Huazi Industrial subsidiary sells dairy farm assets for 38.5 million yuan

Baotou Huazi Industry announced its subsidiary, Inner Mongolia Rucquan Dairy, will sell dairy farm assets and related facilities to Inner Mongolia Jinghong Agriculture and Animal Husbandry Co., Ltd. for 38.5 million yuan. The transaction, approved on September 19, 2025, is not a related party transaction or a major asset restructuring.

The sale aligns with the company's strategic development to integrate resources, focus on its core business, and enhance operational efficiency. The asset sale is expected to impact the company's current period profit by approximately 11.7 million yuan.

The asset valuation, based on an assessment as of August 31, 2025, was 38.2788 million yuan, with a negotiated transaction price of 38.5 million yuan. The payment will be made in seven installments, with the final payment due by June 30, 2028.