China Feihe expands investment in CITIC Bank financial products

China Feihe Limited, through its wholly-owned subsidiary Feihe HLJ Sales, subscribed for an additional RMB700 million in a wealth management product from CITIC Bank. This new investment, named Xinyin Wealth Management Allwin Xiangzhiying Fixed Income Stable Profit Closed-ended Wealth Management Product No. 330, has an expected annual return of 2.40%-2.90% and matures on December 16, 2026. This product is non-principal guaranteed with a floating return and focuses on fixed income assets.

This subscription follows previous investments, bringing the aggregate outstanding principal of the group's wealth management and structured deposit financial products subscribed from CITIC Bank to RMB2.2 billion. China Feihe aims to enhance capital gain by reasonably and effectively using temporary idle funds, aligning with objectives to ensure capital safety and liquidity while generating higher returns than traditional savings.

The transaction has been deemed a discloseable transaction under listing rules due to the aggregate percentage ratio exceeding 5% but remaining below 25%, exempting it from shareholders' approval. CITIC Bank is confirmed as an independent third party to China Feihe.