China Modern Dairy Holdings Ltd. (CMD) has successfully crossed the 50% ownership threshold in China Shengmu Organic Milk Limited (CSM), rendering its mandatory conditional cash offer unconditional.

CMD received acceptances for 3.37 billion CSM shares, equating to 40.22% of CSM’s issued share capital. When combined with the 2.62 billion shares already held following completion of earlier share-purchase agreements, CMD and its concert parties now control 5.99 billion CSM shares, or 71.49% of the company.

Key dates and terms:

• Offer status: Unconditional as of 20 July 2026 after surpassing the 50% acceptance condition detailed in the composite offer document dated 30 June 2026. • Offer period: Remains open for acceptance until 4:00 p.m. on 3 August 2026, in accordance with Rule 15.3 of the Hong Kong Takeovers Code. • Settlement: Cash consideration will be dispatched within seven business days of the later of (i) the offer becoming unconditional or (ii) receipt of a valid acceptance and accompanying documents.

No additional CSM shares or related securities were purchased, sold, borrowed or lent by CMD or its concert parties during the offer period beyond the acceptance shares and shares acquired under the purchase agreements.

Shareholders are advised to review the composite document and related acceptance form in full before responding to the offer.