(Yicai Global) Feb. 28 -- Yili Industrial Group's revenue rose 16.9 percent to CNY80 billion (USD12 billion) and its net profit gained 7.5 percent to CNY6.5 billion last year, along with its steadily growing market share.

Chinese consumers' demand for dairy products continues to rise in step with their rising income and Yili's market share has steadily increased despite the savage competition within the sector and the rising costs of imported raw materials spurred by China-US trade frictions, the Inner Mongolia-based firm said in its last year's performance report released yesterday.

The retail sales of Yili's room temperature and low temperature milk made up 36.8 percent and 16.6 percent respectively of its total sales last year, up 2.3 and 0.5 percentage points, per data from New York-based market research firm Nielsen Holdings. 

Its retail sales of baby formula were 5.8 percent of the market's total, an increase of 0.6 percentage points from the previous year.

The company's performance growth stems from product innovation and precise marketing as consumer demand and purchasing methods increasingly diversify, it said. 

Yili owns the parent brand Yili and over 20 sub-brands, of which 11 have achieved an annual sales income of more than CNY1 billion.

The firm plans to achieve CNY90 billion in revenue and CNY7.6 billion profits this year, based on growth in the sector, a target it revealed in the report.

Yili is also expanding its international presence. Its New Zealand unit Oceania Dairy mainly produces and sells milk powder and liquid dairy products. 

Another subsidiary, PT Green Asia Food Indonesia, sells frozen drinks and its Joy Day brand ice cream in the country. Yili also took a 96.5 percent stake in Thailand's largest ice cream company Chomthana Group at the end of last year. The two nations are Southeast Asia's largest ice cream markets.

Yili will continue this year and beyond to cultivate new categories, which are expected to contribute considerable income and profit growth in the medium and long term. Its overseas business positioning will focus on controlling high-quality raw milk resources, establishing research and development innovation bases and platforms, and accelerating exploration of the Southeast Asian market, Hong Kong based investment banking and securities brokerage firm BOC International Holdings reported. 

It is expected to become a global health food giant in the medium and long term with its growth of milk products, new category development and overseas positioning,  the report noted. 

Editor: Ben Armour