China Feihe invests 300m yuan in SPD Bank financial products

On November 26, 2025, China Feihe Limited, through its wholly-owned subsidiary Feihe HLJ, subscribed to 300 million yuan worth of financial products from SPD Bank. This investment, termed "Subscription of Shangxin Products," utilized the company's idle funds, with the aim of boosting capital gains while maintaining capital safety and liquidity. The products, Shangxin Ruby H-6001 Phase 283 and Phase 284, each accounted for 150,000,000 yuan, with an expected annual return rate of 2.60% and maturity dates in September 2026. These are non-principal guaranteed products with floating returns, classified as fixed income assets.

The company stated the decision was based on commercial terms negotiated at arm's length, considering available surplus cash and expected investment returns. Directors confirmed the low risk associated with these products, which offer higher returns compared to traditional savings or time deposits in the PRC. The Group has implemented internal controls to ensure these investments do not impact working capital or operations.

This transaction, when aggregated with previous SPD Bank Financial Products subscriptions, constitutes a discloseable transaction under Chapter 14 of the Listing Rules, as the highest applicable percentage ratio exceeds 5% but is less than 25%. As of the announcement date, the aggregate outstanding principal amount of the Group's wealth management and structured deposit financial products from SPD Bank stood at 2,500,000,000 yuan.