China Shengmu Organic Milk Limited (1432) disclosed a profit warning for the year ended 31 December 2025. The unaudited consolidated management accounts indicate a loss attributable to owners of the parent at around RMB350.00 million to RMB390.00 million, compared to a loss of RMB65.50 million for 2024.

The announcement shows that the Group made an impairment provision of approximately RMB300.00 million to RMB330.00 million in respect of land use rights of undeveloped grassland. Excluding the effects of this provision, the operating loss narrowed by approximately RMB5.00 million to RMB25.00 million compared to the previous year. The above figures are still subject to final accounting treatment and auditor review.

Additionally, reference is made to an announcement by China Modern Dairy Holdings Ltd. (CMD) regarding a possible mandatory conditional cash offer. The profit warning in the announcement constitutes a profit forecast under Rule 10 of the Takeovers Code. The Company notes such information has not yet been reported on in accordance with relevant regulatory requirements, and its final results are expected to be published on or before 31 March 2026. The Company advises shareholders and potential investors to exercise caution when dealing in its shares.