Key Disclosure: CITIC Securities Closes Out Derivative Contracts in China Shengmu Organic Milk Limited

Date: 5 March 2026
Subject: Possible Mandatory General Offer – Disclosure of Dealings in the Shares of China Shengmu Organic Milk Limited

Key Points from the Disclosure

• CITIC Securities Company Limited, identified as a Class (5) associate connected with the Offeror, has made significant transactions involving the shares of China Shengmu Organic Milk Limited.
• On 4 March 2026, CITIC Securities closed out two derivative contracts, each relating to 833,000 reference securities (a total of 1,666,000 shares).
• The contracts were closed at a reference price of \$0.3400 per share, resulting in a total amount of \$283,220.00 for each transaction, amounting to \$566,440.00 in total.
• After these transactions, CITIC Securities’ resultant balance in these derivatives is now zero.

Potential Price-Sensitive and Shareholder-Relevant Information

• Large Derivative Positions Closed: The closing out of significant derivative positions by an associate of the Offeror could signal a change in strategy or sentiment regarding China Shengmu Organic Milk Limited.
• Possible Mandatory General Offer: The notice was made in the context of a possible mandatory general offer. This is a key situation where shareholders should pay close attention, as such offers can significantly impact the share price.
• Zero Remaining Position: CITIC Securities now holds no outstanding derivative exposure in these products relating to China Shengmu Organic Milk Limited, which might affect supply-demand dynamics in the market for the company’s shares.
• Dealings for Own Account: All transactions were made for CITIC Securities’ own account, indicating proprietary dealing rather than for clients, which may reflect the institution’s own market views.

Implications for Investors

Investors should be aware that the closing out of sizable derivative positions by an entity connected to a potential offeror can be price sensitive. Such movements often precede or coincide with corporate actions, such as takeovers, that can trigger volatility or notable changes in share value. The fact that CITIC Securities, a connected party, has exited its derivatives exposure could reflect ongoing developments related to the possible mandatory general offer.

Shareholders are advised to remain vigilant for further announcements regarding the possible offer, as these could materially affect the market price of China Shengmu Organic Milk Limited shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisers before making any investment decisions. The information is based on public disclosures and may be subject to change.

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