According to the above vertical financial statement, meaning analysis:

1. The company's other income makes up a very small percentage of sales.

Specifically, 2019 accounted for 0.03% of revenue and in 2020 accounted
for 0.01% of revenue. Because the ratio of other income is too small, the
company needs to increase other income.

2. In 2019, the company's COGS equals 60.83% of revenue. However, by

2020, COGS has increased to account for 62.20% of revenue. That's not
good for the company, it leaves net profit unchanged. Therefore, the
company needs to slightly adjust the COGS to be reasonable.

3. Current assets account for 54.78% in 2019 and 60.49% in 2020, this
investment proportion is suitable for the dairy production and processing
industry.

4. Fixed assets account for the highest proportion, in which land accounts for a
large proportion of up to 30.64% in 2019 and 26.26% in 2020. This shows
that the company will reduce investment costs and invest more in
technology.

5. Liabilities of 2019 and 2020 accounted for 34.14% and 31.13% of revenue,
respectively. The company mainly uses short-term debt, which can be seen
clearly when long-term debt accounted for only 2.11% in 2019 and 2.12% in
2020. This shows that the company is controlling quite appropriately. on
accounts payable.

6. Equity accounted for 60.91% in 2019 and 64.05% in 2020, up 14.29% from
last year. This helps the company reduce payment pressure and keep
payment risk low.