Kanghong Pharmaceutical uses 800 million yuan of its own funds to purchase China Bank's structured deposit financial products

China News Network data
Chengdu Kanghong Pharmaceutical Group Co., Ltd. recently issued an announcement disclosing its progress in using idle proprietary funds for cash management. According to the announcement, the company has already used RMB 800 million of its own funds to purchase a capital-guaranteed, floating-rate structured deposit product issued by the Chengdu Wuhou sub-branch of China Bank. The product code is CSDVY202615450. The interest accrual start date is April 3, 2026, the maturity date is May 20, 2026, and the term is 47 days. The product’s expected annualized yield is linked to the international gold/US dollar price during the observation period; if certain conditions are met, the maximum annualized yield can reach 2.0600%. At the same time, the product provides a guaranteed minimum annualized yield of 0.6000%.

This wealth-management investment is conducted by the company within the authorization额度 granted by the shareholders’ meeting. Previously, at the 10th meeting of the Eighth Board of Directors held in April 2025 and the 2024 annual shareholders’ meeting held in May 2025, the relevant proposals were deliberated and approved. The company agreed that the company and its subsidiaries may, within an aggregate limit not exceeding RMB 3.8 billion, use idle proprietary funds to purchase capital-guaranteed wealth-management products (including structured deposits) with high safety and good liquidity. The authorization period is one year from the date on which the shareholders’ meeting approves the resolution, and the funds can be used on a rolling basis.

The announcement also discloses potential risks that the wealth-management product may face, such as policy risk, market risk, liquidity risk, credit risk, etc. The company states that it has established corresponding risk control measures, including decision-making by authorized management personnel, execution by the finance department, and supervision by the internal audit department, to ensure the safety of funds.

As of the date of this announcement, the total amount of capital-guaranteed wealth-management products purchased by Kanghong Pharmaceutical using idle proprietary funds in the past twelve months that have not yet matured is RMB 1.24 billion, which does not exceed the investment limit and authorization term approved by the shareholders’ meeting. The company believes that, while ensuring that normal business operations are not affected, conducting such low-risk wealth-management investments is beneficial for improving the efficiency of using idle funds and for generating more investment returns for the company and its shareholders.

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