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Hu- company n ____.

ol 1 :».ł biUionyuan fot tłu* second hall and an amui.il net loss of948.6 mil-bon yiuui.

l'o restore its rcputation. Meng-nlu conducted masslve piomotion and adverlising campaigns and es-tabllshed a series of control im-asurcs to lu-lp ensure product quality.

Its A-share listcd pecrs - Inner Mongolia Yili Industrial Group. Bright Dairy & Food and Beijing San-yuan Foods - all have teported en-couraging results. Thelr revenue grew between 0.13 per cent and 73.13 per cent. while their net profits

Margin booster

Prlce of raw mllk In China (yuan/kg) 3.20

bandry Assoctauou — ' vides a favoutable eiwironment tor tłu- indiLstry. Merrill l.ynch estimatcs i it led to gross margin gm\vth of 6 per-centagi- points in thc dairy industry.

“Since milk accounts for 45 per cent of Mengnhfs cost of goods sold. a 10 per cent drop in raw milk prices would boost gross margins by 3.5 pcrcentage points," KGl analyst lane Wu wrote in a report.

She said along with ntore aggrcs-sivc avcrage selling prices because of product mix upgrades and reduc-

"*r.    —

lower tax ratc.

IP Morgan ls < improving mary profit will drop. million yuan. advertisingt eroded |

snu. i

Mengniu. ]

The cor inal yuan 1 yuan) be Of 21

%

Jan 07

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