Mingdiao Shares Plans to Spend 1 Billion Yuan on Cash Management with Investment Cap of 50 Million Yuan for Medium-to-High Risk Products

Shenzhen Mingdiao Decoration Co., Ltd. (Stock Code: 002830, Stock Name: Mingdiao Co.) announced on March 18, 2026, that the company’s 11th meeting of the sixth board of directors approved the proposal on “Using Idle Own Funds for Cash Management.” To improve capital utilization efficiency and increase company earnings, while ensuring the normal operation of the company and its subsidiaries’ funds, the company plans to use no more than 1 billion yuan of idle own funds for cash management.

The announcement shows that the investment period for this cash management is valid within 12 months after the expiration of the previous authorization period (May 15, 2026), i.e., from May 16, 2026, to May 15, 2027. During the specified amount and period, funds can be used on a rolling basis.

The company states that the funds used to purchase financial products are all from the company’s and subsidiaries’ own funds, excluding raised funds or bank loans, and are legal and compliant. The investment options will include liquid and relatively low-risk financial products, such as wealth management products issued by commercial banks, securities firms, or other financial institutions, structured deposits, asset management plans, reverse repurchase agreements on government bonds, etc. Priority will be given to products issued by entities with good credit ratings and matching the company’s idle funds period.

It is noteworthy that, within the total investment limit of 1 billion yuan, the amount invested in high-risk or above financial products will not exceed 50 million yuan (inclusive).

Mingdiao Co. pointed out that this use of part of idle own funds to purchase financial products is conducted under the premise of ensuring the normal operation of the company and its subsidiaries and does not affect the company’s daily operations or main business development. By utilizing idle funds for investment, the company can earn certain returns, providing better investment returns for the company and shareholders.

Regarding investment risks, the company states that although the financial products planned for investment have undergone strict evaluation, the financial market is heavily influenced by macroeconomic factors, and there may be market risk, liquidity risk, credit risk, and other risks. There is also the risk of operational errors by relevant staff. The company will adjust its involvement based on economic conditions and financial market changes, but actual returns from fund management are unpredictable.

To control risks, the company will take multiple measures, including the chairman exercising investment decision-making authority and signing relevant documents; the finance department organizing implementation; independent directors and the audit committee supervising and inspecting fund usage; the finance department maintaining ledgers for purchased products; and the internal audit department conducting comprehensive quarterly reviews of all financial investment projects.

The announcement also mentions that the above matters are subject to approval at the company’s first extraordinary general meeting in 2026.

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