Teway food to invest idle capital in structured deposits

Sichuan Teway Food Group, through a resolution passed in March 2025, will deploy up to RMB 1.3 billion of temporarily idle raised funds for cash management over a 12-month rolling period. The latest investment, totaling RMB 90 million, will be placed in a structured deposit with China Construction Bank Shuangliu Branch, maturing on March 18, 2026. This product offers a principal-protected floating yield ranging from 0.6% to 2.07% and aims to enhance capital efficiency and shareholder returns without impacting ongoing project development or business operations.

The funds originate from the company's non-public offering in 2020, which raised a net RMB 1,621,689,990.31. As of June 30, 2025, key projects like the food and condiment industrialization base expansion and marketing network upgrades have seen significant capital deployment. The RMB 90 million investment represents 35.94% of the company’s total cash and cash equivalents as of the latest reporting period.

This move is deemed low-risk, with the company emphasizing measures to ensure principal safety and mitigate market and policy risks. The company's total assets as of June 30, 2025, were RMB 5,139,082,764.29, with net assets at RMB 4,281,995,293.81.