China MENGNIU DAIRY Company Limited announced In view of the anticipated expiration of the extended term of the 2014 Master Sale and Purchase Agreement on 31 December 2023, the Company has delivered an Extension Notice to COFCO Corporation to exercise its right to extend the term of the 2014 Master Sale & Purchase Agreement for a further three years. The price payable and other payment terms by the Group Company to COFCO Corporation Group Companies shall be fair and reasonable, and shall be fixed by reference to the reasonable market price at which the relevant Group Company could obtain the same type of supplies from independent third parties. The terms and conditions of the supply of white sugar, edible oil, other raw materials and related products by COFCO Corporation Group Companies to the Group shall not be less favorable than those available to the Group from independent third parties.

The 2014 Master Sale and Purchase Agreement is a framework agreement which sets out the principles upon which detailed terms (including payment terms) are to be determined by and agreed between the parties in the specific sale and purchase agreements and purchase orders. The terms of the 2014 Master Sale and purchase Agreement were determined after arm's length negotiations and represent normal commercial terms. CMD has purchased feedstuffs and other related materials from COFCO Corporation Group Companies in the past and will continue to purchase feedstuffs and other related products from COFCO Corporation Group companies commencing from 1 January 2024. The Directors (including the independent non-executive Directors but excluding Mr. Chen Lang, Mr. Wang Xi and Ms. Wang Yan) consider that the terms of the 2014 Master Sale & purchase Agreement (as extended by the 2023 Extension Notice), the transactions thereunder and the annual cap are fair, reasonable, on normal commercial terms, in the ordinary and usual course of business of the Group, and in the interests of the Company and its shareholders as a whole.