Continue To Create Value Ausnutria Released 2019 Sustainable Development Report

Recently, Ausnutria dairy Limited by Share Ltd (Stock Code: 1717.HK) issued the 2019 annual report on Sustainable Development (hereinafter referred to as the report). The report detailedly interpreted the responsibilities, strategies and initiatives of Ausnutria in 2019 to achieve sustainable development from three aspects: "better nutrition", "better life" and "better environment". This is also the fourth year since 2016 that Ausnutria has released a report on the close integration of company business and sustainable development.

　　 Practicing sustainable development strategy and realizing high quality development of enterprises

Ausnutria is deeply aware that consolidating the strategy of sustainable development is not only the foundation for the company to provide quality products, but also helps the company to improve its comprehensive service quality. In 2019, Ausnutria's operating efficiency continued to improve, and its own brand grew steadily. The company achieved an income of about 6 billion 736 million yuan, an increase of 25% over the same period last year, of which private brand formula milk business sales revenue was about 6 billion 23 million yuan, an increase of 36.9% over the same period last year. The company's management level, research strength, supply layout, team status, brand building, sales network, and information technology have made considerable progress.

At present, Ausnutria has committed itself to support the United Nations sustainable development objective (SDG) in response to the global call to eradicate poverty, protect the earth and ensure peace and prosperity for mankind before 2030 or before. In all 17 SDG, Ausnutria has defined 8 areas that are most relevant to the company's business and sustainable development strategy. To this end, the company's Sustainable Development Committee integrates the concept of sustainable development with corporate governance and penetrates into all aspects of corporate governance, prompting each employee to voluntarily and consciously implement it.

　　 Better nutrition: nurture, innovate, nurture and grow

Under the guidance of corporate mission of "global nutrition, care and growth", Ausnutria is committed to continuously providing nutritious food with higher standard of nutrition and safety, constantly improving quality control and technological research and development level, and meeting the growing nutritional needs of consumers.

We should increase R & D efforts and enhance the core competitiveness of enterprises. Ausnutria regards R & D innovation as the key to the success of the company, and continues to explore effective ways to develop new products and enhance the nutritional value of products. At present, Ausnutria has formed Ausnutria global research and development system based on Ausnutria food and Nutrition Research Institute, and has set up an international R & D team including more than 180 doctors and dairy experts.

In 2019, Ausnutria greatly increased investment in product R & D, accumulated R & D costs of about 132 million yuan, and R & D costs accounted for about 1.96% of the revenue, ranking the forefront of the industry.

Products are introduced to meet the diverse nutritional needs of consumers. 2019 is the key year for Ausnutria to achieve the second stage goal of "golden ten years" - "becoming the representative enterprise of infant formula milk powder and nourishment".

This year, Ausnutria released a series of new products such as Helin milk powder, Hai Pu Nuo Kai 1897 protection series, jiapayate "Ying Jia" family nutrition sheep milk powder, Chun Cui organic maternal milk powder, NC series nourishment, and Puredo International Edition and so on, continuously satisfying the consumers' differential nutrition demand. In order to enhance consumer awareness of health and nutrition, in April 2019, NC nourishing powder was completed by Australian National Institute of Integrative Medicine for one year, and became the only clinically certified gastrointestinal nutriment in Australia.

Enter the field of probiotics and expand the territory of nutrients. In order to achieve the vision of "becoming the world's most trusted formula milk powder and nutrition health company", Ausnutria steadily promotes the layout of the big health industry. In July 2019, Ausnutria indirectly acquired the 26.1% rights and interests of Fenghua biotechnology through convertible bonds, and acquired all the shares of Aunulife Pty Ltd, a wholly-owned subsidiary of Fenghua biotechnology company. It officially entered the probiotics field. In October, the company completed its remaining 40% stake in the cloud nourishment group through its wholly-owned Affiliated Companies, further consolidating the foundation of the company's development in the nutrition business field.

　　 Better life: continuous empowerment and win-win cooperation

Ausnutria is fully aware that achieving sustainable development is not something that an organization can accomplish. For this reason, Ausnutria has deepened the global industrial chain cooperation. With a sincere attitude and an open mind, it has brought more than 4500 employees around the world to work together with upstream and downstream partners to create a better life.

Build a sustainable supply chain and win with partners. Ausnutria always regards the upstream ranch, suppliers, downstream distributors, cooperative stores and other partners as an important force to promote the sustainable development of the company. It insists on mutual benefit and mutual trust and is committed to achieving win-win results in the industry chain. For example, every year, Ausnutria will invest a lot of material and financial resources to channel and store energy. Through business school training, it will provide support for channels, such as business operation, team management, market operation, product promotion, and so on, so as to enhance the service level and management ability of the channel.

Build learning organization and win win with employees. In February 2016, Ausnutria set up its own enterprise university, Ausnutria University, to improve the quality of employees, optimize organizational performance and create excellent culture. At the beginning of 2019, Ausnutria University combed out the 6 level positioning of Ausnutria talents, and carried out personnel training project design based on 6 level positioning, and gradually built up a class of management talents, including the first line (excellent talent scheme), the first (Australian Green Plan), the middle level (Orange orange project), the middle and high level (Australia blue project) to the high level (double best plan), and the realization of the strategic goal of "golden ten years". Continuous delivery of high-quality talents.

Uphold both righteousness and profit and win a win-win situation with society. Since its inception, Ausnutria has deeply realized the importance of corporate social responsibility. It has always integrated social responsibility into corporate strategy and daily operation and management, and has taken many social responsibilities through various public welfare activities.

In August 2019, Ausnutria joined hands with the heppu biology and Peking University Health Science Center, University of Tibet and the Red Cross Society of Tibet autonomous region to officially launch the "Ausnutria U fund Ge Sanghua Tibet maternal and child nutrition Enhancement Plan". The plan aims to improve the health quality of Tibetan mothers and infants by means of knowledge of pregnancy and infant knowledge, training of village doctors, material donations and special relief funds. And attention to nutrition at the early stage of life. On October 17, 2019, at the 10th anniversary celebration of listing in Beijing, Ausnutria announced that it would inject $100 million into the Ausnutria U fund, promising to donate in the form of cash or material in the next ten years and nurture social development.

During the new crown outbreak in 2020, a large number of Chinese enterprises took the initiative to let China and the world feel the power of responsibility and protection. As one of the first enterprises to join the epidemic rescue operation, Ausnutria has already donated more than 67 million 600 thousand yuan of cash and materials to its brands.

In addition, in 2019, Ausnutria jointly promoted the value of nutrition and healthy life through deep participation, sponsorship of the fifth national nutrition week, Changsha International Marathon race, Changsha Wangcheng international triathlon competition, the third China Central big health industry summit forum and 2019 international nutrition food Symposium.

　　 Better environment: Based on long-term green development

In the course of the development of enterprises, Ausnutria has always forgotten to take social responsibility as a long-term vision and a more open attitude. Every major decision of the company takes the sustainable development of the environment as an important consideration. The company is committed to improving water and energy efficiency, managing gas and sewage emissions, reducing material consumption and waste generation, and improving the awareness of environmental protection of global employees.

Up to now, Ausnutria has 10 factories in the world. To optimize the energy consumption of each plant, Ausnutria is expected to reduce its natural gas consumption by more than 90% by introducing the equipment and technology of heating and cooling with stored energy. At the same time, most factories can significantly reduce the energy consumed by transporting semi-finished products on the production line by employing advanced gravitational processing technology.

In China, Changsha smart Factory integrates the concept of sponge city in design and construction. It is based on the principles of infiltration, stagnation, storage, purification, use and drainage, while effectively utilizing water resources, it can effectively prevent flood disasters. In Holland, most of the existing lighting installations in factories have been replaced by LED lamps with energy saving. It is estimated that each lighting device can save 75% electricity per day. In Australia, Ausnutria introduced the grid connected solar panel system to meet the electricity consumption demand of Australia's dairy production facilities by about 1/3.

In order to promote sustainable grazing in Holland shepherd farm, Holland goat milk Association launched the "durability plan" in 2018. As one of the first companies to commit itself to the program, Ausnutria has continued to provide financial support to the dairy farmers involved in the plan. At present, the program has received more than 70% Ausnutria granny farmers participation.

Yan Weibin, chairman of Ausnutria, said that 2019 was the beginning of the second phase of Ausnutria's "golden ten years" strategy and the 10th anniversary of Ausnutria's listing. In the past ten years, Ausnutria has established a solid foundation in all aspects of the value chain, presenting its ideal performance.

In 2020, the outbreak of the new crown pneumonia made the world face an unprecedented health crisis and tested how we could achieve the development of enterprises and society in a more sustainable way. Ausnutria will abide by the vision of sustainable development and relevant United Nations sustainable development goals, and continue to create value and build a healthy and happy life for all.

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