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) Bovine Disease Testing Training
To enhance its capabilities in major disease testing and quality management, in June 2026, Modern Dairy organized 20 key laboratory personnel to participate in a two-day training program provided by Qingdao Ruier, which included a total of eight hours of hands-on training. The training covered core topics including BVDV, brucellosis and bovine tuberculosis testing, standardized ELISA procedures, troubleshooting of abnormal results, and laboratory quality management. Participants’ capabilities were evaluated before and after the training through theoretical examinations, blind sample testing, operating-procedure inspections, and case analyses. The average assessment score increased from 76 to 92, an improvement of 16 points; the consistency rate of blind sample testing results increased from 93% to 99%, up 6 percentage points; compliance with operating procedures increased from 89% to 98%, up 9 percentage points; the accuracy rate for identifying the causes of abnormal results increased from 75% to 95%, up 20 percentage points; and the unnecessary repeat-testing rate decreased from 8% to 3%, representing a reduction of 62.5%. Meanwhile, based on common issues identified during the training, the Company further improved five requirements relating to testing procedures and result review and identified 12 critical quality control points, with a focus on strengthening sample handling, reagent condition, positive and negative controls, review of borderline results, and traceability of abnormal results. Through an approach combining theoretical instruction, hands-on practice, blind sample verification, case-based assessment, and the formalization of procedures, the training further reduced differences among personnel in operating practices and result interpretation, improved the consistency and accuracy of testing results and the efficiency of abnormal-result investigations, and enabled laboratory personnel to progress from “being able to perform tests” to “being able to interpret, review, and troubleshoot results.” This provides more stable and reliable technical support for disease surveillance, risk alerts, and raw milk quality control across the Group.
(2) BVDV Screening Strategies and Herd Risk Management
BVDV, or bovine viral diarrhea virus, is a key risk in farm disease eradication and herd health management. To address issues such as incomplete BVDV screening coverage, omitted testing of purchased cattle, and inadequate maternal traceability, the Company conducted specialized training based on actual farm cases. The training coverage rate among relevant employees reached 100%. Following the training, compliance with BVDV screening procedures increased from 90% to 98%; the accuracy rate for matching ear tag numbers with sample information increased to over 99%; the traceability completeness rate for abnormal samples reached 98%; and compliance with sample collection, storage, and transportation requirements increased to over 97%. The efficiency of retesting suspicious samples improved by approximately 20%; the time required to trace cattle identity and maternal information decreased by approximately 30%; and invalid retests and traceability errors caused by incorrect sample information, inappropriate sampling times, or improper sample storage decreased by approximately 20%. The training further connected the entire management chain covering cattle identity—samples—testing results—maternal information—retesting follow-up, effectively reducing the risks of missed detection, false-negative results, and traceability errors. It also enhanced the role of BVDV testing data in herd disease eradication and risk alerts and continued to strengthen testing quality control and on-site technical capabilities.
(3) Serological Testing Training
To enhance the Company’s capabilities in brucellosis serological testing and result interpretation, in June 2026, Modern Dairy organized relevant laboratory personnel to attend specialized bovine disease laboratory testing training provided by Qingdao Ruier Weite. Participants systematically studied testing techniques including the Rose Bengal plate agglutination test, indirect ELISA, fluorescence polarization assay, and agar gel diffusion test, and completed hands-on agar gel diffusion testing and result interpretation exercises. The training coverage rate and assessment pass rate for relevant testing positions both reached 100%. Following the training, compliance with standard operating procedures for brucellosis serological testing increased to over 98%; the accuracy of result interpretation increased by 6 percentage points; inter-operator consistency increased to 97%; and the accuracy of abnormal-sample reviews increased to over 95%. The efficiency of individual result interpretation improved by 25%; the number of retests decreased by 15%; invalid tests caused by differences in operating practices and result interpretation decreased by 20%; and the completeness rate of records for critical testing procedures reached 100%. The training further established a testing approach combining rapid screening—abnormal-result review—comprehensive determination, enhanced employees’ ability to appropriately select and jointly apply different testing methods, continuously reduced the risks of incorrect and missed determinations, strengthened quality control throughout the brucellosis testing process, and promoted the standardization and precision of serological testing.
(4) Silage Testing Training
In 2026, the Group conducted specialized silage testing training for quality control managers and key laboratory technicians from its farms to develop a Group-wide team of silage trainers and laboratory technicians. The training covered national-standard testing of the physicochemical indicators of silage, hands-on operation of manual testing equipment, and calibration of FOSS and SÖLL near-infrared equipment. Both theoretical and practical assessments were included. Group silage trainers subsequently delivered training to all relevant employees using standardized training materials, resulting in a 100% certification rate for silage testing personnel.
Following the training, instrument calibration efficiency improved significantly. The calibration time per instrument decreased from one hour in 2024 to 40 minutes, representing a 33.33% improvement in efficiency. The accuracy of manual testing increased from 90% in 2025 to 100%, while the standardization of frontline operating practices improved significantly. The training reinforced the quality foundation for silage testing and provided stable and reliable data support for the Group’s silage procurement activities.
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 capabilities, we have built a tiered internal trainer team and strengthened the knowledge-sharing system. We develop internal trainers in accordance with the Internal Trainer Management Policy, the Company’s strategic needs, and its business characteristics, while improving the curriculum system.
As of the end of 2025, Modern Dairy’s internal trainer team had grown to 166 trainers, with a total of 228 internal training courses developed across three core categories: leadership, professional capabilities, and general capabilities. In 2025, we conducted 158 online and offline internal training sessions, with 31,095 participant attendances. In 2025, the Company’s internal trainer system continued to be effective. Compared with external training, employees acquired knowledge and skills in a more timely manner and with greater relevance to actual business needs, achieving a training satisfaction rate of 98.44%. Meanwhile, internally, the system saved RMB 3.7504 million in training costs, with the cost-saving rate increasing by 17.48% compared with the previous year; externally, the Company commercialized its internal trainer resources, empowered upstream and downstream participants in the industry chain, promoted a mutually beneficial ecosystem, and generated RMB 1.3957 million in training revenue.
(2) Modern Dairy Technology 100 Program Offline Training
During the year, we conducted offline intensive training for the five streams under the 2025 Technology 100 Program. We invited internal and external experts to deliver courses including Dairy Cow Health, Dairy Cow Nutrition, Equipment TNPM Management, Reproductive Management, and Replacement Heifer Development, enriching participants’ theoretical knowledge. In addition, we organized participants to carry out practical work in each stream at farms and conduct in-depth discussions and hands-on exercises on the technical processes and standards involved in on-site management, helping them gain practical experience. A total of 26 offline intensive training sessions were conducted, developing 356 technical specialists. The training outcomes across the streams were effectively translated into performance improvements: milk yield per cow at participating farms increased by 1.5 kg, the pregnancy rate increased by 2.6%, the culling rate from 0 to 60 days decreased by 0.5%, the average daily weight gain of calves from 0 to 60 days increased by 0.05 kg, and equipment utilization increased by 3%.
(3) Scientific Research Platform Construction
Through a combination of independent research and development and external cooperation, Modern Dairy has established a professional scientific research system consisting of two platforms: the Jingwa Dairy Cattle Nutrition Research Institute and the Nanjing Agricultural University–Modern Dairy Cattle Industry Research Institute. The Company focuses on raw milk nutrition, health management, and sustainable development. In animal health, it has successfully applied the traditional Chinese medicine additive “Changshantone” to prevent calf diseases and is committed to innovation in smart feeding, health monitoring, low-soybean-meal diets, and amino acid balance. In animal health, the Company continues to apply the traditional Chinese medicine additive “Changshantone” to prevent calf diseases and is committed to innovation in smart feeding, health monitoring, and amino acid balance. In 2025, through research and technological innovation based on its scientific research platforms, the Company further improved its management in feed conversion efficiency, animal health, production performance, and replacement heifer development:
- Feed Conversion Efficiency: Through raw material substitution, formula optimization, and other technologies, feed conversion efficiency increased by 0.01 ppt;
- Body Weight at First Production: Through formula optimization and continuous improvements in replacement heifer management, body weight at first production exceeded 611 kg;
- Week-Eight Milk Yield of Multiparous Cows: Through further improvements in dry and periparturient cow management and postpartum care, week-eight milk yield of multiparous cows exceeded 52 kg;
- Postpartum Disease Incidence: Through the use of low-calcium anionic salt technology and improvements in periparturient cow management, the incidence of milk fever was below 1%, the incidence of displaced abomasum was below 1%, and the incidence of ketosis was below 1%.
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. In 2025, we spent a total of RMB 948,100 on training.
4.1 Leadership Development Program
Modern Dairy continues to use the “Four-Wheel-Drive Leadership” model as its blueprint and implements the “On-the-Job Gallop Program” and the “Reserve Source Program” for incumbent and reserve management personnel at different levels.
- The “On-the-Job Gallop Program” aims to develop the leadership capabilities of the Company’s incumbent managers and includes four classes: Head Bull, Battle Bull, Gallop Bull, and Sharp Bull;
- The “Reserve Source Program” aims to develop reserve personnel for promotion and includes five classes: Golden Bull, Silver Bull, Bronze Bull, Steel Bull, and Iron Bull. We provide different types of training courses for each class to help participants at the corresponding level improve their leadership capabilities.
In 2025, Modern Dairy conducted a total of 43 leadership training sessions, including 38 offline sessions and five online sessions, covering 1,333 incumbent and reserve management personnel. In 2025, management competency, as measured through the 5-6-8-9-grid talent review, improved by 2% compared with the previous year; annual employee engagement reached 90.52%, unchanged from the previous year and within the high-performance range. In 2025, among the employees who participated in leadership training, 88 were promoted internally, accounting for 89% of the annual demand for management positions, including nine promoted to middle-management positions and 79 promoted to frontline management positions.
| Indicator | Target for 2025 | 2025 Target Progress: Achieved |
|---|---|---|
| Share of women in total workforce (as % of total workforce) | 30.00% | 31.30% |
| Share of women in all management positions, including junior, middle and top management (as % of total management positions) | 24.00% | 24.20% |
| Share of women in junior management positions, i.e. first level of management (as % of total junior management positions) | 25.00% | 25.60% |
| 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) | 10.00% | 11.10% |
| 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.) | 20.00% | 24.10% |
| Share of women in STEM-related positions (as % of total STEM positions) | 4.00% | 4.50% |
| Indicator | 2025 |
|---|---|
| Percentage of Han Chinese in Management | 84.80% |
| Percentage of Mongolian in Management | 10.90% |
| Percentage of Hui Chinese in Management | 1.10% |
| Percentage of Other Ethnic Minorities in Management | 3.20% |
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 2025, 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%, 99.6%, and 99.5% respectively.
4.3 Digital Transformation Program
The Company actively promotes its digital transformation program to enhance employees’ ability to use new digital tools, processes, and AI technologies and help them adapt to digital workplace requirements. The Company provides digital transformation training covering AI skills for efficient office work and hands-on DEEPSEEK training, helping employees improve work efficiency and adapt to and navigate the wave of digitalization.
In 2025, the Company conducted multiple training sessions on AI skills for efficient office work and hands-on DEEPSEEK applications. Through a combination of online and on-site training, the program covered administrative function employees and management personnel across departments at all levels, recording 13,247 participant attendances and an employee satisfaction rate of 98%.
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 | 2025 |
|---|---|
| Paid Parental Leave Days for Primary Caregivers (days) | 4,901.5 |
| Paid Parental Leave Days for Non-Primary Caregivers (days) | 1,107 |
| Indicator | 2025 | |
|---|---|---|
| Employee Turnover Rate by Age Group | Employees aged 30 and below | 2.71% |
| Employees aged 31 to 50 | 1.17% | |
| Employees aged 51 and above | 0.94% | |
| Employee Turnover Rate by Gender | Female | 1.38% |
| Male | 1.47% | |
| Employee Turnover Rate by Employment Type (Level) | Junior Employees | 1.43% |
| Middle Management Employees | 0.33% | |
| Senior Management Employees | 0.00% | |
| Employee Turnover Rate by Ethnicity | Han Chinese Employees | 1.32% |
| Mongolian Employees | 2.33% | |
| Hui Chinese Employees | 1.83% | |
| Other Ethnic Minority Employees | 1.81% | |