Tongda Group (00698) announced that on January 9, 2024, Tongda Chuangzhi, an indirect non-wholly-owned subsidiary of the company, used its idle funds to subscribe to China Minsheng Bank wealth management products. The subscription amount was RMB 65 million.
In order to improve the efficiency of capital use and maximize the return on the Group's working capital, the Group rationally and strategically uses the Group's idle funds to carry out China Minsheng Bank subscription matters for financial management purposes. The directors further considered that the risks associated with China Minsheng Bank's wealth management products are relatively low; that the returns provided by China Minsheng Bank's subscription are superior to the current time deposit interest rates generally provided by commercial banks of China; and that China Minsheng Bank's subscription matters have no significant impact on the Group's operations and working capital.