As 2021 drew to a close, Yili's annual global partner conference kicked off. New Distribution observed that in 2021, Yili worked closely with global partners, innovating continuously and achieving leading results in performance, brand, products, and marketing. In the first three quarters, it achieved total operating revenue of 85.007 billion yuan, a year-on-year increase of 15.23%, and net profit of 7.967 billion yuan, up 31.82%, ushering in the 'post-hundred-billion era'. Earlier, at the 2021 Leadership Summit, Yili officially released its 'comprehensive value leadership' goal. Looking toward 2030, in addition to achieving its established medium- and long-term goals, Yili will take high-quality development as its main line, achieving the four value leadership goals of 'consumer value leadership', 'social value leadership', 'employee value leadership', and 'enterprise value leadership', promoting healthy and sustainable development, and accelerating toward the goal of 'becoming the world's number one dairy company by 2030 and achieving globally leading net profit margins by 2026'. ****Consumer Value Leadership Tops the Four Values 'Realizing consumer value leadership' ranks first among the four value leadership goals, and there are three leadership paths to implement the 'consumer-centric' approach. First, consumer satisfaction leadership: Be true fans of consumers, providing health foods and life solutions that meet the personalized needs of different types of consumers. Second, brand value leadership: Adhere to 'Yili is quality', embrace 'innovation and excellence', focus on global thinking, continuously provide high-quality products and services, and always win consumer trust. Third, market penetration leadership: Deeply cultivate metropolitan areas, expand to county-level markets, and deliver products to places within consumers' reach. As Yili Group Chairman Pan Gang said at the summit: 'In the digital era, consumers are the core of people, goods, and scenes. From products, services, and brand image, we must continuously meet the diverse needs of consumers of all ages, circles, and scenarios.' Indeed, long ago Yili shifted from a producer-centric to a consumer-centric approach, making consumers the 'starting point' for product decisions. To assess consumer satisfaction with products, Yili even uses 'brainwaves' as a black technology, applying artificial intelligence to aid consumer insights. After Ambrosial launched products with new Tetra Pak packaging, to assess consumer satisfaction, Yili used internationally validated neuro-testing methods to analyze brainwave data, understand areas for product improvement, and continuously optimize and upgrade products to enhance consumer experience. At the same time, Yili also introduces natural language processing (NLP) technology in daily production and sales to grasp real-time industry trends in dairy products, potential future product flavors, and product preferences of different regions and groups, thereby better meeting consumer needs. Based on the core position of consumer value, Yili continuously upgrades products through intelligent technology, ultimately making Ambrosial a star product with annual sales exceeding 20 billion yuan. ****Pioneer in 'Dual Carbon' Goals to Promote Common Prosperity As an industry leader, Yili is the first in the industry to commit to achieving carbon peak and carbon neutrality, protecting the future of life, driving upstream and downstream enterprises in the industry chain to actively practice green and sustainable development concepts, and putting commitments into practice. As the first enterprise in the industry with independent carbon inventory capability, since 2010, Yili has compiled the 'Carbon Inventory Report' for 12 consecutive years, systematically accounting for greenhouse gas emissions of all its subsidiaries, even down to small facilities like fire extinguishers and switches. By the end of 2020, Yili's cumulative emission reduction reached 6.51 million tons (CO2 equivalent). In July 2021, Yili, as the only global agricultural food enterprise case, was included in the United Nations' first 'Corporate Carbon Neutrality Roadmap', inspiring more enterprises to take action in carbon neutrality actions and showcasing 'Chinese wisdom' for green development to the world. As an industry leader, creating social value and building a social enterprise is also Yili's unchanging original intention. Yili has lifted 5 million farmers and herdsmen out of poverty through 'industrial base targeted poverty alleviation', and has also explored a financing model characterized by 'core enterprises bearing substantive risks' to help upstream and downstream partners solve financing difficulties. When the epidemic struck in 2020, Yili urgently opened a green financial channel to provide strong support for industry stability, issuing about 6.958 billion yuan in financing throughout the year. As of October 31, 2021, Yili had provided financial support to 8,284 upstream and downstream partners in the industry chain, with cumulative financing of 89.015 billion yuan. Now, Yili has made promoting common prosperity a key task of social value leadership. While seeking high-quality development, it promotes win-win across the industry chain and helps employees and industry chain partners achieve common prosperity. To realize its own value, an enterprise must create value for society. As an industry leader, Yili will achieve 'social value leadership' by taking the lead in achieving carbon peak and carbon neutrality, reaching leading sustainable development ratings, and promoting common prosperity. This is Yili's responsibility and the ambition of China's dairy industry. ****Employee Value Leadership Ensures Corporate Vitality At the 2021 summit, Yili clearly stated that to achieve the strategic goal of becoming the world's number one dairy company by 2030, first, it needs to unite aspirants from different cultural backgrounds and generations who love learning, are creative, and have strong execution; second, it must achieve mutual success with employees, nourishing the Yili family like rain and dew, creating an open, innovative, and respectful working environment, and enhancing employee value returns; third, it must establish a unique employer image, further develop the employee care system, build a first-class career development platform, and gather, develop, and fulfill people. Yili's 'Spring Rain Plan' provides care for employees from multiple levels such as career counseling, various incentives, multiple benefits, and an open and innovative working atmosphere, and continuously optimizes the plan version based on employees' actual needs. According to statistics, to date, the Yili Love Fund has assisted 282 person-times, distributing 12.195 million yuan in love relief funds. Adhering to 'employee value leadership' gives Yili a hidden advantage: the stability of its talent team. Yili has been promoting strategic talent planning projects for many years. Based on business, it identifies and systematically sorts out strategic talents, re-examines and determines Yili's talent view, clarifies the company's talent strategy, and establishes a complete scientific management system covering the entire chain of 'selection, cultivation, and retention'. The people-oriented talent management concept gives every Yili employee a full sense of gain and belonging. With the 'Full Industry Chain Quality Talent Empowerment Project', Yili also won the 'Global Talent Development Excellence Award', known as the Oscar of talent development, becoming the only health food enterprise in China to receive this award. ****Where Does the Confidence of the World's No.1 Dairy Company Come From? At the Leadership Summit, Yili anchored the goal of 'enterprise value leadership'. First, from high-quality development capability value leadership: continuously improve quality management capabilities, innovation capabilities, digital operation capabilities, and add momentum to high-quality development; second, business performance leadership: achieve sound development at a steady pace and continuously improve overall profitability; third, shareholder value leadership: enter the post-hundred-billion era of China's dairy industry, and in the future, with a 'white horse' posture, grow steadily and create value for shareholders and investors. These three aspects build comprehensive enterprise value leadership. Let's review the performance of the five major business divisions: 1. Liquid Milk Division: Market share ranked first for 8 consecutive years, Jindian has been the world's No.1 organic brand for 4 consecutive years, leading the industry in growth, Ambrosial broke through the downturn, expanded its share, and stood at the top of the category. 2. Yogurt Division: Changqing continues to be the top tier of low-temperature yogurt, ranking first in industry brand power for 6 consecutive years, pasteurized fresh milk leads the industry in quality upgrade, entering the top three in the category, with 2021 sales growth rate 13 times better than the industry average. 3. Milk Powder Division: Jinlingguan milk powder leads the industry in all-channel growth, Zhenhu mother-and-baby channel growth exceeds 50%, Sainamu and Youzhi Xiaoyang doubled their performance. Yili adult milk powder has ranked first in market share for 4 consecutive years, and middle-aged and elderly milk powder category share has ranked first for 9 consecutive years. 4. Cold Drinks Division: Achieved double-digit sales revenue growth, leading the industry for 29 consecutive years, with sales volume ranking first, product innovation continuously breaking historical records, and 4 new products launched with sales exceeding 300 million yuan, leading the industry and setting new highs. 5. Cheese Division: Continuous product innovation leads category development, sales revenue achieved doubled growth, children's cheese stick product sales increased by nearly 200% year-on-year, and market share significantly improved. In 2021, facing macroeconomic uncertainty and the continued impact of the COVID-19 pandemic, Yili, with its strong systemic anti-risk capability and certainty of endogenous growth, worked with global partners for mutual benefit and win-win. The liquid milk, yogurt, milk powder, cold drinks, and other major business divisions all showed impressive results, fully demonstrating the development potential and innovation strength of the leading enterprise. Standing at the new starting point of the 'post-hundred-billion era', Yili will move forward in tandem with upstream and downstream partners in the industry chain, taking high-quality development as the main line, continuously creating value for consumers, society, and employees, and realizing the dream of 'letting the world share health'. Riding the wind and waves, setting sail. Standing at the new starting point of the '14th Five-Year Plan', the dairy industry has also entered a new historical stage. Yili is about to create a new future of 'comprehensive value leadership' for China's dairy industry. Yili will also create value and win together with all parties, leading China's dairy industry to the C-position on the world stage in the post-hundred-billion era. Are you 'watching' me?