Core Insights - Yili Group reported a revenue of 61.777 billion yuan for the first half of 2025, a year-on-year increase of 3.49%, while net profit attributable to shareholders decreased by 4.39% to 7.2 billion yuan [2] - The company demonstrated strong operational resilience through product innovation and channel optimization, maintaining its leading market position across all categories [2] Revenue Breakdown - The liquid milk segment generated revenue of 36.126 billion yuan, maintaining the top market share in the industry [4] - The infant formula and dairy products segment achieved revenue of 16.578 billion yuan, a year-on-year increase of 14.26%, with a market share of 18.1% [6] - The cheese segment saw an increase in market share to 15.2%, with a revenue growth of over 20% in the food service channel [7] - The ice cream business generated revenue of 8.229 billion yuan, a year-on-year increase of 12.39%, also maintaining the market leadership [7] Product Innovation - New products contributed 14.7% to total revenue, with successful launches such as "Yogurt with Lemon" and "Gold Standard" fresh milk driving growth [3][4] - The company is focusing on product structure upgrades and category innovations, leading to double-digit growth in several brands [4] Market Position - Yili Group's infant formula market share increased by 1.3 percentage points, with significant growth in the goat milk powder segment, which reached a market share of 34.4% [6] - The adult nutrition segment also saw a market share increase of 1.8 percentage points, reaching 26.1% [6] Digital Transformation and International Expansion - The company is advancing its digital transformation, enhancing operational efficiency through self-developed platforms and AI technology [9] - Yili is actively expanding its international market presence, with increasing market shares in Indonesia and Thailand for its ice cream business, and continuous breakthroughs in North America and the Middle East for its infant formula [9]

Core Viewpoint - Yili Co., Ltd. announced the approval of its 2025 semi-annual report and summary during the seventh meeting of its eleventh board of directors [2] Group 1 - The announcement was made on the evening of August 28 [2] - The board meeting focused on the review and approval of the company's financial report [2]

Core Viewpoint - The news highlights various companies' financial performances, stock movements, and strategic decisions, indicating a mixed outlook across different sectors. Performance Summary - Anta Sports clarified it is not a potential acquirer of Canada Goose Holdings [3] - Lianyi Intelligent Manufacturing reported normal operations with no undisclosed significant matters [3] - Huon Electric's robot business is still in the R&D phase and has not generated revenue [3] - Tianfu Communication and Longyang Electronics both reported normal operations with no undisclosed significant matters [3] - Cambrian Technology expects annual revenue of 5 billion to 7 billion yuan in 2025 [3] - CITIC Securities reported a net profit of 13.719 billion yuan for the first half, up 29.8% year-on-year [3] - SMIC's net profit for the first half was 321 million USD, a 35.6% increase year-on-year [3] - Zhongwei Company reported a net profit of 706 million yuan, up 36.62% year-on-year [3] - Wancheng Group's net profit surged 50358.8% to 472 million yuan in the first half [3] - China Galaxy's net profit increased by 47.86% year-on-year, proposing a dividend of 1.25 yuan per 10 shares [3] - Zhujiang Beer reported a net profit of 612 million yuan, up 22.51% year-on-year [3] - Yili Group's net profit decreased by 4.39% to 7.2 billion yuan [3] - Zhongke Titanium White's net profit fell by 14.83% to 259 million yuan [3] - Huasheng Tiancheng turned a profit with a net profit of 140 million yuan [3] - Li Auto's second-quarter revenue totaled 30.2 billion yuan, down 4.5% year-on-year but up 16.7% quarter-on-quarter [3] - Bull Group's net profit decreased by 8% to 2.06 billion yuan [3] - Nanshan Aluminum reported a net profit of 2.625 billion yuan, proposing a dividend of 0.4 yuan per 10 shares [3] - Shuijingfang's net profit fell by 56.52% to 105 million yuan [3] - Huaneng International's net profit increased by 13.15% to 3.904 billion yuan [3] - SAIC Group's net profit decreased by 9.21% to 6.018 billion yuan [3] - SF Holding's net profit increased by 19.4% year-on-year, proposing a dividend of 4.6 yuan per 10 shares [3] - Zhongke Shuguang's net profit increased by 29.39% to 729 million yuan [3] - Shanxi Fenjiu's net profit increased by 1.13% to 8.505 billion yuan [3] - Haier Smart Home reported a net profit of 12.033 billion yuan, proposing a dividend of 2.69 yuan per 10 shares [3] - China State Construction's net profit increased by 3.2% to 30.404 billion yuan [3] - CITIC Construction Investment's net profit was 4.509 billion yuan, proposing a dividend of 1.65 yuan per 10 shares [3] - New China Life Insurance's net profit increased by 33.5% to 14.799 billion yuan [3] - China Southern Airlines reported a loss of 1.533 billion yuan in the first half [3] - Sanhuan Group's net profit increased by 20.63% to 1.237 billion yuan [3] - Yingshi Innovation's net profit increased by 0.25% to 520 million yuan [3] - ZTE's net profit decreased by 11.77% to 5.058 billion yuan [3] - Changxin Bochuang's net profit surged 1121.21% to 168 million yuan [3] Buyback and Shareholding Changes - Spring Airlines plans to repurchase shares worth 300 million to 500 million yuan [4] - Shenzhen Ruijie plans to repurchase 500,000 to 600,000 shares [4] - Haotong Technology's actual controller plans to reduce holdings by up to 3% [4] - Aojie Technology's shareholder Alibaba Network plans to reduce holdings by up to 3% [4] - Chunzong Technology's chairman plans to reduce holdings by up to 2.053% [4] - Zhejiang Shibao's controlling shareholder plans to reduce holdings by up to 2% [4] Contracts and Major Investments - Zhongding Co. signed a strategic cooperation agreement with the Baohe District government for the robotics industry [4] - Tongda Co. is pre-awarded a 122 million yuan procurement project by the State Grid [4] - Runjian Co. won a 392 million yuan project for green power supply in Ulanqab, Inner Mongolia [4] - Dash Intelligent signed a smart project contract for Hualun Century Plaza [4] - Huakang Clean signed a pre-award for a 136 million yuan medical purification project [4] - Shunyu Co. plans to establish a smart water management subsidiary [4] - Guanzhong Ecology plans to invest in a seedling breeding base in Kyrgyzstan [4] Mergers and Acquisitions - Beixin Building Materials intends to acquire 100% equity of an overseas building materials company [4] - Chip Origin plans to purchase equity in Chip Lai Zhirong, with stock suspension starting tomorrow [4] - Kaifa Electric plans to acquire 80% equity of Ouli Power Network for 52 million yuan [4] Other Developments - Jinghe Integration plans to issue H-shares and list on the Hong Kong Stock Exchange [4] - Huahai Qingke plans to issue H-shares and list on the main board of the Hong Kong Stock Exchange [4] - Fuhanwei plans to issue H-shares and list on the Hong Kong Stock Exchange [4]

Section I Definitions [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter defines common terms such as "the Company," "Shareholders' Meeting," and "CSRC" to ensure clear understanding of the report's content - In this report, "the Company," "Company," "Yili," and "Yili Group" all refer to Inner Mongolia Yili Industrial Group Co Ltd[16](index=16&type=chunk) - "Ausnutria Dairy" refers to Ausnutria Dairy Corporation Ltd[16](index=16&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section introduces the company's basic registration details, including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Inner Mongolia Yili Industrial Group Co Ltd, abbreviated as Yili Shares[18](index=18&type=chunk) - The company's legal representative is Pan Gang[18](index=18&type=chunk) [II. Contact Persons and Methods](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email addresses - The Board Secretary is Qiu Xiangmin, and the Securities Affairs Representative is Lai Chunling[19](index=19&type=chunk) - The contact address for both is No 1 Yili Street, Chishui River Dairy Development Zone, Hohhot[19](index=19&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section outlines the historical changes in the company's registered address, with the latest change to No 1 Yili Street, Chishui River Dairy Development Zone, Hohhot, Inner Mongolia Autonomous Region - The company's registered address changed to No 1 Yili Street, Chishui River Dairy Development Zone, Hohhot, Inner Mongolia Autonomous Region on May 26, 2023[20](index=20&type=chunk) - The company's website is https://www.yili.com[20](index=20&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section discloses the company's designated newspapers for information disclosure, the website address for publishing semi-annual reports, and the location where reports are kept - The company's information disclosure newspapers are "China Securities Journal" and "Shanghai Securities News"[21](index=21&type=chunk) - The semi-annual report is published on http://www.sse.com.cn[21](index=21&type=chunk) [V. Company Stock Overview](index=6&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section introduces the company's stock type, listing exchange, stock abbreviation, and code - The company's stock is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Yili Shares and code 600887[22](index=22&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's key accounting data and financial indicators for the reporting period, showing revenue growth but a decline in total profit and net profit attributable to shareholders, alongside a significant increase in non-recurring net profit Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 61,776,746,682.68 yuan | 59,695,756,961.59 yuan | 3.49 | | Total Profit | 8,274,286,309.15 yuan | 8,756,258,724.01 yuan | -5.50 | | Net Profit Attributable to Shareholders | 7,200,477,611.91 yuan | 7,531,134,128.62 yuan | -4.39 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 7,016,349,502.87 yuan | 5,324,460,044.53 yuan | 31.78 | | Net Cash Flow from Operating Activities | 2,964,215,363.27 yuan | 5,325,543,661.40 yuan | -44.34 | | Net Assets Attributable to Shareholders | 53,300,129,060.76 yuan | 53,179,935,140.80 yuan | 0.23 | | Total Assets | 149,549,665,798.77 yuan | 153,718,003,927.97 yuan | -2.71 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 1.14 | 1.18 | -3.39 | | Diluted Earnings Per Share (yuan/share) | 1.14 | 1.19 | -4.20 | | Basic EPS Excluding Non-Recurring Items (yuan/share) | 1.11 | 0.83 | 33.73 | | Weighted Average Return on Net Assets (%) | 12.60 | 13.18 | Decrease of 0.58 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Items (%) | 12.28 | 9.32 | Increase of 2.96 percentage points | [IX. Non-Recurring Gains and Losses and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details the non-recurring gains and losses and their respective amounts for the reporting period, totaling **184.13 million yuan** Non-Recurring Gains and Losses for H1 2025 | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including reversal of asset impairment provisions | -2,776,971.15 | | Government grants recognized in current profit or loss, excluding those closely related to the company's normal operations, compliant with national policies, enjoyed under fixed standards, and having a continuous impact on the company's profit or loss | 521,146,356.97 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedging activities related to normal business operations | -17,373,567.64 | | Reversal of impairment provisions for receivables subject to individual impairment testing | 6,832,596.33 | | Other non-operating income and expenses apart from the above | -297,486,984.52 | | Less: Income tax impact | 23,421,250.25 | | Minority interests impact (after tax) | 2,792,070.70 | | **Total** | **184,128,109.04** | Section III Management Discussion and Analysis [I. Industry and Main Business Overview for the Reporting Period](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section details the company's business scope, operating model, key performance drivers, and the macro environment, supply-demand, category development, and policy support within the dairy industry [(I) Business Scope](index=8&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E7%BB%8F%E8%90%A5%E8%8C%83%E5%9B%B4) The company primarily engages in the production and sale of various dairy and healthy beverages, offering a wide range of products mainly for the domestic market, with some exported overseas - The company operates several major product series including liquid milk, dairy beverages, milk powder, yogurt, frozen desserts, cheese, dairy fat, and packaged drinking water[29](index=29&type=chunk) - Products are primarily sold in the domestic market, with some exported to overseas markets[29](index=29&type=chunk) [(II) Operating Model](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company has established six product business groups under a divisional system, procuring raw milk through a benefit-sharing mechanism, centrally bidding for other raw and auxiliary materials, strategically locating production bases globally, and expanding markets through a distribution-led, direct-sales-supplemented omnichannel marketing model - The company has established six product business groups in a divisional structure: liquid milk, infant nutrition, adult nutrition, frozen desserts, yogurt, and cheese[29](index=29&type=chunk) - The procurement model involves a benefit-sharing and embedded service approach for raw milk, with centralized bidding for other materials[29](index=29&type=chunk) - The marketing and sales model is primarily distribution-led, supplemented by direct sales, covering all channels[30](index=30&type=chunk) - Overseas business is strategically managed, with subsidiaries in multiple countries producing and selling milk powder, lactoferrin, and cheese products[30](index=30&type=chunk) [(III) Key Performance Drivers](index=8&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company achieved performance growth through consumer-centric product and technological innovation, optimized business portfolios, deepened digital transformation across the entire industry chain, and expanded overseas markets, with new product revenue accounting for **14.7%**, and double-digit growth in water and beverage, overseas frozen dessert, and infant goat milk powder businesses - The company adheres to a consumer-centric approach, accelerating technological and product innovation, and continuously optimizing its business portfolio[30](index=30&type=chunk) - New product revenue accounted for **14.7%** of the total, providing continuous internal momentum for business development[32](index=32&type=chunk) - During the reporting period, the water and beverage business achieved **double-digit revenue growth**[32](index=32&type=chunk) - Overseas frozen dessert business revenue grew by **14.4%**, and infant goat milk powder business revenue grew by **65.7%**[33](index=33&type=chunk) [(IV) Industry Overview](index=9&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) In the first half of 2025, the domestic dairy industry saw a slight increase in consumer confidence despite geopolitical influences, with a rising share of online consumption; supply-demand imbalances eased, per capita dairy consumption still has growth potential, and diversified dairy demand led to a recovery in ambient functional milk, flavored milk, high-end nutritional products, and frozen dessert markets, supported by continuous national policies - In the first half of 2025, domestic consumption growth accelerated, retail sales of grain, oil, and food products continued to increase, and the share of online consumption steadily rose[33](index=33&type=chunk) - Domestic raw milk production saw slight growth, dairy imports increased, raw milk prices remained stable, and the decline in dairy retail prices slowed, indicating an easing of supply-demand imbalances[34](index=34&type=chunk) - Dairy consumption demand showed a diversified trend, with sales of ambient functional milk, flavored milk, high-end infant and adult nutritional products, and frozen desserts recovering[34](index=34&type=chunk)[35](index=35&type=chunk) - National policies continue to support dairy industry development, including measures to boost consumption, revitalize the seed industry, update food safety standards, and implement childcare subsidies[35](index=35&type=chunk) [II. Discussion and Analysis of Operations](index=10&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company achieved total operating revenue of **61.93 billion yuan** and net profit of **7.24 billion yuan**, with liquid milk, milk powder and dairy products, and frozen dessert businesses maintaining market leadership and growth, while the company strengthened its market competitiveness through product innovation, enhanced marketing, lean management, digital transformation, and overseas market expansion - During the reporting period, the company achieved total operating revenue of **61.93 billion yuan** and net profit of **7.24 billion yuan**[36](index=36&type=chunk) [(I) Liquid Milk Business](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%B6%B2%E4%BD%93%E4%B9%B3%E4%B8%9A%E5%8A%A1) The liquid milk business achieved revenue of **36.13 billion yuan**, maintaining its leading market share; ambient liquid milk saw increased market share in ambient yogurt, dairy beverages, and high-end white milk through sub-brand optimization and technological innovation, with "Ambpoeial" and "Yousuanju" performing exceptionally, and "Satine" launching fresh pure milk and high-protein ultra-filtered milk; low-temperature liquid milk achieved counter-cyclical growth through bacterial strain technology and packaging innovation, with low-temperature white milk revenue growing over **20%**; the company strengthened channel penetration and emerging channel operations, solidifying its online and offline market advantages - The liquid milk business achieved operating revenue of **36.13 billion yuan**, maintaining its overall market share as the industry leader[36](index=36&type=chunk) - "Ambpoeial" peach oat popping boba yogurt, with its innovative four-layer encapsulation technology, drove a **4.3 percentage point increase** in ambient yogurt market share[37](index=37&type=chunk) - The launch of "Yousuanju" Chewy Lemon new product drove **double-digit revenue growth** for the brand[37](index=37&type=chunk) - Low-temperature white milk category revenue grew by **over 20%**[39](index=39&type=chunk) - The company's ambient liquid milk maintained and increased its market share as the industry leader in both offline and major e-commerce platforms[39](index=39&type=chunk) [(II) Milk Powder and Dairy Products Business](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%A5%B6%E7%B2%89%E5%8F%8A%E5%A5%B6%E5%88%B6%E5%93%81%E4%B8%9A%E5%8A%A1) The milk powder and dairy products business achieved revenue of **16.58 billion yuan**, a **14.26%** year-on-year increase, securing the leading market share; infant nutrition products, through technological innovation and breast milk research, launched "Goldencap" Saanen organic milk powder and "Tofiel" sensitive care formula food, reaching an **18.1%** market share and becoming the national leader; adult nutrition brand "Xinhuo" collaborated with Tongrentang, with both goat milk powder and student milk powder revenues achieving double-digit growth; cheese and dairy fat businesses saw revenue growth of over **20%** by enriching their product matrix and providing solutions for professional catering clients - The milk powder and dairy products business achieved operating revenue of **16.58 billion yuan**, a **14.26%** year-on-year increase, securing the overall market share as the industry leader[40](index=40&type=chunk) - The overall infant milk powder (including cow milk powder and goat milk powder) retail market share reached **18.1%**, becoming the national retail market share leader[41](index=41&type=chunk) - The company's goat milk powder market share reached **34.4%**, an increase of **3.0 percentage points** from the prior year[41](index=41&type=chunk) - The adult milk powder business retail market share reached **26.1%**, maintaining its industry-leading position[42](index=42&type=chunk) - Revenue from cheese and dairy fat businesses targeting professional catering clients grew by **over 20%** year-on-year[43](index=43&type=chunk) [(III) Frozen Dessert Business](index=12&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%86%B7%E9%A5%AE%E4%B8%9A%E5%8A%A1) The frozen dessert business achieved revenue of **8.23 billion yuan**, a **12.39%** year-on-year increase, maintaining its market leadership; the company launched popular new products like "Chocliz" Taro Mochi Ice Cream and "Ice Factory" Edible Ice Cups through technological innovation and expanding consumption scenarios; domestic frozen dessert business revenue grew by double digits, with online and offline market shares both ranking first in the industry - The frozen dessert business achieved operating revenue of **8.23 billion yuan**, a **12.39%** year-on-year increase, maintaining its market leadership[43](index=43&type=chunk) - "Chocliz" Taro Mochi Ice Cream became a popular product, and "Ice Factory" Edible Ice Cups met consumer DIY demands for summer scenarios[44](index=44&type=chunk) - The company's frozen dessert business holds the leading market share in both online and offline retail sales[44](index=44&type=chunk) [Key Initiatives Implemented by the Company During the Reporting Period](index=12&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E9%87%8D%E7%82%B9%E6%8E%A8%E8%BF%9B%E3%80%81%E8%90%BD%E5%AE%9E%E4%BA%86%E4%BB%A5%E4%B8%8B%E4%B8%BE%E6%8E%AA) The company enhanced quality management through technological innovation, strengthened brand building and marketing innovation, promoted lean management to reduce costs, accelerated digital transformation to empower the entire industry chain, continuously expanded overseas markets, and built a sustainable industry chain and ecosystem - Collaborated with the National Dairy Technology Innovation Center to achieve breakthroughs in nutritional science, packaging technology, and flavor/texture technology, enhancing consumer satisfaction[45](index=45&type=chunk) - Strengthened emotional connections between brands and consumers by partnering with popular programs and IPs based on target audience profiles, boosting brand power[46](index=46&type=chunk) - Continuously advanced lean management, optimized procurement strategies, reduced prices of major raw and auxiliary materials, and accelerated the construction of an agile, efficient, and flexible supply chain service system[47](index=47&type=chunk) - Accelerated digital transformation, applying AI to improve R&D efficiency, consumer operations, omnichannel operations, and supply chain collaboration, reducing digital content production costs by **40%**[48](index=48&type=chunk) - Continuously expanded overseas markets, deepening localized development, with sustained breakthroughs in overseas frozen dessert and infant milk powder businesses, leading to improved profitability[48](index=48&type=chunk) - Built a comprehensive green industry chain, with China's first integrated carbon management operating platform officially launched, and initiated the "Zero Carbon Alliance" and "Global Low Water Footprint Initiative Alliance"[49](index=49&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=15&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies are reflected in its diversified product categories and business portfolio, outstanding brand advantages, strong channel management capabilities, leading innovation capabilities, efficient global supply chain synergy, high-quality sustainable development capabilities, and a cohesive corporate culture - The company boasts a diversified portfolio of liquid milk, dairy beverages, milk powder, yogurt, frozen desserts, cheese, and water products, with high-value-added categories showing strong growth[50](index=50&type=chunk) - The "Yili" brand value has consistently ranked first in the global dairy industry for many years and has topped China's dairy brand value list for six consecutive years[50](index=50&type=chunk) - The company strengthened its multi-dimensional channel construction, promoted digital transformation across all online and offline channels, and improved channel service levels[50](index=50&type=chunk) - As of the end of June 2025, the company had accumulated **995 authorized domestic and international invention patents** and received multiple World Dairy Innovation Awards[51](index=51&type=chunk) - The company operates **81 production bases globally**, with products sold in **over 60 countries and regions**, boasting a comprehensive annual production capacity of **over 16 million tons**[52](index=52&type=chunk) - The MSCI ESG rating remains **AA**, reaching a global industry-leading level and the highest rating among Chinese dairy listed companies[52](index=52&type=chunk) [IV. Major Operating Conditions During the Reporting Period](index=16&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section provides a detailed analysis of the company's financial statement item changes, asset and liability status, investment situation, and major holding and associate companies during the reporting period; operating revenue increased due to higher sales volume, while total profit and net profit attributable to shareholders decreased, but non-recurring net profit significantly grew; the asset and liability structure was adjusted, with overseas assets accounting for **13.58%** of total assets, and investment income primarily derived from associate companies and financial assets [(I) Analysis of Main Business Operations](index=16&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue increased due to higher product sales, with a corresponding rise in operating costs; selling and administrative expenses decreased, while R&D expenses grew due to increased survey and experimental design fees; net cash flow from operating activities decreased due to a decline in advance payments from distributors Changes in Financial Statement Items | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 61,776,746,682.68 | 59,695,756,961.59 | 3.49 | Increase in product sales | | Operating Cost | 39,509,196,192.71 | 38,930,829,297.03 | 1.49 | Increase in product sales | | Selling Expenses | 11,334,120,830.98 | 11,629,389,875.55 | -2.54 | Decrease in advertising and marketing expenses | | Administrative Expenses | 2,335,256,810.90 | 2,346,014,340.23 | -0.46 | Decrease in depreciation and repair expenses | | Financial Expenses | -448,909,223.21 | -331,661,984.33 | Not applicable | Decrease in interest expenses | | R&D Expenses | 380,304,881.18 | 341,385,889.99 | 11.40 | Increase in survey and experimental design fees | | Net Cash Flow from Operating Activities | 2,964,215,363.27 | 5,325,543,661.40 | -44.34 | Decrease in advance payments from distributors | | Net Cash Flow from Investing Activities | -7,482,038,254.51 | -2,710,984,095.97 | Not applicable | Increase in cash paid for large-denomination certificates of deposit and time deposits | | Net Cash Flow from Financing Activities | -3,894,225,979.78 | -1,147,484,450.32 | Not applicable | Decrease in net increase of bank borrowings | [(III) Analysis of Assets and Liabilities](index=17&type=section&id=%28%E4%B8%89%29%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets and net assets attributable to the parent company showed slight changes; monetary funds decreased due to dividend distribution, while trading financial assets and non-current assets due within one year significantly increased due to reclassification and an increase in certificates of deposit; contract liabilities substantially decreased due to reduced advance payments, and long-term borrowings decreased due to reclassification to current liabilities; overseas assets accounted for **13.58%** of total assets Major Changes in Assets and Liabilities | Item Name | Current Period End Amount (yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 17,554,909,594.66 | -30.90 | Decrease in bank deposits due to 2024 dividend distribution | | Trading Financial Assets | 51,716,887.67 | 744.84 | Reclassification of some equity instruments | | Derivative Financial Assets | 157,987,243.94 | 29,783.04 | Increase in fair value of forward foreign exchange contracts | | Prepayments | 1,558,204,900.89 | 32.49 | Increase in prepaid advertising expenses | | Non-current Assets Due Within One Year | 19,129,521,405.71 | 114.76 | Increase in large-denomination certificates of deposit due within one year | | Trading Financial Liabilities | 0 | -100.00 | Delivery of futures contracts | | Derivative Financial Liabilities | 4,002,835.93 | -97.48 | Increase in fair value of forward foreign exchange contracts | | Notes Payable | 280,035,505.05 | -71.11 | Decrease in supplier payments settled by bank acceptance bills | | Contract Liabilities | 4,601,718,300.22 | -61.88 | Decrease in advance payments from distributors | | Taxes Payable | 462,299,186.66 | -45.63 | Decrease in corporate income tax and value-added tax payable | | Long-term Borrowings | 201,449,410.33 | -95.70 | Long-term borrowings due within one year reclassified to non-current liabilities | | Treasury Stock | 0 | -100.00 | Cancellation of repurchased shares | | Other Comprehensive Income | -224,795,946.04 | Not applicable | Increase in foreign currency translation differences | - Overseas assets amounted to **20.31 billion yuan**, accounting for **13.58%** of total assets[61](index=61&type=chunk) [(IV) Analysis of Investment Status](index=18&type=section&id=%28%E5%9B%9B%29%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total equity investments amounted to **8.47 billion yuan**, with investment income of **90.61 million yuan** for the current period; investments in financial assets measured at fair value increased, primarily including stocks, private equity funds, and derivative instruments; the company conducts commodity futures and foreign exchange derivative hedging activities to mitigate price and exchange rate fluctuation risks, and has established strict risk control measures Investment Categories and Period-End Balances | Investment Category | Beginning Balance (yuan) | Change (yuan) | Ending Balance (yuan) | Current Period Investment Income (yuan) | | :--- | :--- | :--- | :--- | :--- | | Investments in Associates and Joint Ventures | 3,992,032,262.04 | 67,424,209.65 | 4,059,456,471.69 | 66,940,243.98 | | Financial Assets Measured at Fair Value | 4,250,582,259.43 | 159,315,520.29 | 4,409,897,779.72 | 23,674,443.89 | | **Total** | **8,242,614,521.47** | **226,739,729.94** | **8,469,354,251.41** | **90,614,687.87** | - The company's private equity fund investment balance was **1.44 billion yuan**[67](index=67&type=chunk) - The company conducts commodity futures and foreign exchange derivative hedging activities, not for speculative purposes, but to mitigate price, interest rate, and exchange rate fluctuation risks[67](index=67&type=chunk)[68](index=68&type=chunk) - During the reporting period, commodity futures generated a net loss of **0.24 million yuan**, and foreign exchange derivatives generated a net gain of **34.90 million yuan**[67](index=67&type=chunk) [(VI) Analysis of Major Holding and Associate Companies](index=22&type=section&id=%28%E5%85%AD%29%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists the top ten subsidiaries by total asset size, including Hong Kong Jin Gang Commercial Trading Holdings Limited and Yili Finance Co Ltd, and discloses their main businesses, registered capital, total assets, net assets, and net profit Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong Jin Gang Commercial Trading Holdings Limited | Subsidiary | Trade, Investment | 2,482.84 million US dollars | 2,957,821.21 | 1,554,436.44 | 10,046.94 | | Yili Finance Co Ltd | Subsidiary | Financial services for enterprise groups | 100,000 | 1,104,263.87 | 238,212.34 | 16,708.94 | | Inner Mongolia Jinhao Yili Dairy Co Ltd | Subsidiary | Production and sales of dairy products | 362,000 | 398,367.28 | 383,687.16 | 14,921.70 | | Huishang Commercial Factoring Co Ltd | Subsidiary | Factoring | 200,000 | 389,151.13 | 199,871.64 | -2,827.74 | | Ningxia Yili Dairy Co Ltd | Subsidiary | Production and sales of dairy products | 81,088 | 318,130.12 | 138,518.93 | 16,887.22 | | Boyuan Investment Holding Limited | Subsidiary | Investment | 2.85 | 287,646.30 | 287,646.15 | 5,253.10 | | Inner Mongolia Huishang Internet Microfinance Co Ltd | Subsidiary | Microfinance | 150,000 | 269,787.13 | 184,190.34 | 1,825.77 | | Inner Mongolia Jinze Yili Dairy Co Ltd | Subsidiary | Production and sales of dairy products | 215,000 | 258,271.56 | 221,970.90 | 5,308.69 | | Daqing Yili Dairy Products Co Ltd | Subsidiary | Production and sales of dairy products | 159,734 | 223,427.86 | 170,731.12 | 7,037.05 | | Yili International Development Co Ltd | Subsidiary | Trade, Investment | 184.08 million US dollars | 202,351.59 | 173,014.07 | 2,881.73 | [V. Other Disclosures](index=24&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This section discloses potential supply, financial, and product quality risks faced by the company, and details the implementation of the company's "Quality Improvement, Efficiency Enhancement, and Returns" action plan, including improving operational quality, accelerating the development of new productive forces, strengthening market value management and investor communication, and adhering to standardized operations [(I) Potential Risks](index=24&type=section&id=%28%E4%B8%80%29%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces supply risks due to uncertainties in imported raw and auxiliary material prices, financial risks from exchange rate and trade policy fluctuations in its internationalization strategy, and product quality risks related to food safety - Supply Risk: Prices of imported raw and auxiliary materials are subject to uncertainties influenced by geopolitical factors, economic and trade policies, and exchange rate fluctuations[71](index=71&type=chunk) - Financial Risk: Overseas business is increasingly affected by exchange rate, trade policy, and tariff fluctuations[72](index=72&type=chunk) - Product Quality Risk: Food safety is a core concern, and the company continuously optimizes its global quality management system[72](index=72&type=chunk) [(II) Other Disclosures](index=24&type=section&id=%28%E4%BA%8C%29%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company actively implemented its "Quality Improvement, Efficiency Enhancement, and Returns" action plan, achieving total operating revenue of **61.93 billion yuan** and net profit of **7.24 billion yuan** in the first half of the year; the company continuously enhanced innovation capabilities, accelerated digital transformation, launched multiple new products, and reduced digital content production costs by **40%**; shareholder interests were protected through high cash dividends and share repurchases, alongside strengthened investor communication; the company maintained standardized operations to improve corporate governance - In the first half of 2025, the company achieved total operating revenue of **61.93 billion yuan** and net profit of **7.24 billion yuan**[74](index=74&type=chunk) - The company developed an innovative stomach-nourishing raw milk with ginger extract and launched Shuhua Lactose-Free Hericium Erinaceus Milk; "Yikehuoquan Ink-Free Volcanic Bottle" won the "WorldStar" award[75](index=75&type=chunk) - Applied generative AI technology to build a digital content center platform, reducing digital content production costs by **40%**, with private domain monthly active users increasing by **25%** year-on-year[76](index=76&type=chunk) - For 2024, a cash dividend of **1.22 yuan per share** (including tax) was distributed to all shareholders, totaling **7.72 billion yuan**, representing **91.29%** of net profit attributable to the parent company[77](index=77&type=chunk) - In May 2025, the company completed the repurchase and cancellation of **40,540,038 shares**, utilizing **1.01 billion yuan** in funds[78](index=78&type=chunk) - In the first half of 2025, the company completed nearly **130 investor communication activities**, deepening shareholders' understanding of the company's value investment[79](index=79&type=chunk) Section IV Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, Mr Chaolu resigned from his directorship due to work changes, and Mr Gao Zhenyu was elected as a director of the company's eleventh board of directors - Mr Chaolu resigned from his directorship, and Mr Gao Zhenyu was elected as a director[81](index=81&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company will not implement any profit distribution or capital reserve conversion to share capital for the first half of 2025 - The company will not implement any profit distribution or capital reserve conversion to share capital for the first half of 2025[82](index=82&type=chunk) [III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact](index=27&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company terminated the implementation of its 2023 Employee Stock Ownership Plan (Phase II) and approved the "Inner Mongolia Yili Industrial Group Co Ltd Fifth Phase Long-Term Service Plan" and its daily management measures, with implementation progress disclosed - The company terminated the implementation of its 2023 Employee Stock Ownership Plan (Phase II)[83](index=83&type=chunk) - The company approved and disclosed the Fifth Phase Long-Term Service Plan, its daily management measures, and implementation progress[83](index=83&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=28&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company has **37 enterprises** included in the list of enterprises required to disclose environmental information by law, and provides inquiry indexes for environmental information disclosure reports of some of these enterprises - The company has **37 enterprises** included in the list of enterprises required to disclose environmental information by law[85](index=85&type=chunk) - Inquiry indexes for environmental information disclosure reports of some subsidiaries, such as Hulunbuir Yili Dairy Co Ltd and Weifang Yili Dairy Co Ltd, are provided[85](index=85&type=chunk)[87](index=87&type=chunk) [V. Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts](index=29&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company actively responds to the national rural revitalization strategy by improving benefit-sharing mechanisms with farmers and herders, leveraging its core business to provide nutritional support, strengthening rural talent teams, and promptly responding to major disaster events, thereby contributing to comprehensive rural revitalization - The company, through its "Benefit Linkage 2.0" mechanism, implements "seven linkages" including technical services and financial support, assisting pastures in improving quality, reducing costs, and increasing efficiency, thereby boosting farmers' and herders' incomes[88](index=88&type=chunk) - The company, in collaboration with the Red Cross Society of China Foundation, promotes the "Yili Nutrition 2030" public welfare project, donating cash and products such as student milk and children's growth formula milk powder to safeguard children's health[89](index=89&type=chunk)[90](index=90&type=chunk) - The company intensifies the cultivation of local rural talent, training **over 36,000 technical and managerial professionals** in the pastoral industry[90](index=90&type=chunk) - The company actively fulfills its social responsibilities, donating cash and supplies during the Tibet earthquake and Guizhou floods to aid disaster relief and post-disaster reconstruction efforts[91](index=91&type=chunk) Section V Important Matters [I. Fulfillment of Commitments](index=31&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company strictly fulfilled its commitments related to refinancing, including those concerning quasi-financial businesses and responses to feedback on non-public issuance of shares applications - The company strictly fulfilled its commitments related to refinancing, with commitment periods extending until the completion of fund utilization or within 36 months of fund availability[94](index=94&type=chunk) [VII. Major Lawsuits and Arbitrations](index=31&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no major lawsuits or arbitrations during the reporting period - The company had no major lawsuits or arbitrations during the reporting period[95](index=95&type=chunk) [IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller During the Reporting Period](index=32&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company maintained a good integrity status, with no unfulfilled obligations determined by effective court legal documents or large overdue debts - During the reporting period, the company had no unfulfilled obligations determined by effective court legal documents or large overdue debts[96](index=96&type=chunk) [XI. Major Contracts and Their Fulfillment](index=33&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section discloses the company's major guarantee activities during the reporting period, primarily provided by its wholly-owned subsidiary, Inner Mongolia Huishang Financing Guarantee Co Ltd, for upstream and downstream partners in the industry chain, with a total guarantee amount of **9.65 billion yuan** at the end of the reporting period [(II) Major Guarantees Executed and Unfulfilled During the Reporting Period](index=34&type=section&id=%28%E4%BA%8C%29%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E7%9A%84%E5%8F%8A%E5%B0%9A%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) Inner Mongolia Huishang Financing Guarantee Co Ltd, a wholly-owned subsidiary, provided financing guarantees for suppliers and distributors, with a total guarantee amount of **2.14 billion yuan** incurred during the reporting period and an outstanding guarantee balance of **2.08 billion yuan** at period-end; the company's guarantees to subsidiaries totaled **7.57 billion yuan** Company External Guarantees (Excluding Guarantees to Subsidiaries) | Guarantor | Guaranteed Party | Guarantee Amount (million yuan) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | Is Overdue | Overdue Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia Huishang Financing Guarantee Co Ltd | Suppliers and Distributors | 213,880.00 | 2025/1/1 | 2026/6/27 | No | Yes | 2,958.27 | - The total guarantee amount incurred during the reporting period (excluding guarantees to subsidiaries) was **2.14 billion yuan**[100](index=100&type=chunk) - The total outstanding guarantee balance at the end of the reporting period (excluding guarantees to subsidiaries) was **2.08 billion yuan**[100](index=100&type=chunk) - The total outstanding guarantee balance to subsidiaries at the end of the reporting period was **7.57 billion yuan**[100](index=100&type=chunk) - The total guarantee amount (A+B) was **9.65 billion yuan**, accounting for **18.11%** of the company's net assets[100](index=100&type=chunk) [XII. Explanation of Progress in the Use of Raised Funds](index=35&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) The company's overall use of raised funds progressed smoothly, with a cumulative investment of **10.55 billion yuan** by the end of the reporting period, representing an investment progress of **87.59%**; some investment projects have been completed, and the remaining funds are allocated to new projects and supplementing working capital [(I) Overall Use of Raised Funds](index=35&type=section&id=%28%E4%B8%80%29%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%95%B4%E4%BD%93%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) As of the end of the reporting period, the company's total raised funds amounted to **12.05 billion yuan**, with a net amount of **12.04 billion yuan**, and a cumulative investment of **10.55 billion yuan**, representing an investment progress of **87.59%** Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (million yuan) | Net Raised Funds (million yuan) | Total Committed Investment of Raised Funds (million yuan) | Cumulative Investment of Raised Funds at Period-End (million yuan) | Cumulative Investment Progress (%) | Amount Invested This Year (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Shares to Specific Objects | 1,204,725.00 | 1,204,096.58 | 1,204,096.58 | 1,054,727.10 | 87.59% | 18,351.32 | [(II) Details of Investment Projects Using Raised Funds](index=35&type=section&id=%28%E4%BA%8C%29%E5%8B%9F%E6%8A%95%E9%A1%B9%E7%9B%AE%E6%98%8E%E7%BB%86) This section details the investment status, progress, and benefits of each project funded by raised capital; multiple projects have reached their intended operational state and generated significant benefits, with digital transformation and information upgrade projects, as well as the dairy innovation base project, achieving important results in technology R&D and operational efficiency improvement Detailed Use of Raised Funds (Partial Projects) | Project Name | Planned Total Investment of Raised Funds (million yuan) | Cumulative Investment of Raised Funds at Period-End (million yuan) | Cumulative Investment Progress (%) | Benefits Achieved This Year (tons) | | :--- | :--- | :--- | :--- | :--- | | Hohhot Liquid Milk Global Leading 5G Green Production AI Application Demonstration Project | 259,100.00 | 233,388.00 | 90.08% | 288,574 | | Lindian Liquid Milk Production Base Project | 28,307.50 | 28,425.03 | 100.42% | 60,913 | | Wuzhong Dairy Industrial Park Yili Dairy Products Green Smart Manufacturing Project | 5,000.00 | 5,048.22 | 100.96% | 35,699 | | Hulunbuir Annual Output of 530,000 Tons Liquid Milk Green Production and AI New Model Demonstration Application Project | 36,000.00 | 36,338.08 | 100.94% | 102,782 | | Global Leading 5G+ Industrial Internet Infant Formula Milk Powder Smart Manufacturing Demonstration Project | 155,000.00 | 147,448.52 | 95.13% | 11,774 | | Changbai Mountain Natural Mineral Water Project | 21,000.00 | 21,367.74 | 101.75% | 42,322 | - The digital transformation and information upgrade project established a full-link digital operation platform in core business areas such as innovative R&D, brand marketing, and supply chain, enhancing data and technology platform capabilities[106](index=106&type=chunk) - The dairy innovation base project achieved significant R&D results in packaging lightweighting, breast milk protein research, sugar reduction/sugar substitute raw material platforms, and stomach-nourishing innovative raw milk[107](index=107&type=chunk) [(III) Changes or Termination of Investment Projects Using Raised Funds During the Reporting Period](index=37&type=section&id=%28%E4%B8%89%29%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8B%9F%E6%8A%95%E5%8F%98%E6%9B%B4%E6%88%96%E7%BB%88%E6%AD%A2%E6%83%85%E5%86%B5) The company adjusted the remaining raised funds from the "Hohhot Liquid Milk Global Leading 5G Green Production Artificial Intelligence Application Demonstration Project" based on market conditions and business development plans; **689 million yuan** was allocated to the AI and Security Capability Upgrade Digital Transformation Project, **60 million yuan** to the Duolun Factory Infant Formula Milk Powder Smart Equipment Upgrade Project, and the remaining **341.85 million yuan** permanently supplemented working capital - The "Hohhot Liquid Milk Global Leading 5G Green Production Artificial Intelligence Application Demonstration Project" had remaining raised funds of **1.09 billion yuan**[110](index=110&type=chunk) - Of this, **689 million yuan** was allocated to the AI and Security Capability Upgrade Digital Transformation Project[110](index=110&type=chunk) - **60 million yuan** was allocated to the Duolun Factory Infant Formula Milk Powder Smart (Digital) Equipment Upgrade Project[110](index=110&type=chunk) - The remaining **341.85 million yuan** permanently supplemented working capital[110](index=110&type=chunk) Section VI Share Changes and Shareholder Information [I. Share Capital Changes](index=40&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital decreased due to the repurchase and cancellation of **40,540,038 shares**, with a corresponding reduction in unrestricted tradable shares [1. Table of Share Changes](index=40&type=section&id=1%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E8%A1%A8) During the reporting period, the company's total share capital decreased by **40,540,038 shares**, primarily due to the repurchase and cancellation of unrestricted tradable shares Share Changes | Share Class | Quantity Before This Change (shares) | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 31,430,946 | 0 | 31,430,946 | | II. Unrestricted Tradable Shares | 6,334,469,759 | -40,540,038 | 6,293,929,721 | | **III. Total Shares** | **6,365,900,705** | **-40,540,038** | **6,325,360,667** | [2. Explanation of Share Changes](index=40&type=section&id=2%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company cancelled all repurchased shares totaling **40,540,038 shares** on May 20, 2025, resulting in a decrease in total share capital - The company cancelled all repurchased shares totaling **40,540,038 shares** on May 20, 2025[115](index=115&type=chunk) [II. Shareholder Information](index=41&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had a total of **392,454 common shareholders**; this section discloses the shareholding status of the top ten shareholders and top ten unrestricted shareholders, with Hong Kong Securities Clearing Company Limited being the largest shareholder [(I) Total Number of Shareholders](index=41&type=section&id=%28%E4%B8%80%29%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%EF%BC%9A) As of the end of the reporting period, the total number of common shareholders was **392,454** - As of the end of the reporting period, the total number of common shareholders was **392,454**[116](index=116&type=chunk) [(II) Shareholding Status of Top Ten Shareholders and Top Ten Tradable Shareholders (or Unrestricted Shareholders) as of the End of the Reporting Period](index=41&type=section&id=%28%E4%BA%8C%29%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) Hong Kong Securities Clearing Company Limited is the largest shareholder, holding **10.60%** of shares; company chairman Pan Gang holds **4.53%** of shares and has pledged **199.03 million shares** Shareholding Status of Top Ten Shareholders (Excluding Shares Lent Through Securities Lending) | Shareholder Name | Ending Shareholding (shares) | Percentage (%) | Pledged, Marked, or Frozen Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Securities Clearing Company Limited | 670,789,626 | 10.60 | 0 | Other | | Hohhot Investment Co Ltd | 538,535,826 | 8.51 | 186,800,000 | State-owned Legal Person | | Pan Gang | 286,746,628 | 4.53 | 199,029,900 | Domestic Natural Person | [Shareholding Quantity and Restrictions of Top Ten Restricted Shareholders](index=42&type=section&id=%E5%89%8D%E5%8D%81%E5%90%8D%E6%9C%89%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%95%B0%E9%87%8F%E5%8F%8A%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6) This section lists the shareholding quantities and restrictions of the company's top four restricted shareholders, primarily statutory restrictions stipulated by the "Administrative Measures for the Split Share Structure Reform of Listed Companies" Shareholding Quantity and Restrictions of Top Ten Restricted Shareholders | No | Name of Restricted Shareholder | Quantity of Restricted Shares Held (shares) | Restriction Conditions | | :--- | :--- | :--- | :--- | | 1 | Shanghai Yunyingtai Investment Consulting Co Ltd | 19,008,000 | Statutory restrictions stipulated by the "Administrative Measures for the Split Share Structure Reform of Listed Companies" | | 2 | Hohhot Sugar Powder Factory Yili Company Shareholding Association | 12,403,788 | Statutory restrictions stipulated by the "Administrative Measures for the Split Share Structure Reform of Listed Companies" | Section VII Bond-Related Information [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=43&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) This section discloses the basic information of the company's outstanding offshore senior unsecured fixed-rate bonds and non-financial enterprise debt financing instruments in the interbank bond market, as well as the company's consolidated interest-bearing debt structure; the company's interest-bearing debt balance changed by **8.62%** year-on-year, primarily consisting of bank loans and corporate credit bonds [(I) Corporate Bonds (Including Enterprise Bonds)](index=43&type=section&id=%28%E4%B8%80%29%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89) The company has one outstanding offshore senior unsecured fixed-rate bond with a balance of **500 million US dollars**, an interest rate of **1.625%**, maturing on November 19, 2025, and traded on the Hong Kong Stock Exchange Corporate Bond Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (billion yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Senior Unsecured Fixed-Rate Bond | YILI HI B2511 | 40471 | 2020/11/19 | 2025/11/19 | 5 (USD) | 1.625 | Hong Kong Stock Exchange | [(IV) Important Matters Related to Corporate Bonds During the Reporting Period](index=44&type=section&id=%28%E5%9B%9B%29%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) At the end of the reporting period, the company's consolidated interest-bearing debt balance was **65.78 billion yuan**, a year-on-year change of **8.62%**; corporate credit bonds accounted for **20.84%**, and bank loans accounted for **78.42%**; the offshore bond balance was **3.59 billion yuan** (RMB equivalent), with **3.59 billion yuan** (RMB equivalent) of principal maturing within one year - At the end of the reporting period, the company's consolidated interest-bearing debt balance was **65.78 billion yuan**, a year-on-year change of **8.62%**[126](index=126&type=chunk) Company Consolidated Interest-Bearing Debt Structure | Interest-Bearing Debt Category | Total Amount (billion yuan) | Percentage of Interest-Bearing Debt (%) | | :--- | :--- | :--- | | Corporate Credit Bonds | 13.71 | 20.84 | | Bank Loans | 51.59 | 78.42 | | Non-Bank Financial Institution Loans | 0.04 | 0.06 | | Other Interest-Bearing Debts | 0.45 | 0.68 | | **Total** | **65.78** | **—** | - The offshore bond balance was **3.59 billion yuan** (RMB equivalent), with **3.59 billion yuan** (RMB equivalent) of principal maturing within 1 year[128](index=128&type=chunk) [(V) Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market](index=45&type=section&id=%28%E4%BA%94%29%E9%93%B6%E8%A1%8C%E9%97%B4%E5%80%BA%E5%88%B8%E5%B8%82%E5%9C%BA%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company issued multiple tranches of short-term financing bills and ultra-short-term financing bills in the interbank bond market, including the first and second tranches of 2024 short-term financing bills and the eighth, ninth, tenth, and eleventh tranches of 2025 ultra-short-term financing bills, with a total outstanding balance of **40 billion yuan** and interest rates ranging from **1.42% to 2.01%** Basic Information on Non-Financial Enterprise Debt Financing Instruments (Partial) | Bond Name | Abbreviation | Issue Date | Maturity Date | Bond Balance (billion yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 First Tranche Short-Term Financing Bill | 24 Yili Industrial CP001 | 2024/11/15 | 2025/9/24 | 5.0 | 2.01 | | 2024 Second Tranche Short-Term Financing Bill | 24 Yili Industrial CP002 | 2024/11/15 | 2025/9/25 | 5.0 | 2.01 | | 2025 Eighth Tranche Ultra-Short-Term Financing Bill | 25 Yili Industrial SCP008 | 2025/7/1 | 2025/9/19 | 11.0 | 1.44 | | 2025 Ninth Tranche Ultra-Short-Term Financing Bill | 25 Yili Industrial SCP009 | 2025/7/1 | 2025/9/26 | 10.0 | 1.44 | | 2025 Tenth Tranche Ultra-Short-Term Financing Bill | 25 Yili Industrial SCP010 | 2025/7/4 | 2025/9/26 | 10.0 | 1.42 | | 2025 Eleventh Tranche Technology Innovation Bond (Rural Revitalization) | 25 Yili Industrial SCP011 (Tech Innovation Bond) | 2025/7/14 | 2026/1/13 | 4.0 | 1.48 | [(VII) Key Accounting Data and Financial Indicators](index=46&type=section&id=%28%E4%B8%83%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) At the end of the reporting period, the company's asset-liability ratio slightly decreased, while net profit after deducting non-recurring items significantly increased by **31.78%**; the interest coverage ratio and EBITDA interest coverage ratio both substantially improved, primarily due to reduced interest expenses Key Financial Indicators | Key Indicator | Current Period End/Current Period (Jan-Jun) | Prior Year End/Prior Period | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 0.73 | 0.74 | -1.35 | | | Quick Ratio | 0.63 | 0.62 | 1.61 | | | Asset-Liability Ratio (%) | 61.69 | 62.91 | -1.94 | | | Net Profit Excluding Non-Recurring Items | 7,016,349,502.87 yuan | 5,324,460,044.53 yuan | 31.78 | Increase in revenue, improved gross margin | | EBITDA to Total Debt | 0.17 | 0.19 | -10.53 | | | Interest Coverage Ratio | 14.84 | 9.57 | 55.07 | Decrease in interest expenses | | Cash Interest Coverage Ratio | 9.57 | 7.48 | 27.94 | | | EBITDA Interest Coverage Ratio | 18.86 | 11.99 | 57.30 | Decrease in interest expenses | | Loan Repayment Rate (%) | 100.00 | 100.00 | | | | Interest Payment Rate (%) | 100.00 | 100.00 | | | Section VIII Financial Report [II. Financial Statements](index=47&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[138](index=138&type=chunk)[141](index=141&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk)[155](index=155&type=chunk)[162](index=162&type=chunk) [III. Company Basic Information](index=64&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section details the company's registered address, organizational form, history of share capital changes, main operating activities, and scope of consolidated financial statements; the company's share capital changed to **6,325,360,667 shares** due to share repurchase and cancellation, and it primarily engages in the production and sale of various dairy and healthy beverages - The company's registered address is No 1 Yili Street, Chishui River Dairy Development Zone, Hohhot, Inner Mongolia Autonomous Region, and its legal representative is Pan Gang[166](index=166&type=chunk) - The company's share capital has undergone multiple historical changes, with the latest change resulting in **6,325,360,667 shares**[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - The company primarily engages in the production and sale of various dairy and healthy beverages, operating product series such as liquid milk, dairy beverages, milk powder, yogurt, frozen desserts, cheese, dairy fat, and packaged drinking water[174](index=174&type=chunk) - A total of **83 first-tier subsidiaries** were included in the scope of consolidation for this period[175](index=175&type=chunk) [IV. Basis of Financial Statement Preparation](index=66&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards, and approved for issuance by the Board of Directors - The financial statements are prepared on a going concern basis and comply with enterprise accounting standards[177](index=177&type=chunk) - The Board of Directors approved the issuance of this financial report on August 27, 2025[176](index=176&type=chunk) [V. Significant Accounting Policies and Estimates](index=66&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering various aspects such as business combinations, consolidated financial statements, financial instruments, inventories, fixed assets, intangible assets, employee benefits, revenue recognition, government grants, deferred income tax, and leases, ensuring the truthfulness, accuracy, and completeness of the financial report - The company determines specific accounting policies and estimates based on its production and operating characteristics, primarily reflected in inventory, depreciation of fixed assets, and revenue recognition[180](index=180&type=chunk) - Financial assets are classified into three categories based on business model and contractual cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[205](index=205&type=chunk) - The company performs impairment accounting for financial assets and recognizes loss provisions based on expected credit losses[218](index=218&type=chunk) - Revenue is recognized when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[289](index=289&type=chunk) - The company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and leases of low-value assets[302](index=302&type=chunk) - The company classifies government grants into asset-related and income-related grants, applying different accounting treatment methods[296](index=296&type=chunk) [VI. Taxes](index=108&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, and corporate income tax, and explains the tax incentives enjoyed by the company, such as corporate income tax preferences for Western Development enterprises, exemption from corporate income tax for primary agricultural product processing projects, corporate income tax preferences for high-tech enterprises, and exemption from value-added tax for sales of self-produced agricultural products Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | The amount of VAT payable is the balance after deducting deductible input tax from output tax | 13%, 9%, 6%, Zero tax rate | | Urban Maintenance and Construction Tax | VAT payable | 1%, 5%, 7% | | Corporate Income Tax | Taxable income calculated by adjusting pre-tax accounting profit according to tax laws | 15%, 25% | - The company and some subsidiaries enjoy a **15%** corporate income tax preferential rate under the Western Development Strategy[317](index=317&type=chunk) - Income from primary agricultural product processing projects and livestock farming is exempt from corporate income tax[317](index=317&type=chunk) - Some subsidiaries enjoy a **15%** corporate income tax preferential rate as high-tech enterprises[317](index=317&type=chunk) - Some subsidiaries are exempt from value-added tax on sales of self-produced agricultural products[317](index=317&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=109&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on various asset, liability, owners' equity, and profit and loss items in the consolidated financial statements, including monetary funds, trading financial assets, derivative financial assets, notes receivable, accounts receivable, other receivables, inventories, non-current assets due within one year, other current assets, long-term equity investments, other equity instrument investments, other non-current financial assets, investment properties, fixed assets, construction in progress, productive biological assets, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, assets with restricted ownership or use rights, short-term borrowings, trading financial liabilities, derivative financial liabilities, notes payable, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [2][7]. Core Insights - The company reported a total revenue of 61.93 billion yuan for H1 2025, reflecting a year-on-year growth of 3.4%. However, the net profit attributable to shareholders decreased by 4.4% to 7.2 billion yuan [6][7]. - The company is expected to achieve net profits of 11.38 billion, 12.14 billion, and 12.82 billion yuan for the years 2025 to 2027, with respective year-on-year growth rates of 34.6%, 6.7%, and 5.6% [6][7]. - The company's valuation has reached a ten-year low, and it has maintained a high dividend payout ratio of over 70% in the past three years, suggesting a favorable investment opportunity [7]. Financial Data and Profit Forecast - For H1 2025, the company achieved a gross margin of 36.0%, an increase of 1.18 percentage points year-on-year. The revenue breakdown shows liquid milk, milk powder, and cold drinks generated revenues of 36.13 billion, 16.58 billion, and 8.23 billion yuan respectively [6][7]. - The company’s operating expenses have been optimized, with a decrease in sales expenses due to reduced advertising costs, while management expenses have been controlled effectively [7]. - The company’s net profit margin for H1 2025 was 11.33%, an increase of 2.44 percentage points year-on-year, attributed to improved gross margins and reduced sales expenses [7][8].

Core Insights - The company reported a revenue of 61.777 billion yuan for the first half of 2025, representing a year-on-year growth of 3.49% [1] - The net profit attributable to shareholders was 7.2 billion yuan, showing a decline of 4.39% year-on-year, while the net profit excluding non-recurring items was 7.016 billion yuan, reflecting a significant increase of 31.78% [1] - Basic earnings per share stood at 1.14 yuan [1] Liquid Milk Business - The liquid milk segment achieved a revenue of 36.126 billion yuan, maintaining the largest market share in the industry [1] - The company enhanced its distribution efforts and increased the deployment of liquid milk refrigerators, further penetrating distribution networks [1] - The company actively seized opportunities in emerging channels and continuously launched new and customized products, improving operational capabilities and reinforcing channel competitiveness [1] Milk Powder and Dairy Products - The milk powder and dairy products segment generated a revenue of 16.578 billion yuan, marking a year-on-year growth of 14.26% and holding the top market share [1] - The company innovated the "Lingyinghui" maternal and infant ecosystem platform, collaborating with the maternal and infant system to empower various aspects such as marketing, channels, operations, and big data [1] - The company strengthened its e-commerce operational capabilities in line with the trend of channel media integration, significantly improving cost-effectiveness [1] Ice Cream Business - The ice cream segment reported a revenue of 8.229 billion yuan, with a year-on-year growth of 12.39%, maintaining the leading market position [2] - The company has driven market consumption trends through continuous innovation in technology and processes, expanding consumption scenarios [2] - The launch of the "Qiaolezi" taro glutinous snow ice cream and the "Ice Factory" edible ice cup catered to consumer preferences and DIY summer needs [2]

证券日报网讯 8月28日晚间，伊利股份发布公告称，公司第十一届监事会第七次会议审议通过了《公司 2025年半年度报告及摘要》等。 （文章来源：证券日报） ...

Core Insights - The company reported a revenue of 61.777 billion yuan for the first half of the year, representing a year-on-year growth of 3.49%, while net profit decreased by 4.39% to 7.2 billion yuan [1] - The cash flow from operating activities saw a significant decline of 44.34%, primarily due to a larger decrease in pre-received payments from distributors compared to the previous year [1] Liquid Milk Segment - The liquid milk segment generated a revenue of 36.126 billion yuan, with a market share increase of 4.3 percentage points in the ambient liquid milk sector, driven by product innovations like "Anmuxi" and "Yogurt with Oat Pearls" [2] - The low-temperature liquid milk segment experienced double-digit revenue growth, with new product launches contributing to a revenue increase of over 20% [2] Milk Powder and Dairy Products - The milk powder and dairy products segment achieved a revenue of 16.578 billion yuan, marking a year-on-year growth of 14.26%, maintaining the industry's leading market share [3] - The company launched new organic infant formula products, enhancing its competitive edge in the infant nutrition market, with a retail market share of 18.1% for infant milk powder [3] Ice Cream and Beverage Business - The ice cream business reported a revenue of 8.229 billion yuan, reflecting a growth of 12.39%, with successful product launches contributing to its market leadership [4] - The water beverage segment also saw double-digit growth, with new product introductions significantly impacting revenue [4]

Group 1 - Xinhua Media achieved a net profit of 32.34 million yuan in the first half of 2025, a year-on-year increase of 9.29% [1] - Xinhua Media's operating income for the first half of 2025 was 631 million yuan, a year-on-year growth of 2.45% [1] - China Galaxy reported a net profit of 6.488 billion yuan, up 47.86% year-on-year, with an operating income of 137.47 billion yuan, a 37.71% increase [2] Group 2 - Lek Electric's net profit decreased by 29.01% to 428 million yuan, despite a slight revenue increase of 0.65% to 4.781 billion yuan [3] - Honghui Fruits and Vegetables reported a net profit of 6.9243 million yuan, down 44.82%, with revenue of 470 million yuan, up 7.86% [4] - Bull Group's net profit fell by 8% to 2.06 billion yuan, with a revenue decline of 2.6% to 8.168 billion yuan [5] Group 3 - Nanshan Aluminum achieved a net profit of 2.625 billion yuan, a year-on-year increase of 19.95%, with operating income of 17.274 billion yuan, up 10.25% [6] - Zhujiang Beer reported a net profit of 612 million yuan, a 22.51% increase, with revenue of 3.198 billion yuan, up 7.09% [8] - Baolong Technology's net profit decreased by 9.15% to 135 million yuan, with revenue growth of 24.06% to 3.95 billion yuan [10] Group 4 - Jindi Co. reported a net profit of 75.93 million yuan, a year-on-year increase of 32.86%, with operating income of 835 million yuan, up 40.57% [12] - China Vision Media turned a profit with a net profit of 19.9811 million yuan, compared to a loss of 18.4349 million yuan in the previous year, despite a revenue decline of 10.75% to 229 million yuan [14] - Botao Bio's net profit fell by 82.82% to 12.4024 million yuan, with revenue down 23.91% to 203 million yuan [16] Group 5 - Caitong Securities reported a net profit of 1.083 billion yuan, a year-on-year increase of 16.85%, with operating income of 2.959 billion yuan, down 2.19% [18] - Yili Group's net profit decreased by 4.39% to 7.2 billion yuan, with revenue growth of 3.49% to 61.777 billion yuan [19] - Springlight Technology achieved a net profit of 7.3787 million yuan, a year-on-year increase of 83.73%, with revenue of 251 million yuan, up 39.6% [20] Group 6 - China Haifeng reported a net profit of 94.5739 million yuan, a year-on-year increase of 25.48%, with operating income of 1.385 billion yuan, up 19.64% [21] - Zhongke Titanium White's net profit decreased by 14.83% to 259 million yuan, with revenue growth of 19.66% to 3.77 billion yuan [23] - Huasheng Tiancai turned a profit with a net profit of 14 million yuan, compared to a loss in the previous year, despite a revenue decline of 10.75% to 226 million yuan [25] Group 7 - Shen Zhou Cell reported a net loss of 33.7711 million yuan, with revenue down 25.50% to 972 million yuan [26] - Meihu Co. achieved a net profit of 101 million yuan, a year-on-year increase of 10.26%, with operating income of 1.075 billion yuan, up 10.74% [28] - Jifeng Technology plans to apply for a comprehensive credit of 170 million yuan to supplement working capital [29] Group 8 - Foton Motor reported a net profit of 777 million yuan, a year-on-year increase of 87.57%, with operating income of 30.371 billion yuan, up 26.71% [41] - BOE Technology achieved a net profit of 3.247 billion yuan, a year-on-year increase of 42.15%, with operating income of 110.278 billion yuan, up 8.45% [42] - CIMC reported a net profit of 1.278 billion yuan, a year-on-year increase of 47.63%, with operating income of 76.09 billion yuan, down 3.82% [43]

Group 1: Banking Sector - Several small and medium-sized banks have announced a reduction in RMB deposit rates, with declines ranging from 10 to 20 basis points [1] - Three banks in Sichuan Province plan to jointly establish a wealth management company, expressing confidence in obtaining the necessary license [1] Group 2: Technology and Innovation - A new adaptive, full-bandwidth, high-speed wireless communication chip has been developed by Chinese scientists, capable of achieving over 120 Gbps transmission rates, meeting 6G communication requirements [2] - Guotai Junan International has officially launched cryptocurrency trading services in Hong Kong, allowing clients to trade various cryptocurrencies [2] Group 3: Consumer Goods - The sales of matcha beverages have surged, with new products selling over 10,000 cups in their first week, indicating a growing trend among young consumers [2] Group 4: Financial Performance Reports - Zhujiang Beer reported a net profit of 612 million yuan for the first half of 2025, a year-on-year increase of 22.51% [6] - Baolong Technology's net profit decreased by 9.15% year-on-year, despite a revenue increase of 24.06% [7] - Nanshan Aluminum achieved a net profit of 2.625 billion yuan, up 19.95% year-on-year [8] - Jindi Co. reported a net profit increase of 32.86% year-on-year, with revenue growth of 40.57% [10] - Caitong Securities reported a net profit of 1.083 billion yuan, a year-on-year increase of 16.85% [11] - Yili Co. reported a net profit of 7.2 billion yuan, a year-on-year decrease of 4.39% [12] - China Galaxy reported a net profit increase of 47.86% year-on-year, with revenue growth of 37.71% [15] Group 5: Market Trends - The ChiNext 50 Index surged by 7.23%, with significant gains in semiconductor and computing power sectors, while the overall market saw over 2,800 stocks rise [16]