New Stock News | Yili Group Files for Listing on Hong Kong Exchange, Becoming China's Second Largest Goat Milk Powder Brand.

According to the disclosure by the Hong Kong Stock Exchange on August 31, Yi Brand Nutritional Technology (Qingdao) Group Limited (hereinafter referred to as "Yi Brand Group") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with HAITONG INT'L and China Securities Co., Ltd. International acting as its joint sponsors. The prospectus shows that Yi Brand Group is a dairy company focusing on goat milk powder and special medical purpose formula food, providing high-nutrition, easily absorbable, and low-allergenic solutions for consumers of all ages, especially those who are prone to allergies, lactose intolerant, or have poor digestion and absorption. Its product portfolio includes infant formula goat milk powder, special medical purpose formula food, infant formula cow milk powder, children's and adult formula milk products, among others. According to data from Frost & Sullivan's report, based on retail sales of corresponding products in 2024, Yi Brand Group ranks second in the goat milk powder market in China with a market share of 14.0%; second in the infant formula goat milk powder market in China with a market share of 17.6%; and second in the infant special medical purpose formula food market in China, with a market share of 4.5%. The company's industrial chain model covers dairy production from its own farms, raw milk procurement, core ingredient (such as goat whey) supply and processing in the upstream, formulation and production in the midstream, and brand promotion, distribution, and consumer interaction in the downstream. In the upstream segment, the company operates its own farms in Heilongjiang and Shandong, and manages a strategic procurement base in Spain. According to Frost & Sullivan's report, the company's factory in Spain is one of the world's largest producers of goat whey powder, accounting for approximately one-fourth of the total production in the European Union in 2024. During the past periods, the company's main customers generally included large regional distributors, e-commerce distributors, as well as manufacturers and food companies and OEM brand owners. For the years ended December 31, 2022, 2023, and 2024, and the six months ended June 30, 2025, the revenue from the top five customers totaled RMB 284 million, RMB 292 million, RMB 256 million, and RMB 112 million, representing 20.3%, 18.0%, 14.6%, and 13.9% of the total revenue for the respective years/periods. As of August 25, 2025, Mr. Mou, Kangwang Investment, and Qiwang Investment directly held 19.16%, 38.31%, and 17.64% of the company's shares, respectively. Kangwang Investment is wholly owned by Mr. Mou. Qiwang Investment is an employee stock platform, with Kangwang Investment holding approximately 0.67% as the general partner and Mr. Mou holding approximately 51.99% as the limited partner. Therefore, as of the last practicable date, Mr. Mou, Kangwang Investment, and Qiwang Investment collectively are the controlling shareholders of the company, holding approximately 75.11% of the shares. The prospectus highlights that the company's business is subject to several risks and uncertainties. Significant risks related to the business and industry include competition from the broader dairy market and specific segments such as infant formula milk powder, formula goat milk powder, and special medical purpose formula food, potential industry growth slowdown which may further increase competitive pressures, interruptions in production operations, product contamination (actual or alleged), fluctuations in raw material prices and quality that could have significant adverse effects on the business, financial condition, and operating performance. In terms of finances, Yi Brand Group achieved revenues of approximately RMB 1.402 billion, RMB 1.614 billion, RMB 1.762 billion, and RMB 806 million respectively for the years ended 2022, 2023, 2024, and the six months ended June 30, 2025; and profits for the same periods were RMB 227 million, RMB 168 million, RMB 172 million, and RMB 56.688 million respectively.