Royal Group expands guarantees for rural dairy cooperatives

Royal Group announced a new guarantee limit of RMB 30 million for village collective share economic cooperatives in Fangchenggang and Shangsi counties, Guangxi. This initiative will facilitate the purchase of dairy cattle and feed, extending the company's "government + cooperative + leading enterprise + bank + insurance" model for rural revitalization.

The guarantee, approved by the board on December 12, 2025, and pending shareholder approval on December 29, 2025, covers principal, interest, penalties, and bank costs, with a term of three years from the loan maturity date. This builds on a previous commitment of RMB 27 million approved in February 2025 for similar cooperatives in Laibin and Yulin cities.

With this new allocation, Royal Group's total outstanding guarantees will reach RMB 378.816 million. Its current external guarantee balance stands at RMB 241.746 million, representing 258.69% of its most recent audited net assets. The board emphasizes that this move reinforces Royal Group's role in the dairy industry, securing its milk supply and strengthening its integrated value chain.

The board deemed the financial risks controllable and beneficial for both the company and shareholders, approving the proposal unanimously. The matter will proceed to a special resolution vote at the fourth extraordinary general meeting of shareholders on December 29, 2025.