ZWSOFT: Announcement on the use of part of idle own funds for cash management
DATE:  Dec 10 2024

Stock code: 688083 Stock abbreviation: ZWSOFT Announcement No.: 2024-102

Guangzhou Zhongwang Longteng Software Co., Ltd

Announcement on the use of part of the idle own funds for cash management

The Board of Directors and all directors of the Company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume individual and joint responsibility for the authenticity, accuracy and completeness of its content.

Guangzhou Zhongwang Longteng Software Co., Ltd. (hereinafter referred to as the "Company") on December 9, 2024

The 11th meeting of the 6th session of the board of directors and the 9th meeting of the 6th session of the board of supervisors were held, and the "Proposal on the Use of Part of the Idle Own Funds for Cash Management" was deliberated and approved, and it was agreed that the company should use up to RMB 250,000 (inclusive) of idle own funds for cash management on the premise of ensuring the daily operating capital needs and capital security, and use it for the purchase of wealth management products of banks and other financial institutions with high security and good liquidity, with a period of 12 from the date of deliberation and approval by the board of directors It is valid for one month, and the investment period of a single wealth management product does not exceed 12 months. Within the above-mentioned quota, the board of directors authorizes the chairman of the board of directors to exercise the right to make investment decisions, sign relevant legal documents, and the person in charge of finance shall handle relevant matters. Within the scope of the above-mentioned quota and time limit, the funds can be used on a rolling basis, and the company's finance department is responsible for organizing and implementing the matters. The specific circumstances of this matter are hereby announced as follows:

1. Overview of the proposed use of own funds to purchase wealth management products

(1) Purpose of cash management

In order to improve the efficiency of the company's capital use, make reasonable use of its own funds, and obtain a better return on investment, the company intends to use part of the idle own funds for cash management under the premise of ensuring the daily operating capital needs and capital security.

(2) Investment companies

The wealth management products to be purchased are low- and medium-risk wealth management products with high security, good liquidity and short-term issued by banks and other legal financial institutions, including but not limited to wealth management products, bonds, funds, participating insurance, etc.

(3) Sources of funds

The source of funds for the company's proposed cash management is the company's idle own funds, which will not affect the company's normal operation.

(4) Quota and time limit

The Company (including subsidiaries within the scope of the consolidated statements) intends to use idle own funds of no more than RMB 250,000.00 (inclusive) to purchase wealth management products, and the use period is 12 months from the date of deliberation and approval by the board of directors of the Company, and the investment period of a single wealth management product shall not exceed 12 months. During the validity period of the above quota and resolution, the funds can be used on a rolling basis.

(5) Methods of implementation

Within the above-mentioned quota, the board of directors authorizes the chairman of the board of directors to exercise the right to make investment decisions, sign relevant legal documents, and the person in charge of finance shall handle relevant matters. The delegation is valid for a period of 12 months from the date of approval by the Board.

(6) Information disclosure

The Company will fulfill its information disclosure obligations in a timely manner in accordance with the requirements of the Company Law, the Securities Law, the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange and other relevant rules.

2. Impact on the company's daily operations

The company uses part of its idle own funds for cash management, which is carried out on the premise of ensuring that the normal development of the company's main business is not affected, and the daily operating capital needs and capital safety are guaranteed. Cash management is conducive to improving the efficiency of the company's capital use and increasing the company's capital income, so as to seek more investment returns for the company and shareholders, and there is no harm to the interests of the company and shareholders. It will not have a significant impact on the company's future main business, financial condition, operating results and cash flow.

3. Investment risks and risk control measures

(1) Investment risk

Although the company chooses low-risk investment varieties of wealth management products, the financial market is greatly affected by the macroeconomy, and the company will invest funds in a timely and appropriate amount according to the economic situation and changes in the financial market, but it is not excluded that the investment will be affected by market fluctuations.

(2) Risk control measures

1. After the board of directors of the company deliberates and approves, the chairman of the board of directors of the company and his authorized persons are authorized to exercise the investment decision-making power and sign relevant contracts and other documents within the validity period and quota of the above-mentioned authorization. The company's finance department is responsible for the group

Organize the implementation, timely analyze and track the investment direction of wealth management products, project progress, once found or judged to have unfavorable factors, must take corresponding preservation measures in a timely manner to control investment risks.

2. The company's finance department arranges special personnel to analyze and track the investment direction and project progress of cash management products in a timely manner, and once unfavorable factors are found or judged, corresponding preservation measures must be taken in time to control investment risks.

3. The independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and may hire professional institutions to conduct audits when necessary.

4. The company will perform the information disclosure business in a timely manner in strict accordance with the relevant provisions of the "Listing Rules of the Science and Technology Innovation Board of the Shanghai Stock Exchange".

4. The procedure for the deliberation of this matter

(1) Deliberations of the Board of Directors

On December 9, 2024, the 11th meeting of the 6th board of directors of the company deliberated and approved the "About the Use Department

The proposal to divide idle own funds for cash management was unanimously approved by all directors.

(2) The deliberations of the board of supervisors

On December 9, 2024, the ninth meeting of the sixth board of supervisors of the company deliberated and passed the "About the Use of Part

Proposal on cash management with idle own funds", and all the board of supervisors unanimously agreed that the company should use part of the idle own funds for cash management.

The announcement is hereby made.

Board of Directors of Guangzhou Zhongwang Longteng Software Co., Ltd

December 10, 2024

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