Youran Dairy proposes higher deposit caps with Yili Finance

China Youran Dairy Group Limited is seeking shareholder approval at an Extraordinary General Meeting (EGM) on September 26, 2025, to revise annual caps for its existing continuing connected transactions with Yili Finance Company. The proposed Supplemental Financial Services Framework Agreement aims to increase the maximum daily balance of deposits, including accrued interest, from RMB1,500.0m to RMB2,500.0m for the period ending December 31, 2025. For the year ending December 31, 2026, the cap is proposed to rise to RMB2,750.0m.

The revision is prompted by Youran Dairy's business expansion, with revenue reaching RMB20,096.2m in FY2024, a 7.5% year-on-year increase. The company also reported historical monthly operating cash inflows of approximately RMB1,900.0m. These factors necessitate a higher deposit cap to centralize collection and payment activities, improve settlement efficiency, reduce transaction costs, and provide operational stability and financial flexibility. The directors and the independent financial adviser deem the revised caps fair and reasonable, and in the interests of the company and its shareholders.

As Yili is a controlling shareholder, the deposit services constitute a continuing connected transaction and a discloseable transaction under Listing Rules 14A and 14, requiring independent shareholder approval. Yili, through its subsidiaries Boyuan Investment Holding Limited and Jingang, holds 33.93% of Youran Dairy's total issued share capital and will abstain from voting at the EGM.