Report of independent directors on the 30th meeting of the 8th board of directors
Independent opinions on matters related to the meeting
In accordance with the rules for independent directors of listed companies, the governance standards for listed companies, the Listing Rules of Shenzhen Stock Exchange and the articles of association, we, as independent directors of Yunnan Copper Co.Ltd(000878) (hereinafter referred to as the company), based on independent judgment and careful and careful research, We hereby express the following independent opinions on the relevant matters of the 30th meeting of the eighth board of directors of the company:
1、 Independent opinions on the company’s commodity derivatives trading business and the feasibility analysis report of derivatives trading
The relevant approval procedures for the company to use its own funds to carry out commodity derivatives transactions in 2022 comply with relevant national laws and regulations and the relevant provisions of the articles of association.
The company has established a sound decision-making and risk control organization for commodity derivatives trading, strictly followed the operating procedures and implemented them in accordance with the system requirements. The company’s commodity derivatives trading is mainly to preserve the value of copper, gold and silver related to the company’s main business, control the risk of market price fluctuation, which is closely related to the company’s operation and does not damage the interests of the company and all shareholders.
The maximum amount and transaction type of annual hedging margin determined by the company meet the actual needs of the company, which is conducive to the company’s reasonable control of transaction risk.
We believe that the company takes commodity derivatives trading as an effective tool to avoid the risk of price fluctuation. By strengthening internal management, implementing risk prevention measures and improving operation level, it is conducive to give full play to the company’s competitive advantage. It is necessary for the company to carry out derivatives trading, and the risk can be controlled. The company’s commodity derivatives trading is conducive to ensuring the company’s operating benefits and reducing production and operation risks. We agree to the above plan and agree to submit it to the general meeting of shareholders of the company for deliberation. 2、 Independent opinions on nominating candidates for non independent directors
According to the recommendation of the company’s controlling shareholder Yunnan Copper Co.Ltd(000878) (Group) Co., Ltd., the nomination committee of the company nominated Mr. Zhao Zejiang and Mr. Zhang Liang as candidates for non independent directors of the company. The voting procedures comply with the provisions of the company law and the articles of association, and the nomination procedures and voting procedures are legal and effective.
The qualifications of the non independent director candidates nominated meet the relevant provisions of the company law, the standards for the governance of listed companies, the articles of association and so on. The candidate’s personal resume does not find that he is not allowed to serve as a director of the company according to the company law, and there is no case that he is determined as a market prohibited person by the CSRC and the prohibition has not been lifted.
As independent directors of the company, we agree to nominate Mr. Zhao Zejiang and Mr. Zhang Liang as candidates for non independent directors of the company, and submit this matter to the general meeting of shareholders of the company for deliberation.
Independent directors: Yu Dingming, Wang Yong, Yang Yong, Na Pengjie
February 21, 2022
