China Shengmu Organic Milk Limited has confirmed that its public float has fallen below the minimum 25 % required under Rule 13.32B of the Hong Kong Listing Rules, triggering a “Significant Public Float Shortfall” designation pursuant to Rule 13.32F. If the company fails to restore compliance by 2 February 2028, the Hong Kong Stock Exchange may cancel the listing of its shares.

The controlling shareholder, China Mengniu Dairy Co. Ltd. (CMD) and its appointed directors have jointly and severally undertaken to take “appropriate steps” to rebuild the public float “at the earliest possible moment.” According to information provided to the board:

• CMD is evaluating on-market and off-market disposals of shares, as well as the introduction of new investors, following publication of the interim results for the six months ended 30 June 2026.

• Based on historical trading liquidity and the expected timetable for identifying and negotiating with investors, management currently expects to restore the minimum 25 % public float by end-June 2027—well ahead of the Stock Exchange’s ultimate deadline.

• Additional options under consideration include issuing equity instruments that are convertible or exchangeable into shares and other equity fund-raising measures.

Until compliance is re-established, the company has committed to:

1. Maintain monthly disclosures on progress in meeting public-float requirements. 2. Refrain from any corporate action that could further reduce public float, unless justified by exceptional circumstances and accepted by the Stock Exchange.

The board comprises one executive director (Mr. Zhang Jiawang), five non-executive directors (including Chairman Mr. Chen Yiyi) and three independent non-executive directors.

China Shengmu reiterated its advice for shareholders and potential investors to exercise caution when dealing in the company’s shares while the public-float shortfall remains unresolved.