Hyundai Animal Husbandry (01117) issued an announcement. On May 8, 2024 (after the transaction period), Hyundai Animal Husbandry (Serbia) (an indirect non-wholly-owned subsidiary of the company) signed a processing framework agreement with suppliers Shanxi Xie and Oshimeng Niu. Based on this, the supplier agreed to provide product processing services to Hyundai Animal Husbandry (Northern Serbia) for a period of time from the processing framework agreement date to December 31, 2025.
According to the announcement, the processing framework agreement between Hyundai Animal Husbandry (Northern Serbia) and the supplier mitigated the oversupply of raw milk, because the shelf life of milk powder is generally longer than that of raw milk, and in addition to external sales, milk powder can also be used to feed calves. External sales will provide the Group with additional revenue streams and opportunities to further develop the raw milk processing business, while extended product shelf life and internal use will enhance the Group's ability to control costs.