Securities code: 000070 securities abbreviation: Shenzhen Sdg Information Co.Ltd(000070) Announcement No.: 2022-12 Shenzhen Sdg Information Co.Ltd(000070)
Announcement on using self owned idle funds to purchase bank financial products
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Shenzhen Sdg Information Co.Ltd(000070) (hereinafter referred to as “the company”) held the 17th meeting of the 8th board of directors on January 26, 2022, deliberated and adopted the proposal on using its own idle funds to purchase bank financial products, and agreed to improve the efficiency of capital use and increase the return of capital on the premise of not affecting the normal operation and controllable risk, The company (including wholly-owned subsidiaries and holding subsidiaries, the same below) can use idle self owned funds with a total amount of no more than 800 million yuan to buy bank financial products, which can be recycled within the above amount. The term of entrusted financial management shall be valid within 12 months from the date of deliberation and approval by the board of directors.
1、 Basic information of entrusted financial management
1. Purpose of entrusted financial management: in order to improve the efficiency of capital use and increase capital income, on the premise of not affecting normal operation and controllable risk, the company plans to use temporarily idle funds to timely invest in low-risk financial products to obtain more investment returns for the company and shareholders.
2. Amount of entrusted financial management: the amount of entrusted financial management shall not exceed RMB 800 million. Within the above amount, entrusted financial management business can be handled circularly and used on a rolling basis, but the amount of entrusted financial management at any time (including the relevant amount of reinvestment of the income of the above investment) shall not exceed the above amount of entrusted financial management.
3. Input products: This entrusted financial management is used to purchase bank financial products.
4. Capital source: on the premise of ensuring the capital demand and capital safety of production and operation, the company has its own idle funds.
5. Investment term: valid within 12 months from the date of deliberation and approval by the board of directors.
6. Implementation method: within the above quota and period, the management of the company is authorized to organize and implement relevant matters in accordance with the relevant provisions of the company’s measures for the administration of purchasing bank financial products.
7. Approval procedures to be performed: according to the relevant provisions of Shenzhen Stock Exchange self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and the articles of association of Shenzhen Stock Exchange, this entrusted financial management is within the scope of authorization of the board of directors of the company and does not need to be submitted to the general meeting of shareholders for deliberation.
In principle, the company’s use of its own idle funds for financial management does not involve related party transactions. If related party transactions are involved, the company will perform relevant approval procedures for related party transactions.
2、 Investment risk analysis and risk control measures
1. Investment risk
The main risks faced by the company’s entrusted financial management include market fluctuation risk, systemic risk caused by changes in macroeconomic situation, monetary policy, fiscal policy, industrial policy and other macro policies, relevant risks may be caused by staff misoperation, and the actual income of entrusted financial management is uncertain.
2. Risk control measures
The company has established the management measures for purchasing bank financial products in accordance with the principle of separating decision-making, implementation and supervision functions, so as to ensure the effective and standardized operation of entrusted financial management without affecting the normal production and operation.
The entrusted financial management business carried out by the company selects the best bank financial products by comparing the issuing banks and products, as well as the business needs with cooperative banks and other comprehensive factors. The selected bank financial products give priority to avoiding the investment risks brought by the policy and operational changes of financial products.
The company’s financial management department and relevant departments shall timely analyze and track the progress of financial products. In case of any situation that may affect the safety of the company’s funds, timely take measures to control investment risks.
The internal audit department of the company is responsible for supervising and auditing the business of financial products, regularly or irregularly reviewing the approval, operation, capital use, profit and loss of financial products, and verifying and inspecting the accounting treatment.
The company’s independent directors and the board of supervisors have the right to supervise and inspect the use of their funds, and can hire professional institutions to audit when necessary.
3、 Impact of entrusted financial management on the company
On the premise of ensuring normal operation and capital safety, the company’s moderate development of low-risk financial management business is conducive to improving the use efficiency of funds and the income of cash assets, further improving the overall performance level of the company, which is in line with the interests of all shareholders of the company.
4、 Opinions of independent directors
Under the condition of ensuring the capital demand of daily operation and effectively controlling the investment risk, the company conducts entrusted financial management with its own idle funds, which complies with the relevant provisions of national laws and regulations and the articles of association, is conducive to improving the use efficiency of the company’s funds and increasing the income of cash assets, and there is no situation that damages the interests of the company’s shareholders, The review procedure of this matter meets the regulatory requirements. We agree that the company will use its own idle funds for entrusted financial management, with a total amount of no more than RMB 800 million. It will be valid within 12 months from the date of deliberation and approval by the board of directors of the company, and can be recycled within the above limit.
5、 Documents for future reference
1. Resolutions of the 17th meeting of the 8th session of the board of directors;
2. Independent director’s opinions on relevant matters considered at the 17th meeting of the eighth session of the board of directors. It is hereby announced.
Shenzhen Sdg Information Co.Ltd(000070)
Board of directors
January 28, 2022
