[Caihua Social News] China Pengfei Group (03348.HK) announced that on December 1, 2021, Li Pengfei, an indirect wholly-owned subsidiary of the company, entered into the Jiangsu Bank subscription Agreement with the Bank of Jiangsu to subscribe for wealth management products with a subscription amount of RMB100m (equivalent to about HK $122 million). The type of subscription product is capital preservation floating income type, the investment period is from December 1, 2021 to June 1, 2022, and the expected rate of return is 1.40% to 3.76% per year.
The Group makes subscriptions for fund management purposes to enhance capital utilization and aims to maximize its income from idle funds while minimizing risk without affecting the working liquidity and capital safety of the Group. The subscription shall be allocated by the idle funds of the Group and will not affect the working capital requirements of the company. The maturity of Jiangsu bank wealth management products is relatively short, the risk is low and the expected rate of return will be higher than the demand deposit interest rate offered by Chinese commercial banks.