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 2026-008

Qianhe Flavor Industry Co., Ltd.

Announcement on the Use of Idle Self-owned Funds to Purchase Financial Products

The Board of Directors and all directors of the company guarantee that the content of this announcement does not contain any false statements, misleading representations, or significant omissions, and bear individual and joint responsibility for the authenticity, accuracy, and completeness of its content.

Important Content Reminder:

●Basic Situation:

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●Review Procedures: The tenth meeting of the fifth Board of Directors of the company reviewed and approved the “Proposal on the Use of Idle Self-owned Funds for Cash Management,” agreeing to use self-owned funds not exceeding RMB 1 billion for cash management, with investment scope including the purchase of medium to low-risk, high liquidity financial products and reverse repurchase of government bonds, etc. Within the above limit, these funds can be used on a rolling basis within 12 months from the date of approval by the Board of Directors, and the management of the company is authorized to specifically approve and implement within the above limit.

●Special Risk Reminder: The company uses idle self-owned funds to purchase medium to low-risk, high liquidity financial products and reverse repurchase of government bonds, investing risks are controllable, but the financial market is affected by the macroeconomy, and risks from market fluctuations cannot be excluded. The company will adjust its financial management strategy in a timely manner according to economic conditions and changes in the financial market.

I. Overview of the Entrusted Financial Management

(1) Purpose of Entrusted Financial Management

To improve the efficiency of self-owned funds and obtain certain investment returns.

(2) Source of Funds

The funds for this financial management come from the company’s self-owned funds.

(3) Basic Situation of Entrusted Financial Management Products

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II. Analysis of Investment Direction and Risk Control of Financial Management Funds

The financial products purchased with the company’s self-owned funds this time are low-risk and have good liquidity, with minimal impact on the company’s cash liquidity.

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

2. The company shall ensure that it does not affect daily operations while reasonably arranging and selecting the types and terms of suitable financial products.

3. The company’s independent directors and audit committee have the right to supervise and inspect the use of self-owned funds, and can hire professional institutions for auditing if necessary.

4. The company will strictly comply with relevant regulations of the Shanghai Stock Exchange and timely disclose information.

III. Impact on the Company

(1) Major Financial Indicators of the Company:

Unit: Yuan

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(2) Impact of Entrusted Financial Management on the Company

As of September 30, 2025, the company’s debt-to-asset ratio is 23.79%. The amount of idle self-owned funds used by the company to purchase financial products is 50 million yuan, accounting for 3.62% of the company’s latest period-end cash of 1,380,048,353.51 yuan, 1.47% of the company’s latest period-end net assets, and 1.12% of the company’s latest period-end total assets. This will not have a significant impact on the company’s future main business, financial status, operating results, etc., and there is no situation of purchasing large financial products while having large liabilities.

The financial products purchased by the company this time can improve the efficiency of fund utilization, obtain certain returns, and provide more returns for the company and its shareholders, which is in line with the interests of the company and all shareholders.

IV. Fulfillment of Decision-Making Procedures

The tenth meeting of the fifth Board of Directors of the company reviewed and approved the “Proposal on the Use of Idle Self-owned Funds for Cash Management,” agreeing to use self-owned funds not exceeding RMB 1 billion for cash management, with investment scope including the purchase of medium to low-risk, high liquidity financial products and reverse repurchase of government bonds, etc. Within the above limit, these funds can be used on a rolling basis within 12 months from the date of approval by the Board of Directors, and the management of the company is authorized to specifically approve and implement within the above limit. The specific details of this matter can be found in the relevant announcements disclosed by the company on March 21, 2026, on the Shanghai Stock Exchange website (www.sse.com.cn) and in the “China Securities Journal,” “Shanghai Securities Journal,” and “Securities Times.”

V. As of the date of this announcement, the situation of the company using self-owned funds for entrusted financial management in the last twelve months

Unit: Ten Thousand Yuan

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This announcement is hereby made.

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

March 27, 2026

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