Qifeng New Material expands cash management with idle funds

Qifeng New Material Co., Ltd. (SZSE:002521) announced the latest developments in its cash management strategy, which was approved by the board of directors on April 10, 2025, and by shareholders on May 8, 2025. The company and its subsidiaries are authorized to use up to RMB1.2 bn in idle funds for rolling investments in low-risk, high-liquidity financial products. This initiative aims to enhance returns on idle funds without impacting the company's daily operations.

The recent transactions detailed in the announcement include three new cash management products totaling RMB3,500. These include an ICBC Wealth Management "Ruyi Life" product for RMB1,500, a Bank of China Wealth Management "Lexiang Tiantian No. 8" product for RMB1,000, and another Bank of China Wealth Management "Lexiang Tiantian No. 8" product for RMB1,000. All these products are non-guaranteed floating income type with an expected annualized return of 1.45%. The investment periods for these newly disclosed products commence in November and December 2025, with corresponding end dates in 2025.

Additionally, the announcement provides an overview of cash management activities over the past twelve months, showing various investments in similar non-guaranteed floating income products from multiple banks, including Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, Postal Savings Bank, and Ping An Bank. These past investments yielded varying returns, with some reaching up to 2.30% annualized. The total amount used for cash management over the past twelve months, including the newly disclosed transactions, amounts to RMB167,520. The company emphasizes that these investments are made with idle funds, ensuring no impact on its operational capital or main business activities.