Share‑Pledge Activity Update – Inner Mongolia Yili Industrial Group Co., Ltd.

Inner Mongolia Yili Industrial Group Co., Ltd. (the “Company”) has confirmed that a substantial portion of its share‑pledging activities involving the major shareholder Hohhot Investment Limited has been resolved. The Company’s board has verified that the information disclosed is accurate and complete.

Pledging Details

  • Shareholder: Hohhot Investment Limited
  • Initial Position: Approximately 8.5 % of the Company’s issued share capital.
  • Pledged Shares (March 9, 2026): 11.5 million shares pledged to Binhai International Trust Co., Ltd.
  • Pledge Term: The pledge is scheduled to expire in March 2027.
  • Purpose: The pledged shares are not intended to serve as collateral for major asset restructuring or performance‑related guarantees.

Release of Pledged Shares

  • Release Date: March 6, 2026
  • Released Shares: 35.5 million shares, representing roughly 6.5 % of the shareholder’s holdings.
  • Remaining Pledged Shares: 181.5 million shares, which still account for approximately one‑third of the shareholder’s total holdings and about 3 % of the Company’s total share capital.
  • Future Plans: No additional pledging of these shares is planned at present. The Company will disclose any future changes in compliance with regulatory requirements.

Context and Implications

  • Transparency and Governance: The announcement underscores the Company’s commitment to maintaining transparency regarding share‑pledging activities, a critical aspect of corporate governance that safeguards investor confidence.
  • Financial Positioning: By reducing the pledged portion of its holdings, Hohhot Investment Limited may be repositioning its balance sheet and reducing potential liquidity constraints.
  • Regulatory Compliance: The disclosure aligns with the regulatory framework governing share pledges in China, which requires timely reporting of any pledging or release of shares that could influence market dynamics or affect shareholder voting power.

Broader Economic Perspective

Share‑pledging activities are a common mechanism for capital optimization across multiple sectors, including food and beverage, finance, and real‑estate. While the specifics of the pledge—such as its duration and collateral usage—vary by industry, the underlying principles of risk management, liquidity enhancement, and regulatory adherence remain consistent. In the current macro‑economic environment, where market volatility and credit conditions are closely monitored, the Company’s proactive disclosure demonstrates prudent management of shareholder interests and financial flexibility.

This announcement serves to keep stakeholders informed about the current status of pledged and released shares, reinforcing Inner Mongolia Yili Industrial Group’s adherence to disclosure obligations and its focus on sound corporate governance practices.