New Stock News | Yimeng Group submits second application to Hong Kong Stock Exchange, focusing on sheep milk powder and FSMP field.

According to the disclosure of Hong Kong Stock Exchange on April 12, Yiping Nutritional Technology (Qingdao) Group Co., Ltd. (referred to as "Yiping Group") has submitted an application for listing to the main board of Hong Kong Stock Exchange, with HAITONG INT'L and China Securities Co., Ltd. International serving as its joint sponsors. The company had previously submitted documents to Hong Kong Stock Exchange on August 31, 2025. Company Profile The prospectus shows that Yiping Group focuses on sheep milk powder and FSMP field, providing high-nutrition, easily absorbed, and low-allergenic dietary 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 sheep milk powder, FSMP, infant formula cow milk powder, children, and adult formula milk products. According to Frost & Sullivan report, based on the retail sales of corresponding products in 2024, the company ranked second in the Chinese sheep milk powder market with a market share of 14.0%; second in the Chinese infant formula sheep milk powder market with a market share of 17.6%; and second in the Chinese infant FSMP market, with a market share of 4.5% for Chinese domestic brands. The company's product portfolio covers finished formula milk powder and semi-finished dairy raw materials, providing a wide range of dairy products to meet the nutritional needs of different age groups, health conditions, and dietary preferences. Among them, infant formula sheep milk powder is an important source of revenue. In terms of production capacity, the company's production consists mainly of two parts: breeding facilities and production facilities. Breeding facilities include its own dairy farms located in Heilongjiang and Shandong provinces. As of December 31, 2025, the company operates an upstream integrated platform, including Beian Dairy Farm (Heilongjiang) and two sheep farms in Laixi and Jimo (Shandong province). Stable supply of sheep and cow milk from these farms has laid the foundation for the core product line. Production facilities include nine major production facilities (including four domestic factories and five overseas factories), responsible for the entire dairy processing cycle from raw material blending and wet processing to packaging and final product inspection. Its domestic production facilities include Beian Yiping Nuka Factory, Yiping Heilongjiang Factory, Obei Jia Nutrition Factory, and Yiping Qingdao Factory. Overseas, the company owns two manufacturing factories in South Korea and operates three manufacturing factories in Spain. Financial Data Revenue In the fiscal years of 2023, 2024, and 2025, the company's revenue was approximately RMB 1.614 billion, RMB 1.762 billion, and RMB 1.864 billion respectively. Profit In the fiscal years of 2023, 2024, and 2025, the company's annual profit was approximately RMB 168 million, RMB 172 million, and RMB 183 million respectively. Gross Profit Margin In the fiscal years of 2023, 2024, and 2025, the company's gross profit margin was 49.9%, 49.9%, and 50.7% respectively. Industry Overview China's Dairy Market Size China's dairy production increased from 27.8 million tons in 2020 to 29.6 million tons in 2024, with a compound annual growth rate of 1.6%. It is expected that the total production will moderately increase in the forecast period from 2024 to 2029, reaching 31 million tons by 2029, with a compound annual growth rate of 0.9%. Milk powder is a dairy product made by removing most of the water in liquid milk through drying process. As an important category of dry dairy products, the application scenarios of milk powder are relatively wide. From 2020 to 2024, the retail sales of milk powder increased from RMB 248.8 billion to RMB 320 billion, with a compound annual growth rate of 6.5%. It is expected that the retail sales of milk powder will reach RMB 291.5 billion by 2029. Sheep milk powder refers to milk powder made from goat milk and sheep milk, with goat milk being the most common source of sheep milk powder in the market currently. The retail sales of sheep milk powder in China have continued to grow steadily, outperforming the overall milk powder market. From 2020 to 2024, the retail sales of sheep milk powder increased from RMB 20.8 billion to RMB 25 billion, with a compound annual growth rate of 4.7%. Sheep milk powder is a segment within the overall milk powder market, and is expected to achieve stable growth as an alternative source of protein. Looking ahead, it is expected that the retail sales of sheep milk powder will reach approximately RMB 31.8 billion by 2029, reflecting a compound annual growth rate of 4.9% from 2024 to 2029. In terms of retail, from 2020 to 2024, the retail volume of sheep milk powder in China has maintained steady growth, increasing from 61,000 tons to 70,000 tons, with a compound annual growth rate of 3.5%. It is expected that by 2029, the retail volume of sheep milk powder will reach approximately 84,500 tons, reflecting a moderate compound annual growth rate of 3.8% from 2024 to 2029. The Chinese sheep milk powder market is moderately concentrated, with the top five companies accounting for 55.6% of the retail sales in 2024. In terms of retail sales value of sheep milk powder, the company is the second largest sheep milk powder company in China, with retail sales of RMB 3.5 billion in 2024 and a market share of 14.0%. Infant Formula Sheep Milk Powder Market The retail sales of infant formula sheep milk powder in China increased from RMB 16 billion in 2020 to RMB 18.8 billion in 2024, with a compound annual growth rate of 4.1%. It is expected that the market will continue to expand, with retail sales reaching approximately RMB 23.4 billion by 2029, and a compound annual growth rate of 4.5% from 2024 to 2029. The infant formula sheep milk powder market in China is highly concentrated, with the top five companies accounting for 60.8% of retail sales in 2024. In terms of retail sales of infant formula sheep milk powder products, the company is the second largest infant formula sheep milk powder company in China, with retail sales of RMB 3.3 billion in 2024, and a market share of 17.6%. Board of Directors Information The company's board of directors consists of 8 directors, including 5 executive directors and 3 independent non-executive directors. Shareholding Structure As of April 6, 2026, Mr. Mou, Kangwang Investment, and Qi Wang Investment directly hold 19.16%, 38.31%, and 17.64% of the company's shares respectively. Kangwang Investment is wholly owned by Mr. Mou. Qi Wang Investment is an employee stock platform, with Kangwang Investment as the general partner holding approximately 0.67% and Mr. Mou as the limited partner holding approximately 51.99%. Advisory Team Joint Sponsors: HAITONG INT'L Capital Limited, China Securities Co., Ltd. (International) Finance Limited Company Legal Counsel: Regarding Hong Kong laws: King & Wood Mallesons; Regarding Chinese laws: Dentons Shanghai Office; Regarding Chinese Network Security and Data Protection laws: Dentons Beijing Office Legal Counsel of Joint Sponsors: Regarding Hong Kong laws: Jingtian & Gongcheng Attorneys at Law Limited Liability Partnership; Regarding Chinese laws: Jingtian & Gongcheng Attorneys at Law Beijing Office Reporting Accountants and Auditors: Ernst & Young LLP Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Hao De Finance Limited Company