Zhengyu Industrial Plans to Use No More Than 360 Million Yuan of Idle Raised Funds for Cash Management

[Finance.com News] On March 20, Zhejiang Zhengyu Industrial Co., Ltd. (Stock Code: 603089, Stock Abbreviation: Zhengyu Industrial) announced that the company’s board of directors approved the proposal regarding the use of idle raised funds for cash management. The company agrees to use no more than 360 million yuan of idle raised funds for cash management without affecting the normal progress of the fundraising investment plan. The funds will be invested in principal-protected products with high safety, good liquidity, and a maximum term of 12 months. This amount can be rolled over within 12 months from the date of approval by the board of directors.

The announcement states that the funds for this cash management come from a portion of the temporarily idle raised funds from the company’s issuance of A-shares to specific investors in 2025. According to previous announcements, the total amount of funds raised from this issuance was 450 million yuan, with a net amount of 444.9343 million yuan, which was received on March 11, 2026.

As of now, the company’s use of raised funds is as follows:

The company states that the purpose of using idle raised funds for cash management is to improve capital efficiency, reduce financial costs, and increase cash asset returns without affecting the use of raised funds or compromising their safety. This aims to generate more returns for shareholders. Investment options include, but are not limited to, large-denomination certificates of deposit, fixed-term deposits, negotiated deposits, notice deposits, structured deposits, and government bond repurchase agreements, all of which are principal-protected products.

Regarding investment risks, Zhengyu Industrial points out that although the invested products are highly safe, liquid, and meet principal protection requirements, the financial market is significantly affected by macroeconomic factors. There is a risk of policy changes, market fluctuations, liquidity issues, information transmission risks, force majeure, and unexpected events. The company will implement a series of risk control measures, including strictly adhering to the scope authorized by the board resolution, monitoring fund operations, establishing ledger management, and supervision by independent directors and the audit committee to ensure fund safety.

The announcement states that this use of idle raised funds for cash management will not affect the company’s main business development or the implementation of fundraising projects. The sponsoring institution has no objection to the company’s use of some temporarily idle raised funds for cash management, believing that this complies with relevant laws and regulations and does not involve disguised changes in the use of raised funds.

This matter is within the authority of the board of directors and does not require approval from the shareholders’ meeting.

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