Ausnutria signs probiotics supply deal with controlling shareholder Yili Industrial

Ausnutria Dairy Corporation Ltd. announced on October 31, 2025, that it has entered into a Probiotics Supply Framework Agreement with Yili Industrial, its controlling shareholder. Under this agreement, Yili Industrial Group will purchase probiotics and related products from Ausnutria from the execution date until December 31, 2027. Yili Industrial currently holds 60.18% of Ausnutria's issued shares, making this a continuing connected transaction under Listing Rules Chapter 14A.

The Probiotics Supply Framework Agreement is subject to reporting, announcement, and annual review requirements. The transaction is exempt from independent shareholders' approval. Pricing will be determined through arm's length negotiations, utilizing bidding prices, comparable industry prices from independent third parties, or quotations compared against Ausnutria's terms. Payments will be made within 90 natural days of individual purchase orders.

Annual caps for the transactions are set at RMB10 million for the year ending December 31, 2026, RMB40 million for 2027, and RMB65 million for 2028. These caps consider historical transaction amounts, product prices, expected demand, and Ausnutria's production capacity. The company's internal controls and independent non-executive directors will monitor compliance with pricing terms and annual caps.