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CHINA HUISHAN DAIRY HOLDINGS COMPANY LIMITED

Disclaimer

This presentation has been prepared by China Huishan Dairy Holdings Company Limited ("Huishan" or the

"Company") and is solely for the purpose of corporate communication and general reference only. The presentation

is not intended as an invitation, offer, recommendation or solicitation for you to buy or sell securities or to engage in

any investment activities whatsoever, or to form any basis of investment decision for any securities (whether or not in

relation to the Company) in any jurisdiction. All such information should not be used or relied on without professional

advice. The presentation is a brief summary in nature and do not purport to be a complete description of the

Company, its business, its current or historical operating results or its future business prospects.

This presentation material may contain forward-looking statements. These forward-looking statements are based on

a number of assumptions about the future, some of which are beyond the Company’s control. The Company does

not undertake any obligation to update any information contained in this presentation (including but not limited to the

forward-looking statements) to reflect events that occur or circumstances that arises after the date of this

presentation. Potential investors should bear in mind that actual financial results may differ materially from the

forward-looking statements contained herein.

The information contained in this presentation is not verified by any independent third party. No warranty or

representation of any kind, whether express or implied, is made as to, and no reliance should be placed on, the

fairness, accuracy, completeness or correctness of the information contained herein. The information contained in

this presentation should be interpreted under the prevailing circumstances. There will be no update of matters in the

presentation to reflect any significant change in the development. The Company, its directors, management,

employees, agents or advisers specifically disclaim all responsibilities in respect of any use or reliance of any

information, whether financial or otherwise, contained in this presentation, and shall not be liable for any and all

losses incurred (whether directly or indirectly, financial or otherwise) by any person in reliance on any information

contained in this presentation.

1

Company Overview

Outlook and Strategies

Financials

Update on Operation

Industry Overview

Contents

Index

#5

#4

#3

2

#6

Company Update

#2

#1

Presenters

Mr. Michael Chou

Head of

Corporate Finance

3

Mr. Eddie So

Chief Financial Officer

Company Update

Company Update

5

Opportunity to capture additional value along value chain – acquiring a cow slaughtering business

Signed contracts to import 32,000 heifers over next 12 months with potential to upsize further

Secured additional c. 190,000 mu of land for feeds growing

In order to maintain our cost competitiveness in raw milk production, we continue to increase the size of our land bank for feeds

growing in preparation for the needs of our ever-expanding herd size. We recently finalised securing 190,000 mu of land for corn

silage growing in addition to our existing feed materials plantation field of 240,000 mu

Consistent with our strategy to speed up development of

upstream business, we have signed contracts with our

supplier partners to import 32,000 heifers over next 12

months with potential to upsize even further

Beef prices in China have been on a strong upward trend.

Growth rate of beef price outpaced that of the raw milk

price over the last two years as a result of changing dietary

habits of the Chinese

We are evaluating an opportunity to acquired a cow

slaughtering business with an annual capacity of 50,000

heads to capture additional value in beef products

processing and distribution as our population of culled

dairy cows and male calves continue to expand along with

the size of our ever-expanding herd

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―Winning the Best Regional IPO category is a badge of honor for the issuer and

the intermediaries and advisers involved…the company that did it is an important

entrant into the equity markets and one of the most important issuers from their

country…‖

---Asia Money

Company Update

6

Unique grass to glass business model: most innovative, quality

assurance

Endorsement by China Dairy Industry Association

— Recognition, assistance & long-term benefits

— Winner in IMF industry consolidation process (from 300+

brands to 50)

Selected brand by China Dairy Industry Association

Huishan Deal Polled as the Best IPO of 2013 by Asia Money Magazine

Industry Overview

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Apr-09 Oct-09 Apr-10 Nov-10 May-11 Dec-11 Jun-12 Dec-12 Jul-13

Raw

milk

AS

P (

RM

B/k

g)

China avg YST CMD Huishan

Raw milk ASP continue to increase Fueled by increasing gap between supply and demand

Beef price has been rising faster than raw milk Smaller farms slaughtered cows to sell beef

Raw milk prices are expected to continue to rise

Note:

1. Raw milk only represents cow milk and excludes other types of milk;

2. Raw milk supply is represented by annual raw milk production;

3. Raw milk demand is estimated based on dairy products production.

Source: Raw milk supply from 2007 to 2012 is sourced from National Bureau of Statistics of China, Frost&Sullivan

Source: Euromonitor, Macquarie Research, November 2013

Source: Company data, Wind, Macquarie Research, November 2013

Source: National Bureau of Statistics, Macquarie Research, November 2013

2.7 3.1

5.36.7

8.29.1

10.011.2

12.313.6

15.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

0

20

40

60

80

2007

2008

2009

2010

2011

2012

2013E

2014E

2015E

2016E

2017E

Raw

Milk

Supply

and D

em

and

(Mill

ion tonne)

Raw Milk supply Raw Milk demand Gap between Supply and Demand

94%

92%

87%

85%

84%

78%

80%

82%

84%

86%

88%

90%

92%

94%

96%

1.9

2.0

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2008 2009 2010 2011 2012

(% o

f tota

l raw

milk

pro

ductio

n)

(Mill

ion farm

s)

% of total raw milk production No of small farms (<1k head)

80%

100%

120%

140%

160%

180%

200%

Mar-09 May-10 Jul-11 Sep-12 Oct-13

Cum

ula

tive c

hange (

base =

Mar

2009)

Raw milk Beef

Huishan

Huishan

Jan-14

8

High-end milk brands driving premium growth

Premium milk sales as a percentage of total liquid milk rose from 0.5% in

2005 to 15% by 2012

Euromonitor estimates the premium segment could further rise to 21 % by

2017, implying a premium sales CAGR of 19%, far outpacing 8% for

regular milk

9

Premium liquid milk sales to rise above 20% Powder market to double in 4 years, led by premium

Premiumization trend in dairy consumer products

Consumers willingness to pay a premium for quality for their children,

particularly for the younger generation of Chinese parents (those that are

born after 1980)

One-child policy further relaxed

Government toughened policies and supervision on imported dairy products

Source: National Bureau of Statistics, Euromonitor

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

% p

rem

ium

Industr

y s

ale

s (

RM

B b

n)

Premium milk Regular milk Premium %

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

20

40

60

80

100

120

140

160

180

200

2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E

% p

rem

ium

Industr

y s

ale

s (

RM

B b

n)

Premium milk Regular milk Premium %

Company Overview

Golden Corn Belt

11

Business OverviewGrass to Glass

Suitable weather,

particularly precipitation

Dairy cow farm

Alfalfa/other feeds plantation

Liquid milk/milk powder

production facility

Largest commercial alfalfa fields in China (140,000

mu1 of land, approximately the size of Hong Kong

Island)

Rapidly expanding plantation base. 100,000 mu of

land for supplementary feeds and in the advance stage

of securing another 200,000 mu of land

Significant cost benefits and feeds with higher

nutritional value

Scaled plantations with fixed rents and

strategically located in the Golden Corn Belt

No.1 Market Share in

Northeastern China

Only major dairy company in China

using solely self-produced raw

milk for production

#1 player and #1 brand

satisfaction in Northeastern China

Brand well known in Northeastern

China for its quality and safety

assurance

Only IMF brand in China using solely

self-produced raw milk for production

Only company in China with official

approval for production and sales of

D90 whey powder

Faku milk powder facility GMP certified.

In process of having all facilities GMP

certified

Feeds Growing and Processing Liquid Milk

Milk Powder and Dairy Ingredients

A leading

F&B brand

from Taiwan

A China-

based major

IMF brand

Unique “Grass to Glass”

Business Model

Shenyang

Faku

Yixian

Fushun

Zhangwu

Dairy Farming

Second largest herd in China with

128,352 dairy cows

54 dairy farms in operation and 12

under construction

Industry leading milk yield

Premium quality raw milk with high

nutritional value

Transportation cost savings from

strategic layout of production base

11

Note: Note: 1. 1 mu ≈ 666.7 m2

Our HistoryVertical Integration Journey

China‟s Most

Trusted Dairy Brand

by Consumers

Established dairy

products processing

facilities

Commenced dairy

farming operations2010

2011

“辉山 (Huishan)”

brand was first

used in

association with

dairy products

2013

Liaoning Huishan

Holdings

established

2009

1950‟s

2002

Commenced

production and sales

of infant milk

formula and D90

whey powder Commenced

operation of alfalfa

plantation

Commenced liquid

milk production and

sales

2012

Mr. YANG began to

be involved in the

dairy business and

had since

envisioned the

vertically integrated

business model

Issued US$290mm

EB to financial

investors led by

Dr. Cheng Yu-

Tung

IPO on HKSE in

September 2013

Hero Group

became a minority

shareholder

Mr. YANG

established an

infant formula JV

with Hero Group

12

Update on Operation

Feeds Growing and Processing

Continue to secure upstream resources for expanding planation of alfalfa and supplementary feeds

(„000 mu)

June 2013 – Ministry of Agriculture of China (农业部) organized a national

alfalfa conference at Huishan‟s alfalfa plantation field in Jinzhou, Liaoning

Highly favorable remarks for Huishan‟s unique vertically-integrated dairy

business model

August 2013 – Huishan alfalfa awarded “Premium” rating and obtained the

highest score in a competition held at China‟s Alfalfa Development

Convention(中国苜蓿发展大会) organized by China Animal Agriculture

Association (中国畜牧协会)

120140

100

190

0

100

200

300

400

500

1H2012-2013 1H2013-2014

Alfalfa fields Supplementary feed fields Newly secured land

14

Dairy Farming

Average milk yield Average selling price of raw milk

Herd size Total raw milk production

62,962 71,312

49,889 57,040

0

50,000

100,000

150,000

200,000

31 March 2013 30 September 2013

Milkable cows Calves and Heifers

154,036

230,309

0

50,000

100,000

150,000

200,000

250,000

1H2012-2013 1H2013-2014

8.6 8.6

0

1

2

3

4

5

6

7

8

9

10

1H2012-2013 1H2013-2014

4,461

4,838

4,355

4,801

4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

4,900

1H2012-2013 1H2013-2014

Internal sales External sales

(tonnes)

(tonnes) (RMB / tonne)

15

Liquid Milk

Enhancing Liquid Milk Product Mix Expanding retail network coverage

retail network coverage by Mar 31, 2013

retail network coverage by Sep 30, 2013

330 distributors and 341 supermarkets as at Sep 30, 2013

150% growth rate from customer base as at Mar 31, 2013,

approximately 100,000 households under a new initiative

“Freshness Delivery”(新鲜送)

Developing differentiated products which leveraged on our

industry-leading upstream resources

Jersey Farm series(―杰茜牧场‖) - exclusive series of

ultra-premium UHT products

Protein level at 3.6%

We have the largest Jersey

cow herd in China

Sharing Global Flavors(―全球甄享‖) - a series of premium

yoghurt products

16

Milk Powder and Dairy Ingredients

Milk Powder: Expanding distribution network Dairy Ingredients: Launching new products

Increased to 207 distributors from only 69 as at Mar 31, 2013

retail network coverage as of Mar 31, 2013

retail network coverage as of now

D90

whey

powder

Non-

dairy

creamer

Whole-

milk

powder

IMF

base

powder

Internally

used

Industrial

customers

A leading F&B

brand from

Taiwan

A China-based

major IMF brand

17

Brand Building

“New Safety Power in China‟s Dairy Industry”(中国乳业安全新力量) Advertisements on TV and other media platforms

Sole Title Sponsor of Reality Programme

“Miracle Audition”(奇迹梦工厂)

Innovative advertising campaign featuring popular

TV anchors Acting enthusiasts audition before a panel of popular actors and directors

18

Financials

Notes:

1. Operating profit before biological fair value adjustments represents profit for the period before biological fair value adjustments, share option expenses and IPO

expenses.

Biological fair value adjustments and share option expenses are non-cash in nature and IPO expenses are non-recurring in nature

2. After inter-segment elimination

Highlights

20

Compared with the corresponding period last year:

Turnover increased by 47.6%

Total raw milk production increased by 49.5%

Operating profit before biological fair value adjustments(1) increased by 41.8%

Liquid milk segment – 65.3% of the Company’s total turnover

Turnover increased by 40.1%

Total volume sold increased by 30.3%

ASP increased to RMB7,222 /tonne from RMB6,712 /tonne

Gross margin(2) improved to 60.9% from 52.2%

2.45x net cash generated from operating activities

20

545

890

52.4% 58.0%

0

400

800

1,200

1,600

2,000

1H2012-13 1H2013-14

Gross profit Gross margin

1,039

1,534

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1H2012-13 1H2013-14

(RMB m) (RMB m)

Consolidated Financial Performance Overview

Turnover Gross profit and gross margin

119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateTurnover

406

575

0

100

200

300

400

500

600

700

1H2012-13 1H2013-14

(RMB m)

Operating Profit(1)

119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateOperating Profit

Notes:

1. Operating profit before biological fair value adjustments represents profit for the period before biological fair value adjustments, share option expenses and IPO

expenses.

Biological fair value adjustments and share option expenses are non-cash in nature and IPO expenses are non-recurring in nature

2. Net cash generated from operating activities

247

605

0

100

200

300

400

500

600

700

1H2012-13 1H2013-14

(RMB m)

Operating Cashflow(2)

119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateOperating Cashflow

21

(RMB m) (RMB m)

Consolidated Financial Performance By Segment

273.9

424.1

715.2

1,002.3

107.5

50.3

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1H2012-13 1H2013-14

Dairy farming Liquid milk Milk powder

168.5240.7

373.5

610.8

38.8

3.0

0

300

600

900

1,200

1,500

1H2012-13 1H2013-14

Milk powder Liquid milk Dairy farming

Turnover breakdown by segment Gross profit breakdown(1) by segment

Grain Processing and Trading Grain Processing and Trading

Note:

1. After inter-segment elimination

22

274424

383

645656

1,069

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1H2012-13 1H2013-14

Internal uses External sales

Turnover Raw milk sales volume

(RMB m) (tonnes)

Segment Overview: Dairy Farming

(RMB/tonne)

62,89388,341

85,772

133,289

0

100,000

200,000

300,000

1H2012-13 1H2013-14

Volume (internal) Volume (external)

148,665

221,630

Gross profit and gross margin(1)

(RMB m)

169241

61.5%56.7%

0

200

400

600

800

1,000

1H2012-13 1H2013-14

Gross profit Gross margin

4,355

4,801

4,461

4,838

4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

4,900

1H2012-2013 1H2013-2014

ASP (external) ASP (internal)

Raw milk ASP

Note:

1. After inter-segment elimination

23

715

1,002

0

200

400

600

800

1,000

1,200

1H2012-13 1H2013-14

Turnover Liquid milk sales volume and ASP

(RMB m)

(RMB m)

Segment Overview: Liquid Milk

Gross profit and gross profit margin(1)

374

611

52.2%

60.9%

0

200

400

600

800

1,000

1,200

1H2012-13 1H2013-14

Gross profit Gross margin

(tonnes)

106,544138,776

6,7127,222

0

2,000

4,000

6,000

8,000

10,000

0

100,000

200,000

300,000

400,000

500,000

1 2

Volume ASP

(RMB/tonne)

119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateTurnover

1H2013-141H2012-13

Note:

1. After inter-segment elimination

24

Segment Overview: Milk Powder

Note: We began to sell our milk powder products and dairy ingredients in January 2013

1. After inter-segment elimination

108

0

20

40

60

80

100

120

1H2012-13 1H2013-14

Turnover

(RMB m) (RMB m)

Gross profit and gross profit margin(1)

39

36.1%

0

20

40

60

80

100

120

1H2012-13 1H2013-14119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateTurnover

Gross Margin(1)

119.9

549.6

1,378.2

32.0%

41.2%

54.0%

0%

20%

40%

60%

0

400

800

1,200

1,600

2,000

FY2010-11 FY2011-12 FY2012-13

Gross profit Growth rateGross Profit

25

Outlook and Strategies

Expand upstream operations and resources to

uphold highest standards of product safety and

quality

2

Strengthen brand recognition across China and

enhance consumer loyalty

4

Enhance distribution network and penetrate

additional geographical end-markets beyond

Northeastern China and expand industrial

customer base

1

Continuously expand product portfolio and offer

innovative products to improve profitability

3

Our Strategies

Most Trusted

Dairy Brand in

China

27

28

Well Positioned to Capture Future OpportunitiesFull value chain business model brings an array of opportunities

As China‟s most vertically-integrated dairy company with complete control over quality raw milk,

Huishan is uniquely best positioned to capture unprecedented market opportunities in China‟s dairy industry

Huishan is well positioned to capture the benefits

Strong demand driving raw milk base price to RMB5,000 , RMB 5,500 & RMB 6,000 per tonne

Imported additional 9,754 heifers and another 16,000 contracted this year

Rapid feeds plantation expansion Upsize heifer importation in year ahead

Quality domestic producer with safety and quality assurance – GMP certified facility

Leading F&B brand from Taiwan as customer

Leading IMF brand from China as customer

Huishan has advantage of penetrating tier 2 and tier 3 cities markets

First IMF brand in Liaoning to distribute IMF products through pharmaceutical channels

Product mix enhancement lifting ASP of products

New ultra-premium UHT products – Jersey series

New premium yoghurt products – Share global taste

Further ads to promote products

Up

stre

am

Do

wn

stre

am

Event Opportunities

Demand for dairy products growing rapidly

Supply of raw milk stagnant

Government further relaxed “One Child” policy

Consumers demand for high value-added, high quality premium dairy products that guarantee food safety

Government toughened policies & supervisions on imported dairy ingredients

Demand and supply gap for raw milk to further widen

Demand for premium raw milk rising even faster

Market space growth for IMF brands

Stronger effects expected in tier 2 and tier 3 cities

High quality premium dairy products require premium raw milk

Market opportunity for dairy players with control over quality raw milk

Prices of imported dairy ingredients surge to all time high

Game –changing opportunity for domestic dairy ingredient player

28

Thank you!