YOURAN DAIRY (09858) announced that on August 5, 2026, its wholly-owned subsidiary, Inner Mongolia Youran Dairy Co., Ltd. ("Inner Mongolia Youran"), entered into a non-binding letter of intent with its non-wholly-owned subsidiary, Inner Mongolia Saikexing Breeding Biotechnology (Group) Co., Ltd. (listed on the National Equities Exchange and Quotations, stock code: 834179, "Saikexing"), regarding an asset swap transaction between the two entities ("Proposed Transaction").

According to the letter of intent: (a) Saikexing will sell all equity in its 18 subsidiaries primarily engaged in dairy cow farming to Inner Mongolia Youran; (b) Inner Mongolia Youran will sell all equity in its two subsidiaries mainly involved in the production and sale of feed and ruminant farming consumables to Saikexing; and (c) any difference in consideration for the above sales will be settled in cash by one party to the other.

Both Inner Mongolia Youran and Saikexing operate in the upstream dairy industry chain, resulting in overlapping business activities. If the Proposed Transaction proceeds, Saikexing can transfer its dairy cow farming and raw milk production operations to Inner Mongolia Youran, while Inner Mongolia Youran can transfer its feed business and dairy supermarket operations to Saikexing. This move would eliminate overlapping operations between the two entities, allowing each to focus on its core business and achieve clearer business division and more efficient resource allocation within the group.