China Feihe invests ¥500m in financial products, updates procurement deal

China Feihe Limited announced a discloseable transaction regarding the subscription of financial products. On November 5, 2025, its wholly-owned subsidiary, Feihe HLJ, subscribed for Shangxin Products from SPD Bank totaling ¥500 million, with a 2.60% expected annual return rate. These non-principal guaranteed products, focusing on fixed income assets, include ¥300 million in Shangxin Ruby T+N Phase 119 and ¥200 million in Shangxin Ruby H-6001 Phase 278, maturing in August 2026. This subscription, aggregated with previous SPD Bank financial product subscriptions, constitutes a discloseable transaction under Listing Rules.

The company also released a supplemental announcement concerning the NL47 Procurement Framework Agreement, which outlines pricing terms for products procured by Feihe HLJ from North Latitude 47 and/or its subsidiaries. Market prices are determined by competitive quotes from independent suppliers or, if inapplicable, by reference to national grain price reports and financial media analyses.

Annual caps for these procurement transactions are set at ¥100 million for 2025, ¥180 million for 2026, and ¥210 million for 2027. These caps reflect expected growth in demand for agricultural products, driven by an expanding e-commerce platform membership and ongoing promotional activities. The total outstanding principal of wealth management products from SPD Bank was ¥2.4 billion as of the announcement date.