China Modern Dairy Holdings Ltd. (CMD) has secured acceptances for 4.18 billion shares of China Shengmu Organic Milk Limited (CSM) under its mandatory conditional cash offer as of 4:00 p.m. on 21 July 2026, the first closing date. The accepted shares represent 49.90% of CSM’s issued share capital.

Including 2.62 billion shares already held or agreed to be acquired through earlier share-purchase agreements, CMD and its concert parties now control 6.80 billion CSM shares, equal to 81.17% of CSM’s total outstanding shares.

CMD’s shareholding before the offer period stood at 2.51 billion shares, or 29.99% of CSM. Apart from the 107.20 million shares obtained via the share-purchase agreements and the voting rights arrangement, no additional CSM shares or related securities were bought, sold, borrowed or lent by CMD or its concert parties during the offer period.

CSM’s public float may fall below the minimum requirement prescribed by Hong Kong Listing Rule 13.32B. Further information on the public-float position will be provided on the final closing date.

The offer remains open for acceptance until 4:00 p.m. on 3 August 2026, subject to any extension permitted under the Hong Kong Takeovers Code. Shareholders wishing to tender their shares should refer to the composite offer document and the accompanying form of acceptance for detailed procedures.

Both CMD and CSM advise shareholders and potential investors to exercise caution when dealing in the companies’ securities and to consult professional advisers if in doubt.