IPO purchase proposal:

The original ecological animal husbandry is located in the northeast of China and is committed to the production of high-quality raw milk. The company currently has four farms, located in Heilongjiang and Jilin, with a total of 37000 cows and a daily output of 460t of raw milk, with a yield of 8.9t in 2012, higher than the industry average. In the first half of 2013, the company sold 85079 tons of raw milk at a price of 4100 yuan per ton, mainly to China's three major dairy manufacturers Mengniu Group, Yili Group and Guangming Dairy Group. At present, the three customers account for 66.1%. At present, the company's supply of alfalfa is mainly imported from abroad, and about 50% to 80% of the alfalfa is imported from the United States. We believe that from the point of view of the companies listed on the Hong Kong market, the quality of raw milk provided by the company is higher, and the annual unit output of dairy cows is much higher than the average, which is between Huishan dairy industry and modern animal husbandry, and the milk price is also higher than the industry average. The company currently has only four farms, which are relatively small in scale, and the funds raised this time will be used for the construction of five farms in the future.

As of June 2013, the company had a gross profit margin of 39% and a gross profit margin of 25.2%, with high profitability. The valuation is expected to be about 45 times in 2013 and more than 20 times in 2014, which is higher than the industry average. The market capitalization based on the median IPO is about 11 billion yuan, and the valuation level is relatively high. It is recommended to participate in the purchase cautiously.