Core Viewpoint - Donghong Co., Ltd. announced the temporary use of idle raised funds amounting to 30 million yuan to purchase a structured deposit product from the Industrial and Commercial Bank of China, with an expected annual yield of 1%-2% [1] Group 1: Investment Details - The company will invest 30 million yuan in a structured deposit with a term of 184 days, maturing on July 15, 2026 [1] - The board approved the use of up to 70 million yuan of idle raised funds for cash management within 12 months, of which 30 million yuan has already been utilized, leaving 40 million yuan available [1] Group 2: Financial Implications - The expected annual yield from the investment is between 1% and 2%, indicating a controlled risk but with uncertain returns [1]

Core Viewpoint - The company is utilizing part of its temporarily idle raised funds for cash management to enhance fund efficiency and increase returns for shareholders [4][14]. Cash Management Overview - The cash management is aimed at improving the efficiency of raised fund usage while ensuring the normal operation of investment plans and the safety of raised funds [4]. - The investment amount for this cash management is RMB 100 million [2]. - The cash management period is set for 147 days [2]. - The cash management product chosen is a structured deposit product from the Industrial and Commercial Bank of China [2]. Approval Process - The company held meetings on April 17 and April 27, 2025, where the board and supervisory committee approved the cash management proposal, ensuring compliance with relevant regulations [8][9]. - The maximum amount for cash management is capped at RMB 220 million on a single-day basis [9]. Risk Analysis and Control Measures - The selected investment products are characterized by high safety and good liquidity, although market fluctuations may impact returns [10]. - The company will adhere to prudent investment principles, focusing on safe and liquid investment products [11]. - The finance department will monitor the cash management products and take necessary actions if risks are identified [11]. Impact on the Company - The cash management will not affect the company's daily operations or the normal implementation of investment projects [13]. - As of September 30, 2025, the company's asset-liability ratio stands at 13.05%, indicating no significant debt issues that would affect cash management activities [14].