5100 XIZANG (01115) proposes to issue 380 million shares to acquire the entire issued share capital of Nainqingtanggula Investment at a total price of 237.6 million yuan.

XIZANG (01115) announced that on June 25, 2026, the seller, Gang Ren Boqi Trading Co., Ltd., the buyer, Jiman Co., Ltd. (a wholly-owned subsidiary of the company), have entered into a sale and purchase agreement. According to this agreement, the buyer conditionally agrees to acquire, and the seller conditionally agrees to sell, all issued shares of the target company, Ningqing Tanggula Investment Co., Ltd., in exchange for 3.8 billion shares issued by the company. In 2025, the group had already purchased 28% of the shares of a Chinese company for 92.4 million RMB through another wholly-owned subsidiary. After completion, the target company and the Chinese company will become wholly-owned subsidiaries of the company. The Chinese company has obtained the water rights of a water source in Shannan, Tibet, which is a uniquely suitable base for producing infant formula powder with rare and distinctive characteristics in Tibet and even in all of China, with an annual water extraction volume of up to 400,000 tons. The successful acquisition of this unique water source base will open up a unique market for infant and child health growth for the company, achieve good social and economic benefits, and bring very positive and inspiring results. It is expected that this water source will significantly enhance the group's overall production capacity and enable the group to expand into new sales channels. The total consideration is 237.6 million RMB, which the company will pay to the seller by issuing and distributing 3.8 billion shares of consideration shares, with a total issuance price of 237.6 million RMB. The 3.8 billion shares of consideration shares represent approximately 6.75% of the company's issued share capital as of the date of this announcement, and approximately 6.32% of the issued share capital after the issuance of the consideration shares.