Zhejiang Liziyuan Food Co., Ltd. disclosed in an announcement on the evening of October 8 that the company recently learned that independent director Xiao Zuoping is currently undergoing disciplinary review and supervisory investigation. Based on preliminary understanding, the case he is involved in is unrelated to the company. Liziyuan stated that Xiao Zuoping has served as an independent director of the company since July 2024 and is currently an independent director of the company's fourth board of directors, as well as chairman of the board's audit committee and a member of the nomination committee. Apart from this, he holds no other positions in the company and does not participate in daily production, operation, or management. His inability to perform his duties will not have a material impact on the company's operations and management. Other directors and senior management are performing their duties normally, and production and operations remain normal. The company will select a new independent director as soon as possible in accordance with relevant laws, regulations, and the company's articles of association. Financial reports show that in the first half of 2026, Liziyuan achieved operating revenue of 605 million yuan, down 2.69 percent year on year; net profit attributable to shareholders of the listed company was 65.0354 million yuan, down 32.34 percent year on year; and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 55.1391 million yuan, down 36.85 percent year on year. The company said the decline in net profit was mainly due to a drop in sales of milk-containing beverages and rising costs of key raw and auxiliary materials during the reporting period.
Zhe Jiang Li Zi Yuan Food Co LtdIndependent director Xiao Zuoping is under disciplinary review and supervisory investigation, prompting the company to replace him.
