Hong Tong Gas uses 380 million yuan of idle raised funds for cash management to improve the efficiency of fund utilization

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Recently, Xinjiang Hongtong Gas Co., Ltd. (Stock Code: 605169, Stock Abbreviation: Hongtong Gas) announced that it has disclosed the progress of using idle raised funds for cash management. Under the premise of ensuring the normal progress of the investment plan with raised funds, the company has used 380 million yuan of idle raised funds to purchase high-security, highly liquid principal-protected financial products, aiming to improve capital efficiency and generate more returns for the company and shareholders.

The announcement shows that Hongtong Gas held the 24th meeting of the third board of directors and the 13th meeting of the third board of audit committee on February 6, 2026, during which they approved the proposal on using idle raised funds for cash management. According to the proposal, the company plans to use no more than 390 million yuan of idle raised funds to purchase products such as negotiated deposits, fixed deposits, structured deposits, income certificates, and reverse repurchase of government bonds, with an investment period of no more than 12 months from the date of board approval, and within this limit, the funds can be rolled over cyclically.

Basic Information on Raised Funds and Usage Progress

Hongtong Gas completed its initial public offering in October 2020, raising a total of 888.8 million yuan. After deducting issuance costs, the net amount was 838.82 million yuan. As of February 28, 2026, the company’s invested projects have the following progress:

The announcement clarifies that this cash management will not affect the normal implementation of the raised investment projects.

Details of Cash Management Investments

The company’s cash management this time mainly involves investments in government bond reverse repurchase, income certificates, fixed deposits, and structured deposits, with specific details as follows:

Significant Results in Cash Management Over the Past 12 Months

The announcement discloses that over the past 12 months, Hongtong Gas achieved a total return of 3.68544 million yuan from cash management, with an unrecovered principal of 372.7 million yuan. The maximum single-day investment amount during this period was 388 million yuan, accounting for 19.31% of the company’s net assets over the past year and 224.28% of net profit. The company states that all investments meet the requirements of high safety and liquidity, without covertly changing the use of raised funds.

Risk Control and Impact

Hongtong Gas points out that although all products involved in this investment are principal-protected, they still face risks such as market fluctuations and macro policy changes. The company will control risks through strict selection of investment targets, tracking product net value changes, and strengthening internal supervision. This cash management will not affect the company’s daily cash flow or main business operations and is beneficial to improving capital utilization and overall performance.

The sponsor has no objection to the company’s use of idle raised funds for cash management. The company will dynamically adjust the scale and types of cash management according to the progress of the investment projects and fulfill information disclosure obligations in a timely manner.

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