Tibet Pharmaceutical Proposes to Allocate 3.2 Billion Yuan in Idle Funds for Cash Management, Focusing on Capital-Preservation Products to Enhance Fund Efficiency

[Finance.com News] On March 13, Tibet Nodi Kang Pharmaceutical Co., Ltd. (Stock Code: 600211, Stock Abbreviation: Tibet Pharmaceuticals) announced that to improve the utilization of its idle funds, the company plans to use no more than 3.2 billion yuan (including 3.2 billion yuan) of temporarily idle proprietary funds for cash management, investing in high-security, principal-protected financial products. This matter has been approved by the 12th meeting of the 8th Board of Directors and is subject to shareholder approval.

The announcement states that the investment period for this cash management will be from the date of approval by the 2025 annual shareholders’ meeting until the date of the 2026 annual shareholders’ meeting. The funds will come from the company’s temporarily idle proprietary funds, and investments will be strictly limited to principal-protected products issued by financial institutions and other legitimate financial institutions approved by the national regulatory authorities, as specified in the company’s “Investment and Wealth Management System.”

Tibet Pharmaceuticals emphasizes in the announcement that the purpose of this cash management is to enhance capital efficiency by purchasing principal-protected products without affecting the normal development of the company’s main business and daily operating capital needs. This aims to improve overall company performance and generate greater returns for shareholders. According to new financial instrument standards, related investments will be classified as financial assets measured at fair value with changes recognized in current profit and loss, listed under “Trading Financial Assets.”

Regarding investment risks, Tibet Pharmaceuticals notes that although the purchased products have principal protection, there is no risk of principal loss. However, returns are uncertain, and there may be potential risks such as liquidity risk, policy risk, force majeure, and unforeseen events. The company will implement multiple risk control measures, including: strictly following the decision-making procedures outlined in the “Investment and Wealth Management System”; the finance department will monitor the investment targets and progress in real-time and address risks promptly; internal audit departments will conduct regular audits; independent directors, the audit committee, and external accounting firms will supervise and inspect, and ongoing disclosures of project implementation will be maintained as required.

Core Elements of Tibet Pharmaceuticals’ Idle Funds Cash Management

The implementation of this large-scale cash management plan reflects Tibet Pharmaceuticals’ strategic approach to optimize fund allocation and increase returns on idle funds while ensuring capital safety and liquidity. Market attention will continue to focus on the shareholder meeting approval results and subsequent progress.

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Editor: Xiao Lang Kuai Bao