Inner Mongolia Yili Industrial Group (600887) recorded a 132.82 percent year-on-year rise in 2011 net profit to 1.81 billion yuan on a 26.13 percent increase in revenue to 37.27 billion yuan, reports National Business Daily, citing a company filing. Earnings per share hit 1.13 yuan. 

Sales of milk powder hit 5.6 billion yuan in 2011 as the company registered strong growth despite fierce competition from international dairy companies.

According to research company AC Nielsen, Yili had a 21 percent share of the Chinese milk powder market, and is the industry leader. Sales of its QQ Star milk for children surged more than 102 percent.

Several new factories across the country were put into operations in 2011, including a factory in Ningxia with annual capacity of 190,000 tons of liquid milk, and another in Zhejiang with daily production capacity of 250 tons of ice cream. 

The diary company revised its private placement plan, and now intends to raise up to five billion yuan from the issue of 310 million shares at not less than 16.34 yuan per share.

Funds raised will be used to expand its liquid milk, milk powder, ice cream and yogurt businesses.