Youran Animal Husbandry (09858) signed an asset replacement agreement with Secco Star

According to Zhitong Finance App News, Youran Animal Husbandry (09858) announced that on November 9, 2026 (after the transaction period), Inner Mongolia Youran, a wholly-owned subsidiary of the company, signed an asset replacement agreement with Secco Star. According to this, Inner Mongolia will purchase all of the shares of the subsidiary company from Secco Star and sell all of the subsidiary's shares. Inner Mongolia must pay Secstar in cash the portion of the cost of purchasing the subsidiary in excess of the cost of purchasing the subsidiary, or about RMB 140 million. The above transactions presuppose each other and will be effective at the same time.

The 18 subsidiaries that were directly wholly owned by Secstar were Bayannur Secstar, Beijing Haihua Yundu, Cangzhou Saike, Chengde Saiyou, Dalat, Dingzhou Saike, Etoke Saiyou, Huaxia Animal Husbandry, Hebei Benfang, Hulunbuir Saiko, Inner Mongolia Benteng, Inner Mongolia Secstar, Ningxia Secstar, Ningxia Secstar, Ningxia Secstar, Ordos Secstar, Wuqiang Saiyou and Xundian Saiyou. The subsidiary is mainly engaged in dairy farming business and raw milk production and sales business. The subsidiaries listed are 2 direct wholly-owned subsidiaries of Inner Mongolia Youran, namely Jumucheng Technology and Muquan Feed, and 9 subsidiaries directly wholly owned by Jumucheng Technology and Muquan Feed as of the date of this announcement. The subsidiary company is mainly engaged in the production and sale of concentrated feed and ruminant farming consumables.

As of the date of this announcement, the company indirectly owned 100% and 66.86% of the subsidiary's shares, respectively. Following the completion of the proposed asset replacement, the company will indirectly own 66.86% and 100% of the subsidiary's shares, respectively.

The announcement stated that since the proposed sale and acquisition under the asset replacement agreement is an intra-group transaction, the proposed asset replacement is essentially an internal restructuring of the group. Through the proposed asset replacement, Secco Star will transfer the dairy farming business and raw milk production and sales business carried out by the subsidiary to Inner Mongolia Youran and focus on its breeding and feed business. It is expected that this move will clearly divide the business between Inner Mongolia Youran and Secco Star, minimize competition between the two, improve the allocation and management of operating assets, and establish a clear business structure for the proposed spin-off.