According to a Hong Kong Stock Exchange filing dated 27 March 2026, China Youran Dairy Group Limited (YOURAN DAIRY) has entered into a Dairy Cows Procurement Framework Agreement with Beijing YouYuan Farm Technology Corporation, a non-wholly-owned subsidiary of controlling shareholder Inner Mongolia Yili Industrial Group.

The agreement covers the period from 1 April 2026 to 31 March 2027 and allows the group to purchase up to RMB 90.00 million worth of dairy cows from YouYuan Farm. The annual cap incorporates a 20 % buffer to accommodate potential increases in herd expansion needs and market prices.

Historical transactions show that Youran Dairy bought approximately RMB 5.60 million of dairy cows from YouYuan Farm in 2023, while no such purchases occurred in 2024 or 2025. The company now plans to acquire around 5,000 dairy cows to stock several newly built 10,000-head farms, aiming to enhance raw-milk production capacity and improve herd genetics.

Pricing will be determined on normal commercial terms, benchmarked against average quotations for comparable cattle from at least two independent third-party suppliers. Internal controls include multi-departmental price verification, audit reviews and ongoing monitoring to ensure compliance with the annual cap and Listing Rules.

Under Hong Kong’s Listing Rules, the transaction is classified as a continuing connected transaction. All applicable percentage ratios are above 0.1 % but below 5 %, exempting the deal from independent shareholder approval while subjecting it to reporting, annual review and announcement requirements. Two non-executive directors linked to Yili—Mr Bai Wenzhong and Ms Li Lin—abstained from the board vote due to material interests.

Management highlighted that sourcing genetically superior, high-yield cows from YouYuan Farm is expected to accelerate herd quality upgrades, support capacity expansion and improve overall operational efficiency.