Announcement on the Company and its Subsidiaries Engaging in Financial Derivative Trading

Securities Code: 002891 Securities Abbreviation: CP Foods Announcement No.: 2026-057

Announcement on the Company and its Subsidiaries Engaging in Financial Derivative Trading

The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions.

Key Information Prompt:

1. Purpose of Trading: Yantai CP Foods Co., Ltd. (hereinafter referred to as the "Company") and its subsidiaries (including wholly-owned subsidiaries and controlled subsidiaries) plan to engage in financial derivative hedging business (hereinafter referred to as "hedging business") to reduce or hedge exchange rate risks arising from exchange rate fluctuations, reduce exchange losses, and control operating risks, thereby improving the efficiency of foreign currency fund utilization and enhancing the Company's financial stability.
2. Trading Varieties and Instruments: The main trading varieties and instruments for this hedging business include forward foreign exchange settlement and sales, forward foreign exchange, foreign exchange swaps, foreign exchange options, structured forwards, interest rate swaps, currency swaps, and other products or combinations thereof, as well as structured products based on the above products.
3. Trading Venue: Financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China, which possess relevant financial derivative trading business qualifications.
4. Trading Amount: The Company plans to conduct financial derivative trading business for hedging purposes with an amount not exceeding USD 50 million. The term is within 12 months from the date of approval by the shareholders' meeting. The aforementioned quota can be used on a revolving basis within the term, but the cumulative amount at any point within the term shall not exceed USD 50 million or its equivalent in other foreign currencies.
5. Deliberation Procedures: This matter has been reviewed and approved by the 26th meeting of the Fourth Board of Directors and the 16th meeting of the Fourth Audit Committee of the Board of Directors held on April 23, 2026. This matter still needs to be submitted to the shareholders' meeting for deliberation. The planned hedging business does not constitute a related-party transaction.
6. Special Risk Warning: This hedging business will be conducted in accordance with the principles of legality, prudence, safety, and effectiveness. It will not involve speculative or arbitrage trading operations. However, derivative trading operations still carry certain market risks, liquidity risks, etc. Investors are kindly reminded to pay attention to investment risks.