Dabeinong forecasts significant increase in related party transactions for 2026

Beijing Dabeinong Technology Group Co. Ltd. (Dabeinong) plans to engage in related party transactions totaling up to CNY 1.5bn with its affiliates, Heilongjiang Dabeinong Food Technology Group Co. Ltd. and China Shengmu Organic Milk Limited, in 2026. This projection follows CNY 813.9m in transactions from January to October 2025. The transactions involve the procurement and sale of various products including livestock, feed, veterinary drugs, vaccines, and food products, as well as milk powder processing services.

The company's board of directors, excluding related parties, approved the 2026 forecast, which will now proceed to a general shareholders' meeting for final approval. The independent directors and China Germany Securities Co. Ltd., Dabeinong’s sponsor, have affirmed that these transactions align with market principles, are fair, and do not harm the interests of Dabeinong or its shareholders.

The framework agreement will be valid from January 1, 2026, to December 31, 2028, and specifies that the total transaction amount for products purchased by China Shengmu from Dabeinong affiliates will not exceed CNY 415m, CNY 430m, and CNY 445m for 2026, 2027, and 2028, respectively. Additionally, milk powder processing service fees provided by Inner Mongolia Yinyingmei Dairy Co. Ltd. to China Shengmu will not exceed CNY 17m, CNY 11m, and CNY 11m for the same periods.