Core Viewpoint - Guangkang Biochemical (300804.SZ) received a warning letter from the Guangdong Securities Regulatory Bureau regarding the improper use of raised funds for cash management, specifically concerning the purchase of non-principal guaranteed financial products [1] Group 1: Regulatory Actions - The company was issued a warning letter (Decision No. [2025] 179) by the Guangdong Securities Regulatory Bureau [1] - The investigation covered the period from July 2023 to August 2025, during which the company used raised funds to purchase 179 financial products [1] Group 2: Financial Product Purchases - Out of the 179 financial products purchased, 158 were non-principal guaranteed products [1] - The breakdown of non-principal guaranteed product purchases was as follows: 14 in 2023, 68 in 2024, and 76 in 2025 [1] Group 3: Disclosure Issues - The company failed to adequately disclose the risks associated with purchasing non-principal guaranteed financial products in its annual reports [1] - Despite not incurring any principal losses, the company's actions did not comply with regulatory requirements outlined in the "Regulatory Guidelines for Listed Companies on the Management and Use of Raised Funds" [1]

Group 1 - The company, Dongfang Zhenxuan, announced an investment of RMB 50 million in a non-principal guaranteed financial product issued by China Minsheng Bank, with an expected annual return rate of 2.60% to 3.00%, maturing on December 1, 2026 [2] - Following this investment, the total principal amount of all non-redeemed financial products held by the company will reach RMB 230 million [2]

Core Points - The company has established a non-principal guaranteed investment management system to enhance the efficiency of idle fund utilization and control investment risks [1][2] - Non-principal guaranteed investments refer to short-term investments in financial products that do not guarantee principal or returns [1] - The investment principles emphasize that such investments should not affect the company's normal operations and should be conducted with qualified financial institutions [1][2] Investment Decision Management - If the total amount of non-principal guaranteed investments exceeds 10% of the latest audited net assets and is over 10 million RMB, board approval is required prior to investment [2] - For investments exceeding 50% of the latest audited net assets or over 50 million RMB, shareholder meeting approval is also necessary [2] - A financial review group is formed to conduct risk-return analysis and submit feasibility reports for investment decisions [2][3] Implementation Process - The finance department assesses the company's financial situation and proposes investment needs based on market conditions [3] - The review group selects at least three qualified institutions for investment and submits the final investment plan for approval [3][4] - The legal department reviews contracts related to non-principal guaranteed investments to ensure compliance [3][4] Risk Control Measures - The company must control the total amount of funds occupied during the investment period, ensuring it does not exceed authorized limits [4] - A collective decision-making process is established involving multiple departments to oversee investment evaluations [4] - Regular tracking and reporting of investment progress and safety are mandated, with immediate reporting of any adverse changes [4][5] Reporting and Supervision - Monthly investment reports are to be submitted to the board and relevant executives within ten days after month-end [5] - The audit department is responsible for supervising the investment activities, ensuring compliance with approval processes and financial management [5] - Confidentiality measures are in place to protect sensitive investment information from unauthorized disclosure [5]