BIZCHINA / Pan Gang
Yili keeps market position despite slower year
(China Daily)
Updated: 2005-03-08 14:52
Yili, one of China's leading dairy producers, saw business expand 38 per
cent last year, the Shanghai-listed company reported yesterday.
In its 2004 annual report to the stock exchange, Inner Mongolia Yili
Industrial Group Co Ltd posted an income of more than 8.7 billion yuan
(US$1.05 billion), up 38.67 per cent on the 6.3 billion yuan (US$761
million) of a year earlier.
The company registered total profits of 378.9 million yuan (US$45.76
million), a year-on-year increase of 18.81 per cent.
Its net profit hit 239.1 million yuan (US$28.88 million), representing an
earning per share of 0.61 yuan (7.4 US cents) and an increase of 19.81
per cent over the 2003 figure of 199.6 million yuan (US$24 million).
But the company's growth in 2004 was far lower than that seen in previous
years as well as expectations.
In 2003, the company posted a 57.09 per cent growth in business income
and a 40.61 per cent increase in net profits.
It is expected to grow by more than 50 per cent annually in coming years
to become one of the world's top 20 dairy firms by 2012.
"It is natural that Yili had a slower 2004," said Zhu Weihua, an industry
analyst with Merchants Securities.
In previous years Yili enjoyed rapid business expansion, and based on its
already huge sales it would be impossible for the company to maintain
such a high level every year, he added.
Meanwhile, intensifying competition has trimmed the profit margins of all
the industry's players.
However, Yili will record stable growth in coming years due to the huge
potential of China's dairy market.
Zhu expects the dairy firm's business to grow by some 33 per cent this
year.
Last year, the China Securities Regulatory Commission launched an
investigation into the company as it was suspected of breaching
securities laws and regulations.
Its business was somewhat affected, the company said in its report. But
the company adjusted quickly to achieve this year's still impressive
figures, it said.
The company added it will continue expanding its business and sharpening
its market edge, in order to achieve its goal of becoming one of the
world's leading dairy companies.
Yili's A shares rose by 1.6 per cent to 11.42 yuan (US$1.4) in trading
yesterday.
(For more biz stories, please visit Industry Updates)
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