LANCANG TEA (HKEX: 06911) has announced that it received a notification from Yunnan Lancang Rural Commercial Bank Co., Ltd. regarding a provincial-level initiative to consolidate rural credit cooperatives in Yunnan. This consolidation involves establishing a new entity, Yunnan Rural Commercial Bank Co., Ltd., which necessitates the disposal of the original share capital held in Lancang Rural Commercial Bank.

The bank has provided a disposal plan outlining four potential methods: conversion, transfer, withdrawal, or liquidation. As of the announcement date, the company holds a 3.9149% stake in Lancang Rural Commercial Bank. Based on applicable regulatory rules and information provided, the company does not currently meet the eligibility criteria to become a founding shareholder of the new Yunnan Rural Commercial Bank, thus precluding the conversion of its stake.

The company is now evaluating feasible alternatives, including transfer, withdrawal, or liquidation, and intends to select one method to dispose of its shareholding. The board of directors passed a resolution on June 11, 2026, approving the disposal and authorizing management to determine the transaction price, method, timing, and counterparty, in compliance with all relevant regulatory requirements.

The authorized price must not be lower than the fair value of the shares as of December 31, 2025. Management is empowered to negotiate, sign agreements, and handle all related procedures for settlement, transfer, payment collection, and tax matters.

Based on currently available information, if the disposal proceeds, it is expected to constitute a disclosable transaction under Chapter 14 of the Listing Rules. The company will issue a separate announcement in due course if applicable. As of the date of this announcement, the final disposal method, potential transaction counterparty, and specific terms have not been determined, and no binding agreement has been signed.