Focus on Researching and Understanding Chinese Breast Milk
In addition, another key differentiation of our brand is our consistent dedication to researching and understanding Chinese women’s breast milk in order for our infant milk formula production to simulate the composition in breast milk as much as possible. We have established a comprehensive Chinese breast milk database, in which we have collected over 1,500 Chinese breast milk samples from Chinese mothers of various physique and diets across the region. Additionally, we have formed collaborative partnerships with leading national and international research institutions to continue conducting research on the nutrition of infants and adults. Moreover, we persistently source the highest quality fresh milk for all of our infant milk formula production. The close proximity of our production facilities to our dairy milk suppliers ensures the freshness is optimally preserved, whereby the milk is utilized within 24 hours of receipt. According to the F&S Report, we are the only infant milk formula provider that participated in the prestigious National 863 Program, also known as the State High-technology Development Plan (国家 高技术研究发展计划), a PRC Government funded program intended to stimulate the development of advanced technologies. As of the Latest Practicable Date, we are in the process of further developing milk products for infants and adults, with more than ten products in the pipeline targeted to be launched over the next few years.
As a result of our continuous efforts across these initiatives, we have solidified our reputation as a premium infant milk formula brand and have generated significant demand for our high-end products, subsequently driving our revenue growth during the Track Record Period. For the years ended December 31, 2016, 2017 and 2018, our revenue was RMB3,724.4 million, RMB5,887.3 million and RMB10,391.9 million, respectively, and for the six months ended June 30, 2018 and 2019, our revenue was RMB4,384.6 million and RMB5,891.7 million, respectively. Our profit for the years ended December 31, 2016, 2017 and 2018 was RMB406.2 million, RMB1,160.2 million and RMB2,242.3 million, respectively, and for the six months ended June 30, 2018 and 2019, our profit was RMB1,091.4 million and RMB1,750.8 million, respectively.
Our history traces back to 1962, when Hongguang Dairy Plant (红光乳品厂) (“Hongguang Dairy”), the predecessor of Feihe HLJ, was founded as a state-owned enterprise. Our operating subsidiaries are located in the PRC, Hong Kong, the United States and Canada.