On June 12, 2024, YST Dairy (01431.HK) announced that the seller (a wholly-owned subsidiary of the company) and the buyer have signed an equity transfer agreement. According to the agreement, the seller has conditionally agreed to sell, and the buyer has conditionally agreed to acquire all the equity of the target company Shaanxi Ruixiang Chengda Dairy Co., Ltd. for a cash consideration of RMB 50.2 million.

The target company mainly engages in goat breeding and the sale of raw goat milk.

The board of directors is not optimistic about the future development of the goat milk industry, and expects that the industry will not recover in the near future. After considering the operation and financial data of Shaanxi Ruixiang Chengda Pasture and market trends (including the decrease in raw goat milk price and increase in fodder cost), the directors believe that the proposed transaction under the sale and equity transfer agreement is conducted on normal commercial terms, and the terms of the sale are fair and reasonable, and are in the overall interests of the company and shareholders.