China Feihe Limited (6186) has disclosed a subscription of a financial product offered by Shanghai Pudong Development Bank Co., Ltd. (SPD Bank) through its wholly owned subsidiary, Heilongjiang Feihe Dairy Co., Limited. The subscription amount totals RMB200.00 million, with an expected annual return rate of 2.50% and a maturity date of December 7, 2026.

According to the announcement, the accumulated outstanding principal amount for China Feihe Limited’s subscriptions of SPD Bank’s wealth management and structured deposit products currently stands at RMB2.90 billion. The subscription aims to deploy idle funds for higher capital gains under controlled risk conditions, seeking more favorable yields than typical bank deposit rates. The transaction is deemed a discloseable transaction as defined by relevant listing rules, requiring notification and announcement but not shareholders’ approval.

SPD Bank is an independent third party to China Feihe Limited, engaging primarily in commercial banking services. The board of directors of China Feihe Limited states that the subscription is fair and reasonable under normal commercial terms, aligning with the objective of optimizing capital usage without affecting the company’s liquidity or operations.