Another also run. No biggy. However how many unfounded bombs are out there? Another we helped those poors while we need no control.
This was 2002
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Chinese Giant Dairy Corp Aiming US$3b Sales Target
china.org.cn
China's pillar dairy-product enterprise Yili Corp is looking to elbow itself into the world's top-20 dairy multinationals by investing hundreds of millions of dollars in production expansion over the next decade or two.
The ambitious strategy will help it reach annual sales of about US$3 billion by 2010, said Zheng Junhuai, chairman of Yili.
The sales target is 10 times last year's but "is still small compared to China's huge market potential," Zheng said.
China, with a population of more than 1.3 billion, last year produced only 11 million tons of milk, far behind India at 80 million tons.
But "if every Chinese had a cup of milk a day, the country would consume all the world's milk," Zheng said.
Zheng predicts that China can match India's milk output in 10 years.
Eyeing the huge market, many foreign dairy-product companies came to China, vying with each other as well as their Chinese counterparts.
But the result was not as they expected. Some have retreated from China's market or have partnered with Chinese firms to manage their operations, he said.
They found the Chinese market different from Europe's or America's.
The country is so big that consumer tastes vary greatly from region to region.
"None of the companies can control as great a market as China," Zheng said.
The country needs at least several - and perhaps more than 10 - brand name dairy products, he added.
"What we must do is enlarge our production capability to grab as much market share as possible," the Yili chairman said.
Zheng revealed the corporation's development blueprint, which aims to set up more factories nationwide using advanced technology and equipment from abroad.
Yili has formed three production bases in Inner Mongolia, Northeast China and North China by co-investing 250 million yuan (US$30 million).
A factory in Daqing, Heilongjiang Province, equipped with machines from Denmark and Germany, will be put into operation next year to process 600 tons of fresh milk into milk powder daily.
The corporation now has 180,000 cows raised by herdsmen in North China, Northeast China and Northwest China that provide 2,500 tons of milk daily for processing.
"The growth of the dairy business has helped many herdsmen escape poverty and made them restructure their farming production," Zheng said.
(China Daily August 23, 2002)
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Dairy producer Yili confirms chairman, CFO detained
2004-12-22 02:31:28 THE ASSOCIATED PRESS
SHANGHAI, Dec. 22 (AP) -- Admitting to problems within its management, one of China's biggest dairy groups said Wednesday that five of its executives have been detained by police, in the latest scandal to strike the country's corporate world.
Yili Corp.'s unit listed in Shanghai, Inner Mongolia Yili Industrial Co., said its operations were stable despite five senior executives being detained for suspected embezzlement.
Authorities are investigating a case of "economic problems," Yili said in a statement issued to the Shanghai Stock Exchange.
On Tuesday, a company official had confirmed reports of trouble at the company, which is based in the northern region of Inner Mongolia. He said three executives had been detained, but gave no further comment.
Among those detained were Zheng Junhuai, Yili's chairman; Zhang Xianzhu, its chief financial officer and Li Yongping, head of its securities department.
State-run newspapers reported Monday that up to seven executives of Yili Corp. were detained on suspicion of embezzlement and other crimes late last week. Several of those senior managers were later released, according to the reports.
Prosecutors began investigating accounts at Yili following announcements last summer that the company had lost millions of dollars in bond dealings, the reports said.
Yili's shares were suspended from trading on the Shanghai Stock Exchange on Tuesday pending an announcement by the company.
On Monday, its shares halted trading after falling by the daily limit of 10 percent. They last traded at 9.77 yuan ($1.18).
The arrests come on the heels of a brewing scandal involving Beijing-backed China Aviation Oil (Singapore). Authorities have opened a criminal investigation into the Singapore-listed jet fuel supplier, which last month declared losses of US$550 million (€416.95 million) from speculative trades.
english.sina.com
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Yili Corp irregularities investigated
By Sun Min (China Daily)
Updated: 2004-07-23 09:26
The China Securities Regulatory Commission (CSRC) had launched an investigation on the alleged securities-related irregularities committed by dairy firm Yili Corp.
The commission had informed the Shanghai-listed firm on Wednesday that it was suspected of breaking securities laws and regulations and that the watchdog had decided to launch a formal investigation into the matter and the case would be put on record.
Although the company revealed the move in a circular issued yesterday in major securities newspapers, neither it or the regulator gave any further information on the issue yesterday.
The Yili spokesman was unavailable for comment.
But information released earlier reveals that the company and one of its subsidiaries were involved in controversial treasury bond trading over the past two years, which had witnessed losses in investment but was not properly disclosed to shareholders as required.
The company tried to make up for the matter and disclosed the relevant investments late in June, but this had already caught the attention of the commission, which sent an investigative panel to the company.
Yili, headquartered in North China's Inner Mongolia Autonomous Region, is one of the nation's leading domestic dairy producers.
It earned a profit of 319 million yuan (US$38.5 million) last year, a year-on-year increase of 49.5 per cent, according to the company's 2003 annual report. Its turnover also increased by 57 per cent to reach 6.3 billion yuan (US$760.8 million) in the year, the biggest of all companies in the industry.
But analysts warned that Yili's reported problems have certainly tarnished the firm's public image.
The effect of this is already being felt, with Yili's shares closing down 0.81 yuan (10 US cents) to 8.99 yuan (US$1.086) yesterday.
An analyst at Harvest Fund Management Co said that the Yili incident reflects corporate governance flaws that exist in many of China's listed companies.
It is also a systematic flaw in China's stock market, he said.
Listed companies should be aware of the fact that such fraud will only damage their own reputation and investor confidence.
However, the Yili case, which is still under investigation, is unlikely to have a major impact on the milk industry as a whole, he said, but the sector is already having a hard time due to April's fake milk powder scandal in Fuyang, East China's Anhui Province.
And Yili is not the only listed firm that has got into trouble over information disclosure problems.
Three other listed firms also recently received similar notices from the commission about the investigation into their irregularities, including Jiangsu Qionghua, a high-tech company in East China's Jiangsu Province that was recently listed on the new small and medium-sized enterprise board in Shenzhen, but was soon discovered to have included false information in its prospectus.
A commission spokesman said that institutions and individuals liable for the fraud would be punished accordingly, including the sponsors.
He said that the watchdog would take a tough line on irregularities concerning information disclosure and hoped all market participants would behave themselves and obey market rules.
chinadaily.com.cn
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