Youran Dairy boosts deposit caps with Yili Finance for expansion

Youran Dairy has announced a significant revision of its annual caps for deposit services with Yili Finance Company, its controlling shareholder. The maximum daily balance of deposits (including accrued interest) will increase from RMB1,500.0 million to RMB2,500.0 million for the period ending December 31, 2025, and further to RMB2,750.0 million for the year ending December 31, 2026. This adjustment, outlined in the Supplemental Financial Services Framework Agreement dated August 22, 2025, is driven by the group's consistent business expansion, increased funding requirements from new farms, and a strategic initiative to centralize fund management for improved efficiency and deposit yields.

The group's revenue grew by 2.3% to RMB10,284 million for the six months ended June 30, 2025, primarily from its raw milk business, which saw sales volume increase by 15.8%. The company reported a net current liability of RMB12.3 billion as of June 30, 2025, but confirmed adequate funds for the next 12 months, pending shareholder approval for the revised caps. Yili Finance Company, a non-bank financial institution regulated by NFRA, received a 2A rating in its 2024 annual review, affirming its stable operations and solid financial base.