Nearly Half of Revenue from Low-Temperature Dairy Products, Junlebao Targets Hong Kong IPO with Annual Revenue of 20 Billion Yuan

Rui Finance Yan Minghui On January 19, Junlebao Dairy Group Co., Ltd. (hereinafter referred to as Junlebao) submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation and Morgan Stanley serving as joint sponsors.

Having endured the shadow of Sanlu and a difficult rebirth, Junlebao has now become the largest dairy processing enterprise in Hebei Province and the third largest in China’s dairy industry, with a market share of 4.3%. However, this third place is quite distant from Yili Group’s 24.6% and Mengniu Dairy’s 18.7% market shares.

The prospectus also shows that from 2025 to 2029, the annual growth rate of dairy products is expected to be 2.8%, an increase of 1 percentage point compared to the previous five years. The overall growth rate of the domestic dairy market is slowing down, putting external pressure on Junlebao.

Junlebao’s business scope covers infant formula, yogurt, chilled fresh milk, ambient liquid milk, dairy cow breeding, animal husbandry, and grass industry, among others. Its launched products, “Yuexianhuo” fresh milk and “Jianchun” yogurt, are gradually taking on a leading role in Junlebao’s revenue.

Junlebao’s revenue mainly comes from chilled liquid milk, ambient liquid milk, and milk powder. Public data shows that in April 2014, Junlebao entered the milk powder industry through a super-low-price strategy. The company’s revenue reached 20.3 billion yuan in 2021, with the milk powder segment contributing about 15 billion yuan, accounting for 74%, once becoming Junlebao’s pillar industry. As of December 31, 2025, Junlebao has 269 SKUs of milk powder. However, with the launch of the “Jianchun” and “Yuexianhuo” brands, Junlebao’s revenue structure has undergone significant changes.

In the first nine months of 2025, revenue from chilled liquid milk was 6.437 billion yuan, accounting for 42.5% of total revenue; revenue from ambient liquid milk was 2.808 billion yuan, accounting for 18.6%; revenue from milk powder was 3.345 billion yuan, representing 22.1%; and revenue from other businesses was 1.112 billion yuan, accounting for 7.3%.

In 2023-2024, Junlebao’s revenue was 17.546 billion yuan and 19.833 billion yuan respectively, with a 13% year-on-year increase in 2024, approaching the 20 billion mark. However, high revenue did not translate into high profit. In 2023 and 2024, its net profit margins were 5.6% and 0.03%, respectively. In the first three quarters of 2025, driven by cost reduction and efficiency improvement measures, margins temporarily rebounded to 5.96%. The adjusted net profit margin increased from 3.4% in 2023 to 5.9% in 2024, and further to 6.2% in the first nine months of 2025, with corresponding amounts of 603 million yuan, 1.161 billion yuan, and 945 million yuan.

The rapidly expanding market space is a key reason why Junlebao is betting on chilled liquid milk. Data shows that its chilled liquid milk business has shown particularly strong growth. Revenue contribution increased from 6.287 billion yuan in 2023 to 7.581 billion yuan in 2024, a year-on-year increase of 20.6%. In 2024, Junlebao ranked second in China’s chilled liquid milk market with a market share of 14.5%, and third in the fresh milk market with a market share of 10.6%. From January to September 2025, its chilled liquid milk business grew by 12.2% year-on-year.