMB 1,589,274,000 or RMB 0.905 per diluted share a year ago. Net cash inflow from operating activities was RMB 2,006,896,000 against RMB 2,520,057,000 a year ago. Total capital expenditure was RMB 2,266,530,000 against RMB 2,696,264,000 a year ago. The capital expenditure for 2012 was mainly used for constructing production plants and equipments and enhancing milk sources, etc. The group's earnings before interest, taxes, depreciation and amortization (EBITDA) was RMB 2,525.0 million compared to RMB 2,812.1 million a year ago. The Board of has recommended the payment of a final dividend of RMB 0.16 per ordinary share for the year ended December 31, 2012 against RMB 0.198 per share for the same period a year ago. Upon shareholders' approval at the forthcoming AGM, the proposed final dividend will be paid on or about June 25, 2013 to shareholders whose names appear on the register of members of the company on June 14, 2013.