New Dairy Releases Announcement on Planned Hong Kong Listing; Stock Price Drops 9.21% the Following Day

On the evening of March 11, New Hope Dairy Co., Ltd. (hereinafter referred to as “New Dairy,” stock code: 002946.SZ) announced that, to meet the company’s business development needs, deepen the internationalization strategy, build an international capital operation platform, and further enhance the company’s capital strength, the board of directors approved the plan to issue offshore listed foreign shares (H-shares) and list on the Main Board of the Hong Kong Stock Exchange.

According to the company’s announcement of the “Resolution of the 19th Meeting of the Third Board of Directors,” the number of H-shares issued will not exceed 15% of the company’s total share capital after this issuance, and an overall coordinator will be granted an over-allotment option of up to 15% of the issued H-shares. The funds raised, after deducting issuance costs, will be used for product upgrades, market expansion and brand building, supply chain upgrades, technological research and development, digitalization, and company operations.

The company emphasizes that the details of this Hong Kong listing have not yet been finalized. This matter still requires approval by the shareholders’ meeting and approval, registration, and filing with relevant government departments, regulatory agencies, and the stock exchange, including the China Securities Regulatory Commission (CSRC) and Hong Kong Stock Exchange.

The day after the announcement, by the close of trading, New Hope Dairy’s stock price fell by 9.21%, from 19.8 yuan per share to 18.05 yuan per share, with a lowest point of 17.89 yuan per share, and briefly hit the daily limit down. On March 13, the stock opened at 17.44 yuan per share, slightly rose to 17.77 yuan after opening, then fluctuated downward, with an intraday low of 17.18 yuan, and closed at 17.91 yuan, continuing its downward trend.

Previously, at the New Hope Dairy Investor Conference in June 2025, Vice President Zhang Shuai revealed overseas market plans, stating that New Hope Dairy has established a global R&D layout across four continents and six countries. In the future, relying on the strong industrial chain system and global development experience of the New Hope Group, the company will focus on opportunity markets in Southeast Asia and other regions, seeking categories with the greatest differentiation and innovation opportunities to create new growth space.

Data shows that New Hope Dairy was founded in July 2006 and listed on the Shenzhen Stock Exchange Main Board in 2019. It is a core dairy company under the New Hope Group, focusing on low-temperature fresh milk and yogurt.

Looking at its development history, the company has grown rapidly through mergers and acquisitions: according to previous reports, from 2001 to 2003, it acquired several local dairy companies; from 2015 to 2016, it acquired four dairy companies. After going public, New Hope Dairy has invested in or acquired Modern Dairy (01117.HK), Xia Jin Dairy, Australian Cow Dairy, One Yogurt Cow, and AoyA Investment. The company’s revenue grew from 5.675 billion yuan in 2019 to over 10 billion yuan within three years, reaching nearly 11 billion yuan in 2023, with a five-year compound annual growth rate of nearly 18%.

However, in 2024, the company experienced its first revenue decline in nearly a decade, decreasing by 2.92% year-on-year. The company did not specify the reasons for the revenue decline in its periodic reports, only emphasizing that, amid industry slowdown and intensified market competition, it still achieved performance that outperformed the market. As of the third quarter of 2025, the company’s total operating revenue was 8.439 billion yuan, up 3.49% year-on-year, far below previous growth rates.

As early as 2023, New Hope Dairy clarified its shift from external acquisitions to internal growth. Driven by the “Fresh Strategy,” its low-temperature milk share has continued to increase. According to Guosen Securities research, the company’s growth in 2025 will mainly come from the low-temperature market.

Industry insiders say that, under the pressure of performance growth, listing in Hong Kong is a necessary strategy to address the shrinking domestic market and to reserve funds for internationalization and low-temperature product competition. However, investor sentiment may be affected by the lukewarm reception of dairy companies in the Hong Kong stock market, potentially leading to higher financing costs and less favorable issuance prices.