Pu’er Lancang Ancient Tea Co., Ltd. (“Lancang Tea”) plans to dispose of its 3.9149% equity interest in Yunnan Lancang Rural Commercial Bank (“Lancang RCB”) following the Yunnan provincial government’s decision to merge all rural credit cooperative entities into a new Yunnan Rural Commercial Bank.

The consolidation renders Lancang Tea ineligible to become a founding shareholder of the newly formed bank, preventing conversion of its existing shares. Management is therefore assessing three exit routes—equity transfer, share repurchase or share cancellation—and will select one based on regulatory compliance and commercial terms.

On 11 June 2026 the board approved the potential disposal and authorised management to finalise price (not lower than the fair value as of 31 December 2025), method, schedule and counterparties, and to execute related agreements, settlements and tax procedures.

Given the stake size, any transaction is expected to be classified as a “discloseable transaction” under Chapter 14 of the Hong Kong Listing Rules, triggering further announcements once definitive terms are set. As at the announcement date, no binding agreements have been signed and the final structure, buyer and pricing remain under negotiation.

Shareholders and prospective investors are advised to exercise caution when dealing in Lancang Tea shares until further details are disclosed.