Kanghong Pharma unit invests in wealth management product

Chengdu Kanghong Pharmaceutical Group announced that its subsidiary, Sichuan Kanghong Pharmaceutical Trading Co., Ltd. (Sichuan Kangmao), has used its own funds to purchase a wealth management product. This investment aligns with a resolution authorizing the company and its subsidiaries to use up to RMB 3.8 bn of idle funds for wealth management products over one year.

Sichuan Kangmao invested RMB 70 m in a "Furong Jin Cheng" unit-linked structured deposit product from Chengdu Bank, Changshun Branch. This principal-protected, floating-income, closed-end product has a term of 42 days, maturing on December 29, 2025, with an expected annualized return range of 0.85% to 2.20%. The product's return is tied to the EUR/USD exchange rate.

The company emphasizes this investment is made without affecting normal operations, capital turnover, or core business development. The low-risk investment aims to enhance the efficiency of idle capital and generate returns for the company and its shareholders. As of the announcement date, Chengdu Kanghong Pharmaceutical Group has cumulatively invested RMB 2.635 bn in outstanding principal-protected bank wealth management products within the authorized limits.