China Feihe inks major agricultural procurement deal with controlling shareholder's firm

China Feihe Limited, through its wholly-owned subsidiary Feihe HLJ, has entered into an NL47 Procurement Framework Agreement with North Latitude 47. This agreement, effective from October 14, 2025, to December 31, 2027, mandates Feihe HLJ to procure agricultural products such as rice, cooking oil, and other grains from North Latitude 47 and/or its subsidiaries. North Latitude 47 is controlled by Mr. Leng Youbin, an executive director and controlling shareholder of China Feihe. This renders the deal a continuing connected transaction under Chapter 14A of the Listing Rules.

Historical transaction amounts for procurement from North Latitude 47 were RMB0.5 million in 2023, RMB11.0 million in 2024, and RMB4.5 million for the six months ended June 30, 2025. The annual caps for this agreement are set at RMB100 million for 2025, RMB180 million for 2026, and RMB210 million for 2027. These caps reflect anticipated growth in membership on the group's e-commerce platform and increased demand driven by promotional activities.

The pricing of products under the agreement must be no less favorable than market price, determined by quotes from at least two independent suppliers or by mutual agreement on a fair and reasonable basis. This transaction, while subject to reporting and annual review, is exempt from shareholder approval due to percentage ratios falling between 0.1% and 5%.