New Hope Dairy has emerged as a clear leader in profitability by focusing heavily on the high-margin chilled dairy segment. Chilled products, such as fresh milk and refrigerated yogurt, constitute 53.8% of the company’s total revenue and deliver a gross margin of 36%—approximately 12 percentage points higher than ambient-stable milk. Through a highly coordinated “regional allied fleet” merger-and-acquisition model, the company has managed to integrate regional brands efficiently and sustain double-digit growth in both operating revenue and net profit.

In contrast, Junlebao continues to face significant financial headwinds despite its strong production integration and highly successful chilled product innovations, such as Jianchun zero-sugar yogurt and Yuehuoxian fresh milk. The company suffers from an exceptionally high asset-liability ratio that exceeds the industry average, creating severe short-term debt and liquidity pressures. Furthermore, its long-standing low-price strategy has compressed overall gross margins, and prior intensive acquisitions have left the firm with significant goodwill risks as it navigates a transition to a Hong Kong IPO.

Feihe Dairy, the country’s leading infant formula producer, faces severe structural bottlenecks due to its over-reliance on a single product category. With infant formula accounting for 88% of its total revenue, the company is bearing the full brunt of China’s declining birth rates. Although the company possesses rich cash reserves, a premium golden-latitude milk source, and deep-seated consumer trust, its high offline promotional costs are eroding profits, while newer business lines like adult milk powders have yet to scale sufficiently to offset the decline of its core baby formula market.