Chinese dairy giant, Yili, based in Hohhot, the capital of North China’s Inner Mongolia region, reported last month its financial results for 2021; the operating income was 110.6 billion yuan (USD 16.76 billion), a year-on-year increase of 14.15%. The company also showed a net profit of 8.73 billion yuan (~USD 1.3 billion), a year-on-year increase of 23%.
Yili’s latest robust performance made the brand the first dairy company in Asia with an annual operating income exceeding 100 billion yuan (~USD 15 billion). According to the 2022 first-quarter report, Yili achieved a total operating income of 31.05 billion yuan (~USD 4.7 billion), up 13.47% compared to the same period of last year, and a total net profit of 3.51 billion yuan (~USD 531 million), up 24.08%.
Analysts pointed out that despite the negative global impact of COVID-19, Yili’s strong performance reflects the company’s capabilities to integrate resources, manage risks, and show resilience. The company said that under the circumstances of a sporadic pandemic, Yili will endeavor to secure the supply of dairy products to meet consumers’ demand, work together with partners to pursue win-win results, and bring benefits to employees and investors.
Yili’s robust performance lies in four aspects: strong fundamental business, new growth elements, consistent smooth lined industrial supply chain, and contributions to society.
The company’s annual report shows that the brand’s basic business has continued expanding with liquid milk reaching an operating income of 84.9 billion yuan (~USD 13 billion) in 2021, a year-on-year increase of 11.54%.
As the company’s basic business expanded, new growth elements are showing great momentum. The annual report shows that Yili milk powder and dairy products have achieved an operating income of 16.2 billion yuan (~USD 2.5 billion) with a year-on-year increase of 25.80%.
Yili strived to complete the industrial supply chain layout and build additional capacities in its factories. In March 2022, Yili purchased Ausnutria, a leading Chinese milk powder brand. The company also cooperated with suppliers to jointly plan and build the milk source bases.
As of today, Yili has donated 380 million yuan (~USD 58 million) to fight the pandemic in China. Recently, Yili issued the first “two carbon” goal and roadmap in China’s food industry, planning to achieve carbon neutrality of the whole industrial supply chain by 2050. Yili has made contributions to society with concrete actions. The brand has achieved strategic cooperation with China Aerospace Science and Technology to chart a new chapter for the company’s future development.