Yili Group achieves remarkable growth in 2020 annual report
On 28 April, Yili released its 2020 annual report. According to the data, the company’s total revenue reached RMB 96.886 billion and net profit attributable to the parent company was RMB 7.078 billion, highlighting the company’s healthy growth trend and excellent profitability. The Q1 2021 report released at the same time showed that the company’s total revenue in the first quarter reached RMB 27.363 billion, a YOY increase of 32.49%, of which the net profit attributable to the parent company was RMB 2.831 billion, a YOY increase of 147.69%.
Pan Gang, chairman of Yili Group, said, “Yili will adhere to the goal of creating a better business, devote itself to developing healthier products, advocating a healthier life, and caring for a healthier world, continue to build a ‘global health ecosystem’, and create a common prosperity of business and social values, while becoming a social enterprise that outstands the competition in the market, gaining the trust of consumers and recognition of all stakeholders.”
Strengthening the Competitive Advantage of the Whole Industry Chain
During the reporting period, the company further strengthened the competitive advantages of the whole industry chain, making the best of global supply chain cooperation, brand strength, channel penetration in market, leading innovation, and a cohesive corporate culture to realise the balanced and sustainable development of the company.
In terms of products, Yili continued to promote product optimisation, with the sales revenue of key products recording a YOY increase of 9.6%. In addition, Yili has been continuously exploring new growth points through innovation. The company’s sales revenue for new products accounted for 16% of total sales revenue.
In terms of channels, the company actively expanded new retail models on e-commerce platforms, with a YOY growth of 55%. The company’s market share of retail sales for UHT milk on e-commerce platforms was 28.1% during the same period, ranking first in the UHT milk market segment.
In addition, Yili has steadily promoted its business in Oceania, Southeast Asia, and other overseas markets. The main construction of the company’s plant in Indonesia was completed and its annual sales in Thailand saw a YOY increase of 68%. “Ambrosial” were differentiated to occupy the high-end yogurt market in Southeast Asia. “Joyday”, “Cremo” and “Yili Youngfun” are accelerating their steps to reach consumers around the world. In New Zealand, Yili has invested in the R&D and production upgrading of its Oceania production base and Wesltland’s Hokitika factory. The century-old butter brand Westgold now sells in more than twenty countries.
Focus on “Consumers-Oriented” Strategy
Consumers-orientation not only means understanding consumers and attaching great importance to them, but also changing the Company’s role to be a “true fan” of consumers, said Pan Gang.
Yili promoted cooperation across the industry chain, continued to invest more in R&D, technology, and innovation, and continuously innovated its product categories and accelerated the layout of health business by relying on a global network connecting Asia, Europe, Oceania, and the Americas, and using big data to gain insights of consumers. The company launched a series of new products such as the “Ambrosial ” cheese ball ambient yogurt and “Satine” fresh milk, which were popular among consumers.
Creating Common Prosperity of Commercial and Social Value
As Yili continues to outperform the dairy industry in Asia and win the trust of more and more consumers, the company says it is actively practicing its social responsibility as a corporate citizen and continuing to promote common prosperity of commercial and social value.
After China announced its goal of achieving carbon neutrality by 2060 last year, Yili, positively making a response to this call by releasing its own vision of carbon neutrality, was the first dairy company committed to do so in China.
In the future, Yili will continue to build a “global health ecosystem”, take the lead in promoting the sustainable development through the common prosperity of both commercial and social value.