Yili, again, created a new high record of performance taking the lead of comprehensive competitiveness

In the evening of 30th March. Yili Stock has released the 2016 Financial Report. According to the Report, in 2016 the company’s total revenue has reached 60.609 billion RMB which is 0.41% higher than last year. The net income of stakeholders is 5.669 billion RMB which is 21.80% higher than last year. The earnings per share is 0.93 billion RMB. At the same time, the net return on equity is 26.58%. All of these has created a new high record in the dairy industry. The competitiveness in the dairy has strengthened dramatically.

According to the data analysis of Nelson Company, during the period of the Report, Yili’s retail market share in the whole dairy industry is 20.0% which has increased 1.1 percent points compared with last year making Yili the top 1 in the market.

The better performance of Yili is attributed to the long-time persistence of its premium quality and innovation. In recent years, the Chairman Mr Pan Gang (潘(pān)刚(gāng)) proposed the principle of “Yili Stands for Premium Quality” and is going to be continuously dedicated to deliver the 100% safe, 100% healthy dairy products and services. The strict world-wide implementation of Standard Control Principle in very single chain and the high-quality of its products has won over many consumers.

During the time of Report, Yili has made great breakthrough by innovation and internationalization, which has facilitated the continuous positive growth of Yili’s performance. Thanks to the innovative thinking and lead of Chairman Mr Pan Gang (潘 (pān) 刚 (gāng)), Yili has been learning from the world-class food enterprises and establish innovative management model accordingly, cultivating talents with international perspective. Now, Yili is able to precisely detect the need of the consumers. The revenue of new products accounts for 22.7% surpassing 7percent point compared with last year. The revenue of major products of Yili such as Satine, Ambrosial, Chang Qing, Qiao Le Zi, Zhen Xi, takes up to 49% which is 3.2 percent points higher than last year. Yili expressed that innovation has become the driving force of the increase of performance. According to the data of the research of Kantar, the market penetration rate of the normal-temperature liquid dairy products, which has become one of the major pillar of Yili’s performance has reached 77.1% which is 0.3 percent points higher than last year.

The comprehensive promotion activities, such as premiumization of channels and supply, has realized the seamless connection between online business promotion and off-line supply chain service as well as the improvement of the retail store management and channel service. Thanks to those activities, the e-commerce revenue has increased 82%. Meanwhile, through the facilitation of “country e-commerce business model”, Yili has further satisfied the upgraded needs of food product consumption of consumers in country areas. By the end of 2016, the country branch directly controlled by Yili has reached to up to 342, 000 which is about twice as much as last year. The market penetration ability has been increasing year by year.

Besides, in the financial year of 2016, the value of Yili brand has increased significantly. In the 2016 Hurun Brand rank and the 100 most valuable brands of BrandZ rank, Yili has ranked top 1 in the category of beverage brand in China two years in a row. The value of brand has increased more than 20%. At same time, in the 2017 Brand Finance Global Dairy Company Rank, the competitiveness of Yili Group ranks the Number One in the globe.

According to the Annual Report, in 2017, dedicated to the “quality first” strategy, Yili continues to develop and strengthen the comprehensive competitiveness as a leading company in the industry by innovation promotion, resources and supply chain premiumization and active expansion of international business.

According to the feedback within the industry, the excellent performance of Yili is the best justification of Mr Pan Gang (潘 (pān) 刚 (gāng))’s ambition of becoming the top5 global dairy company.

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