China Feihe invests 300m yuan in new CITIC Bank wealth product

China Feihe Limited announced its wholly-owned subsidiary, Feihe HLJ, subscribed to a 300,000,000 yuan wealth management product from CITIC Bank on December 18, 2025. This "Xinyin Product" is a fixed income, non-principal guaranteed closed-ended product with an expected annual return rate of 2.40%-2.90% and matures on December 16, 2026. The investment utilizes the Group's idle funds for treasury management.

The directors believe this strategy enhances capital gain while maintaining capital safety and liquidity, offering a higher return compared to traditional savings. The aggregated outstanding principal amount of the Group's wealth management and structured deposit financial products subscribed from CITIC Bank now totals 2,500,000,000 yuan.

While the transaction is aggregated with previous subscriptions, making it a discloseable transaction under Listing Rules, China Feihe acknowledged a regrettable oversight in timely compliance with notification requirements. Remedial actions include comprehensive reviews, enhanced staff training, and stricter monitoring of financial product subscriptions to prevent future non-compliance.