China Shengmu Organic Milk Limited (China Shengmu) approved the allocation of 114.07 million award shares on 3 July 2026 under its Long-Term Share Award Scheme. The shares represent approximately 1.36% of the company’s issued share capital as of the announcement date and were granted to 65 middle- and senior-level managers, including one executive director.

Within the grant, Executive Director Zhang Jiawang received 14.34 million shares, or about 0.17% of China Shengmu’s issued capital. The remaining 99.73 million shares were distributed among 64 departmental managers.

Vesting terms stipulate that, subject to fulfilment of scheme conditions, 50% of the granted shares will vest on the first anniversary of the grant date and the remaining 50% on the second anniversary.

All award shares will be satisfied with existing shares already held or to be acquired by the scheme trustee, including shares purchased after the offer period referenced in a composite document dated 30 June 2026, which was jointly issued by China Modern Dairy Holdings Ltd. and China Shengmu.

The board and the remuneration committee described the grant as a measure to motivate key personnel and support long-term corporate growth. The award to Mr. Zhang forms part of his remuneration package and, under Hong Kong Listing Rules 14A.73(6) and 14A.95, is exempt from additional reporting, announcement and independent shareholder approval requirements.