Saikexing to offload dairy farming business, acquires new feed unit  

CHINA – Saikexing has signed a non-binding letter of intent for an asset swap with its controlling shareholder, Inner Mongolia Youran Dairy.

Under the proposed deal, Saikexing will transfer the entire equity of its 18 dairy farming subsidiaries to Inner Mongolia Youran, while acquiring Inner Mongolia Youran’s feed production and dairy supermarket operations.

The swap is designed to eliminate horizontal competition between the two entities in the upstream dairy sector, allowing Saikexing to shed its capital-intensive farming assets and transform into an asset-light technology service leader focused on breeding, nutrition and services.

Upon completion, the regulatory compliance obstacles blocking Saikexing’s path to a public listing will be fully removed, while Inner Mongolia Youran will achieve unified management of all its dairy farms.

Under the direction of its controlling shareholder, NEEQ-listed Saikexing (834179) is orchestrating a major business restructuring.

On August 5, 2026, Saikexing signed a Letter of Intent for Asset Swap with Inner Mongolia Youran Dairy Co., Ltd. (hereinafter “Inner Mongolia Youran”), planning to divest its entire capital-intensive dairy farming operations while acquiring Inner Mongolia Youran’s feed production and dairy supermarket business.

This strategic overhaul not only aims to resolve long-standing horizontal competition issues between the two parties but also paves the way for Saikexing’s future listing on a higher-tier capital market.

According to the letter of intent, Saikexing will sell the entire equity of its 18 subsidiaries primarily engaged in dairy farming to its controlling shareholder, Inner Mongolia Youran.

In exchange, Inner Mongolia Youran will transfer the full equity of its two subsidiaries engaged in the production and sale of feed and ruminant farming consumables to Saikexing. Any difference in the valuation of the two asset packages will be settled in cash by one party to the other.

Behind this asset reshuffling lies a fundamental shift in Saikexing’s strategic positioning. Upon completion of the transaction, Saikexing will completely exit the cyclical and capital-intensive raw milk production business, pivoting instead to focus on feed sales.

This new business segment will generate strong synergies with the company’s existing frozen semen and embryo sales operations.

Market sources indicate that the customer bases for feed and breeding services are highly overlapping, with distribution channels largely shared.

By integrating the two businesses, Saikexing can leverage shared customer resources and sales networks, effectively reducing operating costs and enhancing overall operational efficiency.

Saikexing’s strategic goal is to build a comprehensive “breeding + nutrition + services” solution chain, transitioning to an asset-light operating model and positioning itself as a leading provider of integrated technology services for the livestock farming industry.

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