The country's second largest milk processor says any negative impact of coronavirus should be short lived.
The illness has now taken over 1,000 lives.
a2 Milk's donation will go to the Shanghai Red Cross and to Australian researchers playing a lead part in trying to develop a vaccine for Covid-19.
The NZX listed company has also announced other initiatives to support Chinese families affected by the impact of coronavirus in China.
The company says with its strategic partner in China, China State Farm Holding Shanghai (China State Farm), it has been closely monitoring the situation in China over recent weeks.
The company will donate $1.1 million (5 million RMB) to Shanghai Red Cross to help and support the areas and people seriously affected by coronavirus.
It will also donate the same amount worth of a2 Milk dairy products. China State Farm is assisting with the dispatch of these products to front line medical teams and families affected by coronavirus.
a2 Milk has also pledged to contribute up to $1 million to independent researchers in Australia who are playing a leading role in the international effort to develop a vaccine for the virus.
The a2 Milk Company is in discussion with The Peter Doherty Institute for Infection and Immunity (a joint venture of the University of Melbourne and Royal Melbourne Hospital) to contribute to their research into the 2019 novel coronavirus, including vaccine development.
The company is also in discussion with a second internationally recognised Australian university.
The a2 Milk Company chief executive, Geoffrey Babidge, says the company is working closely with local partner, China State Farm, on how they can assist with the distribution of their products to consumers in affected areas, and how they can best provide humanitarian assistance to Chinese citizens at this time.
“We have also taken measures to ensure all our staff in China are as safe as possible and are taking the necessary precautions to reduce the chance of contracting the virus,” he says.
“The company is working to ensure all of our people, including our Mother Baby Store promotional teams, have been issued with masks and personal hygiene equipment including disinfectant. We have created a team Social chat group to ensure open communication for updates and emergency help if required.