SciTech Medical Announces Subscription to Principal-Protected Structured Deposit Products Offered by Ningbo Bank

ScienTech Medical (02291) announced that on January 11, 2024, its wholly-owned subsidiary, ScienTech Beijing, entered into Structured Deposit Product Agreement I with Bank of Ningbo Co., Ltd. (Beijing Branch). ScienTech Beijing agreed to subscribe to RMB 30 million worth of Structured Deposit Product I from Bank of Ningbo Co., Ltd. (Beijing Branch).

On January 11, 2024, Shanghai Shape Memory Alloy Co., Ltd., a wholly-owned subsidiary of the company, entered into the Structured Deposit Product Agreement II with Bank of Ningbo Co., Ltd. (Shanghai Branch). Shanghai Shape Memory Alloy agreed to subscribe to RMB 70 million worth of Structured Deposit Product II from Bank of Ningbo (Shanghai Branch).

The structured deposit products I and II provided by Bank of Ningbo Co., Ltd. (including its Beijing and Shanghai branches) subscribed by the group are principal-guaranteed. The company will use the subscription for fund management to maximize the return on surplus funds. Given the high safety and low risk of structured deposit products I and II; the relatively higher rate of return compared to the deposit rates generally offered by Chinese commercial banks; and that the funding for structured deposit products I and II comes from the group’s internal financial resources (idle funds) with a short term, which will not affect the group's operational liquidity, the group has decided to subscribe to structured deposit products I and II to enhance the utilization of its idle funds and create better returns for the group. The company has implemented sufficient and appropriate internal control procedures to ensure that the subscription will not impact the company’s working capital or operations, and such investments are made in accordance with the principle of safeguarding the overall interests of the company and its shareholders.