Qingshan Paper redeems wealth products, optimizes idle funds

Fujian Qingshan Paper Industry Co., Ltd. has confirmed the redemption of several wealth management products and the ongoing utilization of idle raised funds for cash management. The company has invested a total of RMB 250 million in structured deposits with various banks, including Bank of China and Industrial Bank. These low-risk products have varying terms, such as 104, 105, 183, and 184 days, with expected annualized yields ranging from 0.40% to 2.66%. The company's board, supervisory committee, and shareholders previously approved the use of up to RMB 600 million of idle raised funds for cash management within a one-year period.

The funds for cash management originate from the company’s idle raised capital, initially secured from a non-public offering of A-shares in 2016, totaling RMB 2,051,761,927.45 after deducting issuance expenses. A portion of these funds has been allocated to projects like "Alkali Recovery Technology Upgrade" and "Xianyao Pharmaceutical Wind Oil Essence Workshop Expansion," with remaining funds designated for permanent supplementary working capital.

The company emphasizes that this cash management strategy aims to enhance the efficiency of temporary idle funds, increase company income, and improve overall performance without altering the intended use of the raised capital or impacting the progress of its investment projects. All investments adhere to a policy of high security and liquidity, fitting within the approved low-risk, short-term product categories.