Boosting core competitiveness through stable operations and enhanced profitability

Throughout the year, COFCO has maintained a keen focus on economic development as its core mission and high-quality development as its top priority. The company has meticulously managed operations, reinforced governance, pursued innovation with courage, and embarked on vigorous endeavors, all contributing to an unprecedented level of operational performance. COFCO has consistently improved its integration, scientific management, and precision in operational practices. It has strengthened investment support to strategically implement and refine core business activities, while also intensifying brand investments to cultivate a brand that is nationally esteemed and responsive to the latest trends and shifts in domestic consumer preferences. In parallel, it has made consistent strides in digitizing management and business operations, empowering more sophisticated operational practices.

In 2023, COFCO achieved a revenue of RMB 692.102 billion, marking the fourth consecutive year it has surpassed the RMB 20 billion benchmark in total profits. The core competitiveness of the agricultural and grain industry, as well as the capacity for value addition and preservation of state-owned assets, were further enhanced.

Upholding technological innovation, embracing the agricultural and grain sector's role as the "top-tier leader" of new productivity development

COFCO steadfastly treats technological innovation as the cornerstone of its comprehensive development strategy. Grounded in national priorities, industry trends, it actively leads in the adoption of state-of-the-art technologies and tackles critical "bottlenecks" to drive the evolution and progress of traditional industries and the rise of new productivity.

COFCO's management team has engaged in research and planning at the Nutrition and Health Research Institute to steer the group's technological innovation trajectory and pinpoint strategic directions for the development of emerging industries. Various COFCO subsidiaries have independently developed alpha-amylase formulations, earning safety validation from the National Health Commission, and securing the first domestic patent for injection-grade sucrose "bottleneck" technology.Concurrently COFCO is accelerating the digital, intelligent, and green transformation of traditional industries. COFCO International has consistently led global ESG ratings among multinational grain traders for three consecutive years running. COFCO Sugar has established a "Zero-Carbon Factory" in Chongzuo, Guangxi, while CPMC Holdings is actively promoting the "Dark Factory" concept in Belgium, and Mengniu is actively constructing the "Smart Factory" in Lingwu, Ningxia.

Advancing a new wave of reform for deepened enhancements, elevating enterprise modern governance standards

COFCO channels its efforts into crucial aspects such as, empowering the board of directors, and advancing reforms in the "three systems". This concerted focus has ignited developmental momentum, securing the company an A-grade rating in the SASAC assessment for two consecutive years. Notably, COFCO was also honored as a "demonstration enterprise for corporate governance of state-owned enterprises" by SASAC in 2022. Since 2023, COFCO has been actively driving forward a new wave of actions to deepen the reform of state-owned enterprises. It prioritizes enhancing core competitiveness and strengthening core functionalities, adopting a market-oriented approach to overcome significant challenges and barriers. Through these strategic measures, COFCO strives to raise governance standards and core competitiveness to new heights.

Actively serving the overall situation and fulfilling the responsibilities

COFCO consistently strengthens its sense of responsibility and commitment, maximizing its leadership role in the industry supply chain and leveraging professional advantages. It is wholly devoted to tasks such as emergency supply assurance and maintaining supply stability for major events, firmly upholding its responsibility to support rural revitalization, and consistently deepening the "COFCO model". In 2023, in the face of sudden disasters such as heavy rainstorms, earthquakes, and mudslides, COFCO deployed its established emergency supply assurance system and three-level response mechanism to ensure a stable supply of grain and oil products in disasteraffected areas. It also successfully managed product supply for numerous major events throughout the year.

Strengthening and leading development via Party building

COFCO deeply engages in the study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, maintaining high quality Party building to steer and ensure high quality development. Through study and training, special research, publicity, and other activities, we have translated the results of thematic education into concrete beliefs and practices of all members to strengthen commitment, carry on reform, and achieve actual outcomes. We effectively enhance the political and organizational functions of Party organizations and continued to deepen the assessment of Party building work. We continue to strengthen measures such as project-based Party building, and point accrual of Party members. Through these efforts, we have fully reshaped the foundation for Party building and significantly enhanced Party organizations' combat capability. COFCO firmly adheres to the correct orientation for cadre selection and appointment, continues to optimize the cadre team structure, and strengthens cadre management supervision in all aspects to build a quality and professionalized cadre talent team. COFCO has achieved the highest evaluation grade of "A" in the assessment of Party building among central SOEs for three consecutive years.