Recently, Moore Threads (688795.SH), often hailed as the "pioneer of China's homegrown GPU stocks," unveiled its intention to allocate up to 7.5 billion yuan of its unused raised funds into principal-protected investment vehicles. These investments are characterized by their high safety and strong liquidity, encompassing options like negotiated deposits and fixed deposits. The investment horizon is set at no more than 12 months, with the flexibility for cyclical rollovers. This strategic move is designed to bolster capital utilization efficiency and make judicious use of idle funds, all while ensuring that the construction and operational plans of projects financed by the raised capital remain unaffected. On December 12, the company convened a meeting to deliberate and greenlight the proposal, which bypasses the need for shareholder approval.

Despite underlining the investments' safety, Moore Threads has issued a cautionary note regarding potential risks stemming from financial market volatility. Furthermore, the company has alerted investors to the recent surge in its stock price, cautioning that a subsequent downturn could follow swift short-term gains. Additionally, it has highlighted that profitability remains elusive, and sustained losses could persist in the near term.