Just now, dairy giant Yili Co., Ltd. released its 2019 financial report, showing steady growth in both revenue and net profit. According to the financial report, during the reporting period, the company achieved operating revenue of 90.009 billion yuan, a year-on-year increase of 13.97%; net profit was 7 billion yuan, up 7.73% year-on-year. Currently, Yili is mainly engaged in the processing, manufacturing, and sales of various dairy products and healthy beverages, with product lines including liquid milk, dairy drinks, milk powder, yogurt, frozen desserts, cheese, milk fat, and packaged drinking water. By product, liquid milk products achieved main business revenue of 73.761 billion yuan last year, an increase of 8.082 billion yuan from the previous period, up 12.31% year-on-year; milk powder and dairy products achieved main business revenue of 10.055 billion yuan, an increase of 2.010 billion yuan from the previous period, up 24.99% year-on-year; frozen dessert products achieved main business revenue of 5.631 billion yuan, an increase of 634 million yuan from the previous period, up 12.70% year-on-year. -01- Performance Drivers According to the Kantar Consumer Index report, Yili's brand penetration rate is as high as 90.9%, meaning that more than 90% of households nationwide choose Yili. Yili's financial report mentioned that the performance growth is attributed to the following points: First, adhering to the concept of "natural, nutritious, and healthy," continuously enhancing brand value, and implementing precision marketing. The revenue from key products such as "Jindian," "Ambrosial," "Changqing," "Jinlingguan," "Qiaolezi," and "Changyi 100%" increased by 22.3% year-on-year. Among them, according to Nielsen retail measurement data, Jindian organic ambient liquid milk products held a retail sales value share of 45.7%, ranking first in the corresponding market segment. Second, in recent years, Yili has actively developed new categories and expanded new businesses. During the reporting period, new product sales revenue accounted for 19.4%, an increase of 4.6 percentage points compared with the same period in 2018. Businesses such as milk mineral beverages, cheese, milk fat, and packaged drinking water have been launched successively, which will become new growth points for the company. Yili pioneered the launch of "Yike Huoquan" volcanic low-temperature mineral water and "Yiran" milk mineral light beverage new products; during the same period, new products such as "Jindian" Dream Cap organic pure milk, "Jindian" organic skim pure milk, "Jinlingguan Youzi Xiaoyang" infant formula milk powder, "Jinlingguan Sainamu" infant organic formula milk powder, "Yili" children's cheese sticks, and "Yili" mozzarella cheese shreds were launched, all achieving good results. Third, in recent years, on the basis of continuously optimizing existing channel service capabilities, Yili has actively expanded new service models, such as social e-commerce, O2O home delivery, and other new retail sales channels. Yili's e-commerce business revenue increased by 49% year-on-year; during the same period, Nielsen retail measurement data showed that in the maternal and infant channel, the company's retail sales increased by 27.1% year-on-year; in the convenience store channel, Yili's retail sales value share of ambient liquid milk business increased by 4.2 percentage points year-on-year. -02- Impact of the Epidemic The financial report also mentioned that in 2020, the sudden outbreak of the epidemic and its continuing impact have brought varying degrees of impact to all industries. With the continuous improvement of domestic epidemic prevention and control, production and living order across the country is gradually recovering, and dairy products, as an important necessity for enhancing immunity and promoting nutrient absorption in daily life, are being valued by more and more people. During the epidemic, Yili donated a total of 280 million yuan to support the nationwide fight against the epidemic. At the same time, it quickly raised anti-epidemic materials to support upstream pastures and dairy farmers, provided anti-epidemic guidance, and opened green financing channels to fully support pastures in overcoming difficulties and building foundations. Within less than 50 days, it provided 670 million yuan, and it is expected to reach 5 billion yuan for the whole year. As Yili Chairman Pan Gang said, "Partnership collaboration is the source of sustainable development. Achieving health for all cannot be accomplished by one organization alone; it requires all parties to strengthen cooperation, with sincere attitudes and open minds, to mobilize and share respective resources, and to gather sustained momentum from all sides to achieve this goal." In addition, Yili predicts that, at present, the impact of the epidemic on the domestic dairy industry is short-term, and in the medium to long term, the healthy food industry, represented by dairy products, will continue to maintain a good development trend. Once the tip is adopted, a payment of 400-2000 yuan will be made.