Core Viewpoint - Modern Dairy Holdings Limited is acquiring approximately 1.28% of China Shengmu Organic Milk Limited for HKD 37.52 million, which will increase its shareholding to over 30%, triggering a mandatory offer to acquire the remaining shares at HKD 0.35 per share, totaling approximately HKD 2.016 billion [1][2] Group 1: Acquisition Details - The acquisition will enable Modern Dairy and its concerted parties (Mengniu) to exceed a 30% shareholding in China Shengmu, triggering a mandatory offer for the remaining shares [1] - The estimated annual raw milk production after the acquisition will exceed 4 million tons, positioning the combined entity among the top global dairy farming enterprises [1] - The scale advantage from the acquisition is expected to enhance bargaining power in bulk material procurement, effectively reducing unit costs and solidifying cost leadership [1] Group 2: Product and Market Impact - Post-acquisition, the proportion of Modern Dairy's specialty milk (including organic milk) is projected to increase from 8% to over 20%, strengthening its high-end product line [1] - The integration of China Shengmu's organic milk business is anticipated to provide diverse and distinctive raw milk supply to customers, enhancing overall product quality and competitiveness in high-value product segments [1][2] Group 3: Strategic and ESG Considerations - The acquisition reflects a strategic move by dairy giants in response to dual pressures of consumer upgrades and cost challenges, marking a critical choice at a recovery point in the industry [2] - Modern Dairy aims to leverage China Shengmu's unique "desert organic cycle" model to establish a differentiated competitive advantage and improve its ESG profile, attracting a broader base of long-term investors [2] - This acquisition signifies a shift in the Chinese dairy industry from "price competition" to "value competition," with an emphasis on industry consolidation and product structure upgrades [2]

Core Viewpoint - China Modern Dairy Holdings Limited has announced a series of share purchase agreements to achieve strategic control over China Shengmu Organic Milk Limited, marking another business integration by Mengniu in the dairy sector following its previous moves in the milk powder and cheese segments [1][2]. Summary by Sections Acquisition Details - Modern Dairy has conditionally agreed to acquire approximately 1.28% of Shengmu's shares and gain irrevocable voting rights for about 24.90% of Shengmu's shares held by Mengniu's subsidiary, Start Great. This will result in Modern Dairy and its concerted parties exceeding 30% voting rights, triggering a mandatory conditional cash offer at HKD 0.35 per share, representing a 14.75% premium over Shengmu's last closing price of HKD 0.305 [2][3]. Company Profiles - Modern Dairy, established in September 2005 and listed on the Hong Kong Stock Exchange in November 2010, is a leading dairy cow operator and raw milk producer in China, operating 47 farms with approximately 472,000 dairy cows and an annual milk production exceeding 3 million tons as of June 2025 [2]. - Shengmu, founded in October 2009, is recognized as China's largest organic dairy company, operating 34 farms with a dairy cow population of 144,000 and an annual organic raw milk production of 600,000 tons [3]. Strategic Implications - The merger will create a combined livestock group of over 610,000 cows, with the proportion of specialty milk (including organic milk) in total production expected to increase from 8% to over 20%. This scale expansion will enable Modern Dairy to leverage production advantages for better procurement prices, thus achieving economies of scale and reducing unit costs [3][4]. - The acquisition is seen as a way to enhance operational management capabilities and production efficiency for Shengmu, with potential synergies in technology, digital management, and feed formulation [4]. Industry Context - Mengniu has been actively expanding its business through acquisitions, including Modern Dairy and Shengmu, as part of a broader strategy to streamline its supply chain and adjust its asset structure. This follows previous integrations in the milk powder and cheese sectors [5][8]. - The dairy industry in China has faced challenges, including overcapacity and declining milk prices since 2022, leading to significant revenue losses across the sector. The integration of Modern Dairy and Shengmu is expected to improve management efficiency and restore capital confidence as the market stabilizes [9][10]. Financial Performance - Recent financial reports indicate that both Modern Dairy and Shengmu have experienced fluctuating revenues and profits, with Modern Dairy's revenue for 2024 at approximately CNY 12.295 billion and Shengmu's at CNY 3.176 billion. However, both companies reported net losses in 2025 [10][11]. Market Outlook - The dairy market is anticipated to reach a supply-demand balance by the third quarter of 2025, with a notable reduction in dairy cow capacity and a potential stabilization of milk prices following a prolonged downturn [11][12].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國現代牧業控股有限公司(於開曼群島註冊成立的有限公司) 呈交日期: 2025年11月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01117 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,00 ...

Core Viewpoint - Modern Dairy Holdings (01117.HK) experienced a nearly 5% increase in stock price, reaching 1.27 HKD with a trading volume of 10.37 million HKD [1] Group 1 - The stock price of Modern Dairy Holdings rose by 4.96% [1] - The current trading price is reported at 1.27 HKD [1] - The total trading volume at the time of reporting was 10.37 million HKD [1]

Core Viewpoint - Modern Dairy (01117) is acquiring approximately 1.28% of China Shengmu's shares for HKD 37.52 million, triggering a mandatory offer to purchase the remaining shares at HKD 0.35 per share, totaling up to HKD 2.016 billion, which is seen as a consolidation of upstream resources by Mengniu [1] Group 1: Acquisition Details - Modern Dairy's shareholding in China Shengmu will increase from 29.99% to over 30% following the acquisition [1] - The total maximum price for the remaining shares is approximately HKD 2.016 billion [1] Group 2: Strategic Implications - The merger is expected to create a "strong alliance" between Modern Dairy and China Shengmu [1] - The combined herd size is projected to exceed 610,000 heads, with annual raw milk production anticipated to surpass 4 million tons, positioning the company among the global leaders in the dairy farming sector [1] Group 3: Operational Benefits - The scale effect from the merger is expected to significantly enhance bargaining power in the procurement of bulk materials like feed, effectively reducing unit production costs and solidifying cost advantages in the industry [1]

Core Viewpoint - Modern Dairy (01117) is acquiring approximately 1.28% of China Shengmu's shares for HKD 37.52 million, triggering a mandatory offer to purchase the remaining shares at HKD 0.35 each, totaling up to HKD 2.016 billion, which is seen as a consolidation of upstream resources by Mengniu [1]. Group 1: Acquisition Details - The acquisition will increase Modern Dairy and its concerted parties' shareholding from 29.99% to over 30%, thus triggering the mandatory offer [1]. - The total maximum price for the remaining shares of China Shengmu is approximately HKD 2.016 billion [1]. Group 2: Strategic Implications - The merger is expected to create a "strong alliance" between Modern Dairy and China Shengmu, with a combined herd size projected to exceed 610,000 heads [1]. - The annual raw milk production is anticipated to surpass 4 million tons, positioning the combined entity among the leading livestock farming enterprises globally [1]. - The scale effect is expected to enhance bargaining power in the procurement of bulk materials like feed, effectively reducing unit production costs and solidifying cost advantages in the industry [1].

Core Insights - The article highlights the net inflow and outflow of funds for various companies in the Hong Kong stock market, indicating significant movements in investor sentiment and market dynamics [1][2][3] Net Inflow Summary - The top three companies with the highest net inflow of funds are Huahong Semiconductor (华虹半导体) with 388 million, Pop Mart (泡泡玛特) with 320 million, and Qingdao Beer (青岛啤酒股份) with 305 million [1][2] - The net inflow percentages for these companies are 8.15%, 7.92%, and 58.54% respectively, indicating strong investor interest, particularly in Qingdao Beer [2][3] Net Outflow Summary - The companies with the highest net outflow of funds include Alibaba-W (阿里巴巴-W) with -523 million, Southern Hang Seng Technology (南方恒生科技) with -429 million, and Tencent Holdings (腾讯控股) with -355 million [1][2] - The net outflow percentages for these companies are -3.89%, -4.86%, and -3.36% respectively, reflecting a negative sentiment among investors towards these stocks [2][3] Net Inflow Ratio Summary - The companies with the highest net inflow ratios are Shenzhen Expressway (深圳高速公路股份) at 68.48%, Anhui Wanshan Expressway (安徽皖通高速公路) at 64.22%, and Legend Holdings (联想控股) at 59.98% [1][3] - These ratios suggest a strong demand for shares in these companies relative to their trading volume [3] Net Outflow Ratio Summary - The companies with the highest net outflow ratios are Huadian International Power (华电国际电力股份) at -62.31%, CIMC Enric (中集安瑞科) at -54.98%, and Connoisseur-B (康诺亚-B) at -52.78% [1][3] - These figures indicate significant selling pressure and a lack of confidence among investors in these stocks [3]

Investment Rating - The report provides a positive outlook for the Hong Kong food and beverage sector, indicating potential investment opportunities in resilient companies within the industry [2][9]. Core Insights - The report outlines six phases of the Hang Seng Consumer Staples Index, highlighting the cyclical nature of the industry and the impact of external factors such as economic conditions and policy changes on consumer demand [3][4][28]. - The analysis emphasizes the importance of identifying resilient stocks in the food and beverage sector, particularly in the upstream farming and downstream dairy product industries, as they are expected to benefit from market dynamics and policy support [6][7][53]. Summary by Sections Phase Review of the Hang Seng Consumer Staples Index - Phase 1: Downward trend due to slowing GDP and reduced consumer demand, leading to a decline in the index [3]. - Phase 2: Strong recovery driven by global economic recovery and improved earnings of leading consumer staples companies [3]. - Phase 3: Period of volatility influenced by trade tensions and tightening global liquidity [3]. - Phase 4: Rapid increase in the index due to the rigid demand for essential consumption during the pandemic [3]. - Phase 5: Continuous decline influenced by repeated pandemic disruptions and rising raw material costs [4]. - Phase 6: Valuation recovery initiated by domestic consumption policies and inflow of long-term capital [4][28]. Investment Opportunities in the Food and Beverage Sector - Upstream farming opportunities are highlighted, with a focus on the dairy and beef sectors, where prices are expected to stabilize and rise due to supply constraints and recovering demand [6][44]. - Downstream dairy product opportunities are supported by recent policies aimed at boosting demand and improving market competition, which will benefit leading companies in the sector [7][53]. Investment Recommendations - Companies such as Yurun Agriculture (09858.HK) and Modern Farming (01117.HK) are recommended for their strong cash flow and potential to benefit from the anticipated recovery in raw milk prices [9][57]. - The report suggests that policy support will create upward momentum for companies like Mengniu Dairy (02319.HK) and H&H International Holdings (01112.HK), which are positioned to capitalize on market opportunities [10][57]. - The potential for industry restructuring and the emergence of leading companies is noted, particularly in the coconut water segment, with recommendations for IFBH (06603.HK) [11][58].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 根 據 中 華 人 民 共 和 國（「中 國」）適 用 法 律 及 法 規，按 照 中 國 公 認 會 計 原 則 編 製 的 現 代 牧 業 截 至 二 零 二 五 年 九 月 三 十 日 止 九 個 月 的 未 經 審 核 綜 合 財 務 資 料（「現 代 牧業未經審核綜合財務資料」），將 於 二 零 二 五 年 十 月 三 十 一 日 或 之 前 在 上 海 清 算所(http://www.shclearing.com)及中國貨幣網網站(http://www.chinamoney.com.cn)刊載。 – 1 – 現代牧業截至二零二五年九月三十日止九個月的未經審核綜合財務資料隨附於 本公告附錄內。 China Modern Dairy Holdings Ltd. 中國現代牧業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1117） 本 公 司 的 非 全 資 附 屬 公 司 現 代 ...

Core Viewpoint - Modern Dairy Holdings Limited is acquiring approximately 1.28% of China Shengmu Organic Milk Limited for HKD 37.52 million, which will trigger a mandatory conditional cash offer for the remaining shares at HKD 0.35 per share, totaling approximately HKD 2.016 billion [1][2]. Group 1: Acquisition Details - The acquisition will increase Modern Dairy's and its concerted parties' shareholding from 29.99% to over 30%, thus triggering the mandatory cash offer under Hong Kong's takeover regulations [1]. - Modern Dairy has signed a voting rights agreement with Start Great, granting it control over approximately 24.90% of China Shengmu's voting rights [1]. Group 2: Strategic Implications - The acquisition is expected to create a combined herd size of over 610,000 cattle, with an estimated annual raw milk production exceeding 4 million tons, positioning the company among the top global dairy farming enterprises [2]. - The integration will enhance bargaining power in bulk material procurement, effectively reducing unit costs and solidifying a cost leadership position [2]. - The share of specialty milk, including organic milk, in Modern Dairy's product mix is projected to increase from 8% to over 20%, thereby strengthening its high-end product line [2]. Group 3: Market Position and Future Outlook - The acquisition is seen as a strategic move in response to dual pressures of consumer upgrade and cost challenges, marking a pivotal choice in the industry's recovery phase [3]. - This consolidation is anticipated to reshape the organic milk market landscape, with a shift from price competition to value competition in the Chinese dairy industry [3]. - The deal signifies an increase in industry concentration and product structure upgrades, which are expected to become the main themes moving forward [3].