Core Viewpoint - The competition in China's infant formula market is intensifying, with both Yili and Feihe claiming the top position based on different metrics [2][3][4]. Company Performance - Yili has achieved the highest market share in the overall infant formula market, including both cow and goat milk formulas, with a market share of 18.1%, an increase of 1.3 percentage points year-on-year [3]. - Yili's revenue from milk powder and dairy products grew by 14.26% year-on-year to 16.578 billion yuan, with infant formula sales experiencing double-digit growth [3]. - Feihe, on the other hand, reported a revenue decline of 9.36% to 9.151 billion yuan in the same period, despite maintaining its position as the leading single brand in the market [4][7]. Market Dynamics - The difference in rankings arises from the fact that Yili's figures include sales from Aoyou Dairy, which it acquired in 2022, while Feihe's data reflects its standalone brand performance [4][6]. - Aoyou Dairy's performance has not significantly bolstered Yili's sales, as its core goat milk brand, Jiabei Aite, saw a sales decline of 8.9% to 1.38 billion yuan [5][6]. - The market share gap between Yili and Feihe is narrow, with Euromonitor data indicating Feihe's market share at 17.5% and Yili at 16.3% for 2024 [7]. Future Outlook - The infant formula market in China may face contraction due to a significant decline in marriage registrations, which is likely to lead to a decrease in newborn numbers [8]. - However, the market is not deemed unprofitable, as government childcare subsidies may lead to a potential increase in birth rates, and parents are increasingly willing to spend on high-quality products [9]. - The domestic infant formula market is characterized as a key battleground for consumer upgrades, indicating substantial profit potential [10].