Abstract: The competition in my country's dairy market has become increasingly fierce affected by the domestic and foreign market environment. When the market environment changes,China Shengmu Organic Milk Limited（“China Shengmu”for short）has made strategic adjustments to improve financial performance.This paper studied the impact of China Shengmu's strategic adjustment policies on its financial performance in 2018,and found that timely strategic adjustment had a positive impact on the financial performance of enterprises,which improved the profitability,operating capacity,debt-paying capacity and growth capacity. This paper also put forward that China Shengmu should do a good job in the production of high-quality milk sources,innovate fresh milk products,strengthen product quality monitoring in the future,integrate upstream and downstream resources to build an industrial chain if possible and be ready to enter the international market in time.

Key words: financial performance, strategic adjustment, China Shengmu