According to reports in Chinese local media, Sequoia Capital China has formally completed its strategic investment of over CNY1.2 billion in Shijiazhuang Junlebao and the company became the largest institutional shareholder of the Chinese dairy maker with a 15.26% stake.
Guo Zhenwei, director of Junlebao and managing director of Sequoia Capital China, said that dairy is a pillar industry of the nation. It is closely related to the lives of ordinary people and has huge development space in the future. With over 20 years of experience in the industry, Junlebao has become one of the leaders, especially in the milk powder and low temperature yogurt sectors.
In November 2019, Junlebao purchased back a 51% stake for CNY4 billion from Mengniu. After the delivery, Junlebao said that the company would continue to develop its full industrial chain of the dairy industry, covering infant formula, low temperature liquid milk, normal temperature liquid milk, and animal husbandry.
In 2019, Junlebao's sales realized a year-on-year increase of 25% and its milk powder production and sales reached 75,000 tons. For the year of 2020, Junlebao aims to make and sell 100,000 tons of milk powder.