China Feihe invests RMB400m in CITIC Bank wealth management products

On September 24, 2025, Feihe HLJ, a wholly-owned subsidiary of China Feihe Limited, subscribed to two wealth management financial products from CITIC Bank totaling RMB400 million. The investments include RMB300 million in "Allwin Xiangzhiying Fixed Income Stable Profit Closed-ended Wealth Management Product No. 279" with an expected annual return rate of 2.38%, and RMB100 million in "Allwin Xiangzhiying Fixed Income Enhanced Profit Closed-ended Wealth Management Product No. 3" offering an expected annual return rate of 2.50%. Both products mature on September 23, 2026, and are non-principal guaranteed with floating returns.

These subscriptions are part of the group's strategy to utilize temporary idle funds to enhance capital gains, maintaining capital safety and liquidity for daily operations and dividend payments. The company views these investments as offering a relatively higher return compared to current savings or time deposits in the PRC, with low associated risk. The aggregate outstanding principal amount of the group’s wealth management and structured deposit financial products from CITIC Bank now stands at RMB2.5 billion.

The transactions, when aggregated with prior subscriptions of CITIC financial products, represent a discloseable transaction for China Feihe, as the highest applicable percentage ratio exceeds 5% but is less than 25% under the Listing Rules. This requires notification and announcement but is exempt from shareholder approval.