Xianhe reallocates project savings to new production facility, manages idle funds

Xianhe Co., Ltd. has completed its "Annual Production of 300,000 Tons of High-Grade Paper Base Materials" and "Annual Production of 30,000 Tons of Thermal Sublimation Transfer Paper and Food Packaging Paper" projects. The former resulted in a saving of CNY 56,686.57 million. These projects were originally funded through the 2021 publicly issued convertible corporate bonds.

The company will utilize the total remaining funds, including interest and wealth management income, estimated at CNY 62,280.19 million, to invest in a new project for "Annual Production of 20,000 Tons of Insulating Paper and Capacitor Paper." This new facility, with a total investment of CNY 66,582 million, is expected to be operational by June 2027.

Concurrently, Xianhe’s board approved the temporary use of up to CNY 60,000 million in idle raised funds for working capital for a period not exceeding 12 months. Additionally, the company will engage in cash management by purchasing low-risk, principal-protected investment products with up to CNY 60,000 million of idle funds for a duration not exceeding 12 months.