SAIMO Technology must disclose the trading of underreported transactions involving the subscription of nearly 287 million RMB structured deposit products

SAIMO Technology (02571.HK) announced that from March 3 to May 26 of this year, the company subscribed to structured deposit products from Bank of China and China Merchants Bank, with a total investment of nearly 287 million yuan. The subscription amount was made using the company's own idle funds.

During the period from January 22 to May 9, the group used approximately 193 million yuan of the proceeds from the global offering that had not yet been utilized to subscribe to these fund products. The company misunderstood that the subscription of these fund products was part of general treasury management activities and would not affect the intended use of the proceeds from the global offering disclosed in the prospectus. Therefore, the company used part of the proceeds from the global offering to fund the subscription of these fund products. However, according to Listing Rule 14.22, since the transactions under Subscription Matters 6 and 7 are made with the same counterparty (i.e., China Merchants Bank) within 12 months and are of a similar nature, these transactions are to be aggregated and constitute a disclosable transaction.

The company emphasized that the failure to timely fulfill the announcement procedures regarding the subscription of these structured deposit products and to consult compliance advisors regarding the subscription of these structured deposit products and the fund products was an unintentional oversight. The company has no plans to use the proceeds from the global offering for further purchases of any financial assets or for any purposes that would deviate from the intended use of the proceeds from the global offering.

The company has conducted a comprehensive review of all financial asset acquisitions and disposals made by the group during the relevant period and will establish stricter reporting and disclosure mechanisms to enhance the coordination and reporting arrangements for disclosable transactions; the company has, with the assistance of compliance advisors and external legal counsel, reminded responsible personnel, senior management, and directors of the provisions of the Listing Rules via email, including learning materials that clearly outline the relevant compliance requirements; the company will strengthen communication with compliance advisors and external legal counsel, and when the company identifies potential disclosable transactions, it will seek the advice of compliance advisors and external legal counsel as early as possible and in any case before entering into any binding agreements; and the company will strictly use the proceeds from the global offering in accordance with the purposes stated in the prospectus in the future