Bright Dairy to overhaul governance, expand hedging in 2026 plans

Bright Dairy & Food Co. (Bright Dairy) will hold its second extraordinary general meeting in December 2025 to approve several transformative proposals. Key changes include a new registered address in Minhang District, Shanghai, and the abolition of the supervisory board, with its functions transferring to the board of directors' audit committee. These governance updates reflect the company's alignment with new corporate laws and aim to streamline operations.

Financially, Bright Dairy plans to purchase D&O insurance for its directors and senior management, with a maximum compensation limit of CNY 10,000,000 per year and an annual premium not exceeding CNY 500,000. Additionally, its overseas subsidiary, Synlait Milk Ltd. (Synlait), will engage in hedging activities to mitigate foreign exchange and interest rate risks. Synlait's projected maximum foreign exchange forward contract value for 2026 is NZD 1.5 bn, and its interest rate swap contract value is NZD 100 m, both funded by internal capital or self-raised funds.

The company also forecasts approximately CNY 1.3 bn in daily related-party transactions for 2026, encompassing goods sales (CNY 320 m), service provision (CNY 30 m), goods procurement (CNY 710 m), and fee payments (CNY 240 m). These transactions are deemed essential for ongoing operations. Furthermore, Bright Dairy will provide a CNY 58,800,000 guarantee for its associate, Jiangsu Yinbao Bright Dairy Industry Co., Ltd., which is seeking to renew a CNY 120 m loan facility. Yinbao Bright Dairy will provide a counter-guarantee to Bright Dairy.