China Shengmu Organic Milk Limited (Stock Code: 1432) has entered into a 2026 Dabeinong Products and Services Supply Framework Agreement with Beijing Dabeinong Technology Group Co., Ltd. (Dabeinong Group) and its non-wholly owned subsidiary Yiyingmei Dairy. The new framework agreement, effective from 1 January 2026 to 31 December 2028, consolidates existing arrangements and will terminate the 2024 Processing Service Framework Agreement and the 2025 Yiyingmei Dairy Milk Powder Purchase Framework Agreement upon taking effect.

Under the new agreement, the group will source various products (including feed, medicines, rice, eggs, seafood products, and milk powder) and processing services for milk powder production from Dabeinong Group and Yiyingmei Dairy. To enhance procurement flexibility and efficiency, the company set proposed annual caps for these transactions. For Dabeinong Products, annual caps are RMB415 million, RMB430 million, and RMB445 million for the years ending 31 December 2026, 2027, and 2028, respectively. For Yiyingmei Dairy’s processing services, the respective annual caps are RMB17 million, RMB11 million, and RMB11 million.

As certain percentage ratios under the Listing Rules exceed 5%, the agreement is subject to reporting, announcement, and independent shareholders’ approval requirements. An Independent Board Committee has been set up, and an Independent Financial Advisor appointed to advise minority shareholders. A circular containing relevant details, including notice of the Extraordinary General Meeting, is expected to be dispatched on or around 8 December 2025.