CIMC Vehicles plans to use no more than 600 million yuan of idle raised funds for cash management to improve capital utilization efficiency

Log in to the Sina Finance app, search for 【information disclosure】 to view evaluation tier details

【Finance Network News】On March 24, CIMC Vehicles (Group) Co., Ltd. (stock code: 301039; stock abbreviation: CIMC Vehicles) issued an announcement stating that the company’s third session of the board of directors—the first meeting in 2026—considered and approved the resolution titled “Proposal on Using a Portion of PRC A-Share Proceeds for Cash Management.”

According to this resolution, the company and its subsidiaries plan to, without affecting the construction of PRC A-Share proceeds investment projects and their normal use, use no more than RMB 600,000.00 thousand yuan (including this figure) of a portion of PRC A-Share proceeds that are temporarily idle for cash management. The company will invest in financial products with high safety and good liquidity to improve the utilization efficiency of idle funds and generate more returns for the company and its shareholders.

Basic Information on Proceeds and Progress of Investment Projects

CIMC Vehicles completed its first-time public offering of PRC A-shares in 2021. The total amount of proceeds raised was RMB 1,758,096.0 thousand yuan. After deducting issuance expenses excluding taxes, the actual net proceeds raised were RMB 1,583,776.8 thousand yuan. As of July 5, 2021, the total proceeds actually received were RMB 1,625,602.1 thousand yuan (with underwriting and sponsorship fees excluding VAT already deducted).

The announcement shows that between 2023 and 2025, in light of changes in the market environment and the actual progress of projects, the company repeatedly re-validated, terminated, and adjusted certain PRC A-Share proceeds investment projects. As of December 31, 2025, the details of the proposed use of changed PRC A-Share proceeds investment projects are as follows:

Note: The above proposed amount of proceeds to be used is RMB 1,222,214.4 thousand yuan, excluding RMB 361,562.4 thousand yuan of proceeds that have been terminated but whose use has not yet been clearly determined.

Since the construction of proceeds investment projects requires a certain period, at this stage, some PRC A-Share proceeds are temporarily idle in the short term. To improve the efficiency of fund utilization, the company has decided to conduct cash management for this portion of idle funds under the premise of effectively controlling risks.

Specific Arrangements for Cash Management

Investment Instruments and Sources of Funds

The source of funds for this cash management is the company’s temporarily idle PRC A-Share proceeds. The products planned for investment include agreed deposits, notice deposits, time deposits, principal-protected structured deposits, large-denomination certificates of deposit, principal-protected bank wealth management products, and other products that meet requirements for high safety and good liquidity. The investment does not involve high-risk investments such as entrusted loans, securities investments, or derivative investments. The invested products may not be pledged. The dedicated settlement account for the products may not hold funds other than proceeds or be used for any other purposes.

Quota and Term

The amount of idle proceeds that the company and its subsidiaries intend to use shall not exceed RMB 600 million. The term of each investment product shall not exceed 12 months. The usage period is from April 1, 2026 to March 31, 2027. Within the above quota and usage period, the funds may be used on a revolving and rolling basis.

Implementation Method

The board of directors authorizes the company’s Chairman and CEO and its authorized personnel to exercise decision-making authority and sign relevant contract documents, including selecting qualified cash management institutions and product types, specifying the amount and term for cash management, signing contracts or agreements, and so on.

Risk Control and Impact on the Company

CIMC Vehicles stated that although this cash management will choose products with high safety and good liquidity, the financial market is greatly affected by macroeconomic conditions, and it cannot be ruled out that investment may be affected by market volatility. In addition, the actual return of short-term investments is uncertain. Therefore, the company will take multiple risk control measures, including strictly selecting investment counterparties, continuously tracking the product’s investment direction and progress, and having the internal audit department conduct regular audit and supervision. The company will also promptly fulfill information disclosure obligations in accordance with relevant regulations.

The company emphasizes that using a portion of PRC A-Share proceeds that are temporarily idle for cash management will not affect the normal implementation of the proceeds investment projects, and there is no situation of indirectly changing the use of the proceeds. By reasonably utilizing idle funds, the company can improve fund utilization efficiency and provide more investment returns for the company and its shareholders. Regarding financial accounting, the company will conduct accounting treatment for this business in accordance with the relevant provisions of the “Accounting Standards for Business Enterprises.”

Deliberation Procedures and Institutional Opinions

This resolution has been considered and approved by the company’s board of directors. The independent directors’ special meeting has also reviewed and approved it. They believe that the matter does not harm the interests of the company’s shareholders, especially minority shareholders and small and medium-sized shareholders. After conducting due diligence, the sponsoring institution, Guotai Junan Securities Co., Ltd., stated that the company’s cash management matters have fulfilled the necessary approval procedures, comply with relevant requirements, will not affect the normal progress of the proceeds investment plan, and has no objection to this matter.

Click to view the full text of the original announcement>>

Statement: There are risks in the market; invest with 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. In case of any discrepancy, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

Massive information and precise interpretation—available in the Sina Finance app

Responsible editor: Xiao Lang Express News