A Comparative Study On Profit Models And Financial Performance Of Yili And Guangming Dairy Industry

With the improvement of living standards of our residents,dairy products have become a major part of people’s daily diet.Yili Dairy and Bright Dairy are representative enterprises of dairy products in China.This article takes these two companies as research objects and intends to study the profit model of dairy companies and their impact on financial performance.This paper adopts the literature analysis method and case analysis method.First of all,this paper discusses the background,purpose,significance,literature review,research content,research methods,and innovations of the case study.Second,it summarizes and absorbs relevant domestic and foreign profit models and financial performance.Based on the basic theory of the profit model,the profit models of Yili Dairy and Guangming Dairy are analyzed from five perspectives: Profit Point,Profit Source,Profit Leverage,Profit Barrier,and Profit Maker;by consulting Yili Dairy and Bright Dairy 2012–2016 The annual report data combined with the profit model from the profitability status,operational capability status,solvency status,and growth ability status were compared and analyzed in terms of financial indicators,and a comprehensive financial performance evaluation was conducted for Yili Dairy and Guangming Dairy to obtain a profit model.The conclusion of the relationship with financial performance;Finally,from the optimization of profitability model,put forward proposals to improve the profit model and improve financial performance.Through research and analysis,it was found that when Yili Dairy and Guangming Dairy were in the profit model of the whole industry chain,when enterprises laid out the industrial chain layout,they focused on extending the length of the industry chain,ignoring the quality and convergence of each link,which was specifically expressed in the production of the middle reaches of the industrial chain.The lack of core competitiveness of the products;investment in the downstream of the industry chain marketing and brand building link,resulting in high cost rate,affecting corporate profits;mergers and acquisitions after the integration of resources is not in place,did not play a synergistic effect of mergers and acquisitions.In response to the above problems,suggestions were made for the upstream R&D of the industrial chain,the downstream marketing chain of the industry chain,and merger and acquisition integration to better optimize the profit model and improve the financial performance of the company.