Summary by Moomoo AI
China Monghu Dairy Co., Ltd. announced that it will extend the term of the 2014 Total Purchase Agreement with its major shareholder China Food Group Limited by three years, to 31 December 2026. This agreement allows the Mongu Group to continue purchasing raw materials such as white sugar, cooking oil. Due to the indirect holding of approximately 24.14% of Mung Nu Dairy, the transaction constitutes a continuing connected transaction, but is therefore exempt from approval by independent shareholders as the applicable percentage rate of the transaction value is above 0.1% but less than 5% year on year basis. Moncow Dairy said that the extension of the agreement helps to obtain stable quality raw materials at competitive prices, which is essential for the production of quality dairy products. The extension agreement was confirmed by China Food Group on 28 December 2023.