China Foods Limited (Stock Code: 506) disclosed the execution of a Cash Pooling Management Agreement with COFCO Finance (HK), a direct wholly-owned subsidiary of COFCO. The agreement, dated 10 November 2025, spans three years (10 November 2025 to 9 November 2028) and is intended to optimize financial management, enhance liquidity, reduce financing costs, and streamline fund utilization within the group.

According to the announcement, the Demand Loans and Term Loans under this arrangement will be transferred by China Foods Limited to COFCO Finance (HK) through designated channels, with the former earning interest on deposited funds. The proposed maximum daily outstanding balance of deposits is RMB400 million, inclusive of accrued interest. This amount was determined based on factors such as the group’s historical cash position, anticipated growth, and business development plans.

In compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, these transactions are classified as continuing connected transactions since COFCO Finance (HK) is a connected person under Chapter 14A. The agreement is therefore subject to relevant reporting and announcement requirements. The board of directors expressed confidence in the fair and reasonable nature of the agreement’s terms and endorsed the associated risk management measures, noting that no director involved has a material interest, although certain directors refrained from voting for good corporate governance.

China Foods Limited operates primarily in the beverage business through its subsidiaries and associated companies. COFCO Finance (HK) focuses on providing cash pooling management services to entities within COFCO Group. The arrangements aim to centralize offshore funds, facilitate more effective internal resource allocation, and maintain rigorous internal monitoring to protect shareholder interests.