Core Viewpoint - Modern Dairy announced the acquisition of approximately 1.28% equity in China Shengmu 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, with a total potential cost of approximately HKD 2.016 billion [1] Group 1: Acquisition Details - The acquisition will elevate Modern Dairy's and its concerted parties' (Mengniu) shareholding from 29.99% to over 30% [1] - Modern Dairy plans to acquire the remaining shares of China Shengmu at a price of HKD 0.35 per share, with a maximum total price of about HKD 2.016 billion [1] Group 2: Operational Impact - The combined annual raw milk production post-acquisition is expected to exceed 4 million tons, positioning the company among the top global livestock farming enterprises [1] - The scale advantage from the acquisition will enhance bargaining power in the procurement of bulk materials like feed, effectively reducing unit costs and solidifying cost leadership [1] Group 3: Product Line Enhancement - The proportion of specialty milk (including organic milk) in Modern Dairy's product mix is projected to increase from 8% to over 20% following the integration of China Shengmu, thereby strengthening its high-end product line [1]