The YooBao/AYL is made from PU (polyurethane) leather, which is a low-cost leather-lookalike. While it includes discarded parts of low-grade hide in its manufacture, it doesn't retain any of the characteristics of genuine leather like developing a patina over time or weathering-in. (In fact, in some places, it is not legal for it to be described or sold as "genuine leather".)
This brings the cost of the product down, and in a very tentative sense it is has "genuine" leather - in the same way, I guess, some sodas or fruit juices claim to have "genuine fruit ingredient".
Considering that this is being used to protect an electronic product that will be outdated in 2-3 years, it will not be used long enough for it to degrade. Just doesn't make sense to me to spend the kind of money on the so called genuine leather product when in reality, most of us will have moved on to another electronic device by the time "genuine leather" has had time to develop a patina or weather-in".