Shenghong Technology Plans to Allocate 2 Billion Yuan in Idle Self-owned Funds for Cash Management to Enhance Capital Utilization Efficiency

[Finance.com News] On March 13, Shenghong Technology (Huizhou) Co., Ltd. (Stock Code: 300476, Stock Abbreviation: Shenghong Technology) announced that the company held the 13th meeting of the fifth board of directors on March 12, 2026, and approved the proposal on “Using Idle Self-Owned Funds for Cash Management.” According to the proposal, the company and its subsidiaries plan to use up to RMB 2 billion of idle self-owned funds for cash management, to purchase high-security, highly liquid, principal-protected financial products. The investment period is 12 months from the date the board approves the proposal, and within this period and limit, funds may be used on a rolling basis.

The announcement states that the purpose of using part of the idle self-owned funds for cash management is to reasonably utilize idle funds without affecting normal operations and ensuring fund safety and risk control, thereby further improving the efficiency of the company’s capital utilization and increasing capital returns.

Regarding investment risks, Shenghong Technology pointed out that although the proposed investment products have undergone strict evaluation, the financial market is greatly affected by macroeconomic factors, and market fluctuations may impact the investment; additionally, short-term investment returns are unpredictable, and there are operational and monitoring risks associated with staff.

To address these risks, the company will adopt multiple control measures, including strict decision-making, management, inspection, and supervision of cash management in accordance with relevant regulations; selecting investment products with good liquidity, high safety, and a maturity not exceeding 12 months; establishing an investment ledger in the finance department to analyze and track investment directions and progress in real-time, and taking protective measures promptly if risk factors are identified; independent directors and the audit committee of the board have the right to conduct regular or irregular inspections, and may hire professional agencies for audits if necessary.

The company stated that, in compliance with national laws and regulations, and ensuring that normal operations and fund safety are not affected, part of the idle self-owned funds will be used for cash management. This will not impact daily business operations. Through moderate cash management, the company aims to improve capital efficiency, achieve certain investment returns, and generate more investment benefits for shareholders.

This matter has been approved by the board of directors, and independent directors have expressed clear independent opinions, believing that the proposal is conducive to improving capital utilization efficiency, increasing company earnings, and that the approval process complies with relevant regulations, with no harm to minority shareholders’ interests. The sponsoring institution, after verification, also believes that the company’s use of idle self-owned funds for cash management has followed necessary procedures, complies with relevant laws and regulations, will not affect normal operations or core business development, and is beneficial for improving capital efficiency and aligning with the interests of the company and all shareholders.

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