With October's CPI turning positive, market attention has refocused on the recovering consumer sector. As a leading consumer company, Inner Mongolia Yili Industrial Group Co.,Ltd. (Yili) has drawn industry and investor interest through its transformation from a "dairy giant" to a "comprehensive nutrition solutions provider."
On November 18 in Beijing, Yili hosted its 2025 Investor Day under the theme "Converging Strength for Growth, Pioneering New Value." The event showcased Yili's operational achievements, technological innovations, and future development strategies. It also prompted global investors to reconsider industry prospects and redefine Yili's value proposition.
**Industry Shift from Quantity to Quality** Yili Chairman and President Pan Gang noted in his opening remarks that China's dairy industry has transitioned from pure volume growth to a new phase emphasizing diversified, refined demand. "Structural growth" is now replacing "universal growth," with three key opportunities:
1. Continued release of dairy demand driven by rising health awareness 2. Urban consumption upgrades enabling diversified growth across social, dietary, and health management scenarios 3. Significant potential in differentiated categories like adult nutrition, cheese, B2B, and dairy deep processing (adult nutrition alone could exceed 300 billion yuan by 2030)
As China's dairy leader, Yili is addressing this structural shift through three core strategies: diversified product portfolio, industrial chain transformation, and global expansion.
**Targeting the Silver Economy** While infant formula has validated Yili's secondary growth curve, the company now eyes a larger opportunity—elderly nutrition. Data shows China's over-60 population (currently 210 million, projected 400 million by 2035) has 36% nutrition product penetration—higher than younger demographics.
Yili already leads in adult milk powder (its "Xinhuo" elderly formula has been #1 for a decade) and is expanding into higher-value segments like medical foods and functional supplements. With the fragmented nutrition market (top three Western supplements hold 20% share; Chinese supplements 17%), Yili aims to leverage its R&D and supply chain to break into the top five, prioritizing probiotics and protein supplements.
**Industrial Upgrade: Billion-Yuan Deep Processing** Another growth driver is solid dairy products. China's cheese consumption remains nascent, representing major potential as diets evolve from "drinking" to "eating" dairy.
Moreover, China still imports 35% of dairy ingredients like whey and casein. Yili is systematically developing deep-processing capabilities across dairy fats, proteins, lactose, and minerals—targeting import substitution and high-value B2B applications in baking, beverages, and supplements. The company plans to build this into a 10-billion-yuan business within 5-10 years, accelerating China's "solid dairy revolution."
**Globalization 2.0: From Exports to Ecosystem** Yili's international strategy has evolved from product exports to localized ecosystems. Its three global units now cover: - Southeast Asia/Middle East via Indonesia/Thailand hubs (ice cream business rose to top tier in Indonesia) - Middle East/Americas via Ausnutria (52% global goat milk powder share) - High-value ingredients from New Zealand (exported to 40+ countries, premium products up to 60% of mix)
New Zealand-sourced lactoferrin and casein support Yili's premium nutrition lines, while Dutch acquisitions strengthen goat dairy supply chains. With 2030 targets for greater market share and value-add, Yili aims to transition from "Asia's #1" to "global #1."
**Unwavering Shareholder Returns** Since its 1996 IPO, Yili has distributed 58.6 billion yuan in dividends—the highest among Chinese dairies—with payout ratios exceeding 70% for six consecutive years. The company will initiate mid-year dividends in 2025 and has committed to maintaining ≥75% payout ratios through 2027 (minimum 1.22 yuan/share).
With 10-billion-yuan non-GAAP profits validating core profitability, diversified businesses building cycle-resistance, and transparent return policies, Yili is reinforcing its position as investors' "wealth partner" in the new era.
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