Gelonghui July 27?Overseas Chinese International Holdings (08070.HK) announced that the Group is mainly engaged in the design, development, production and sales of transformers, switching power supplies, electronic health products, other electronic components and other products.
The company's board of directors reviews its existing business and explores other business opportunities from time to time with a view to diversifying the Group's sources of income. In view of the domestic economic recovery, the Group earned a cash surplus from its business operations. Therefore, in order to improve the overall capital efficiency of the Group, there is a growing demand for treasury management, and the Board is of the view that it is appropriate to revise the existing treasury policy of the Group, to allow it to use not more than 30% of its inventory cash at any critical time to make short-term and low-risk investments, including investment in Hong Kong-listed securities and other related investment products provided by banks and other financial institutions, it is appropriate and must meet the following conditions:
(I) the investment period of the Group in all securities shall not exceed 12 months (except when the investment period is extended by any public holiday)
(ii) the total amount of funds invested by the Group in any securities shall not at any critical time exceed the cash flow requirements of the Group for the next six months; and
(iii) details of all securities and ╱ or investment products shall be reviewed and approved at regular board meetings.
The Board is of the view that the revision of the treasury policy will optimize the use of cash surpluses generated by the Group's business operations and improve the resulting returns. The funds used for the above investments will come from idle funds and will not affect the working capital liquidity and capital safety of the Group. In addition, such investments will be closely monitored and carried out in accordance with the Group's treasury policy.