Securities No.: 672020002}
Announcement on 2022 securities investment plan
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.
Gansu Shangfeng Cement Co.Ltd(000672) (hereinafter referred to as "the company") deliberated and adopted the proposal on the company's 2022 annual securities investment plan at the 40th meeting of the ninth board of directors on February 17, 2022. In view of the expiration of the company's 2021 annual securities investment period, it is agreed that the company, without affecting its normal operation and risk control, It is proposed to continue to use its own idle funds of no more than 800 million yuan (including 800 million yuan) for appropriate securities investment, which is valid within one year from the date of deliberation and approval by the general meeting of shareholders of the company, and authorize the management of the company to be responsible for the specific implementation of relevant matters. The relevant information is hereby announced as follows:
1、 Overview of securities investment
1. Purpose of securities investment
On the premise of not affecting the company's normal operation and effective risk control, the company uses its own idle funds for appropriate securities investment in combination with the situation of the capital market, which is conducive to improving the company's fund use efficiency, maximizing the benefits of cash funds and creating greater benefits for the company and shareholders.
2. Amount of securities investment
As the term of the company's securities investment in 2021 is about to expire, the company plans to continue to use its own idle funds with a total of no more than 800 million yuan (including 800 million yuan) for securities investment in 2022, and the funds can be used in a rolling manner within this limit.
3. Securities investment mode
The company uses an independent self operated account or entrustment management through asset management plan to place or purchase new shares, invest in stocks in the secondary market and other financial products that the company is authorized to invest.
4. Term of securities investment
The term of the company's securities investment is within 12 months from the date when the matter is adopted by the general meeting of shareholders, and the management of the company is authorized to be responsible for the implementation of specific relevant matters.
5. Source of funds
The funds used by the company for securities investment are the self owned idle funds of the company and its wholly-owned subsidiaries, and the source of funds is legal and compliant. The company does not use any bank loans for securities investment.
2、 Review procedure
According to the relevant provisions of the stock listing rules of Shenzhen Stock Exchange, the standardized operation of companies listed on the main board and the articles of association, the amount of this securities investment needs to be submitted to the general meeting of shareholders of the company for deliberation. The use of self owned funds for securities investment does not involve related party transactions.
3、 Investment risk analysis and risk control measures
1. Investment risk
The following risks may exist in the company's securities investment:
(1) The securities market is greatly affected by the macro-economy, and the investment will be affected by market fluctuations; (2) The company will intervene in time according to the economic situation and changes in the financial market, so the actual income of securities investment is unpredictable;
(3) The redemption and sale of investment products and the realization of investment income are affected by the price factors of corresponding products and need to abide by the corresponding transaction settlement rules and agreements. Compared with monetary funds, there is a certain liquidity risk; (4) Operational risks of relevant staff, etc.
2. Risk control measures
(1) The company has formulated the internal control system for securities investment, which has made relevant provisions on the approval authority, investment scope, principles, responsible departments and information disclosure of the company's securities investment;
(2) Take appropriate measures to control investment risks, such as diversifying investment decisions and controlling investment scale;
(3) Strengthen internal supervision, establish a special person tracking system, and take timely measures in case of major loss of relevant investment, major risk of capital safety or other abnormalities;
(4) The company will do a good job in relevant information disclosure and reporting in accordance with the relevant provisions of Shenzhen Stock Exchange.
4、 Impact of securities investment on the company
On the premise of fully ensuring the company's daily operational capital demand, not affecting the company's normal business activities and effectively controlling risks, the company's securities investment is conducive to improving the company's capital use efficiency, increasing investment income, consolidating and improving the company's competitiveness and profitability, and seeking more investment returns for the company and shareholders, There is no situation that damages the interests of the company and minority shareholders, and will not have a significant adverse impact on the current and future financial status and operating results of the company.
5、 Opinions of independent directors
The independent directors of the company believe that:
At present, the company's operation is normal and its financial structure is good. Given that the securities investment period of the company in 2021 is about to expire, the company plans to continue to use the securities investment amount of no more than 800 million yuan (including 800 million yuan) without affecting the normal production and operation, which is conducive to improving the efficiency of the company's capital use and in line with the interests of the company.
The decision-making procedure of this matter is legal and compliant, and complies with the provisions of relevant laws, regulations and normative documents. The company has formulated the internal control system of securities investment, which can strengthen investment risk management and prevention. There is no situation that damages the interests of the company and all shareholders, especially minority shareholders. We agree that the company uses its own funds for securities investment.
6、 Documents for future reference
1. Resolution of the 40th meeting of the 9th board of directors.
It is hereby announced.
Gansu Shangfeng Cement Co.Ltd(000672) board of directors
February 18, 2022
