China Youran Sets Cost-Plus Angus Cattle Supply Deal With Yili Subsidiary

China Youran Dairy Group Limited ( (HK:9858) ) has issued an announcement.

China Youran Dairy Group Limited has entered into a live cattle procurement framework agreement under which its subsidiary Inner Mongolia Youran will supply Angus cattle to Yili-owned Yizhiniu from May 22, 2026 to December 31, 2028. The arrangement reflects the group’s role as an upstream livestock supplier to a major dairy group, reinforcing integrated supply chain ties within China’s dairy sector.

The transaction is classified as a continuing connected transaction under Hong Kong listing rules because Yili is China Youran’s controlling shareholder and Yizhiniu is Yili’s wholly owned unit. As the applicable percentage ratios exceed 0.1% but remain below 5%, the deal is exempt from independent shareholder approval, yet remains subject to reporting, annual review and announcement requirements.

Under the agreement, Yizhiniu will procure Angus cattle from Inner Mongolia Youran at a cost-plus price determined after delivery, based on procurement cost, daily feed and fixed costs, the number of days in the pen and a 6% markup. The parties have agreed a fixed daily cost per head of RMB7.43 to cover labour, maintenance, veterinary drugs and depreciation, providing a transparent and formula-based settlement framework for the multi-year supply arrangement.

More about China Youran Dairy Group Limited

China Youran Dairy Group Limited operates in the dairy and livestock industry, with Inner Mongolia Youran involved in breeding and supplying cattle. The group focuses on upstream dairy and beef-related raw materials, including live cattle such as Angus, serving major downstream dairy players in mainland China, including its controlling shareholder Yili and its subsidiaries.

Average Trading Volume: 22,483,718

Technical Sentiment Signal: Hold

Current Market Cap: HK$13.88B

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