China Feihe Limited (China Feihe) disclosed that its wholly owned subsidiary, Heilongjiang Feihe Dairy, subscribed on 8 July 2026 to two “Shangxin Xinyue Fengli” assembled fund trust schemes issued by Shanghai Pudong Development Bank (SPD Bank), committing an aggregate principal of RMB300.00 million.

The two tranches—Phase 317 (RMB100.00 million) and FL2001 Phase 227 (RMB200.00 million)—carry identical terms: a non-principal-guaranteed structure with floating returns, an expected annual yield of 2.30%, and a maturity date of 14 April 2027. Both products invest primarily in fixed-income assets.

Including this latest commitment, China Feihe’s outstanding principal in SPD Bank wealth-management and structured-deposit products stands at RMB2.40 billion.

Management stated that the placements utilise temporary idle funds to boost returns while maintaining liquidity and capital safety for daily operations and dividend needs. The consideration was negotiated on normal commercial terms, reflecting the group’s surplus cash position and the products’ expected returns.

Under Hong Kong Listing Rule 14.22, the latest subscription is aggregated with previous purchases from SPD Bank. The combined size generates an applicable percentage ratio above 5% but below 25%, classifying the transaction as discloseable; it requires public announcement but not shareholder approval.

China Feihe affirmed that internal controls are in place to ensure the investment does not impair working capital or operational needs.