Wanshili(301066) Cash management takes a new step: an additional 265 million yuan investment portfolio

Hangzhou Wanshili Silk Culture Co., Ltd. (stock code: 301066, referred to as “Wanshili”) announced on March 20 the latest progress regarding the company’s recent use of idle raised funds and its own funds for cash management. The announcement indicated that the company has added 13 cash management transactions within the authorized limit, involving a total amount of 265 million yuan, while completing 4 redemptions of maturing products, achieving an investment income of 152,000 yuan.

Synchronization of Maturing Redemptions and New Investments

The announcement showed that the company recently completed 4 transactions for the redemption of cash management products, with 2 from idle raised funds and 2 from its own funds, amounting to a total redemption of 90 million yuan, obtaining an investment income of 152,000 yuan. The specific details are as follows:

While redeeming maturing products, the company has added 13 cash management transactions, with a total investment amount of 265 million yuan. Among them, 60 million yuan of idle raised funds were invested in principal-protected floating income products from Guosen Securities and China Merchants Bank; 205 million yuan of own funds were allocated to fixed income, FOF, and structured deposit products from institutions including Guotai Junan Securities, CITIC Securities, and Zhongguo Trust.

Robust and Diversified Cash Management Strategy

In this new round of investments, the company continues its consistent prudent investment strategy, pursuing maximum fund income while controlling risks. From the product type perspective, all raised funds are directed towards principal-protected floating income products, with an expected annualized yield between 1.0% and 1.66%; own funds, on the other hand, adopt a more flexible allocation strategy, including a moderate allocation of non-principal-protected floating income products, with an expected annualized yield range of 2.10% to 5.20%.

It is noteworthy that the company has introduced a FOF (Fund of Funds) strategy in its own funds investments, such as the Guotai Junan Private Client Exclusive FOF 7009 Single Asset Management Plan and the CITIC Securities Asset Management Xin Ying Stable FOF Collective Asset Management Plan, diversifying risks through the asset allocation capabilities of professional institutions and enhancing income stability.

Compliance and Control of Fund Usage

The announcement emphasized that the company’s cash management operations strictly adhere to the authorization of the shareholders’ meeting, utilizing no more than 316 million yuan of idle raised funds and 600 million yuan of own funds within the limit, valid for 12 months from the date of approval at the first extraordinary shareholders’ meeting in 2025. As of the announcement date, the cumulative unexpired balance of idle raised funds used for cash management is 200 million yuan, and the cumulative unexpired balance of idle own funds is 356 million yuan, all within the authorized range.

The company stated that using some idle funds for cash management, while ensuring the investment projects and normal operations of raised funds, will not affect the company’s daily operations and can effectively improve fund utilization efficiency, creating more investment returns for the company and its shareholders. Additionally, the company has established comprehensive risk control measures, including strict product selection, real-time tracking of fund conditions, and regular internal audits to ensure fund security.

Good Historical Performance

Looking back over the past twelve months, the company has achieved significant investment income through cash management. The announcement shows that during this period, the company has conducted a total of 43 cash management transactions, of which 40 have been redeemed, cumulatively obtaining an investment income of 4.6383 million yuan, demonstrating the company’s professional capability in fund management.

Market analysts pointed out that as a leading enterprise in the silk culture industry, Wanshili enhances the returns on idle funds through a scientific cash management strategy while maintaining stable development of its core business, which helps to bolster the company’s performance and create greater value for shareholders. With the continuous expansion of the company’s business and the ongoing improvement of its fund management capabilities, future cash management operations are expected to become an important supplement to the company’s profit contributions.

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Editor: Xiao Lang Quick Report