New Hope Liuhe submits application to Hong Kong Stock Exchange, ranked fifth in China's liquid dairy market.

According to the disclosure on April 2 by the Hong Kong Stock Exchange, New Hope Liuhe Dairy Co., Ltd. (referred to as New Hope Liuhe Dairy) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with Morgan Stanley and CITIC Securities as its joint sponsors. Company Profile The prospectus shows that the company is a technology-based nutrition food enterprise, adhering to the mission of "freshness, making life better," with the Fresh Cube strategy as its core, focusing on the research, development, production, and sales of dairy products and other nutritional food. The company is committed to upgrading low-temperature dairy products from traditional nutritional intake to high-frequency health consumer goods with more segmented functions and applications in more consumption scenarios, providing consumers with fresher, more nutritious, and more emotionally appealing product choices. By driving innovation with technology, leading growth with biotechnology and digital technology, and possessing strong acquisition and integration capabilities to enhance product quality and operational efficiency, the company has become a nationally positioned, regionally leading leading enterprise with multiple brands and integrated industrial operations. The company's fresh value product ecosystem meets consumers' diverse and high-quality nutritional needs. As of the last feasible date (March 25, 2026), the company has over 20 major dairy product brands and has formed a differentiated competitive advantage through regional layout. Specifically, its 24-hourTM fresh cow milk series has become a national benchmark for freshness with its commitment to selling only the freshest products each day. The high-end brand Chaori VIP, adhering to the concept of circular agriculture, has obtained multiple organic certifications for its organic products, representing the leading quality level of Chinese dairy products. In the yogurt field, Huorun, relying on proprietary probiotic strains and 3D encapsulation technology, has created functional probiotic yogurt, becoming the preferred choice for healthy meal replacements; Chuxin focuses on simple formulas and health, occupying an important position in the zero-sugar yogurt market. These products have enabled the company to make significant progress in the functional dairy product field and have become a driving force for increasing profitability. The company has built an integrated industry chain from the farm to the table, achieving excellent delivery of fresh products through distributed production capacity. With a combination of 12 self-owned farms, strategic cooperative farms, and stable cooperative third-party commercial farms, the company ensures a high-quality and stable supply of raw milk. The company has 17 dairy processing plants in China, located close to consumers, with the transportation radius of local farms usually controlled to around 150 kilometers, ensuring rapid processing and market launch of low-temperature fresh milk, low-temperature yogurt, and ambient milk. Additionally, the company's low-temperature process helps retain active nutrients in milk, making the products more natural and nutritious. The company has built a three-dimensional omni-channel network integrating online and offline operations, adhering to regional cultivation and national breakthrough. With strong acquisition and integration capabilities and a distributed operating model, the company focuses on core regional markets to establish a leading position, while expanding across regions and extending its cold chain network to achieve national synergistic development. The company's unique home delivery network adopts a subscription model and, combined with innovative operating models like the 24-hourTM fresh cow milk concept store, expands the company's reach directly to consumers, tailored particularly for short-shelf-life fresh dairy products. The company's diversified channel layout and differentiated operating strategies enable fresh products to quickly reach millions of households. By deeply understanding consumer trends and driving innovation, the company has successfully seized the opportunity in the Chinese low-temperature liquid dairy products market, achieving rapid growth. In terms of revenue from low-temperature dairy products, the company achieved a compound annual growth rate of 10.8% from 2023 to 2025. According to a Frost & Sullivan report, based on retail sales value by 2025, the company ranked fifth in the overall liquid dairy products market in China, fifth in the low-temperature liquid dairy products market in China, and had the highest growth rate among the top five dairy companies in China in terms of low-temperature liquid dairy products retail sales value from 2024 to 2025. According to the same source of data, in regional markets, based on retail sales value by 2025, the company held the first position in the southwestern low-temperature liquid dairy products market, low-temperature fresh milk market, and low-temperature yogurt market. Financial Information Revenue In 2023, 2024, and 2025, the company's operating revenues were approximately RMB 10.987 billion, RMB 10.665 billion, and RMB 11.233 billion, respectively. Profit In 2023, 2024, and 2025, the company's net profits were approximately RMB 438 million, RMB 549 million, and RMB 754 million, respectively. Gross Margin In 2023, 2024, and 2025, the company's gross margins were 26.9%, 28.4%, and 29.2%, respectively. Industry Overview The market size of the Chinese dairy industry has continued to grow steadily. Driven by factors such as ongoing urbanization, increasing consumer health awareness, rising per capita consumption of dairy products, and continuous product innovation and upgrade, the Chinese dairy market has continued to expand. The retail sales value of the Chinese dairy market increased from RMB 644.1 billion in 2021 to RMB 653.8 billion in 2025, with a compound annual growth rate of 0.4%. It is estimated that by 2030, the retail sales value of the Chinese dairy market will increase to RMB 752.8 billion, with a compound annual growth rate of 2.9% from 2025 to 2030. Liquid dairy products are the largest segment in the Chinese dairy market. From 2021 to 2025, affected by factors such as intensified market competition, price adjustments, and temporary imbalances in supply and demand within the industry, the market size of the Chinese liquid dairy products decreased slightly from RMB 351.2 billion to RMB 345 billion, with a compound annual growth rate of -0.4%. Looking ahead, it is expected that by 2030, the market size of Chinese liquid dairy products will reach RMB 386 billion, with a compound annual growth rate of 2.3% from 2025 to 2030. Based on processing methods, ambient liquid dairy products have historically dominated the liquid dairy products market due to their longer shelf life and national distribution advantages. However, as consumers increasingly focus on the freshness and quality of liquid dairy products, coupled with improvements and widespread application of cold-chain logistics technology, the market size of low-temperature liquid dairy products is continuing to expand. The market share of low-temperature liquid dairy products within the entire liquid dairy products market has been gradually increasing, making it an important segment driving the upgrade and growth of the liquid dairy products market. The market share of low-temperature dairy products increased from 23.1% in 2021 to 27.4% in 2025, and is expected to reach 31.9% by 2030. From 2021 to 2025, the market size of ambient liquid dairy products decreased from RMB 270.1 billion to RMB 250.4 billion, with a compound annual growth rate of -1.9%, mainly due to a decrease in consumption frequency of ambient liquid dairy products. Under the trend of consumers increasingly valuing freshness, product quality, and nutritional value, the market size of low-temperature liquid dairy products in China is steadily expanding, with its growth rate exceeding that of the overall liquid dairy products market. From 2021 to 2025, the market size of the low-temperature liquid dairy products industry in China increased from RMB 81.1 billion to RMB 94.6 billion, with a compound annual growth rate of 3.9%. It is expected that by 2030, the retail sales value of the low-temperature liquid dairy products market in China will reach RMB 123 billion, with a compound annual growth rate of 5.4% from 2025 to 2030. Low-temperature fresh milk and low-temperature yogurt, as core sub-categories of low-temperature liquid dairy products, continue to drive the expansion of the low-temperature liquid dairy products market. From 2021 to 2025, the market size of low-temperature fresh milk increased from RMB 28.8 billion to RMB 40.2 billion, with a compound annual growth rate of 8.7%, while the market size of low-temperature yogurt increased from RMB 52.3 billion to RMB 54.4 billion, with a compound annual growth rate of 1.0%. Looking ahead, it is expected that by 2030, the market size of low-temperature fresh milk will reach RMB 61.7 billion, with a compound annual growth rate of 8.9% from 2025 to 2030. The market size of low-temperature yogurt is expected to reach RMB 61.3 billion by 2030, with a compound annual growth rate of 2.4% from 2025 to 2030. Board of Directors Information Following compilation, the board of directors will consist of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors. The board of directors is responsible for and possesses general authority over the management and operations of the company. Directors serve a term of three years and are eligible for re-election upon the expiration of their term. Equity Structure Mr. Liu and Ms. Liu, together with UDL, NewHopeDairyInternational, NewCentury, New Hope Liuhe Investment, New Hope Liuhe Holding, New Hope Liuhe Asia Pacific, and Lhasa New Hope Liuhe, as of the last feasible date, constitute the controlling shareholder group of the company and will become the controlling shareholder group of the company based on the listing rules at the time of compilation. Intermediary Team Joint Sponsors: J.P. Morgan Securities (Far East) Limited, CITIC SEC (Hong Kong) Limited; Legal Advisors: Baker McKenzie, King & Wood Mallesons; Joint Sponsors and Legal Advisors for Compilation: Shentong Law Firm, Jingtian & Gongcheng Law Firm; Auditors and Reporting Accountants: KPMG Huazhen LLP (Special General Partnership); Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch; Independent Biological Asset Valuers: Jones Lang LaSalle (JLL) Corporate Valuation and Advisory Co., Ltd.