China Feihe invests RMB 1.40 billion in China Merchants Bank fixed-income wealth products

On 3 August 2026, China Feihe Limited announced the cumulative subscription of seven non-principal-guaranteed wealth management and structured deposit products offered by China Merchants Bank (CMB) and its branches during 2025–2026, classifying the move as a discloseable transaction under Hong Kong Listing Rule 14.22.

The dairy producer committed a total principal of RMB 1.40 billion (approximately USD 196 million), channelled into fixed-income assets with floating returns. Individual subscriptions range from RMB 100 million to RMB 500 million, carrying expected annualised yields between 2.20% and 2.55%. Weighted by principal, the blended expected return is about 2.44%. Maturities fall between November 2026 and August 2027, aligning with the company’s medium-term treasury horizon.

Transaction highlights • Largest placement: RMB 500.00 million in “Huaxia Wealth Management Fixed Income Debt-Type Closed-End Wealth Management Product No. 701”, maturing 11 November 2026 at an expected 2.55% yield. • Five additional instruments issued by CMB’s in-house wealth arm and other affiliated entities range from RMB 100.00 million to RMB 200.00 million each, with yields of 2.20%–2.50%. • The latest subscription dated 3 August 2026—RMB 200.00 million into “Huaxia Wealth Management Fixed Income Enhanced Closed-End Product No. 542”—triggered the aggregate disclosure threshold.

Financing and rationale Directors stated that the investments utilise temporary idle funds to enhance returns while prioritising capital safety and liquidity for ongoing operations and dividend commitments. Expected yields surpass prevailing PRC bank deposit rates, and internal controls are in place to ensure the placements do not constrain working capital.

Regulatory classification Aggregated under the Hong Kong Listing Rules, the 1.40 billion renminbi exposure results in percentage ratios above 5% but below 25%, qualifying the action as a discloseable transaction. Consequently, China Feihe must publish this announcement but is exempt from seeking shareholder approval.

Counterparty profile China Merchants Bank Co., Ltd. is a PRC joint-stock commercial bank listed in Shanghai and Hong Kong. Both CMB and its ultimate substantial shareholders are regarded as independent third parties to China Feihe.

The board views the terms of the subscriptions as fair and reasonable and asserts alignment with shareholders’ interests.