Youran Dairy, China's leading upstream dairy operator, completes a HKD5 billion Hong Kong listing

HONG KONG,June 18,2021 -- China Youran Dairy Group Limited,China's largest integrated upstream dairy player by revenue,debuted on the Hong Kong Stock Exchange on Friday,2021. Youran's IPO offering size totaled approximately HKD5.0 billion (US$644 million),giving Youran a total market value of HKD26.5 billion (US$3.4 billion) upon listing. The offering size can be increased to approximately HKD5.7 billion (US$741 million) with exercise of the overallotment option.

Youran's businesses cover the entire upstream dairy value chain,including raw milk products,feed for dairy farms,dairy breeding,and other ruminant farming products and solutions,and is today the largest producer of raw milk globally. Founded in 1984,Youran has nearly 40 years of experience in the dairy industry and related R&D,and is formerly a wholly owned subsidiary of Yili,the world's fifth-largest,and Asia's largest,dairy manufacturer.

PAG has been an investor in Youran since its spinoff from Yili in 2015,and has invested about $700 million in the company over time.

From 2018 to 2020,Youran has grown its herd size from around 127,000 dairy cows to more than 350,000 cows,and increased annual revenues from RMB6.3 billion (US$919 million) to RMB12.9 billion (US$2 billion)[1]. Youran is a leader in organic and specialty raw milk,with its products exceeding quality standards set by the U.S.,EU,Japan and China.

Youran CEO Zhang Xiaodong said: "This IPO is a testament to Youran's impressive growth over the past six years in partnership with Yili and PAG. We are looking forward to using the IPO as a ramp for the company's future growth,and to continue to be a world leader in dairy farming and dairy breeding. We thank our strategic shareholders Yili and PAG for their steadfast support."

PAG partners Suining Xiao,Kevin Xu,and David Qiu said: "We congratulate Youran on their Hong Kong listing and are very pleased with the track record of the company over the years we have worked with them. This IPO is the result of very hard work by Youran's management and we are excited to continue to be a strategic shareholder in Youran as a public company. We believe Youran will continue to be the #1 market leader in the upstream dairy space in China and be in the forefront of this industry's rapid development in China."

Yili Chairman and CEO Pan Gang said: "We are very pleased with the continued development and growth of Youran Dairy,a strategic affiliate of Yili,and with PAG as an investment partner. We're looking forward to continuing Yili's path to be a global leader in dairy products,with Youran as a strategic platform for developing upstream dairy resources."

[1] Figures include Fonterra China Farms

About Yili

Yili Group (Inner Mongolia Yili Industrial Group Company Limited) is China and Asia's largest dairy producer and the world's 5th-largest dairy producer. Headquartered in Hohhot,Inner Mongolia,Yili is engaged in the processing and manufacturing of milk products,including liquid milk,yogurt,ice cream,milk powder and cheese. The firm is listed on the Shanghai Stock Exchange (SHA.600887). For more information,please visit www.yili.com.

About PAG

PAG is a leading Asia-focused private investment manager,with strategies including private equity,private debt,and real estate. PAG employs more than 200 investment professionals in 11 key offices across the globe,and currently manages US$40 billion in capital on behalf of institutional investors from Europe,North America,Asia,Australia and the Middle East. For more information,please visit www.pag.com.

Media Contact:

Tim Morrison

PAG

+852 3719 3375

tmorrison@pag.com