Zhao Xin, | of yili group, the interface and financial annual meeting of the financial association: build a platform, create a model, gather talents, and drive high-quality development with innovation

<h3>The following is the transcript of Mr. Zhao Xin's speech:</h3>

Distinguished guests, friends good afternoon, thank you very much for the invitation of the organizers, such an opportunity to share with you our extraordinary 2020, looking forward to a beautiful and hopeful 2021.

This year is the final year of the 13th Five-Year Plan, although affected by the impact of the new crown pneumonia epidemic, with the concerted efforts of the people of the whole country, we have not only effectively prevented and controlled the epidemic, but also made remarkable achievements in the economy and other aspects.

In terms of innovation, China's innovation index ranking continues to rise, the contribution rate of total labor productivity and scientific and technological progress has steadily increased, and China has shown the world a historic change from manufacturing to creation. Innovation is the engine to promote high-quality development, and it is also an important driving force for consumers to yearn for a better life. Over the years, innovation has brought great changes to all walks of life, pay attention to every day, we will find some new things, new changes. The same is true in the field of consumption, especially under the general trend of consumption upgrading, consumers have more diversified, personalized and high-quality consumer demand - to better meet these needs, it is necessary to continuously absorb external innovation forces and enhance the innovation ability and core competitiveness of enterprises, so as to promote the high-quality development of China's economy.

In terms of innovation, Yili has been exploring and practicing. Over the years, Yili has actively played a leading role in leading the way, leading the emulsion from manufacturing to creation with a comprehensive innovation system of platform, model creation and talent gathering, and achieved certain results. By the end of 2019, Yili ranked third in the total number of global patent applications and total number of invention applications in the top ten emulsions in the world, and the company's new product sales accounted for more than 15% in the first half of 2020. Yili continues to win the love of global consumers with high-quality, multi-category products and services.

Below, I will introduce Yili's practical experience from three aspects:

First, integrate global wisdom resources to build an innovation platform. In the context of globalization, it is the way for enterprises to make progress by absorbing the strengths of all and pooling global resources. The innovation resources represented by wisdom are the most important, and only by gathering global wisdom and continuous product innovation and research and development can we provide healthy and delicious high-quality products for consumers in different regions and different preferences. Yili has been integrating global wisdom resources and continuing to build a world-leading innovation platform. At present, Yili covers an innovation network of the world's leading R&D institutions, covering Asia, Europe and Oceania.

Yili University of Wageningen in the Netherlands, a top university in Europe, has upgraded the Yili European Innovation Center, which is also the highest standard innovation and development center overseas for Chinese emulsions. Here, Yili and Wageningen University in the Netherlands joined forces to study the differences between Western breast milk, established the first nutritional database of breast milk ingredients of Chinese enterprises, accumulated tens of millions of breast milk ingredient data in 18 years, and transformed a series of scientific research results into high-quality health products. Yili's Golden Crown Milk Powder is one of the masterpieces.

Oceania Yili invested in the construction of Oceania emulsion production base, and the output management, output standards, output wisdom and other models of this base have become a model of entrepreneurship for the implementation of the Belt and Road Initiative. At the third CIIE, Yili presented consumers with 9 high-quality products from New Zealand, and created high-quality products through international wisdom and the integration of the "Belt and Road" industry.

In Asia, Yili completed its acquisition of Chomthana, a company in Thailand, in 2019. Over the past year, Yili has given full play to the advantages of the global resource system and the overall synergy, continuously improved the level of Chomthana's quality control, production and operation, innovative research and development, marketing and other aspects, and revitalized the local brands that are loved by the Thai people. In the first half of this year, Yili Chomthana was awarded the 2020 FDA Quality Award by the Food and Drug Administration of the Ministry of Public Health of Thailand.

Second, insight into consumer demand to improve the innovation model. In the past, consumers were passive, and enterprises produced what consumers bought, but today's market is consumer-oriented, what consumers need, enterprises will produce, and even go ahead of consumers, foresee and provide consumers' favorite products. In this regard, Yili has always adhered to the concept of consumer-centricity, through in-depth consumer insight into consumer needs, and constantly improve the innovation model, be a fan of every consumer, and create a series of products and services that are loved by consumers. In order to better understand consumers, Yili has built a big data radar covering 420 data sources, using big data to gain insight into the deep needs of consumers in real time, and effectively combine these needs with Yili's product research and development, and constantly innovate product categories.

There is a saying that is very popular in Yili - "every consumer is our VIP". For example, this year and last year, our annual sales of more than 20 billion yuan of a single product "Anmuxi", is developed through in-depth insight into consumer needs. Continuous innovation is the magic weapon for enterprises to win. In 2013, Yili invested a lot of manpower and material resources in research and development, overcome more than 100 technical problems, and launched a reference-type yogurt - Ammusi. Once an ammus was very popular on the market, we did not stop, and in the second year, we took the lead in trying massive network data collection and analysis, digging deep into consumer behavior and concerns, and launching dozens of flavors. The new yogurt has won the love of a large number of consumers, such as the recent market hit Anmuxi ANX zero sucrose innovative taste, this yogurt to meet the consumers' healthy and beautiful psychological needs, on the day of the launch of the double eleven in advance of the word, hot sales of 500,000 boxes, showing its popularity.

Third, through open management, gather global innovative talents. Whether it is the construction of an innovation platform or the improvement of an innovation model, it is inseparable from innovative talents. The most critical thing in innovation is talent, and only by continuously absorbing international talents and promoting open talent management can enterprises truly realize the upgrade from manufacturing to creation. In this regard, Yili has been actively exploring practice, we accelerate the introduction of international talents, on the one hand, we select excellent students with overseas study background as reserve management trainees; on the other hand, we appoint overseas talents who are familiar with local laws and cultures and have innovative spirit according to the actual needs of international business. Over the years of development, we have absorbed a large number of excellent talents at home and abroad who are familiar with the research and development of emulsions. At present, Yili Group has more than 3,000 high-tech R&D talents, including more than 2,500 consumer research and product development personnel.

With the support of a mature global talent system, Yili's product categories are constantly subdivided to provide consumers with different needs of health products. At present, Yili already has Yili's parent brand, as well as more than 20 sub-brands, of which the annual sales of Ammushi and Yili pure milk are more than 20 billion yuan; the annual sales of classic yogurt are more than 10 billion yuan; and there are also ten sub-brands, with annual sales of more than 1 billion yuan. In kantar consumer index "2020 Asia Brand Footprint Report", Yili ranked first in the list of the most selected brands in the Chinese market for five consecutive years with a brand penetration rate of 91.6% and a consumer reach rate of nearly 1.3 billion. The continuous listing of innovative products is the result of Yili's innovative talent training over the years, witnessing the transformation of Chinese manufacturing to Chinese creation.

Dear friends, the word "innovation" has been repeatedly mentioned in the "14th Five-Year Plan" and has been listed as the first place in the work of twelve important areas in the next five years, and it is specially deployed, which shows that China's emphasis on innovation is reaching an unprecedented height. 、

In the future, Yili is willing to work with innovative partners to seize china's creative opportunities, gather global high-quality resources, accelerate the construction of a global health ecosystem, help the new development pattern of double circulation with practical actions, and continue to provide consumers with high-quality health products and services. Promote the development of higher quality of China's emulsion and realize the dream of sharing health in the world, thank you!