Ausnutria Dairy Corporation Ltd (“Ausnutria”) signed three continuing connected-transaction agreements on 27 April 2026: a Logistics Service Framework Agreement with Yishun, a Contract Manufacturing Framework Agreement with Yili Industrial, and a 2026 Probiotics Supply Framework Agreement with Yili Industrial. All agreements run until 31 December 2028 and are classified as connected transactions under Hong Kong Listing Rules, requiring disclosure and annual review but not independent shareholders’ approval (percentage ratios above 0.1 % and below 5 %).
Logistics Service Framework Agreement • Counterparty: Inner Mongolia Yishun Supply-chain Management Co., Ltd., a wholly owned subsidiary of Yili Industrial. • Scope: road freight transportation, warehousing, loading/unloading and supply-chain management. • Annual caps: RMB9.50 million (2026), RMB10.45 million (2027), RMB11.50 million (2028). • Pricing: arm’s-length, referenced to Yishun’s costs and prevailing market rates; payment within 60 days.
Contract Manufacturing Framework Agreement • Counterparty: Inner Mongolia Yili Industrial Group Co., Ltd. (“Yili Industrial”). • Scope: manufacture of non-infant milk powder and related products on Yili Industrial’s behalf. • Annual caps: RMB75.00 million (2026), RMB90.00 million (2027), RMB108.00 million (2028). • Pricing: negotiated arm’s-length manufacturing fees based on capacity, cost and market prices; payment within 60 days.
2026 Probiotics Supply Framework Agreement (replacing the 2025 version) • Counterparty: Yili Industrial. • Scope: sale of probiotics and related products. • Revised annual caps: RMB80.00 million (2026), RMB120.00 million (2027), RMB140.00 million (2028). • Drivers: 2025 actual sales reached RMB9.26 million (92.6 % of the 2025 cap), while unaudited sales for Q1 2026 were RMB18.20 million, annualising to RMB72.80 million and necessitating higher limits. • Payment within 90 days; pricing based on tender results, comparable market quotes or competitive quotations from at least two independent suppliers.
Internal controls Ausnutria will benchmark prices against independent third-party transactions, monitor utilisation of caps, and obtain annual reviews from its independent non-executive directors and external auditors to ensure fairness and compliance.
Strategic rationale Management expects the agreements to deepen operational synergies with controlling shareholder Yili Industrial, optimise logistics, expand contract manufacturing throughput and meet rising demand for probiotics products. All terms are viewed by the board as fair, reasonable and in the interests of shareholders as a whole.