CHINA SHENGMU (01432) announced that due to the company's anticipated increased demand for Yiyingmei Dairy milk powder, Shengmu Hi-Tech (on behalf of itself and representing the company and its subsidiaries) and Yiyingmei Dairy (on behalf of itself and representing its subsidiaries) entered into a new framework agreement for milk powder procurement on August 27, 2025. The agreement covers the group's procurement of milk powder from Yiyingmei Dairy from time to time during the validity period of the new framework agreement, effective from August 28, 2025 to December 31, 2026.

Dabeinong Group's industrial portfolio spans multiple sectors. The group became one of the agricultural high-tech enterprises with the highest market capitalization among listed companies in China's agriculture and animal husbandry industry in 2010. As a subsidiary of Dabeinong Group, Yiyingmei Dairy specializes in infant formula production and is committed to creating world-class quality products. Its industry-leading production processes, cutting-edge production equipment, and CNAS laboratory approved by the Certification and Accreditation Administration of China all meet the group's highest requirements for product quality.

To alleviate the continued downward pressure from the raw milk industry cycle, the company is actively expanding raw milk sales channels while also consolidating milk powder sales channels. In August 2025, the company advanced its milk powder export trade business, with the quality of milk powder produced by Yiyingmei Dairy already gaining recognition from international clients who have agreed to sign milk powder procurement orders with the company. Therefore, the group will enter into the new framework agreement with Yiyingmei Dairy, whereby the group can procure milk powder from Yiyingmei Dairy that meets the standards of the company's export trade business. The group will thus be able to distribute high-quality milk powder to international customers, effectively meeting their demands, thereby enhancing customer satisfaction and strengthening customer loyalty to the group's products.