Jin Zai Food plans to allocate 700 million yuan of idle proprietary funds for cash management to improve capital utilization efficiency

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【Finance Network News】On March 31, Jinzai Foods Group Co., Ltd. (stock code: 003000, stock short name: Jinzai Foods) released an announcement stating that the company’s 12th meeting of the Third Session of the Board of Directors reviewed and approved the proposal titled “Proposal on the Company’s Use of Its Own Funds for Cash Management.” To improve the efficiency of fund utilization, while ensuring the safety of funds and normal production and operations, the company (including its subsidiaries) plans to use a maximum额度 of no more than 700 million yuan (inclusive) of temporarily idle own funds for cash management. The authorization period will be within 12 months from the date on which the board of directors approves the proposal.

The announcement shows that the purpose of Jinzai Foods’ cash management this time is to improve the efficiency of fund utilization. Under the condition that it does not affect fund safety and normal production and operations, the company (including its subsidiaries) will achieve the preservation of capital value and appreciation of cash, and safeguard the interests of the company’s shareholders.

With respect to investment types, the company (including its subsidiaries) will strictly control risks in accordance with relevant regulations and purchase low-risk investment products with high safety and good liquidity, including but not limited to structured deposits, large-denomination certificates of deposit, time deposits, profit certificates, and other principal-guaranteed products.

In terms of investment额度 and срок, the company (including its subsidiaries) plans to use a maximum额度 of no more than 700 million yuan (inclusive) of idle own funds for cash management. The authorization period will be within 12 months from the date on which the board of directors approves the proposal. Within the above额度 and期限, the funds may be used on a revolving and rolling basis.

As for implementation method, after the above matters are approved by the board of directors, the company’s board of directors authorizes the general manager to exercise the investment decision-making power and sign related contractual documents within the额度. The financial management center is responsible for handling the specific related matters. Any收益 obtained from the company’s idle own funds will be prioritized for working capital needed for daily operations.

Regarding investment risks, the announcement states that although the company’s wealth management products purchased with its own funds will all undergo strict assessment and selection, the returns are affected by macroeconomic conditions, and it cannot be ruled out that the investment may be affected by market fluctuations. At the same time, the company also faces subscription risks, policy risks, market risks, liquidity risks, information transmission risks, risks of unsuccessful fundraising, risks of reinvestment/early termination, and other force majeure risks, as indicated by other product issuers.

To control risks, the company will strictly follow the prudent investment principle and must not use the funds for other securities investments. It will not purchase bank wealth management products that use stocks and their derivatives and unsecured bonds as investment targets. The company will strictly screen investment counterparties and choose products with good liquidity and short terms issued by units with good reputation, large scale, and the ability to ensure the safety of funds, as well as strong operating and capital operation capabilities. In addition, the company will promptly track and analyze the investment direction and project progress of each wealth management product. Once it discovers or judges the potential for unfavorable factors, it will promptly take corresponding preservation measures to control investment risks, and, in accordance with the relevant regulations of the Shenzhen Stock Exchange, fulfill its information disclosure obligations.

The announcement states that, under the premise of complying with relevant laws and regulations and ensuring that it does not affect the company’s fund safety and normal production and operations, the company and its subsidiaries’ use of its own funds for cash management will not affect the company’s normal production and operations. By using its own funds for cash management, the company can improve the efficiency of fund utilization, obtain certain investment returns, and seek more investment returns for its shareholders.

Jinzai Foods states that the company will, in accordance with the relevant regulations of regulatory authorities such as the Shenzhen Stock Exchange, do a good job in fulfilling related information disclosure obligations.

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Responsible editor: Xiaolang Kuaibao