Yili Shares (600887. SH) recently released the Company’s 2018 Interim Report. For the first half of 2018, Yili realized a total operating income of 39.943 billion yuan, an increase of 19.26% over the same period last year. Its net profit of 3.469 billion yuan ranks first in the industry. Its operating income and net profit have continued to increase. This giant elephant is dancing once again and the formidable enterprise is playing a strong leading role.
Pan Gang, chairman of Yili Group, said: “We want innovation to be Yili’s attitude.” Guided by the concept of “no innovation, no future,” Yili’s interim report correlated its strong performance with its “core” ability. Yili adheres to the enterprise credo of “Yili is quality”, takes advantage of new opportunities in the market and is keenly aware of new demands from consumers. It has promoted the high-quality development of the whole industry by providing “core” to its products, reforming “core” in models, creating a “core” technology and establishing “core” standards.
During the reporting period, the sales revenue from Yili’s key product series such as “Jin Dian”, “Anmuxi”, “Changqing”, “Meiyitian”, “Joy Day”, “Golden Collar”, “Qiaolezhi” and “Zhenxi” increased by more than 30% over the same period last year. The company’s sales revenue from new products increased by five percent compared to the same period last year. At present, Yili has created 11 sub-brands with annual sales of more than 1 billion yuan, including normal temperature yogurt sub-brand Anmuxi with annual sales of 10 billion yuan.
In 2018, the key word “core” was glaringly evident in the efforts of Chinese enterprises to be strong. What is “core”?
In 2018, the world economy finds itself in a critical period of transition from technological revolution to commercialization. China’s economy has shifted from a phase of high-speed growth to high-quality development. The spirit of the 19th National Congress of the Communist Party of China (CPC) will certainly stimulate the creativity and vitality of the whole society. To promote high-quality development, enterprises must have “core”. “Core” is an enterprise’s hematopoietic ability, the best symbol of its core competitiveness, and the best momentum to promote high-quality economic development. Enterprises with “core” will have a future.
With its leading “core” creating ability, advanced management capability, sustained growth profitability and “milk ecology” industry layout, Yili has built a strong and broad moat for the industry. Xin Wang, director of Research Institute of the Economic Observer, said, “As the transformation between new and old momentum in the world is accelerating and China’s economy entered into the high-quality development stage, Chinese enterprises must rely on creating “core” to enter the world stage. Yili insists on creating “core” independently, injecting the “core” warm current into the industry development, building the “core” environment, and showing the “core” strength of Chinese enterprises. It is a model for Chinese enterprises.”
Source: Yili Group
