Junlebao, which had stated its intention to complete its listing by 2025, has been stuck in the counseling period for over 620 days. What are the obstacles on its IPO journey?
Junlebao's plan to complete its listing by 2025 appears unlikely to be fulfilled. In 2022, Junlebao set ambitious targets: to achieve 500 billion yuan in sales revenue by 2025 while simultaneously completing its public listing that same year.
Since launching its A-share IPO counseling on December 28, 2023, 624 days have passed, yet Junlebao's prospectus remains nowhere to be seen. In January 2025, after releasing its fourth "Listing Counseling Progress Report," the company has provided no further updates.
As Hebei province's dairy industry "rising star," where exactly is Junlebao's IPO journey getting stuck?
**Limited Time Remaining, Listing Progress Uncertain**
Junlebao has long been eager to go public. According to reports, as early as 2008, Junlebao founder Wei Lihua had prepared for listing, but the "melamine incident" derailed those plans. Subsequently, Junlebao was "sold" to Mengniu and stopped mentioning listing plans.
In 2019, Junlebao bought back its equity at nine times the original acquisition price, separating from Mengniu. That year, Junlebao's revenue reached 16.3 billion yuan.
After separating from Mengniu, Junlebao began paving the way for its listing. The first step was introducing investment institutions. In March 2020, Junlebao completed 1.2 billion yuan in strategic financing from Sequoia Capital China, Zhongqin Xinglong, and Hebei Construction Investment Fund. In June of the same year, it also received investments from Ping An Capital and Chunhua Capital. In December 2021, it secured investment from Bojia Capital. In July 2023, Junlebao conducted its final funding round, involving over ten investors and eight related entities, including Bojia Capital, Hebei Broadcasting, Shanghai Ruisheng Investment, Housheng Investment, and Hongzhang Capital.
Junlebao's second step was corporate restructuring. In December 2023, the company name changed from "Junlebao Dairy Group" to "Junlebao Dairy Group Co., Ltd.," with the corporate type changing to "other joint-stock limited company (non-listed)" and registered capital increasing from 62.216 million yuan to 720 million yuan.
On December 28, 2023, the Hebei Securities Regulatory Bureau disclosed CICC's "IPO Counseling Filing Report for Junlebao Dairy Group Co., Ltd.," officially announcing Junlebao's A-share IPO plan.
Local government also hopes for Junlebao's early listing. Since Sanlu's collapse, the Hebei government has been seeking to support new dairy companies going public. As early as 2016, Hebei provincial officials publicly expressed hopes for Junlebao's separation from Mengniu and independent listing. The "2019 Hebei Provincial Dairy Industry Revitalization Work Plan" repeatedly mentioned Junlebao Dairy, stating intentions to cultivate leading dairy processing enterprises and support Junlebao's main board listing.
The Hebei provincial government provided more than verbal support. In 2019, Shijiazhuang Penghai Venture Capital Fund invested 2.1 billion yuan to acquire 26.7% of Junlebao's equity from Mengniu, with Penghai Fund backed by the Hebei State-owned Assets Supervision and Administration Commission. The later-joining Shijiazhuang Penghao Venture Investment Fund (holding 3.18%) is backed by the Central Enterprise Poverty Alleviation Industry Investment Fund and Hebei Construction Investment Development Fund.
Despite considerable support, Junlebao's listing progress has been disappointing. Its counseling period far exceeds average levels. Media statistics on A-share IPO queuing companies show that main board IPO counseling averages 273 days (about 9 months), while the period from counseling filing to acceptance (counseling completion, CSRC acceptance of listing application) requires 304 days.
Junlebao's counseling period has lasted 624 days and continues to extend. In January 2025, Junlebao released its fourth "Listing Counseling Progress Report," revealing the main obstacle: some fundraising projects need readjustment of filings and environmental assessments.
In March, Junlebao underwent personnel adjustments. Guo Jingfeng stepped down as supervisory board chairman, while director Huang Yafang and supervisors Jiang Shuwang and Feng Dan all departed. Industry observers generally believe these personnel changes relate to optimizing corporate governance structure and meeting listing compliance requirements.
However, Junlebao's IPO has since gone quiet. To complete listing this year, Junlebao must accelerate, as less than four months remain in 2025.
**Where Is Junlebao's Listing Journey Stuck?**
Industry observers believe Junlebao's delayed listing results from combined effects of historical legacy issues, financial problems, and market environment.
First is the lingering "Sanlu stigma." In 1999, Sanlu Group invested in Junlebao through "cash + brand," holding 33% equity. Junlebao became Sanlu's subsidiary, with product packaging bearing "Sanlu·Junlebao" trademarks. Backed by Sanlu, Junlebao entered China's top three yogurt market by 2008.
This didn't last long. The 2008 "melamine incident" erupted, but fortunately Junlebao operated independently and no melamine was found during production suspension inspections. Junlebao urgently repurchased equity for 33.9 million yuan, cutting ties with Sanlu, but doubts about "Junlebao being Sanlu" never truly disappeared.
According to media analysis, this "inglorious" history became a stumbling block on Junlebao's IPO path. When considering Junlebao investments, investors inevitably worry about brand reputation and product quality. Today, whenever food quality or safety discussions arise, public opinion still inevitably connects the company to Sanlu.
In June this year, Junlebao was exposed in a "premature milk" scandal. On complaint platforms, Junlebao-related complaints reached 1,640 cases, mostly concerning product quality. Food safety issues may become potential risks for Junlebao's listing.
This creates trust crisis affecting investor confidence in the company's long-term stable development, while regulators adopt more cautious review attitudes toward historical legacy issues. Industry insiders believe this trust crisis may affect investor assessments of brand value.
Second, hidden dangers from aggressive expansion may also obstruct its IPO path. Over the past four-plus years, Junlebao's investment and acquisition activities have been very frequent. In 2021, Junlebao strategically invested in cheese supplier Sikeiqi; in January 2022, it acquired 20% stakes each in Yunnan Huangshi Laiside Dairy and Yunnan Huangshi Laiside Intelligent Dairy; in September 2022, it acquired Yinqiao Dairy.
After announcing its 2025 listing determination and 50 billion yuan revenue target in July 2022, Junlebao accelerated acquisitions. Throughout 2023, Junlebao made 5 external investments: January joint investment with China Jinjiu in cheese startup Laoshen Shijia; June additional acquisition of 32.8996% stakes each in Laiside Intelligent and Laiside Dairy; July acquisition of dairy manufacturer Yinqiao Technology; November investment in yogurt brand Mo Yogurt; December investment in probiotic lactic acid bacteria developer Yiran Biology.
Expanding scale through acquisitions carries certain risks. Dairy industry analyst Song Liang stated that continuous growth through acquisitions poses relatively high risks for long-term enterprise development, such as whether acquired companies can integrate into Junlebao's entire production system.
During IPO review processes, regulators typically conduct strict examinations of business models and financial conditions. Frequent acquisitions easily lead regulators to question Junlebao's business focus, resource integration capabilities, and financial stability.
Additionally, industry speculation suggests Junlebao's financial condition may be another listing obstacle. Junlebao's most prominent financial issue is high debt ratio. A transaction announcement between Huangshi Group and Junlebao showed that as of December 31, 2022, Junlebao's unaudited financial data included total assets of approximately 21.089 billion yuan, net assets of approximately 4.717 billion yuan, with debt ratio reaching 78%.
Junlebao's debt ratio exceeds most industry dairy companies. During the same period, 18 listed dairy companies averaged 45.06% asset-liability ratio, with Mengniu Dairy at 57.52%, Yili at 58.66%, and China Feihe at 28.27%.
Goodwill risks from continuous acquisitions cannot be ignored. Once acquired companies' performance falls short of expectations, goodwill impairment directly affects profits, further weakening financial stability. As the dairy industry enters an adjustment cycle, these issues not only amplify capital market concerns but also make regulators more cautious during reviews.
**Why Are Dairy Company IPOs So Difficult?**
Junlebao's listing difficulties aren't isolated cases. Over the past three years, dairy IPOs have nearly entered a "frozen period." Since Jiangxi Sunshine Dairy Co.,Ltd. (001318.SZ) listed on Shenzhen Stock Exchange main board in May 2022, no dairy companies have successfully reached A-share main board or ChiNext.
Later listings include AUSTASIA GROUP (02425.HK) and Knight Dairy on Hong Kong Stock Exchange and Beijing Stock Exchange respectively.
Besides these three successfully listed dairy companies, most others' IPOs have either stagnated or failed.
Why are dairy companies' IPO journeys so difficult?
On one hand, leading dairy companies have already entered capital markets, leaving mostly regional brands with limited scale and insufficient profitability struggling to meet high listing standards.
On the other hand, small and medium dairy companies generally have financial compliance shortcomings. For example, Jule Dairy faced continuous inquiries during IPO review due to performance volatility and information disclosure issues, ultimately choosing to withdraw application materials; Baifei Dairy also suspended IPO review after CSRC questioned fundraising project feasibility and sustainable profitability.
Dairy analyst Song Liang stated that after registration system implementation, requirements for listing entities will be stricter. Traditional food companies may face main board listing restrictions unless they have excellent business models and can maintain stable growth. Overall, current dairy industry overcapacity means IPO financing may further aggravate capacity surplus.
Among dairy companies seeking IPOs, Junlebao appears least proactive. After experiencing two IPO failures at Shanghai Stock Exchange and Beijing Stock Exchange, Baifei Dairy resumed Shanghai Stock Exchange main board IPO counseling in May 2025, with current IPO review status changed to "under inquiry."
After four failed Shenzhen Stock Exchange IPO attempts, Jule Dairy switched to Beijing Stock Exchange in September 2024 for listing counseling, passing Beijing Stock Exchange listing counseling verification in June 2025 and obtaining IPO application qualification.
Southern Dairy also targets Beijing Stock Exchange. In January 2024, it switched from Shanghai Stock Exchange to Beijing Stock Exchange, with IPO review status changing to "under inquiry" in July 2025.
Comparatively, Junlebao's IPO remains stagnant, making this year's IPO completion unlikely.
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