YILI(SH:600887) Shang Hai Zheng Quan Bao·2025-11-03 18:16Core Viewpoint - The performance of Yili Group in the first three quarters of 2025 exceeded expectations, with a revenue of 90.564 billion yuan, a year-on-year increase of 1.71%, and a net profit of 10.103 billion yuan, up 18.73% [1] Business Performance - Yili's liquid milk segment remains the industry leader, generating revenue of 54.939 billion yuan, with products like organic milk becoming popular in the gifting market [1] - The company has successfully expanded its market share in infant formula, achieving the highest market share in China for the first time [3][4] Anti-Cyclical Strategies - Yili's approach to anti-cyclicality involves optimizing both profit quality and business structure rather than merely expanding scale [1][2] - The deep processing of milk is highlighted as a key strategy to convert surplus raw milk into high-value products, enhancing the value chain and addressing consumer demand for personalized products [2] Technological Innovation - Yili has implemented smart farming technologies, resulting in over a 10% increase in milk production per cow and a 12% reduction in labor costs [5][6] - The company has completed the digital transformation of all its factories, enabling real-time data collection and analysis to ensure product quality [6] Industry Collaboration - Yili has supported its partner farms by providing financial assistance totaling 185.215 billion yuan and technical support, significantly reducing operational costs [8] - The company has established a strategic partnership with Tongrentang to explore functional food markets, leading to a 45% year-on-year increase in revenue from functional dairy products [9] Future Outlook - Yili plans to focus on deep processing of dairy, functional foods, and health beverages, with an annual R&D investment growth of at least 20% over the next five years [9]