Core Viewpoint - Hyundai is accelerating its market strategy in China by diversifying its product matrix to seek a sales recovery [1] Group 1: Product Strategy - Hyundai successfully launched the popular large SUV, the Palisade hybrid version, in China [1] - The company is preparing to develop a pure electric vehicle series, ELEXIO, specifically for the Chinese market to boost sales [1] Group 2: Market Outlook - Analysts believe that if Hyundai can maintain growth in exports to China while recovering sales in South Korea, it will achieve a breakthrough in its business structure in China [1]

Core Viewpoint - A2 Milk Company is strategically focusing on the Chinese market by acquiring a factory from Yashili International Group for approximately NZD 282 million (around RMB 1.2 billion) to enhance its product offerings and market access in China [1][2]. Group 1: Acquisition and Strategy - A2 Milk Company has acquired the Pokeno factory, which has been approved for two new national standard formula registrations, providing a significant advantage in the competitive Chinese infant formula market [2][4]. - The acquisition allows A2 to bypass lengthy approval processes and directly gain valuable registration qualifications, addressing the urgent need for stable and controllable production capacity in China [2][5]. - A2 plans to invest NZD 382 million (approximately RMB 1.6 billion) in the new factory to enhance production capacity and create over 100 new jobs, indicating a long-term commitment to the Chinese market [1][2]. Group 2: Divestment and Focus Shift - Concurrently, A2 Milk Company is selling its stake in Mataura Valley Milk (MVM) to Open Country Dairy, optimizing its asset layout and focusing on high-value consumer products [6][7]. - This divestment allows A2 to stabilize its raw material supply while freeing up capital and management resources to concentrate on more profitable finished products [6][7]. Group 3: Financial Performance - For the fiscal year ending June 30, 2025, A2 Milk Company reported a revenue increase of 13.5% to NZD 1.902 billion, with a net profit after tax of NZD 202.9 million, reflecting a growth of 21.1% [8]. - Despite a general decline in the Chinese infant formula market, A2's revenue in China and other Asian regions grew by 13.9% to NZD 1.302 billion, highlighting the importance of this market for the company's overall performance [8]. - A2's market share in the Chinese infant formula sector increased from 7.1% in FY 2024 to 8.0%, positioning the company among the top four brands in the market [8].

Transaction Overview - The company’s wholly-owned subsidiary, Daya Wood Industry (Nanning) Co., Ltd., signed a lease agreement with Nanning Overseas Chinese Investment Zone Huasheng Asset Management Co., Ltd. for a particleboard production plant and equipment located at No. 18, Ningwu Road, Guangxi-ASEAN Economic and Technological Development Zone, with an annual rent of 17 million RMB for a lease term of 3 years and 4 months, including a 4-month rent-free period [1][4][6] Parties Involved - Daya Wood Industry (Nanning) Co., Ltd. is a limited liability company with a registered capital of 30 million RMB, established on June 19, 2025, focusing on the manufacturing and sales of engineered wood products [2][3] - Nanning Overseas Chinese Investment Zone Huasheng Asset Management Co., Ltd. is a state-owned enterprise with a registered capital of approximately 520.29 million RMB, established on April 7, 2004, involved in asset operation and capital management [2][3] Contract Details - The lease includes a total area of 55,970 square meters for the plant and equipment, with the total contract value amounting to 51 million RMB [4][6] - The lessee is required to pay a security deposit of 5 million RMB within 10 working days of signing the contract, which can be used to cover any unpaid dues or damages [5][7] - The lessee is granted a rent-free period for production preparation and equipment installation from July 18, 2025, to October 17, 2025, during which they must still pay property fees and utility costs [6][7] Impact on the Company - The lease aims to efficiently integrate and leverage the company's established production, operational, and core technological advantages in the engineered wood sector, facilitating the brand's penetration into the South China market [9][10] - The Nanning region offers a complete upstream and downstream industrial support system and significant regional cost advantages, which will enhance operational efficiency and reduce overall costs, thereby improving the market competitiveness of the company's products [9][10]