---
title: "Yili's Revenue Reaches 21.5 Billion in First Two Months: Is the Annual Target of 100 Billion Still Far Away?"
description: "Yili has set two goals: a long-term target to rank among the top three global dairy companies by 2025 and become the world's number one by 2030, and a short-term target to achieve total operating revenue of 107 billion yuan and total profit of 9.3 billion yuan in 2021. While the long-term goal remains debatable, the short-term target seems within reach. On March 10, Yili (600887.SH) announced that in January-February 2022, it achieved revenue of 21.5 billion yuan, a year-on-year increase of 15%, and net profit of 3.3 billion yuan, up 20%."
author: "尹凯"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-03-11"
language: "en"
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# Yili's Revenue Reaches 21.5 Billion in First Two Months: Is the Annual Target of 100 Billion Still Far Away?

> Yili has set two goals: a long-term target to rank among the top three global dairy companies by 2025 and become the world's number one by 2030, and a short-term target to achieve total operating revenue of 107 billion yuan and total profit of 9.3 billion yuan in 2021. While the long-term goal remains debatable, the short-term target seems within reach. On March 10, Yili (600887.SH) announced that in January-February 2022, it achieved revenue of 21.5 billion yuan, a year-on-year increase of 15%, and net profit of 3.3 billion yuan, up 20%.

Yili has set two small goals for itself, including the long-term goals of "entering the global dairy top three by 2025 and achieving the world's number one dairy company by 2030" and the short-term goal of "the company plans to achieve total operating revenue of 107 billion yuan and total profit of 9.3 billion yuan in 2021." Whether the long-term goals can be achieved remains to be seen, but the short-term goal seems within reach.
**On March 10, Yili (600887.SH) announced that in January-February 2022, the company achieved revenue of 21.5 billion yuan, a year-on-year increase of 15%, and net profit of 3.3 billion yuan, a year-on-year increase of 20%.**
According to the announcement, in terms of business growth, the company continued to optimize its product structure to provide consumers with a richer product experience. Its liquid milk, milk powder and dairy products, cold drinks, and other businesses all maintained good growth momentum.
The sales revenue proportion of key products such as Jindian, Ambrosial, Jilingguan, Qiaolezi, Zhenxi, Changqing, Meiyitian, and Yili Children's Cheese Sticks increased by 3 percentage points year-on-year, maintaining a leading market share.
Currently, Yili has more than 20 brands, with an annual comprehensive production capacity of up to 13.12 million tons. It has long secured its position as the leading company in China's dairy products, but Yili's ambitions go far beyond that.
**Why Yili?**
The Chinese dairy market has always maintained a duopoly pattern. According to 2020 financial reports, Yili achieved revenue of 96.524 billion yuan, Mengniu achieved revenue of 76.035 billion yuan, while Bright Dairy, Sanyuan, and New Hope Dairy achieved revenue of 25.223 billion yuan, 7.35 billion yuan, and 6.749 billion yuan respectively in 2020.
The combined revenue of these three companies is less than half of Yili's. In a situation where many dairy companies are jointly dividing the market, why is Yili leading strongly?
In 1992, Pan Gang graduated from Inner Mongolia Agricultural University. At that time, the name Yili did not exist in the dairy market. Yili's predecessor was Hohhot Huimin Dairy Food Factory, where Pan Gang worked as a workshop worker and quality inspector.
However, he claimed, "My left eye is a magnifying glass, and my right eye is a microscope. So I can see far ahead while also taking into account precise internal management." If this statement is placed in Yili's future development, it will be found that Yili accurately stepped on every development node.
In 1998, the State Council issued the Food Structure Reform Outline: "Per capita ration grain is 146 kg, and dairy is 36 kg," but the shelf life of dairy products was only 1-2 days. How to ensure national supply?
At that time, Pan Gang had been promoted to manager of Yili's liquid milk division. He tried to introduce European equipment and advanced technology to extend the shelf life of liquid milk to 7 months, and quickly opened up sales.
By 2002, Yili Group's sales had exceeded 2.2 billion yuan, and Pan Gang became the president of Yili Group. In 2005, he led Yili to become the first domestic dairy enterprise with revenue exceeding 10 billion yuan. In addition, he successively proposed tasks that seemed impossible to complete.
Pan Gang's goals were to enter the global dairy top 20 by 2010 and the global dairy top 10 by 2015. It is worth mentioning that Yili achieved both goals one year ahead of schedule. So, what factors does Yili's success rely on?
**From the source of products,** Yili invested billions to build its own milk sources, with more than 1,500 pastures. It also acquired high-quality milk sources in other regions abroad, including controlling Saikexing and Westland, the second-largest dairy cooperative in New Zealand. These milk sources are also the fundamental source of Yili's long-term development.
**In talent management,** Yili adheres to Pan Gang's theory of "coagulating people, developing people, and achieving people," and establishes equity incentives for employees. Data shows that Yili has accumulated cash dividends of 20.543 billion yuan, with a dividend rate as high as 58.71% and an annual compound return rate as high as 27%.
Even in the worst-hit 2020, when large domestic enterprises were cutting salaries and laying off employees, Yili still insisted on raising salaries. Therefore, despite the impact of the epidemic on all walks of life, Yili rose against the trend, with both revenue and net profit growing.
Financial writer Wu Xiaobo wrote in "The Great Defeat": "When the boulder cracks, some see fear, and some see light." Yili not only saw the light but is also a well-deserved light of state-owned enterprises.
During the epidemic, Yili implemented measures to "stabilize production internally and ensure people's livelihood externally," and actively supported severely impacted pastures. Within 50 days, it financed 670 million yuan for upstream pastures, ensuring the supply of the industrial chain and demonstrating the company's responsibility.
**Yili's Industrial Layout**
Yili's slogan is: "To become the world's most trusted healthy food provider." From this perspective, Yili, aiming to go global, absolutely cannot only produce dairy products.
According to the announcement, **Yili's Jilingguan infant milk powder took the lead in completing formula upgrades, becoming one of the first batches of infant formula milk powder in China to meet the new national standard. In January-February, Jilingguan sales revenue increased by more than 30% year-on-year, ranking first in the industry in growth rate.**
In terms of product innovation, Yili launched multiple new products such as "Jindian Ultrafiltered Milk," "Ambrosial Dandong Strawberry," "Changqing Protein Time," "Jilingguan Senamu Organic Milk Powder," and "Xujinhuan Thick Milk Ice Cream," while combining multiple innovative marketing measures to boost the development of new products.
In 2019, the domestic sparkling water market was about 15 billion yuan. By February 2020, Yili launched Yiran Milk Mineral Sparkling Water, taking a differentiated route with the concept of "milk minerals," and also launched a limited strawberry and white peach flavored sparkling water in the summer.
In addition, a relevant person in charge of Yili mentioned in an interview with the media that Yili's mineral water project located in Changbai Mountain, Jilin, is expected to be put into production. The project has an annual production capacity of 1 million tons and a total investment of more than 700 million yuan.
On January 20 this year, Yili released the **"Champion Shines 2022" digital collectible** specially developed for the Winter Olympics. This is the world's first digital milk that never expires and is permanently fresh, with a global limited edition of 2,022 copies.
Regardless of the sales data of this product, the "never expires" feature alone is enough to attract attention. **Yili can be said to have mastered the digital code of the Internet era and successfully used this product to attract traffic.**
In March this year, Yili launched new tea-flavored products, Tea Language Tea Search. Although there are only two flavors now, Peach Oolong and Green Orange Pu'er, this move signals Yili's entry into sugar-free tea. Diversified business not only expands Yili's commercial territory but also inflates Yili's ambition to impact the global top 1.
**Yili's Ambition to Enter the Global Top 1**
In 2020, Rabobank released the "Global Dairy Top 20" list, with Yili Group ranking fifth, the only Chinese dairy company to be among the global top five. This list also means that Yili has anchored its position in the global battlefield.
"Enterprise Digitalization" mentions: "In the future, there will only be two types of enterprises: one is digital native enterprises, which operate and develop in a digital and intelligent way from their inception, and the second is enterprises that achieve rebirth through digital transformation."
Yili, adhering to the concept of "no innovation, no future," obviously belongs to the latter. Enterprises with strong vitality will never rest on their laurels, and every innovation by Yili is leading the dairy industry.
During the Chinese New Year, Yili sponsored Douyin's "Warm China Year" event, with total exposure data exceeding 130 billion. Yili's Spring Festival series short drama "I Shine My Family" had video views exceeding 400 million and visits exceeding 340 million. Yili's total brand exposure during this CNY campaign reached 125.9 billion times.
Among them, entrance resource exposure exceeded 67.48 billion, venue resource exposure exceeded 53.1 billion, and Yili's Jinguanling official account gained more than 12.39 million followers. Yili naturally monetized this traffic through digital marketing, which contributed to the strong revenue start in the first two months.
According to the announcement, **in terms of brand power enhancement, Yili, as China's only "Double Olympic Dairy Enterprise," has partnered with the Olympics for 17 years. In January-February 2022, the company achieved overall brand power enhancement through the integration of Winter Olympics and Spring Festival marketing. According to third-party survey data, consumers' purchase intention for Yili products during this period reached a record high.**
Moreover, Yili's product market penetration rate continues to rank first in the industry, with market penetration in prefecture-level cities and county-level cities increasing by 0.6 percentage points and 1.2 percentage points year-on-year respectively, and consumer reach scale continues to rise.
Pan Gang once said: "If we only pursue domestic market share, many things Yili does are unnecessary. But if your goal is to be a global leading brand, you must follow international norms in this regard."
Pan Gang had already paved the way for Yili's internationalization. In 2011, Yili invested in building one of the world's largest integrated dairy bases in New Zealand - Yili Oceania Production Base. In 2019, Yili acquired Westland, the second-largest dairy cooperative in New Zealand. In 2020, Yili's Indonesia factory was completed.
"Only by achieving the integrated development of commercial value and social value can we continuously discover new demands, create new models, promote new growth, and truly achieve sustainable development of the enterprise." This is Pan Gang's business philosophy. At present, Yili is going further and further on this path.
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