YILI(SH:600887) Xin Lang Cai Jing·2025-05-08 00:37Core Insights - Yili's revenue and net profit have declined for the first time in 29 years, with 2024 revenue at 115.39 billion, down 8.24% year-on-year, and net profit at 8.45 billion, down 18.9% [2][3] - Liquid milk, the core revenue driver, saw a significant revenue drop of 10.5 billion, a decrease of 12% [2][3] - The company's chairman, Pan Gang, experienced a slight salary reduction from 21.79 million to 19.74 million amid the performance decline [2] Revenue Performance - Yili's total revenue for 2024 was 115.39 billion, a decrease of 8.24% year-on-year, with net profit at 8.45 billion, down 18.9% [3][6] - Liquid milk revenue fell to 75 billion, a decline of over 12%, while the cold drink segment also saw a significant drop, with revenue at 8.72 billion, down 18.41% [3][5] - The share of liquid milk in total revenue has decreased from over 75% in previous years to approximately 65% in 2024 [6] Strategic Challenges - Yili has been facing challenges in its core liquid milk business, which has historically driven growth [5][6] - The company has invested approximately 6.3 billion in the infant formula sector, acquiring a stake in Aoyou Dairy, but this segment has also shown declining revenue and profits [7][9] - Aoyou's revenue fell from 8.575 billion in 2021 to 7.382 billion in 2023, with net profit dropping significantly [9][11] Future Outlook - Despite current challenges, Pan Gang expressed confidence in a gradual recovery of the consumer market, anticipating a return to growth in 2025 [14] - Yili is exploring new product lines, including ready-to-drink tea and other food categories, although these currently contribute minimally to overall revenue [13][14] - The company believes there is still growth potential in the dairy market, particularly in lower-tier cities where consumption is expected to rise [14]