A company’s brand is among the most valuable intangible assets it holds. While the Covid-19 pandemic has posed major challenges for the global dairy market, Yili still maintained strong growth of its brand value, increasing it by 10% to $10.6 billion and extending its lead in the ranking. Such growth was attributed to the company’s robust business performance and social value.
Commercial value grows steadily
Yili’s market capitalization has expanded 553 times since its listing in 1996, from RMB 421 million ($62.5 million) to RMB 232.8 billion ($34.56 billion) in 2022. It has remained one of the world’s top five dairy producers for three consecutive years, with the annual revenue exceeding RMB 100 billion ($14.85 billion) last year. Over the years, Yili has maintained consistent business growth, generating solid and appealing returns for investors. The company has issued dividends 22 times totaling RMB 36.59 billion ($5.43 billion) since its listing, making it a preferred target for A-share value investors.
Yili aims to empower industrial development by focusing on modern industry clusters. The company has established several contemporary dairy industry clusters in Inner Mongolia, Ningxia, Gansu, Heilongjiang, Henan, Shandong, and Hebei, among other areas. The Yili Future Intelligence and Health Valley, known as the “Dairy Silicon Valley,” is home to the world’s largest intelligent production bases for liquid milk and infant formula, featuring the industry’s highest level of digitization and the most advanced technologies. The National Center of Technology Innovation for Dairy (NCTID) and National Dairy Metrology and Testing Center have also settled into the Valley.
Social value boosts sustainable development
Commercial and social value are inextricably linked. Yili has incorporated sustainability into company strategies and has actively taken initiatives to create social value. The company is at the forefront of energy conservation, emission reduction, and other innovative carbon reduction practices. In addition, Yili is working with its partners to create a more sustainable future by carrying out initiatives in areas such as environmental protection, biodiversity conservation, youth health, poverty alleviation, and disaster relief.
In 2022, Yili has committed to achieving carbon neutrality across the entire industry chain by 2050. It has also launched China’s first net-zero carbon dairy product series, including milk, yogurt, organic milk powder, and ice cream. Yili follows a green, low-carbon, circular development path by constructing smart green farms, promoting integrated farming, and carrying out other initiatives. In terms of eco-friendly manufacturing, Yili’s brand Satine uses FSC-certified packaging on all of its goods. The brand is committed to promoting green consumption and healthy lifestyles.
“Yili’s insight into the effect of the COVID-19 pandemic through the promotion of their brand’s health benefits and the responsiveness of their supply chain allows them to reach over 2 billion consumers worldwide, which has resulted in a 23% increase in brand value since the beginning of the pandemic in 2020,” the Brand Finance report noted. Its consumer-focused technological and product innovations also contribute to the brand’s success and fuel the company’s growth. As the world’s most valuable dairy brand, Yili endeavors to achieve robust corporate growth and drive high-quality industrial development by creating commercial and social value.
($1 ≈ RMB 6.74)
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