
Core Viewpoint - The acquisition of Ausnutria by Yili Group has led to improvements in management and performance, but the actual performance has fallen short of initial expectations, prompting a downward revision of future growth forecasts for Ausnutria [1] Company Summary - Since the acquisition of Ausnutria, Yili Group has provided continuous support, resulting in year-on-year improvements in both management and performance [1] - For 2024, Yili Group has adjusted its growth rate expectations for Ausnutria due to underperformance and a decline in the overall market size for infant formula [1] - Yili Group has conducted impairment testing and made corresponding adjustments based on the revised growth expectations for Ausnutria [1] Industry Summary - The liquid milk industry is experiencing a more rational competitive landscape compared to previous price decline cycles, with larger companies focusing on profit improvement while smaller companies engage in price wars [1] - The decline in milk prices has been narrowing since the first quarter, and the supply-demand balance is expected to improve further this year due to ongoing adjustments in the dairy herd [1] - Yili Group has observed a recovery in the prices of raw milk and bulk powder recently, which is expected to contribute to an improved competitive environment in the industry [1] - Although liquid milk revenue has not yet returned to positive growth in the first quarter, there have been signs of improvement in the second quarter [1] - The company plans to maintain a low inventory and stable pricing strategy while strictly controlling shipment schedules to ensure channel health [1]