Ke Hua Heng Sheng to invest idle funds in cash management products

Ke Hua Heng Sheng (SZSE:002335) announced on September 11, 2025, that its board and supervisory committees approved the use of up to CNY 400 million in idle raised funds for cash management. This decision, made on August 29, 2025, aims to improve capital utilization and generate additional returns without impacting the progress of its investment projects. The cash management period is set for 12 months from the approval date, allowing for revolving use within the specified limit.

The company's raised funds total CNY 1.492.068 bn from the issuance of convertible bonds in August 2023, with a net amount of CNY 1.480.6632 bn after expenses. As of August 28, 2025, CNY 586.4821 million has been invested in projects, leaving CNY 904.648 million, including interest income, as idle funds. Primary investment projects include a smart manufacturing base, R&D center, and digital enterprise construction, alongside supplementing working capital and repaying loans.

The approved cash management strategy involves investing in highly secure, liquid, and low-risk financial products with a maturity not exceeding 12 months, such as bank structured deposits, negotiable certificates of deposit, and time deposits. This approach is expected to boost cash asset income and reduce financial costs, ultimately maximizing shareholder value. The company confirms that these measures will not alter the original use of the raised funds or hinder core business development.