Multi-point breakthroughs and whole-chain transformation: Yili explains the new driving forces for future growth on the 2023 Investor Day

HOHHOT,China,July 19,2023 -- On July 14,Yili held its 2023 Investor Day,and its management sat down withhundreds of investors and analysts from the world's top investment institutions for in-depth exchanges.

Chairman and President Pan Gang speaking

Pan Gang,Chairman of Yili Group,said in his speech that Yili will continue to be a pioneer of a new-type supply chain,a pioneer in digitalization and a practitioner of sustainable development,and make more contributions and create greater value for consumers,investors,and human health and well-being.

Scene of the 2023 Investor Day

In the post-pandemic era,pro-health functional products that serve the whole population will become the core driver of the development of dairy products.

Yili is an early entrant in health sector. In recent years,Yili has launched functional pro-health nutrition products such as A2. This year it launched the world's first functional milk product capable of blood sugar regulation,and the world's first room-temperature organic pure milk with active lactoferrin,among other subdivided functional pro-health dairy products.

The launch of new pro-health products one after another was enabled by Yili's input and breakthrough in forward-looking innovative technology. Yili was the first to break the technological barriers and increase the retention rate of lactoferrin in room-temperature pure milk from 10% to more than 90%. In addition,Yili has started the construction of its lactoferrin factory in New Zealand,and after it is completed and put into operation,Yili will rank among the top three lactoferrin producers in the world,which will greatly enhance Yili's global influence in the industry.

Yili is making multiple breakthroughs in similar cutting-edge technologies,with the expectation of opening up new space for performance growth.

At the conference,Yili also introduced the latest development and growth potential of five of its brands: Satine,AMBPOMIAL,Jinlingguan,Chocliz and XinHuo.

Among them,Satine,the world's No.1 organic milk brand,bucked the trend and ranked first in the market share of the segment; China's No.1 yogurt brand AMBPOMIAL continued to innovate,with a market share of 66%; the infant powder brand Jinlingguan saw the fastest market share growth primarily driven by its high-quality products; XinHuo,the No.1 milk powder brand for the middle-aged and elderly,continued to expand the silver economy and grabbed a market share of 35%; China's No.1 ice brand Chocliz continued to grow,becoming China's first ice brand with sales of more than 5 billion yuan.

Based on high-performing sub-brands like these,Yili has become a household brand of considerable size and competitiveness. It always sits top of BrandZ's brand value ranking in China,and ranked second in the food and beverage sector and again first in the global dairy industry in 2022.

At the conference,Yili shared how digital and intelligent technologies had improved its overall efficiency. Yili Modern Intelligent Health Valley is so far the most digital and intelligent manufacturing base in the dairy industry. Its filling production line of liquid milk at this global model base of intelligent manufacturing produces 40,000 packs of milk per hour,nearly twice as many than before.

Through the digital and intelligent transformation of the entire industry chain,Yili's end-to-end product innovation cycle has been shortened by 20%,indirect procurement efficiency increased by 40%,procurement costs reduced by 10%,and the overall procurement cost has maintained about 7% less than the industry average.

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Caption: Chairman and President Pan Gang speaking

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Caption: Scene of the 2023 Investor Day