Securities code: 300017 securities abbreviation: Wangsu Science & Technology Co.Ltd(300017) Announcement No.: 2022-004 Wangsu Science & Technology Co.Ltd(300017)
Announcement on matters related to adjusting the use of self owned idle funds to purchase financial products
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Wangsu Science & Technology Co.Ltd(300017) (hereinafter referred to as "the company") deliberated and approved the proposal on extending the investment period of using its own idle funds to purchase financial products at the 10th meeting of the Fifth Board of directors and the 2020 annual general meeting of shareholders held on April 12, 2021 and April 23, 2021 respectively. After deliberation, it is agreed that on the premise of ensuring the daily operation capital demand and capital safety, Keep the amount and investment scope of the company and its subsidiaries using their own idle funds to purchase financial products unchanged, and extend the investment period to be effective within three years from the date of deliberation and approval by the 2020 annual general meeting of shareholders. For details, see the announcement on extending the investment period of purchasing financial products with its own idle funds (Announcement No.: 2021-025) announced by the company on April 13, 2021.
At present, in combination with the market situation of financial products, in order to improve the flexibility of financial product selection and the efficiency of fund use, the company deliberated and adopted the proposal on adjusting matters related to the purchase of financial products with its own idle funds at the 20th meeting of the Fifth Board of directors held on February 21, 2022. After deliberation, it is agreed that the company and its subsidiaries use their own funds with an amount of no more than RMB 4 billion (including equivalent foreign currencies) to purchase fund management products issued by financial institutions such as commercial banks, securities companies, fund companies or trust institutions without affecting normal production and operation and effectively controlling risks, Among them, 3.5 billion (including equivalent foreign currency) of its own funds are limited to the purchase of financial products with risk level no higher than medium and low risk. The term of a single financial product shall not exceed 12 months. Within the above limits, the funds can be recycled and used on a rolling basis. The relevant matters are hereby announced as follows:
1、 Investment overview
1. Investment purpose
In combination with the current market situation of financial products, in order to make rational use of the company's own idle funds, improve the efficiency of the use of funds and the flexibility of the selection of financial products of the company and its subsidiaries, and on the premise of not affecting the normal operation of the company and its subsidiaries and effectively controlling risks, use the own idle funds to choose the opportunity to purchase financial products, so as to maintain and increase the value of the company's own funds, Increase the income of the company and its subsidiaries and seek better return on investment for the company and shareholders.
2. Investment quota
The company and its subsidiaries use their own funds with an amount of no more than RMB 4 billion (including equivalent foreign currencies) to purchase fund management products issued by financial institutions such as commercial banks, securities companies, fund companies or trust institutions, of which 3.5 billion (including equivalent foreign currencies) are limited to purchasing financial products with a risk level of no higher than medium and low risks. The term of a single financial product shall not exceed 12 months.
3. Investment varieties
The company and its subsidiaries will select qualified and professional financial institutions with good credit status and financial status for entrusted financial management. According to the current market situation of financial products, the company will mainly select financial products with risk level no higher than medium and low risk, and select financial products including but not limited to commercial banks, securities companies Other fund management products issued by financial institutions such as fund companies or trust institutions.
4. Investment period
Valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company (calculated based on the time point of purchasing financial products).
5. Source of funds
Self owned idle funds of the company and its subsidiaries. Under the condition of ensuring the working capital required for the normal operation of the company, it is expected that there will be phased idle funds, and the source of funds is legal and compliant.
6. Decision making procedure
The adjustment of the matters related to the purchase of financial products with its own idle funds must be submitted to the general meeting of shareholders for deliberation after being deliberated and approved by the board of directors of the company. The financial management business of the company's subsidiaries shall be reported to the company for approval, and no financial management activities shall be carried out without approval.
7. Implementation mode
Within the limit, the general meeting of shareholders shall be requested to authorize the general manager of the company or his authorized person to organize the implementation within the above limit.
8. The company and its subsidiaries intend to purchase financial products from non affiliated institutions with relevant qualifications. The purchase of financial products with their own idle funds will not constitute a connected transaction.
2、 Investment risk analysis and risk control measures
1. Investment risk
(1) In the authorized amount of financial products purchased by the company, the financial products with risk level no higher than medium and low risk are mainly selected, and other fund management products issued by financial institutions such as commercial banks, securities companies, fund companies or trust institutions are selected on the premise of risk control according to the actual situation. However, the financial market is greatly affected by macro-economy, It is not excluded that the investment is affected by market fluctuations;
(2) The company and its subsidiaries will timely and appropriately intervene according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable;
(3) Operational risks of relevant staff.
2. For investment risks, the proposed measures are as follows:
(1) The board of directors requests the general meeting of shareholders to authorize the general manager of the company or his authorized person to be responsible for organizing the implementation within the above investment limit. The relevant personnel of the Finance Department of the company will timely analyze and track the progress of the project. If the evaluation finds that there are risk factors that may affect the safety of the company's funds, they will take corresponding measures in time to control the investment risk; (2) The internal audit department of the company is responsible for internal supervision and regularly conduct comprehensive inspection on the invested financial products; (3) Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and can hire professional institutions to audit if necessary;
(4) The company will do a good job of relevant information disclosure in accordance with the relevant provisions of Shenzhen Stock Exchange.
3、 Impact on the company
1. Under the premise of "standardized and effective use of idle funds" of the main company and its subsidiaries, it is necessary to ensure that the normal operation of the main company and its subsidiaries will not be affected by the implementation of the principle of "prevention and effective control of idle funds", and that the normal operation of the main company and its subsidiaries will not be affected.
2. Through appropriate financial investment, the company can maintain and increase the value of its own funds, and improve the efficiency of fund use, so as to obtain certain investment benefits and seek more investment returns for the company's shareholders.
4、 Opinions of the board of supervisors
The board of supervisors believes that in combination with the current market situation of financial products, on the premise of not affecting the normal operation of the company and its subsidiaries and effectively controlling risks, this adjustment of the investment scope, amount, investment period and other related matters of using its own idle funds to purchase financial products will help to improve the flexibility of financial product selection and the efficiency of fund use, The fund arrangement in line with the company's future operation will not affect the normal development of the company's main business and will not damage the interests of the company and shareholders.
The decision-making and deliberation procedures of this matter are legal and compliant.
5、 Opinions of independent directors
1. The company's proposal on adjusting the use of its own idle funds to purchase financial products has been deliberated and adopted at the 20th meeting of the Fifth Board of directors.
2. The company has formulated risk prevention and control measures for purchasing financial products with its own idle funds. On the premise of ensuring the company's daily operating capital demand and effectively controlling risks, adjusting the investment scope, amount, investment period and other related matters of self owned funds to purchase financial products will help to improve the flexibility of financial product selection and capital use efficiency, comply with the company's capital arrangement for future operation, and will not have an adverse impact on the company's business activities, There is no situation that damages the interests of the company and all shareholders, especially minority shareholders.
Therefore, we agree with the above-mentioned company to adjust the investment scope, amount, investment period and other related matters of using its own idle funds to purchase financial products, and agree to submit the proposal to the general meeting of shareholders of the company for deliberation.
6、 Documents for future reference
1. Resolutions of the 20th meeting of the 5th board of directors of the company;
2. Resolutions of the 18th meeting of the 5th board of supervisors of the company;
3. Independent opinions of independent directors on matters related to the 20th meeting of the 5th board of directors of the company.
It is hereby announced.
Wangsu Science & Technology Co.Ltd(300017) board of directors February 21, 2022
