· In January and February 2022, Yili achieved a 15% growth in operating income and a 20% increase in profits.

· Yili registered an operating income of over RMB 10 billion in a single month, setting a new record for business growth.

On March 10, Yili released its Announcement on the Main Operational Results in January and February of 2022. It is preliminarily calculated that the Company realized an operating income of about RMB 21.5 billion, up 15% year-on-year and total profits of around RMB 3.3 billion, up 20% year-on-year in January and February 2022.

Guided by its New Vision for Value Creation, Yili actively seized the opportunities created by growth in overall consumption and achieved the best-ever start to a year in history, with a single-month operating income of over RMB 10 billion.

Exceptional performance in product categories

Yili continuously optimized its product portfolio, upgraded the product lines and offered richer product experience to consumers. In January and February 2022, the business segments of liquid milk, milk power and dairy products, and ice cream maintained strong growth momentum. Satine, Ambrosial, Jinlingguan, Chocliz, Gemice, Chang Qing, Meiyitian and Cheese Bars for Kids saw a 3-percentage-point YoY growth in the market share, further expanding the scale of Yili’s high-end niche market and maintaining its leading position in market share of high-end products.

The second growth curve

As sales of Jinlingguan infant formula milk powder grow rapidly and the cheese business doubles, Yili is now on its way to establishing a second growth curve. In January and February, the sales revenue of Jinlingguan rose by at least 30% year on year, ranking first in the industry.

In February, Yili took the lead in upgrading the formula of Jinlingguan infant formula milk powder and became the only leading milk power producer to meet the strict new national standard. In addition, Yili has just entered into an agreement to acquire Ausnutria by way of a tender offer. After the merger, Yili will see fast growth in its milk power business. Yili’s cheese segment is also growing rapidly. The market share of its cheese products expanded by 3 percentage points year-on-year in January 2022.

Strong milk supplies

At present, Yili enjoys quality milk supplies from Youran Dairy, the largest cow breeder in China, and Zhongdi Dairy, and has also acquired Westland Dairy, the second largest dairy company in New Zealand. Additionally, Yili has empowered its cooperative farms with funding, training and other quality resources. With the acquisition of Ausnutria, which holds rich dairy resources in the Netherlands and Australia, Yili will further enhance its advantages in milk supply.

Moreover, Yili also has 15 R&D innovation centers and 13 overseas production bases and sells its products to over 60 countries and regions in the world. Yili is confident that it will achieve robust growth in the future.