Chinese Upstream Dairy Market Leader Youran Dairy Debuts on HKEX

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HOHHOT, China, June 23, 2021 /PRNewswire/ — Youran Dairy, a leading Chinese upstream dairy market player, got listed in Hong Kong on June 18 with an issuance price of HK $6.98 and a code of “09858. HK”, becoming the first Chinese upstream dairy market player to debut on the capital market.

Youran Dairy was listed on the HKEX on June 18.

The listing ceremony was held that morning in northern Chinese city Hohhot, the milk capital of China. Zhang Yujun, chairman of Youran Dairy, said that the company has been committed to providing customers with high-quality products and services. Youran Dairy has developed into a comprehensive animal husbandry company covering the whole industrial chain of the upstream dairy industry, with businesses in breeding, grass, feed and farming. The company is not only the world’s largest supplier of raw milk, but also the first animal husbandry enterprise in China to exceed 10 billion yuan in business volume.

Youran Dairy is said to enjoy a large-scale advantage in the Chinese upstream dairy market as well as strong growth momentum. With policies to promote “Healthy China” and the revitalization of the dairy industry, as well as the trend of consumption upgrading and healthy consumption, Youran Dairy enjoys promising prospects in long-term steady growth and capital market performance.

In the past 40 years since its establishment, Youran Dairy has accumulated profound resources and technological advantages in raw milk, ruminant feed and breeding. With a unique whole industrial chain layout in the upstream dairy market, the company boasts great leading advantages in various fields.

Youran Dairy is the world’s largest provider of raw milk in terms of the dairy cow stock as of June 30, 2020 and the output of raw milk in the first half of 2020.

Moreover, Youran Dairy is also China’s largest ruminant feed producer, selling more than 770,000 tons of ruminant concentrated feed in 2020. It’s also China’s leading supplier of roughage (mainly alfalfa and oat grass). Youran Dairy has the largest market share in China in terms of the 2020 sales volume of alfalfa, the main roughage category.

When it comes to the breeding business, based on the sales volume in 2019, the affiliated company of Youran Dairy has a 9.5-percent market share in China’s dairy frozen semen market, and a market share of 22.2 percent in the dairy sex-controlled frozen semen market, making it the largest dairy cow breeding enterprise in China.

The layout of the whole industrial chain and the combination of planting and breeding of Youran Dairy has effectively realized the sharing of resources, technologies and talents, and also generated a strong synergistic advantage. In this respect, the mode has consolidated Youran Dairy’s position as a leader in the upstream dairy industry and helped it maintain a long-term strong growth rate and profitability.

From 2018 to 2020, the company’s revenue reached 6.33 billion yuan, 7.67 billion yuan and 11.78 billion yuan respectively, with an annual compound growth rate of 36.4 percent in the past three years, leading the industry in both scale and growth rate. During the same period, its net profit totaled 653 million yuan, 802 million yuan and 1.541 billion yuan respectively, with an annual compound growth rate of 53.6 percent in the past three years.

Besides outstanding business performance, Youran Dairy is enjoying supportive policies and facilitating consumer trends.

Modernization and large-scale breeding of dairy animal husbandry is one of the important measures to revitalize China’s dairy industry as well as the future industrial development trend. Relevant policy documents have highlighted the development of standardized scale breeding, strengthening large-scale breeding of improved varieties and promoting the production of high-quality forage. Such policy support is good for leading enterprises in the industry like Youran Dairy, which already has an obvious scale advantage.

In terms of consumption trend, the continuous consumption upgrading in the Chinese market and the strong demand of consumers for healthy food stimulated by the COVID-19 epidemic have all driven the demand for dairy products, especially nutritious personalized and high-end dairy products, which is one of the core advantages of Youran Dairy.

In 2020, the sales revenue of Youran Dairy specialty fresh milk reached 30.9 percent of the total revenue of its raw milk business. Youran Dairy is the largest specialty fresh milk provider in China based on its fresh milk output in 2020.

All said, the listing of Youran Dairy in the HKEX is not only a natural result of the company’s long-term and rapid development, but also a natural move facilitated by supportive policies and trends. The debut on the Hong Kong stock market will not only obtain global capital for Youran Dairy, but also strengthen its global resource layout, and further beef up its competitive advantage in the whole upstream dairy industry chain.

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   Caption: Youran Dairy was listed on the HKEX on June 18.

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