Securities code: 600843900924 securities abbreviation: Shang Gong Group Co.Ltd(600843) Shanggong B share Announcement No.: 2022-004 Shang Gong Group Co.Ltd(600843) (Group) Co., Ltd
Progress announcement on cash management
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.
Important content tips:
The cash management trustee, amount and term: Industrial Bank Co.Ltd(601166) (hereinafter referred to as ” Industrial Bank Co.Ltd(601166) “) has its own capital of 50 million yuan for a period of 30 days; Bank Of Communications Co.Ltd(601328) (hereinafter referred to as ” Bank Of Communications Co.Ltd(601328) “) raised 200 million yuan for 134 days.
The eighth and fifth meetings of the ninth board of directors of Shang Gong Group Co.Ltd(600843) (Group) Co., Ltd. (hereinafter referred to as “the company”) deliberated and adopted the proposal on cash management of some temporarily idle raised funds and the proposal on cash management of some temporarily idle self owned funds respectively, It is agreed that the company will conduct cash management on the temporarily idle raised funds of no more than 700 million yuan and the temporarily idle self owned funds of no more than 200 million yuan. Relevant progress is as follows: I. overview of cash management
(I) purpose of cash management
In order to improve the use efficiency of funds and make rational use of temporarily idle raised funds and self owned funds, the company uses temporarily idle funds to purchase principal guaranteed short-term financial products without affecting the normal operation of the company and the normal implementation of fund-raising projects and ensuring the safety of funds, so as to increase the company’s income and seek better investment return for the company and shareholders.
(II) source of funds
The source of funds for this cash management is the company’s temporarily idle self owned funds of 50 million yuan and temporarily idle raised funds of 200 million yuan.
(III) basic information of cash management products
1. Basic information of Industrial Bank Co.Ltd(601166) products
Expected annualized amount of the entrusted party’s products expected name type name (10000 yuan) rate of return amount of return
Industrial Bank Co.Ltd(601166) joint stock bank financial products Industrial Bank Co.Ltd(601166) enterprise financier 5000 1.5% / 3.03 / 3.25% – limited company Shanghai Branch (structured deposit) civil currency structured deposit products
Whether the expected income of the reference year of product income structure is related to the term type arrangement income (if any) composition rate
transaction
30 day breakeven floating income type – no
2. Basic information of Bank Of Communications Co.Ltd(601328) products
Product amount of the entrusted party is expected to be annualized, expected income name, type name (10000 yuan) rate of return amount (10000 yuan)
Bank Of Communications Co.Ltd(601328) Shanghai structured deposit Bank Of Communications Co.Ltd(601328) Yuntong wealth fixed-term structure 20000 2.9% or-
City Branch cash deposit 134 days (gold linked bearish) 1.6%
Product revenue structure refers to whether the annualized expected revenue constitutes the term type arrangement rate of return (if any) related party transactions
134 day breakeven floating — no
Income type
(IV) the company’s internal control over risks related to entrusted financial management
Based on the principle of safeguarding the interests of shareholders and the company, the company puts risk prevention in the first place and makes prudent decisions on investment and financial products. What the company purchases this time is a structured deposit product with principal guarantee. During the period of the above investment and wealth management products, the company will maintain close contact with the bank, timely analyze and track the progress of investment and wealth management products, strengthen risk control and supervision, and ensure the safety of funds.
2、 Details of cash management this time
(I) details of self owned cash management this time
Product name Industrial Bank Co.Ltd(601166) enterprise financial RMB structured deposit product
Product custodian Industrial Bank Co.Ltd(601166) Shanghai Branch
Product type breakeven floating income
Deposit scale: 50 million yuan
Expected annualized yield 1.5% / 3.03 / 3.25%
Product start date: February 14, 2022
Product expiration date: March 16, 2022
Product life: 30 days
Shanghai Gold morning benchmark price of the observation target Shanghai Gold Exchange
Observation Date: March 11, 2022
Shanghai Gold morning benchmark price of the Shanghai Gold Exchange on the working day of the observation subject next to the value date of the reference price
Product income = principal amount × (fixed rate of return + floating rate of return) × Product duration days / 365
Fixed income = principal amount × Fixed rate of return × Product duration days / 365,
Including fixed rate of return = [1.5%] / year.
Income calculation method: floating income = principal amount × Floating rate of return × Product duration days / 365
If the price on the observation day is greater than or equal to (reference price * 101.50%), the floating rate of return = [1.53%] / year; If the price on the observation day is less than (reference price * 101.50%) and greater than or equal to (reference price * 55%), the floating rate of return = [1.75%] / year;
If the price on the observation day is less than (reference price * 55%), the floating rate of return is zero.
If the deposit product is not terminated in advance, the duration of the product is the number of days from the value date (inclusive) to the maturity date (exclusive);
If the deposit product is terminated in advance, the duration of the product is the number of days from the value date (inclusive) to the early termination date (exclusive).
The management fee has included (included) Party B’s operation and management costs (such as account supervision, fund operation management, transaction handling fees, etc.) in the calculation of the income of this deposit product. The customer is not required to pay or bear other fees or charges under this product.
(II) specific conditions of cash management raised this time
Product name Bank Of Communications Co.Ltd(601328) Yuntong wealth time structured deposit for 134 days (gold linked bearish)
Product code 2699220828
Subscription amount: 200 million yuan
Product type breakeven floating income
Product establishment date: February 17, 2022
Product expiration date: July 1, 2022
Product life 134 days
Shanghai Gold Exchange au99 99 contract closing price (subject to the data published on the official website of Shanghai Gold Exchange)
Observation Date: June 28, 2022, in case of non Shanghai Gold Exchange au99 99 trading day, postponed to the next Shanghai Gold Exchange au99 99 trading days
Exercise price of product structure parameters: 421.00 yuan / g
High grade yield: 2.90%; Low yield: 1.60% (annualized)
(1) If the closing price of the linked target on the product observation day is greater than the exercise price, the annualized yield of the current product is the low-grade yield (annualized) yield;
(2) If the closing price of the linked target on the product observation day is less than or equal to the exercise price, the annualized yield of the current product is a high-grade yield.
Early termination investors shall not terminate the product in advance, and the bank has the right to decide and unilaterally terminate the product in advance
Investment direction of entrusted financial management funds
The funds raised by Bank Of Communications Co.Ltd(601328) structured deposit products are operated uniformly by Bank Of Communications Co.Ltd(601328) , and the business management is carried out according to the principle of separating basic deposits from derivative transactions. The raised principal is included in the unified operation and management of Bank Of Communications Co.Ltd(601328) internal funds, and included in the payment scope of deposit reserve and deposit insurance premium. The embedded derivatives of the product are linked to the exchange rate, interest rate, commodity, index and other targets.
3、 The situation of the cash management trustee
The cash management trustee Industrial Bank Co.Ltd(601166) and Bank Of Communications Co.Ltd(601328) are both listed financial institutions with joint-stock system and have no relationship with the company.
4、 Impact on the company
The financial position of the company in the latest year and period is as follows:
Unit: Yuan
September 30, 2021 December 31, 2020
Total assets 5586828517.35 4676723702.52
Total liabilities 2188648929.25 2022679924.06
Net assets attributable to shareholders of listed companies 3157649488.64 2348657055.45
Project from January to September 2021 to 2020
Net cash flow from operating activities -35145181.77 319956588.29
On the premise of ensuring the daily operation and capital safety of the company, the company appropriately manages the temporarily idle funds, which will not affect the implementation of the company’s fund-raising projects and the normal development of daily business. Through appropriate principal guaranteed cash management, we can obtain certain investment benefits, further improve the overall performance level of the company and seek more investment returns for the shareholders of the company. The company does not have large liabilities and purchase large financial products at the same time.
The cash management amount of the company using its own funds this time is 50 million yuan, accounting for 6.32% of the monetary fund balance at the end of the third quarter of 2021; The total amount of cash management with raised funds is RMB 200 million, accounting for 25.27% of the balance of monetary funds at the end of the third quarter of 2021, which will not have a great impact on the implementation of the company’s future fund-raising projects and the company’s main business, financial status, operating results and cash flow. The financial products purchased by the company are listed in the title of “trading financial assets” in the balance sheet.
5、 Risk tips
(I) liquidity risk
During the investment period of the established single-phase products, the company has no right to terminate in advance.
(II) policy risk
The product is designed for the current relevant regulations and policies. In case of changes in national policies, markets, laws and other factors that may affect the normal acceptance, investment and repayment of deposit products, the bank has the right to terminate the deposit products in advance.
(III) force majeure risk
The occurrence of force majeure factors such as natural disasters and wars will seriously affect the normal operation of the financial market and may affect the acceptance, investment and
