Employee Talent Development Program
1. Purpose
Section titled “1. Purpose”Modern Dairy values talent development, continuously innovating and implementing talent development programs, and focusing on building an internal talent supply chain. We are increasing investment in training resources for young management trainees and optimizing and upgrading the content of management training courses to meet the needs of the company’s rapid development.
2. Scope
Section titled “2. Scope”This management program applies to all full-time employees of Modern Dairy. The company currently only employs full-time employees and has not yet established contract or part-time employee positions.
3. Learning Methods and Resources
Section titled “3. Learning Methods and Resources”Modern Dairy provides employees with support for capability enhancement and career development through diverse learning formats. The company has established an internal trainer system and introduced external expert resources, combined with teamwork and scientific research innovation platforms, to form a comprehensive learning resource network covering different positions and functions. By continuously optimizing the training system and resource allocation, the company continuously improves employees’ professional capabilities and management levels, providing talent assurance for efficient business operations and innovative development.
3.1 Coaching and Mentorship Training
The company invites external experts and professional organizations to conduct targeted guidance and skills training for key position employees, focusing on improving professional technical levels and operational standards.
(1) ELISA Testing Training
To improve the detection operation level of the company’s testing personnel, Modern Dairy and IDEXX (China) Technology Center jointly held ELISA standardization operation training. ELISA testing refers to an immunoassay method typically used to measure antibodies or antigens, including proteins or glycoproteins, in biological samples. The training adopted a combination of online and offline modes, providing detailed explanations of the standardized operation procedures for ELISA testing to the company’s relevant professional testing personnel. In 2024, the training coverage rate for personnel in product quality-related positions was 100%. After the training, the overall performance of ELISA testing significantly improved compared to the previous year, with detection accuracy increasing to 95% and misdetection rate decreasing by 3%. At the same time, detection efficiency was further improved, with the time required for a single ELISA test shortened by 20%. After the training, professional personnel’s operations became more standardized, the waste rate of ELISA reagents and consumables decreased by 2%, and the reagent cost per single test decreased by 10%. In 2024, the product quality pass rate related to ELISA testing increased to 100%.
(2) Mastitis Bacteria Identification Training
To help testing personnel master more accurate detection methods and reduce the probability of misjudgment and missed detection, in July 2024, Modern Dairy invited experts from a veterinary drug company to conduct a two-day “Mastitis Bacteria Identification” training for testing personnel in the farm’s quality control department. The training content included the pathogenesis of common mastitis-causing bacteria, details of detection operations, and interpretation of biochemical experimental results. After the training in 2024, the accuracy rate of mastitis bacteria identification in the company increased to 95.5%, and the misjudgment rate decreased by 6%. The improvement in accuracy promoted early diagnosis and intervention, and the incidence of mastitis on the farm in 2024 decreased by 2% compared to the previous year. At the same time, the quality of the company’s milk products was further improved, with the somatic cell count (SCC) in milk products decreasing by an average of 1% compared to the previous year, and the milk grade improving by 2.5%.
3.2 Team and Network Training
The company builds a collaborative learning network through internal knowledge sharing platforms, cross-departmental exchanges, and scientific research cooperation, promoting experience sharing and technological innovation.
(1) Internal Trainer Development System
To optimize Modern Dairy’s talent development environment and improve employees’ professional qualities, we are building an internal trainer cadre and strengthening the knowledge sharing system. We train internal trainers according to the “Internal Trainer Management System” and the company’s strategic needs and business characteristics and improve the curriculum system.
As of the end of 2024, Modern Dairy’s internal trainer team has grown to 160 people, having cumulatively developed 214 internal training courses, covering three core types: leadership, professionalism, and general capabilities. In 2024, we cumulatively conducted 148 online and offline internal training courses, with a total of 30,635 participants. In 2024, the company’s internal trainer system continued to be effective, and training results significantly improved compared to the previous year. The application rate of internal training courses in actual work increased by 20.90%. After internal trainer training, overall employee performance improved, with the proportion of S-level employees increasing by 2.66% and A-level employees by 2.39%. At the same time, compared to external training, the internal trainer system saved 2.6527 million yuan in training costs, and employee satisfaction with knowledge acquisition efficiency increased by 1.09%.
(2) Modern Dairy Technology 100 Breeding Special Class Offline Intensive Training
This year, we held the 2024 Technology 100 Breeding Special Class Offline Intensive Training. We invited internal and external experts to explain courses such as “In-depth Analysis and Application of Reproductive Hormones” and “Innovation and Practice of Estrous Synchronization Technology,” enriching the theoretical knowledge of the participants. In addition, we organized participants to conduct breeding practical work on the farm and conducted in-depth discussions and operations around the technical processes and specifications involved in on-site management, helping participants accumulate practical experience. This training covered 22 farms and 32 technical backbone personnel responsible for breeding. The dairy cattle breeding performance of each participating farm improved to some extent, with the calving interval of dairy cattle shortening by an average of 6.05 days, the average open days shortening by 5.82 days, and the average lactation days shortening by 6.49 days compared to before the training.
(3) Scientific Research Platform Construction
Modern Dairy has established a professional scientific research system consisting of two major platforms, the Jingwa Dairy Cattle Nutrition Research Institute and the Nanjing Agricultural University Modern Dairy Cattle Industry Research Institute, through a combination of independent research and development and external cooperation. The company focuses on milk source nutrition, health management, and sustainable development. In terms of animal health, it has successfully applied “Changshantone” traditional Chinese medicine additives to prevent calf diseases and is committed to innovations in smart feeding, health monitoring, low-soybean meal diets, and amino acid balance technologies. In 2024, relying on the research and technological innovation of its scientific research platforms, the company further improved its management level in terms of feed cost control, animal health, and production performance:
- Feed Cost Savings: Through low-protein diets, amino acid balance, raw material substitution, and formula optimization technologies, the feed cost per kilogram of milk was reduced by 0.03 yuan/kg.
- Calf Disease Incidence: After applying “Changshantone” traditional Chinese medicine additives, the incidence of calf diseases decreased by 0.3%, and calf mortality decreased by 0.5%.
- Milk Yield at 8 Weeks Post-Calving: Through improved dry cow and periparturient cow management, milk yield at 8 weeks post-calving was greater than 52 kg.
- Postpartum Paralysis Incidence: Through the use of low-calcium anionic salt technology and improved periparturient cow management, the incidence of postpartum paralysis was less than 2%.
4. Talent Empowerment Program
Section titled “4. Talent Empowerment Program”We focus on leadership, corporate culture, and digital capability building, carrying out a series of special talent development programs to provide systematic training support for key talents, helping to implement the company’s strategy and enhance organizational capabilities.
4.1 Leadership Development Program
Modern Dairy continues to use the “Four-Wheel Drive Leadership” model as a blueprint, implementing the “On-the-Job Gallop Program” and the “Reserve Source Program” for different levels of in-service and reserve management talents.
- The “On-the-Job Gallop Program” aims to cultivate the leadership of the company’s in-service management employees, including 4 special classes: “Head Bull,” “Battle Bull,” “Gallop Bull,” and “Sharp Bull.”
- The “Reserve Source Program” aims to cultivate the company’s reserve promotion personnel, including 5 special classes: “Golden Bull,” “Silver Bull,” “Bronze Bull,” “Steel Bull,” and “Iron Bull.” We set up different types of training courses for each special class to help corresponding level participants improve their leadership skills point-to-point.
In 2024, Modern Dairy cumulatively conducted 52 leadership training sessions, including 33 offline sessions covering 1047 in-service and reserve management personnel, and 19 online sessions covering 1294 employees. In 2024, the competency of management personnel (talent inventory 5689 grid) was further improved, increasing by 12.5% compared to the previous year; annual employee engagement reached 90.52%, an increase of 1.9% compared to the previous year. In 2024, among the management employees who participated in leadership training, 98 management personnel received internal promotions, accounting for 77% of the annual management position demand. Among them, 8 managers were promoted to the third and fourth levels, 26 managers were promoted to the fifth level, and 64 managers were promoted to the sixth level.
| Indicator | 2024 |
|---|---|
| Share of women in total workforce (as % of total workforce) | 32.39% |
| Share of women in all management positions, including junior, middle and top management (as % of total management positions) | 24.55% |
| Share of women in junior management positions, i.e. first level of management (as % of total junior management positions) | 26.16% |
| Share of women in top management positions, i.e. maximum two levels away from the CEO or comparable positions (as % of total top management positions) | 11.11% |
| Share of women in management positions in revenue-generating functions (e.g. sales) as % of all such managers (i.e. excluding support functions such as HR, IT, Legal, etc.) | 17.39% |
| Share of women in STEM-related positions (as % of total STEM positions) | 4.76% |
| Indicator | 2024 |
|---|---|
| Percentage of Han Chinese in Management | 88.98% |
| Percentage of Mongolian in Management | 6.99% |
| Percentage of Hui Chinese in Management | 1.21% |
| Percentage of Other Ethnic Minorities in Management | 2.82% |
4.2 Cultural Education
To enhance employees’ self-protection awareness regarding human rights, we conducted human rights knowledge training for all employees. The training provided an in-depth explanation of the core principles of human rights governance, relevant international and domestic laws and regulations, the practical application of the company’s human rights policy, and how to identify and respond to potential human rights risks in the workplace. The training particularly emphasized the importance of respecting diverse cultural backgrounds, customs, and perspectives, aiming to foster an inclusive, understanding, and mutually respectful harmonious working environment within the company. The training was conducted through a combination of online and offline methods, and the training recordings were uploaded to the company’s internal “Niu Ren Hui” (Cattle People’s Wisdom) learning platform, making it convenient for all employees to access and learn anytime, anywhere. In addition, we promptly communicated the latest policy requirements, precautions, and violation handling mechanisms for human rights protection through various forms such as newsletters and graphic publicity. In 2024, the company’s human rights training covered 100% of employees. The satisfaction with the company’s human rights training, the recognition of human rights policies, and the mastery of human rights knowledge were 99.8%, 99.7%, and 99.7% respectively, increasing by 6.8, 4.7, and 9.7 percentage points respectively compared to 2023.
4.3 Digital Transformation Program
The company actively promotes its digital transformation program, aiming to enhance employees’ ability to use new digital tools, processes, and AI technologies, helping them adapt to digital office needs. The company promotes digital transformation training, including content such as AI-powered office software, AI and large model applications, Deepseek tool usage, and enterprise knowledge base construction, to help employees adapt to and master the digital wave. In 2024, the proportion of employees from various functional departments and operation centers at levels 3-7 who participated in digital transformation training reached 100%. After the training, employee productivity significantly improved, with the annual output per 10,000 yuan of labor reaching 26.08 tons/10,000 yuan, an increase of 9.5% year-on-year.
5. Talent Retention and Employee Well-being
Section titled “5. Talent Retention and Employee Well-being”The Company places high importance on talent retention and development, striving to create a positive work environment and provide competitive development opportunities. We deeply understand that employee well-being is a crucial cornerstone for the Company’s sustainable development. Therefore, we actively implement various welfare policies to support our employees’ work-life balance. Employee turnover rate is a key indicator for measuring the effectiveness of our talent retention efforts, and the provision of benefits such as paid parental leave is a concrete manifestation of our support for employees, enhancing their satisfaction and loyalty.
| Indicator | 2024 |
|---|---|
| Paid Parental Leave Days for Primary Caregivers (days) | 220 |
| Paid Parental Leave Days for Non-Primary Caregivers (days) | 15 |
| Indicator | 2024 | |
|---|---|---|
| Employee Turnover Rate by Age Group | Employees aged 30 and below | 2.23% |
| Employees aged 31 to 50 | 1.16% | |
| Employees aged 51 and above | 1.20% | |
| Employee Turnover Rate by Gender | Female | 1.38% |
| Male | 1.37% | |
| Employee Turnover Rate by Employment Type (Level) | Junior Employees | 1.18% |
| Middle Management Employees | 0.34% | |
| Senior Management Employees | 0.00% | |
| Employee Turnover Rate by Ethnicity | Han Chinese Employees | 1.23% |
| Mongolian Employees | 1.33% | |
| Hui Chinese Employees | 1.19% | |
| Other Ethnic Minority Employees | 1.17% | |