Junlebao IPO: Wei Lihua Controls 59.26%, Moutai and Sequoia Capital Are Shareholders

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.

Junlebao’s business scope covers infant formula, yogurt, low-temperature fresh milk, ambient liquid milk, and dairy cattle breeding, animal husbandry, and grassland industries. Its launched products, “Yuexianhuo” fresh milk and “Jianchun” yogurt, are gradually becoming the main revenue drivers for Junlebao.

Junlebao’s revenue mainly comes from low-temperature liquid milk, ambient liquid milk, and milk powder. Public information shows that in April 2014, Junlebao entered the milk powder industry with a super-low price strategy. The company’s revenue reached 20.3 billion yuan in 2021, with approximately 15 billion yuan contributed by the milk powder segment, accounting for 74%. It once became 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 low-temperature 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, accounting for 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 year-over-year growth of 13% 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, thanks to 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 low-temperature liquid milk. Data shows that its low-temperature liquid milk segment has shown particularly strong growth. Revenue contribution increased from 6.287 billion yuan in 2023 to 7.581 billion yuan in 2024, a year-over-year increase of 20.6%. In 2024, Junlebao ranked second in China’s low-temperature liquid milk market with a market share of 14.5%, and third in the fresh milk market with a share of 10.6%. From January to September 2025, its low-temperature liquid milk business grew by 12.2% year-over-year.

In terms of personnel changes, in March 2025, Guo Jingfeng stepped down as chairman of the supervisory board. Directors Huang Yafang, Supervisors Jiang Shuwang and Feng Dan resigned. After more than a year, Chen Shuo rejoined as a company director.

According to public information, Jiang Shuwang currently serves as Vice President of Junlebao and is one of the core management members from early on; Huang Yafang has been reported in the media as Vice President and Supply Chain General Manager of Junlebao.

Regarding ownership structure, before the IPO, Wei Lihua held 37.54% of shares. Additionally, management controlled a total of 59.26% of shares through six employee incentive platforms, including Lehuirui Sheng and Yuehui Xinghong.

Sequoia China holds 8.59% through Ningbo Tanza, making it the largest external institutional shareholder; Chunhua Capital holds 7.68% through Chunhua Shaojing and Qiushi Xingde; Ping An Capital holds 4.84% through Ping An Consumer and Bamao Investment; Hebei Construction Investment Chuangfa Fund holds 2.46% through Central Support Shijiazhuang and Rural Industry Investment; Moutai holds 0.94% through its private equity fund Moutai Jinshi.