Weizhi Xiang invests 69.9 million yuan in structured deposits, with idle raised funds achieving an annualized return of up to 2%.

【Finance and Economics News】On April 1, Suzhou Weizhi Xiang Food Co., Ltd. (stock code: 605089, abbreviated as “Weizhi Xiang”) issued an announcement stating that the company will use RMB 69.90 million of temporarily idle proceeds to purchase a Ningbo Bank structured deposit product, further optimizing the efficiency of capital allocation. This investment is a capital-protected with floating returns type, with a term of 28 days. The expected annualized return rate range is 0.75%-2.00%.

The announcement shows that this cash management conduct was carried out within the authorization scope of the company’s 2024 annual general meeting of shareholders. According to the relevant resolutions passed in April 2025, the company may use no more than RMB 200 million of idle proceeds for cash management. The investment products are limited to capital-protected wealth management products with high safety and good liquidity. The usage period shall be within 12 months from the date the general meeting approves the resolution, and the quota may be used on a rolling basis.

Overview of Proceeds Use

Weizhi Xiang completed its initial public offering in April 2021, with total raised proceeds of RMB 713.25 million and net proceeds of RMB 646.6174 million. As of June 30, 2025, the investment progress of each project is as follows:

The company emphasized that this cash management will not affect the normal implementation of the proceeds investment projects, and there is no conduct that effectively changes the use of the raised funds.

Specifics of This Investment

Notable Results of Cash Management over the Past 12 Months

The announcement discloses that within the past 12 months, the company has cumulatively carried out 25 cash management transactions for proceeds. Investment income of RMB 1.2291 million has already been realized. As of now, RMB 153.60 million of proceeds remains in cash management status, accounting for 76.8% of the RMB 200 million authorized quota, with the remaining available quota of RMB 46.40 million.

It is worth noting that within the past 12 months, the company’s highest single-day investment amount reached RMB 160.42 million, accounting for 13.14% of the net assets over the past year and 183.28% of the net profit over the past year. This shows that, while ensuring the safety of funds, the company actively improves its operating strategy to increase returns on idle funds.

Risk Control and Financial Impact

Weizhi Xiang stated that although the structured deposit in this investment is a low-risk product, it still faces market risk brought about by changes in the macroeconomic environment and monetary policy. The company will control risks through measures such as strict selection of issuers, continuous tracking of product investment directions, and internal audit supervision.

Financial data shows that as of September 30, 2025, the company’s total assets were RMB 1.393 billion, net assets attributable to shareholders of listed companies were RMB 1.227 billion, and net cash flow from operating activities was RMB 131 million. This RMB 69.90 million cash management represents about 5.02% of the company’s total assets, and will not have a material impact on the company’s daily operations.

The structured deposit of RMB 69.70 million purchased by the company on February 28, 2026 with Ningbo Bank has recently matured and been redeemed. The principal was recovered and interest of RMB 101,600 was received. The actual annualized return rate meets expectations.

This cash management is an important measure taken by Weizhi Xiang to improve the efficiency of fund utilization on the premise of ensuring the safety of proceeds and the project construction schedule. It is expected to bring stable investment returns to the company and further enhance shareholder returns.

Click to view the full text of the announcement>>

Statement: The market involves risk; investment is need caution. This article is automatically published by an AI large model based on third-party databases, and does not represent Sina Finance’s views. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

Huge amounts of information, precise interpretation—find it all in the Sina Finance APP

Editor: Xiao Lang Kuai Bao