The board of directors of China Youran Dairy Group Limited announced the with effect from June 14, 2024, Mr. Wu Xiang has resigned as a non-executive Director and the chairman of the Board of the Company due to other work commitments. The Board announced that Mr. Yang Huicheng has been appointed as a non-executive Director of the Company with effect from June 14, 2024. Mr. Yang, aged 47, joined Inner Mongolia Yili Industrial Group Co.

Ltd. in August 1999. Mr. Yang has over 24 years of experience in the dairy industry. He started his career in the liquid milk division of the Yili Group and subsequently from February 2002 to October 2010, Mr. Yang served as manager, general manager assistant, deputy general manager and plant manager of various subsidiaries of the liquid milk division and cold drink division of the Yili Group, respectively.

From October 2010 to July 2018, Mr. Yang served as deputy director of tender, director of tender, director of supply, deputy general manager and director of the department of the supply and security department of Yili Group, respectively. From July 2018 to December 2023, Mr. Yang served as the deputy general manager and general manager of the investment management department of Yili Group, respectively. Since December 2023, he served as the deputy general manager of the cold drink division of Yili Group.

As at the date of this announcement, Mr. Yang has also been appointed as a director of Inner Mongolia Youran Dairy Co. Ltd. Mr. Yang graduated from Inner Mongolia Agricultural University in July 1999 majoring in food engineering and graduated from China Agricultural University in July 2018 majoring in business administration. Mr. Yuan Jun, an existing executive Director and the president, has been appointed as the Chairman with effect from June 14, 2024.

Pursuant to code provision C.2.1 of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules (the Corporate Governance Code), companies listed on the Stock Exchange are expected to comply with, but may choose to deviate from, the requirement that the roles between the chairman and president should be separate and should not be performed by the same individual. The nomination committee of the Company is of the view and the Board agrees that despite deviating from the Corporate Governance Code, Mr. Yuan will provide solid and continuous leadership to the Group with his extensive experience and knowledge in management and the support of other members of the Board. Further, vesting the roles of both Chairman and president in the same person has the benefit of ensuring consistent leadership within the Group and enables more effective and efficient overall strategic planning for the Group.

The Board considers that the balance of power and authority for such arrangement will not be impaired and this structure will be more conducive to the Company to make and implement decisions promptly and effectively. The Board will continue to review and consider splitting the roles of Chairman and the president of the Company at a time when it is appropriate by taking into account circumstances of the Group as a whole.