Qianhe Flavor Industry Food Co., Ltd. Announcement on Using Idle Own Funds to Purchase Financial Products

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Stock Code: 603027 Stock Abbreviation: Qianhe Flavor Industry Announcement No.: Lin 2026-005

Qianhe Flavor Industry Food Co., Ltd.

Announcement on Using Idle Own Funds to Purchase Financial Products

The company’s board of directors and all directors guarantee that the content of this announcement is free of any false records, misleading statements, or major omissions, and assume individual and joint responsibility for its authenticity, accuracy, and completeness.

Key Highlights:

● Basic Information:

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● Approval Process: The fifth session of the company’s fifth board of directors approved the “Proposal on Using Idle Own Funds for Cash Management,” agreeing that the company may use up to 500 million yuan of its own funds to purchase low- to medium-risk, highly liquid financial products such as wealth management products and government bond repurchase agreements. From the date of approval by the board, the above cash management limit can be rolled over within 12 months, and the company’s chairman is authorized to approve and implement specific actions. The company’s supervisory committee and independent directors have expressed clear approval of this matter.

● Special Risk Reminder: The company’s use of idle own funds to purchase low- to medium-risk, highly liquid financial products and government bond repurchase agreements involves controllable investment risks. However, financial markets are affected by macroeconomic factors, and market fluctuations may pose risks. The company will adjust its financial strategies in a timely manner based on economic conditions and changes in the financial market.

1. Overview of this entrusted wealth management

(1) Purpose of entrusted wealth management

To improve the efficiency of using own funds and achieve certain investment returns.

(2) Source of funds

The funds for this wealth management come from the company’s own funds.

(3) Basic information of the entrusted financial products

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2. Investment direction and risk control analysis of wealth management funds

The financial products purchased with the company’s own funds this time are low-risk, highly liquid, and have minimal impact on the company’s cash flow.

1. Relevant personnel in the company’s finance department will analyze and track the investment direction and progress of the financial products in a timely manner. If any risks that may affect the company’s fund safety are identified, appropriate measures will be taken promptly to control investment risks.

2. The company will reasonably arrange and select suitable types and durations of financial products without affecting daily operations.

3. The company’s independent directors and audit committee have the right to supervise and inspect the use of own funds and may hire professional agencies for audits if necessary.

4. The company will strictly follow the relevant regulations of the Shanghai Stock Exchange and disclose information in a timely manner.

5. Impact on the company

(1) Main financial indicators:

Unit: Yuan

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(2) Impact of entrusted wealth management on the company

As of September 30, 2025, the company’s asset-liability ratio was 23.79%. The amount of idle own funds used for wealth management was 300 million yuan, accounting for 21.73% of the company’s latest period-end monetary funds of 1,380,048,353.51 yuan, 8.82% of the latest period-end net assets, and 6.70% of the latest period-end total assets. This will not have a significant impact on the company’s future main business, financial condition, or operating results. There is no situation of purchasing large amounts of wealth management products while holding large liabilities.

The company’s current wealth management products can improve capital utilization efficiency, generate certain returns, and provide more benefits for the company and shareholders, aligning with the interests of the company and all shareholders.

4. Implementation of decision-making procedures

The fifth session of the company’s fifth board of directors and the fifth session of the supervisory committee approved the “Proposal on Using Idle Own Funds for Cash Management,” agreeing that the company may use up to 500 million yuan of its own funds to purchase low- to medium-risk, highly liquid financial products and government bond repurchase agreements. Within this limit, the funds can be rolled over within 12 months from the date of approval by the board, and the chairman is authorized to make investment decisions regarding cash management within this period. The supervisory committee and independent directors have expressed clear approval. Details are disclosed in the company’s announcement published on April 16, 2025, on the Shanghai Stock Exchange website (www.sse.com.cn) and in the China Securities Journal, Shanghai Securities News, and Securities Times.

5. Use of own funds for entrusted wealth management in the past twelve months as of this announcement

Unit: 10,000 yuan

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This announcement is hereby made.

Board of Directors of Qianhe Flavor Industry Food Co., Ltd.

March 19, 2026