Maidi Technology plans to allocate 350 million yuan of idle proprietary funds for cash management to improve capital utilization efficiency

On March 18, Suzhou Maidisiton Medical Technology Co., Ltd. (stock code: 603990, stock abbreviation: Maidi Technology) announced that in order to improve the efficiency of capital utilization, the company and its subsidiaries plan to use a maximum of 350 million RMB of idle self-owned funds for cash management.

The announcement indicates that the source of funds for this cash management will be idle self-owned funds from the company and its subsidiaries. Investment products will be selected based on high safety, good liquidity, and a maximum term of no more than one year for individual products, including wealth management products or time deposits and structured deposits. The above amount can be recycled and used within the validity period, and the transaction amount at any point in time during the term shall not exceed the investment limit.

It is understood that this matter has been reviewed and approved by the 41st meeting of the 4th Board of Directors of the company. The company’s Board of Directors has authorized the management to make investment decisions and sign relevant contract documents within the above limits and time frame, with the company’s fund management department responsible for specific operational implementation.

Maidi Technology stated that the use of idle self-owned funds for cash management is implemented under the premise of ensuring the company’s daily operations and the safety of funds, and will not affect the normal operation of the company’s main business or the need for daily capital turnover. By conducting moderate and timely cash management on temporarily idle funds, it can reduce fund idleness, generate certain investment income, and further enhance the company’s overall performance level, seeking more investment returns for the company and its shareholders.

Regarding investment risks, the company pointed out that although low-risk investment products will be selected, the financial market is greatly affected by macroeconomic, fiscal, and monetary policies, and the investment may be subject to market fluctuations. Therefore, the company will strictly select the types of investment products, analyze and track the operation of the products in a timely manner, the internal audit department will regularly audit and supervise the use and custody of funds, and independent directors and the audit committee will also conduct checks and supervision, and may hire professional institutions for audits if necessary.

According to the provisions of “Enterprise Accounting Standard No. 22 - Recognition and Measurement of Financial Instruments,” the principal of entrusted wealth management will be included in the balance sheet as trading financial assets, and interest income will be included in the profit and loss statement as investment income, subject to the annual audit results.

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Editor: Xiao Lang Quick Report