Longpan Technology plans to use no more than 400 million yuan in idle raised funds for cash management.

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【Finance Web News】On March 18, Jiangsu Longpan Technology Group Co., Ltd. (Stock Code: 603906,简称 “Longpan Technology”) announced that the board of directors approved the “Proposal on the Expected Use of Part of Idle Raised Funds for Cash Management,” agreeing to use no more than 400 million yuan (including this amount) of idle raised funds for cash management, investing in safe, highly liquid principal-protected products. This quota is valid for 12 months from the date of board approval and can be reused cyclically.

The announcement states that Longpan Technology’s use of idle raised funds for cash management aims to improve the efficiency and benefits of fund utilization and increase returns. The company emphasizes that this will not affect the progress of the invested projects nor involve disguised changes to the use of raised funds.

It is understood that the funds for this cash management come from the non-public issuance of shares in 2021. The total raised funds from this issuance were about 2.2 billion yuan, with a net amount of approximately 2.176 billion yuan, which was received on May 18, 2022. As of February 28, 2026, the investment status of related projects is as follows:

In terms of investment methods, Longpan Technology will invest in structured deposits, negotiated deposits, notice deposits, fixed deposits, large-denomination certificates of deposit, and income vouchers—products that are safe and highly liquid, with a maximum term of 12 months per product. The company authorizes the legal representative or designated authorized agents to make related investment decisions and sign legal documents, with the finance department responsible for implementation.

The announcement also discloses the company’s cash management of raised funds over the past 12 months. As of the date of this announcement, the company has conducted multiple cash management activities through structured deposits and seven-day notice deposits, with a total actual return of 6.1167 million yuan. All principal has been recovered, with no remaining principal unrecovered. The highest single-day investment amount in the past 12 months was 300 million yuan, accounting for 9.46% of the company’s net assets over the past year.

Regarding investment risks, Longpan Technology states that although the cash management products are safe and highly liquid, the overall risk is controllable. However, financial markets are greatly affected by macroeconomic factors, and systemic risks due to market fluctuations cannot be ruled out. The company will implement multiple risk control measures, including ensuring no impact on project construction and normal operations, supervision by independent directors and the audit committee, timely disclosure of information, and tracking and analyzing product investments and progress by the finance department.

Longpan Technology notes that using idle raised funds for cash management is conducted under the premise of ensuring the normal progress of invested projects and the safety of raised funds. It helps improve the efficiency of fund use and generate more returns for the company and shareholders, without harming the interests of the company and all shareholders, especially minority shareholders.

Latest financial data shows that as of September 30, 2025, Longpan Technology had approximately 3.58 billion yuan in monetary funds, total assets of about 18.438 billion yuan, total liabilities of about 14.611 billion yuan, and net assets attributable to the parent company of approximately 2.992 billion yuan.

The sponsor institution has issued an approval opinion, stating that the company has completed necessary approval procedures, complies with relevant laws, regulations, and the company’s articles of association, and that this measure is conducive to improving capital utilization efficiency. There is no disguised change in the use of raised funds, and it aligns with the interests of the company and all shareholders.

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Editor: Xiao Lang Kuai Bao