Shanghai Milkground Food Tech (600882.SH) signed a memorandum of understanding with SADAFCO to jointly explore and develop the market for children's cheese sticks in Saudi Arabia.

Shanghai Milkground Food Tech (600882.SH) announced that on February 8, 2026, the company signed a memorandum of understanding with Saudia Dairy & Foodstuff Co. (referred to as "SADAFCO"). The two parties intend to cooperate to explore and expand the market for children's cheese snacks (specifically cheese sticks) in Saudi Arabia. Shanghai Milkground Food Tech is a leading cheese company in China, mainly engaged in the production and sale of cheese products. SADAFCO is a leading regional food manufacturer, distributor, and marketer headquartered in Saudi Arabia, with strong operational and marketing capabilities in the Middle East. It has a distribution network covering products such as milk, tomato sauce, and ice cream, and promotes its core products under its flagship brand "SAUDIA". Both parties recognize that leveraging their respective market leadership positions and expertise can bring mutual benefits, and are looking to explore potential cooperation in the cheese category. The company signed a memorandum of understanding with SADAFCO to jointly explore and develop business opportunities for children's cheese sticks in the Saudi market. The proposed cooperation aligns well with the company's existing business and fits into its strategic development direction of "focus on core business" and "expansion overseas through acquisitions". If this memorandum of understanding is successfully implemented, the advancement of this cooperation project will help enhance the company's competitive advantage in the industry, facilitate the expansion of overseas markets, and is expected to have a positive impact on the company's future business development.