Yili Shares Subscribed for 3.4 Times by 53 Leading Financial Institutions, Marking the Largest Private Placement in the Consumer Sector on China's A-Share Market

• This is the issue worth over RMB 10 billion with the largest number of subscribers (53), the smallest original issue discount (5.46%) and the largest subscription rate (3.4 times subscribed to) since the release of China's new regulations on refinancing.

BEIJING, Dec. 14, 2021 /PRNewswire/ -- On December 9, 2021, Yili Group released its non-public offering announcement, signifying the finalization of the largest private placement in the consumer sector on China's A-share market.

The announcement shows that the shares were eventually allotted to 22 targets at the price of RMB 37.89 per share, with a total of 317,953,285 shares raising about RMB 12,047 million.

This private placement by Yili attracted 53 leading institutional and individual investors from around the world to bid for its shares. The issue price represents a discount of 5.46% from the closing price on the inquiry date, setting a new low since the new regulations on refinancing took effect.

Capital bidding for Yili shares recognizes its investment value

The small discount and enthusiastic bidders showed the unanimous recognition of Yili's investment value. On the one hand, the promising prospect of the dairy industry and Yili's outstanding performance bolstered investors' confidence. On the other hand, it demonstrated confidence in Yili's strategic goals aimed at ensuring its strong development prospects in the future.

The data in Yili's latest financial statements not only outperformed market expectations, but also demonstrated a brand-new growth trend. During the first three quarters of 2021, the company realized total operating revenues of RMB 85,007 million, up 15.23% year-on-year, and its net profits amounted to RMB 7,967 million, representing year-on-year growth of 31.82%.

As one of the world's top five dairy producers, Yili has continued to optimize its product structure in a bid to strengthen its competitiveness as an industry leader. The announcement states that funds raised through this issue will primarily be used for bolstering Yili's layout and expanding its production capabilities for high-value-added product varieties, as well as for digitalizing operations. This will fully enhance the company's profitability and operational efficiency.

Creating value for shareholders

The rapid growth of Yili's business scale and accelerated pace of establishing a globalized presence have resulted in an increase in the company's demand for working capital. The private placement can help Yili to optimize its financial structure and improve the net profit end.

Yili has always paid high returns to its shareholders, which was also an important factor behind investors' active participation in its private placement. Since going public, Yili has cumulatively distributed dividends 21 times, with cash dividends worth RMB 30.4 billion in total, according to data.

At the 2021 Leadership Summit held by Yili Group, Chairman and President Pan Gang put forward the company's goal of a "New Vision for Value Creation", in which creating value for shareholders is one of the key pillars.

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