China Feihe invests RMB300m in SPD Bank financial products

China Feihe Limited, through its wholly-owned subsidiary Feihe HLJ, announced on 10 September 2025, the subscription of RMB300 million in "Shangxin Products" from SPD Bank using its idle funds. This investment comprises two products: RMB100 million in "Shangxin Xinyue Fengli Assembled Fund Trust Scheme No. 229" and RMB200 million in "Shangxin Xinyue Fengli Assembled Fund Trust Scheme FL2001, No. 174". Both are non-principal guaranteed with floating returns and an expected annual return rate of 2.60%, maturing on 6 July 2026. The investment scope for both products is fixed income assets.

This subscription follows previous investments in SPD Bank financial products, with the aggregated outstanding principal amount of the group's wealth management and structured deposit financial products from SPD Bank totaling RMB2,250,000,000 as of the announcement date. The directors confirmed the consideration was determined on arm's length commercial terms, considering surplus cash and expected investment returns.

The company stated that this move aims to enhance capital gain by utilizing temporary idle funds effectively, aligning with objectives of capital safety, liquidity, and meeting operational and dividend needs. The directors consider the risk associated with these "Shangxin Products" to be low, offering a relatively higher return compared to traditional savings or time deposits. The transaction constitutes a discloseable transaction under listing rules.