Yili Group (600887) investor relations material

Executive summary

• Revenue for the first half of 2026 reached ¥64.33 billion, up 4.13% year-over-year, while net profit attributable to shareholders fell 20.02% to ¥5.76 billion due to increased asset impairment and lower gross margin.

• Operating cash flow surged 229.23% to ¥9.76 billion, reflecting improved cash collection and reduced outflows.

• The company maintained its leading market share in liquid milk, infant and adult nutrition, and ice cream segments, with new products contributing 15.8% of revenue.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Operating income: ¥64.33 billion (+4.13% YoY); net profit attributable to shareholders: ¥5.76 billion (-20.02% YoY).

• Gross margin declined as cost increases outpaced revenue growth; asset impairment losses and goodwill write-downs (notably for Ausnutria Dairy) impacted profit.

• Basic and diluted EPS: ¥0.91 (-20.18% YoY); ROE: 10.09% (-2.51pp YoY).

• Net cash from operating activities: ¥9.76 billion (+229.23% YoY).

• Total assets: ¥157.17 billion (+3.33% from year-end 2025); net assets: ¥53.71 billion (-1.73%).

Outlook and guidance

• Management expects continued growth in high-value segments (infant/adult nutrition, cheese, and protein ingredients) and ongoing product innovation.

• The company will accelerate digital transformation, supply chain optimization, and international expansion, especially in Southeast Asia and the Middle East.

• Risks include raw material price volatility, exchange rate fluctuations, and global supply chain disruptions.