CAROTE (02549) announced that the company's board of directors has received notification from the controlling shareholder Yili Investment Holdings Ltd (Yili Investment). Based on recognition of the company's value and confidence in the company's future overall business development and growth potential, Yili Investment plans to increase its shareholding in the company within six months from the date of this announcement, with an amount of not less than HK$20 million (the share increase plan).

As of the announcement date, Yili Investment holds a total of 400 million shares of the company, representing approximately 72.62% of the company's issued shares (excluding treasury shares). According to the company's available information and to the knowledge and belief of the directors, if the share increase plan is implemented, the company will still maintain sufficient public float of issued shares.

The company's board of directors believes that Yili Investment's share increase plan demonstrates the controlling shareholder's long-term commitment and firm confidence in the Group's prospects.