Shanxi Lanhua tightens bond fundraising management

Shanxi Lanhua Sci-Tech Venture Co. has established a comprehensive management framework for its bond fundraising capital. This framework, effective from its release date, mandates the opening of dedicated bank accounts for bond proceeds, which cannot be commingled with other company funds or used for purposes other than those specified in the bond issuance application. The company is prohibited from arbitrarily altering the investment direction of these funds.

The new regulations require the company’s board of directors to formulate detailed usage plans for the bond proceeds, ensuring transparency and adherence to approved projects. Any change in the intended use of funds necessitates formal approval processes and public disclosure. Furthermore, the company must promptly report and disclose any significant disruptions to the planned use of these funds to regulatory bodies.

To maintain oversight, the company’s internal audit department will conduct semi-annual reviews of fund storage and usage, while the bond trustee will continuously monitor the use of proceeds throughout the bond’s term. Temporary idle funds may be managed through investments in highly secure and liquid products, such as national bonds or policy bank financial bonds, with board or authorized approval.