Overview Key strengths Key risks Largest dairy producer in Asia, with well-recognized brands in China Higher geographical concentration than global peers' Extensive distribution network, with increasing penetration in lower-tier cities Exposure to volatile raw milk prices and potential food-safety issues Minimal leverage Demand in categories such as yogurt, ice-cream, and flavored milk is particularly sensitive to sentiment. Consumer preference toward instant tea drinks, and limited product innovation in these segments should also pressure yogurt and ice-cream demand. The mid-to-high single digit decline in sales in these categories will drag down the topline of Inner Mongolia Yili Industrial Group Co. Ltd. (Yili) by 0%-1% in 2025, after our estimate of a 7% drop in 2024. We believe Yili will continue to
