Who Owns Feihe Company?

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Who Owns Feihe International Inc.?

Understanding a company's ownership is key to its strategy and accountability. Major events like IPOs or buyouts significantly alter this landscape. Feihe International Inc., a prominent Chinese dairy firm, has seen substantial ownership changes that have influenced its growth and market standing.

Feihe International, established in 1962 and headquartered in Beijing, China, focuses on high-quality dairy products, especially infant formula. Its commitment to a vertically integrated supply chain ensures product safety and nutrition for Chinese consumers.

As of July 21, 2025, Feihe International boasts a market capitalization of $5.33 billion. For the trailing twelve months ending December 31, 2024, its revenue reached $2.89 billion. The company has maintained its status as China's largest infant milk formula producer for six consecutive years up to 2024, and globally, it has held the top sales volume position for infant formula for four consecutive years. This market leadership is supported by its comprehensive product offerings, including those analyzed in a Feihe Porter's Five Forces Analysis.

The company that is now known as Feihe International, Inc. has a history that began in 1962 with the founding of Feihe Dairy in China. The entity itself was incorporated in Utah in 1985, undergoing several name changes before becoming Feihe International, Inc. in 2010. While early ownership details are not extensively documented, key figures in its later development played a significant role in shaping its ownership structure.

Early Dairy Operations Feihe Dairy, the operational precursor, was established in 1962. This marked the beginning of the company's long-standing involvement in the dairy industry in China. Corporate Evolution The corporate entity experienced multiple name changes, starting as Gaslight Inc. in 1985, then Lazarus Industries, Inc., and American Dairy, Inc., before adopting the Feihe International, Inc. name in 2010. Key Management Involvement Mr. You-Bin Leng, Chairman and CEO, was instrumental in significant ownership events. His leadership guided the company through crucial transitions. Privatization in 2013 A significant 'going private' transaction occurred in 2013. This move aimed to consolidate control and strategic direction away from public markets. Rollover Holders' Stake Prior to privatization, key individuals including Mr. You-Bin Leng, Mr. Hua Liu, and Mr. Sheng-Hui Liu collectively held approximately 41.3% of the company's common stock. Financing and Investment The privatization was supported by an equity commitment of US$8.16 million from Mr. You-Bin Leng, alongside investment from Morgan Stanley Private Equity Asia.

The privatization event in 2013 was a pivotal moment, consolidating ownership and control under key management figures. This strategic move, involving Mr. You-Bin Leng, Mr. Hua Liu, and Mr. Sheng-Hui Liu, reflected their commitment to the company's future direction. The significant equity commitment from Mr. Leng underscored his foundational role and belief in the company's potential. This period marked a significant shift in the Feihe company ownership structure, moving towards a more concentrated control by its leadership team.

Founders and Early Ownership Dynamics

The early ownership of Feihe International, Inc. is closely tied to its operational roots and the strategic decisions made by its leadership. The company's journey from its founding in 1962 to its privatization in 2013 highlights a consistent influence from its core management team. Understanding the Feihe company founder and current owner is key to grasping its historical trajectory and ownership evolution.

• Feihe Dairy was founded in 1962, laying the groundwork for the current entity.
• The company underwent several name changes before becoming Feihe International, Inc. in 2010.
• In 2013, a privatization transaction saw key management figures, including Mr. You-Bin Leng, consolidate ownership.
• Mr. You-Bin Leng provided a substantial equity commitment of US$8.16 million during the 2013 privatization.
• The 'Rollover Holders,' comprising key management, beneficially owned approximately 41.3% of the company's shares before the privatization.
• This period solidified the influence of the Feihe company owner and its leadership in shaping the company's strategy.
• For a deeper understanding of the company's direction, one can explore its Mission, Vision & Core Values of Feihe.

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The ownership journey of Feihe International has seen significant shifts, from its initial public offering on the NYSE Arca to a privatization event and subsequent relisting on the Hong Kong Stock Exchange. These transitions have reshaped its shareholder landscape.

Following its relisting on the Hong Kong Stock Exchange, Feihe has attracted a substantial base of institutional investors. As of June 3, 2025, the company has 142 institutional owners holding over 352 million shares. Key among these are major funds like Vanguard Total International Stock Index Fund Investor Shares and iShares Core MSCI Emerging Markets ETF, alongside significant holdings from entities such as BlackRock, Inc. and Goldman Sachs Asset Management, L.P. This broad institutional backing indicates widespread confidence in the company's market position.

Founding Family's Enduring Influence

Despite the influx of institutional shareholders, the founding family maintains a significant controlling interest. The Leng Family Trust, with Mr. Leng as the settlor, holds a substantial stake through Garland Glory Limited.

• Leng Family Trust interest in 3,889,911,881 shares via Garland Glory Limited (as of September 13, 2024).
• LH Family Trust, managed by Harneys Trustees Limited, holds 345,681,920 shares.
• These holdings underscore the founder's continued substantial stake.
• The Feihe company founder and current owner remains a pivotal figure in its ownership structure.
• Understanding the Feihe company stock ownership reveals this strong family influence.

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The board of directors for China Feihe Limited is instrumental in the company's governance, featuring representatives from key shareholders and independent members. As of the 2024 Interim Report, Mr. Liu Hua chairs the Environmental, Social and Governance Committee, and Ms. Judy Fong-Yee Tu serves as a board member and Company Secretary. Shareholder confidence in the board's direction was evident at the May 22, 2024, annual general meeting, where all resolutions, including director re-elections, received unanimous approval.

The voting power within China Feihe Limited is largely structured around a one-share-one-vote principle for its publicly traded shares. However, the founder, Mr. You-Bin Leng, wields considerable influence through the Leng Family Trust, which held an interest in 3,889,911,881 shares as of September 13, 2024. This substantial stake, along with the combined holdings of other rollover shareholders from the 2013 privatization, ensures that major strategic decisions are aligned with the vision of the founding and core management team. The absence of recent proxy battles or activist campaigns suggests a stable governance framework, largely attributed to the significant control maintained by the long-standing leadership, which is a key aspect of understanding Feihe company ownership.

Understanding Feihe Ownership Structure

The Feihe company owner structure is characterized by concentrated control, primarily with the founder. This influences the company's strategic direction and stability.

• Founder's significant shareholding through a family trust.
• One-share-one-vote principle for public shares.
• Stability in governance due to concentrated ownership.
• Understanding who owns Feihe is crucial for assessing its strategic direction.
• The Feihe company founder and current owner is Mr. You-Bin Leng.

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In recent years, the ownership landscape of the company has seen shifts influenced by market performance and strategic decisions. The company's financial results and subsequent actions, such as share repurchases and dividend commitments, reflect these evolving trends.

The company's financial performance in 2024 showed growth, with revenue increasing by 6.2% to CNY 20,748.55 million and net income rising by 11.1% to CNY 3,654.1 million. However, a profit warning for the first half of 2025 indicated anticipated declines in net profit and revenue, attributed to factors like reduced government grants and inventory adjustments. In response to these projections, the company announced a share repurchase plan in July 2025, aiming to buy back shares valued at a minimum of RMB1 billion. Additionally, a dividend of no less than 2 billion yuan was committed for fiscal year 2025. These measures are often employed to manage investor sentiment during periods of market uncertainty, a trend observed across China's dairy sector, which is also impacted by demographic shifts. Analyst opinions on the company's outlook vary, with some, like Goldman Sachs, upgrading their rating to 'Buy' in April 2025, citing a more stable industry forecast and strong market share. Conversely, other institutions have downgraded their ratings to 'Neutral' or 'Hold' due to concerns about the profit outlook and the long-term effects of declining birth rates, which also influence the Target Market of Feihe.

Share Repurchase Initiative

The company plans to buy back shares worth at least RMB1 billion from existing cash reserves. This action aims to support shareholder value amidst market challenges.

Dividend Commitment

A total dividend of no less than 2 billion yuan is planned for fiscal year 2025. This demonstrates a commitment to returning capital to shareholders.

Analyst Sentiment Divergence

Goldman Sachs upgraded the stock to 'Buy' in April 2025, anticipating a more stable outlook. Other firms, however, have downgraded due to profit concerns.

Industry Headwinds

Declining birth rates in China present a structural challenge for the dairy sector. This demographic trend impacts demand for infant formula products.

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