COFCO Engineering uses 10 million yuan of idle raised funds to purchase structured deposits with an expected annualized return rate of 1.00%-2.00%

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China Grain Science and Industry Co., Ltd. (Stock Code: 301058, Stock Abbreviation: China Grain Science) announced on March 16, 2026, that the company has disclosed the progress of using some temporarily idle raised funds for cash management. The company purchased a structured deposit product from Industrial and Commercial Bank of China Wuxi Binhu Branch, with an amount of 10 million yuan, and an expected annualized return rate of 1.00%-2.00%.

The announcement shows that China Grain Science held the third meeting of the third Board of Directors and the second meeting of the third Supervisory Committee on April 25, 2025, and the 2024 Annual Shareholders’ Meeting on May 16, 2025, during which the proposal on continuing to use part of the idle raised funds for cash management was approved. According to this proposal, the company may use no more than 165.784 million yuan (including this amount) of idle raised funds for cash management, ensuring that the normal implementation of the raised funds’ investment plan and the safety of the funds are not affected. The usage period is within 12 months from the date of approval by the shareholders’ meeting and can be rolled over within the specified limit and validity period.

Details of this cash management

The company states that it has no related relationship with the above bank.

Investment risks and control measures

In the announcement, China Grain Science analyzed the potential risks of this cash management, mainly including significant impacts from macroeconomic influences on the financial markets, the possibility of market fluctuations affecting investments, and the unpredictability of short-term investment returns.

To control risks, the company will adopt multiple measures: strictly adhere to prudent investment principles, select low-risk investment products; the finance department will analyze and track the investment direction of financial products in a timely manner, maintain close contact with relevant financial institutions, and monitor the operation of the financial funds; the internal audit department will supervise the use and safekeeping of financial funds daily, conduct regular audits and verifications; the audit and risk committee has the authority to supervise and inspect, and may hire professional agencies for audits if necessary; and will disclose information in a timely manner according to the relevant regulations of the Shenzhen Stock Exchange.

Impact on the company’s daily operations

The company states that using part of the temporarily idle raised funds for cash management is based on ensuring the funds needed for the investment projects of the raised funds and safeguarding the safety of the raised funds. It will not affect the normal cash flow or the operation of the raised funds’ investment projects, nor will it impact the normal operation of the company’s main business. At the same time, this approach can improve capital utilization, generate certain investment returns, and help further enhance the company’s overall performance, providing better investment returns for the company and shareholders. This cash management does not involve disguised changes to the use of raised funds and does not affect the normal implementation of the raised projects.

Cash management within the past 12 months before the announcement

As of the date of this announcement (including this time), the total amount of capital-protected financial products purchased with idle raised funds that have not yet matured is 100 million yuan, which does not exceed the authorized limit by the shareholders’ meeting. The announcement also details the company’s use of idle raised funds to purchase financial products within the past 12 months, most of which have matured, and several products, including this purchase, are still outstanding.

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