Junlebao Dairy Group's Hong Kong IPO A1 application recently entered a routine procedural update after its six-month validity period expired, drawing market attention. The company stated that this is a standard process in Hong Kong stock exchange listings, and it is currently conducting a financial audit extension. Once completed, it will promptly update and resubmit the application materials. This milestone offers an opportunity for external observers to reassess the business fundamentals and long-term value of this leading Chinese dairy company.
Ranked third in the industry, the company maintains steady operational quality. According to a Frost & Sullivan report, based on 2024 retail sales in China, Junlebao ranks third among comprehensive dairy companies in China, with a 4.3% market share. Amid industry pressures, Junlebao achieved growth in both revenue and profit: total group revenue increased from RMB 17.5 billion in 2023 to RMB 19.8 billion in 2024, and reached RMB 15.1 billion in the first three quarters of 2025. More notably, profitability improved consistently: adjusted net profit rose from RMB 600 million in 2023 to RMB 1.16 billion in 2024, with the adjusted net profit margin climbing from 3.4% to 5.9%, and further increasing to 6.2% in the first three quarters of 2025. The simultaneous growth in revenue scale and profit levels reflects ongoing optimization in operational efficiency and product structure.
Two key product categories build a strong barrier in the low-temperature liquid milk segment. Amid a competitive landscape in the dairy industry, Junlebao has leveraged forward-looking strategic positioning and product innovation to establish two market leaders in the low-temperature fresh milk and low-temperature yogurt segments. The premium fresh milk brand Yuexianhuo is a prime example. Since its launch in 2019, Yuexianhuo has quickly gained consumer recognition for its high quality. According to AC Nielsen data, as of June 2026, Yuexianhuo holds a 28% share of the full-channel fresh milk market in China, ranking first in the industry. In the premium fresh milk segment, its market share exceeds 50%, meaning that for every two bottles of premium fresh milk sold, one is from Yuexianhuo, achieving absolute category leadership.
In the low-temperature yogurt segment, Jianchun leads the zero-sucrose yogurt category with its sugar-free positioning. Euromonitor data shows that Jianchun is the top-selling low-temperature yogurt in China and has been the market leader in the zero-sucrose yogurt category for five consecutive years, with a market share exceeding 50%. From the slogan "Fear sucrose, drink Jianchun" to being designated as a "national team designated dairy product," Jianchun not only drives the national trend toward light diets but also builds a difficult-to-replicate technological moat with its patented probiotic formula.
A full-industry chain fortifies the quality moat. The sustained success of key products relies on a deep industry chain foundation. For dairy companies, control over upstream milk sources directly determines product quality stability and cost competitiveness. Junlebao has built an industry-leading full-industry chain barrier in this regard. As of September 30, 2025, Junlebao operates 33 modern self-owned pastures and 20 dairy production plants, with a dairy cow population of 192,000 heads, ranking third nationally in breeding scale. In 2024, its milk self-sufficiency rate reached 66%, the highest among large comprehensive dairy companies in China.
Supported by its full industry chain, Junlebao achieves end-to-end quality traceability from upstream forage planting and dairy cow breeding to pasture management, production processing, and logistics warehousing. This aligns with national policies on strict food safety regulation and significantly enhances consumer brand trust, providing a solid foundation for the company's long-term development.
Going global, Chinese fresh milk reaches the world. On July 5, 2026, Yuexianhuo held a brand strategy conference at Resorts World Sentosa in Singapore, announcing its official entry into the Singapore market. Known for its stringent food safety standards, Singapore passed Yuexianhuo through the full set of access tests and food safety audits by the Singapore Food Agency. Prior to this, Yuexianhuo entered the Hong Kong market in May 2025, quickly covering major channels within a year and winning the "TOP BRAND Rapid Sales Progress Award" from 7-Eleven and the "Outstanding Brand Award Rapid Progress Award" from ParknShop.
Junlebao Chairman and President Wei Lihua stated that choosing Singapore as the first overseas destination not only serves as a high-standard validation of product quality but also represents a strategic move to use Singapore as a base to reach the 700 million population of Southeast Asia. Domestically, in April of this year, the first phase of Junlebao's South China dairy full-industry chain integrated base in Jiangmen, Guangdong, began production. It is designed for an annual output of over 180,000 tons and an annual output value of approximately RMB 2 billion. The fresh milk production line has been operating near full capacity since its launch. The base took only 11 months from construction to production, further strengthening Junlebao's supply capabilities in South China and the Greater Bay Area, while supporting its export business to Southeast Asia.
More noteworthy is a key governance signal during the listing preparation period: in December 2025, the shareholding of the company's founders and management team increased from approximately 15.00% to 20.61%, with a total increase of over RMB 1.1 billion. This funding came entirely from the full reinvestment of their dividends over the past three years. This "reverse operation" sends a clear message: core management has strong confidence in the company's long-term value and aligns their interests closely with shareholders, reflecting a governance philosophy of long-termism.
Overall, the expiration of the A1 application after six months is a routine procedural matter in the Hong Kong IPO process, and Junlebao's listing work is progressing normally. The company's current business fundamentals are solid, and it has developed a clear development path in areas such as industry chain foundation, niche product barriers, profit quality improvement, governance structure, and international expansion. Building on three decades of accumulated strength, this third-largest Chinese dairy company is advancing steadily toward a new phase of high-quality growth.