Youran Dairy sells research center to Yili subsidiary for RMB250m

China Youran Dairy Group Limited (HKEX:9858) has announced the sale of its Ruminant Nutrition and Health Technology Research Center to Inner Mongolia National Dairy Technology Innovation Center Co., Ltd., a non wholly-owned subsidiary of Yili, for an estimated consideration not to exceed RMB250 million. The transaction is classified as a connected transaction under Chapter 14A of the Listing Rules due to Yili's status as a controlling shareholder. Youran Dairy estimates an unaudited gain of not more than RMB100 million from the sale, with proceeds intended for general working capital. The company will lease the Research Center as facility for research and development of the Group's ruminant nutrition and health solutions on an as-needed basis in the future.