Guizhou dairy leader Southern Dairy gets green light for Beijing Stock Exchange IPO, plans to raise 550 million yuan

Guiyang, China — Guizhou-based dairy leader Guizhou Southern Dairy Co., Ltd. (Southern Dairy) has received regulatory approval from the China Securities Regulatory Commission for its IPO on the Beijing Stock Exchange (BSE).

Dominant Market Position in Guizhou

According to the company's prospectus, Southern Dairy holds approximately 70% of the Guizhou dairy market, based on 2024 sales volumes of low-temperature and ambient-temperature dairy products relative to provincial milk consumption. The company has established strong sales barriers across the province, with its distribution network covering all 88 county-level administrative regions and 100% of township markets, reaching tens of thousands of convenience stores, kiosks, and supermarkets.

On a national level, Southern Dairy ranked among the Top 20 dairy enterprises in China's agricultural sector in 2024.

Core Technology and Quality Control

Behind its regional leadership lies sustained investment in core production technologies and upstream milk source control. The company has independently developed 17 core production technologies, covering key areas such as flash evaporation, hydrolysis, pasteurization, ultra-high temperature sterilization, organic production systems, and selenium-enriched production systems.

Southern Dairy has also established a high-standard, full-process quality management system, certified under 12 systems including HACCP, quality management, food safety management, and GMP. The company has set internal standards exceeding national requirements, including proprietary raw milk acceptance protocols. It is currently preparing for CNAS certification under the China National Accreditation Service for Conformity Assessment.

Financial Performance and Capacity Utilization

Despite a period of deep adjustment in China's dairy industry, Southern Dairy has maintained steady growth:

| Year | Revenue (RMB) | Net Profit (RMB) | |------|---------------|------------------| | 2023 | 18.05 billion | 2.00 billion | | 2024 | 18.17 billion | 2.10 billion | | 2025 | 18.39 billion | 2.21 billion |

• Revenue CAGR (2023–2025): 0.93%
• Net Profit CAGR (2023–2025): 5.21%

In 2025, capacity utilization reached:

• Low-temperature products: 96.41%
• Ambient-temperature products: 95.49%

Upstream Integration and Milk Source Control

Southern Dairy has built eight modern ecological pastures across Guizhou, Gansu, and Shaanxi provinces. Six are currently operational, with one under construction and one ceased operations in February 2026 due to lease termination.

In 2025, the company's self-supplied raw milk from owned and subsidiary pastures exceeded 50% of total demand, reflecting growing self-sufficiency.

The company has also imported high-quality Holstein and Jersey cattle from Australia and New Zealand. As of end-2025:

• Holstein cattle: Over 18,000 head
• Jersey cattle: Over 900 head

Jersey milk offers protein content of 4.0g/100ml and fat content of 4.6g/100ml or higher.

Market Outlook and Industry Trends

According to third-party research, China's dairy retail market reached approximately RMB 521.67 billion in 2024 and is projected to grow to RMB 596.66 billion by 2026.

The market is undergoing structural shifts, with traditional dairy products reaching growth plateaus and increasing demand for personalized, functional, and diversified products. Southern Dairy has built a broad brand and product matrix to address these trends.

IPO Fund Utilization

Southern Dairy plans to raise RMB 550 million through its IPO, allocated to:

1. Weining County Dairy Cattle Breeding Base Construction Project (RMB 444 million)

• Located near existing production bases
• Expected capacity: 10,000 head of cattle, annual fresh milk output of approximately 55,300 tons
• Will help close the company's 2025 raw milk procurement gap of 97,400 tons

1. Marketing Network Construction Project

• Expand online and offline sales channels
• Strengthen distribution outside Guizhou, targeting Hunan, Sichuan, Chongqing, Guangxi, Yunnan, and Guangdong provinces

Company Background

Founded in 2017, Southern Dairy manufactures and sells dairy products and milk-containing beverages under brands including "Shanhua," "Huadu Pasture," "Huaxi Old Yogurt," and "Guicao."

The company generates over 90% of its revenue within Guizhou Province. It was the first dairy enterprise in Guizhou to receive the "Student Milk Production Certification" and has earned numerous honors, including:

• "Guizhou Province Famous Brand Product"
• "2023 Dairy Production Enterprise Modernization Grade Evaluation – 5A Level"
• "China Dairy Technology Innovation Model Enterprise"
• "2021 National Green Factory"
• "2024 China Agricultural Enterprise Top 500"
• "2024 Dairy Technology Innovation Enterprise"

According to the Farmers' Daily Agriculture and Rural Development Research Center, Southern Dairy ranked 11th among China's Top 20 dairy enterprises in 2024.