Securities code: 002553 securities abbreviation: Jiangsu Nanfang Bearing Co.Ltd(002553) Announcement No.: 2022-006 Jiangsu Nanfang Bearing Co.Ltd(002553)
Announcement on the progress of using its own idle funds to purchase 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.
1、 Overview of foreign investment
1. On November 5, 2019, the company held the first extraordinary general meeting of shareholders in 2019, deliberated and approved the proposal on using its own idle funds to choose the opportunity to purchase financial products and tools approved by the regulatory authorities such as medium and short-term low-risk trusts and bank financial products. On the premise of ensuring the capital needs of production and operation, raised investment project construction, technological transformation and expansion, etc, In order to improve the utilization efficiency and income of idle funds, the general meeting of shareholders of the company deliberated and authorized the board of directors to use its own idle funds of no more than RMB 300 million to choose an opportunity to purchase financial products and tools approved by regulatory authorities such as medium and short-term low-risk trusts and bank financial products with a maximum term of no more than 12 months, and the balance can be used on a rolling basis.
2. The company (or “beneficiary”) and Guosheng Securities Co., Ltd. (hereinafter referred to as “Guosheng securities”) signed the transaction agreement on income voucher of Guosheng Securities Co., Ltd., and invested 50 million yuan to subscribe for “Guosheng securities income voucher – Guosheng income No. 677” from Guosheng securities, product code: sup472.
3. The company has no relationship with Guosheng securities;
4. The company invested 50 million yuan to purchase the product, accounting for 3.88% of the total audited assets of the company in the latest period (2020).
2、 Basic information of counterparty
Trustee: Guosheng Securities Co., Ltd
Legal representative: Zhou Jun
Address: No. 1589, Zishi Road, Xinjian District, Nanchang City, Jiangxi Province
Registered capital: RMB four billion six hundred ninety-five million three hundred forty-six thousand two hundred forty-seven point ninety-five
Unified social credit Code: 91360000746053029p
Business scope: securities brokerage; Securities investment consulting; Financial advisers related to securities trading and securities investment activities; Securities underwriting and recommendation; Self operated securities; Margin trading; Securities investment fund sales; Sell financial products on a commission basis. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments)
3、 Main contents of the contract:
Recently, the company received the contract signed and sealed by Guosheng securities. The details are as follows:
1. Product Name: Guosheng securities income certificate – Guosheng income No. 677;
2. Total subscription capital: RMB 50 million;
3. Product type: principal guarantee type;
4. Income structure: fixed income type;
5. Product life: 365 days;
6. Fixed rate of return: 4.3%;
7. Investment scope: the funds raised from this directional issuance of income certificates will be used as self owned funds to supplement the working capital of Guosheng securities;
8. Distribution of income: one-time repayment of principal and interest at maturity
4、 Source of funds
The subscription funds are the company’s own funds and do not involve raised funds and bank loans;
5、 Purpose, existing risks and impact on the company of foreign investment
1. Purpose of investment
On the premise of controlling risks, the company’s own funds can obtain higher returns.
2. Existing risks
① Legal and policy risks
Due to changes in national macro policies, financial policies and local government policies, or the absence of existing laws can not solve relevant legal problems, and the imperfect law enforcement environment in some regions, it may have an uncertain impact on Guosheng securities, and then have an adverse impact on the normal business activities and income certificate business of Guosheng securities.
② Market risk
The current income certificate products may be linked to specific targets, including but not limited to equity, creditor’s rights, credit, fund, interest rate, exchange rate, index, futures and basic commodities. When the market price of the specific target linked to the income certificate product fluctuates violently, the principal and interest of the income certificate may be lost.
③ Credit risk
Income certificate products are issued with the credit of Guosheng securities company. During the duration of the income certificate, Guosheng securities company may be dissolved, bankrupt, unable to pay off its due debts, and its assets may be sealed up, frozen or enforced. After disposing of the property of Guosheng securities company according to law, it will be compensated in the order of general creditors in accordance with the bankruptcy liquidation procedures stipulated in the bankruptcy law. Therefore, in the most adverse circumstances, The principal and income of the income certificate products purchased by the company may not be repaid in accordance with the subscription agreement.
④ Liquidity risk
Before the expiration of the product, the income certificate purchased by the company can only be transferred through the inter agency private placement product quotation and service system (or other places specified by laws and regulations) within the transaction time agreed in the transaction agreement. The transaction may not be active, resulting in the company’s transfer demand may not be met; Or there are no repurchase or trading terms for the income voucher products, which makes the income voucher products purchased by the company unable to be realized before maturity.
According to the relevant requirements of the Securities Regulatory Commission and the Securities Industry Association on the risk management of securities companies, Guosheng securities company currently has sufficient working capital to meet the needs of daily operation and repayment of due debts. However, in case of liquidity shortage and failure to obtain sufficient funds in time, it may not be paid in time and in full when the income certificate products are due, resulting in the loss of the principal and income of the income certificate products purchased by the company.
⑤ Operational risk
Due to the internal management process defects and personnel operation errors of Guosheng securities company, it may lead to the subscription of income certificate, transaction failure and fund allocation failure, resulting in the loss of the principal and income of the income certificate products purchased by the company.
⑥ Information technology system risk
The information technology system of Guosheng securities company may not operate normally due to force majeure, software and hardware failure, interruption of communication system, inadequate third-party service and other reasons, which may affect the smooth development of its business.
⑦ Information transmission risk
The company can timely understand the relevant information and announcements of income voucher products through the website or trading terminal of Guosheng securities company, and fully understand the over-the-counter trading rules and relevant supporting systems. If the company fails to inquire in time, or the understanding of transaction rules and supporting systems is not accurate enough, which will affect the company’s investment decision and lead to investment decision-making mistakes, the resulting responsibilities and risks will be borne by the company itself.
⑧ Risk of force majeure and accidents
Unforeseen, unavoidable and insurmountable force majeure events such as natural disasters, social unrest, war and infectious diseases, or unexpected events such as the suspension or suspension of over-the-counter trading by the regulatory authorities may have an impact on the establishment of income certificate products, investment operation, capital return, information disclosure, announcement and notice, etc, This leads to the loss of principal and income of income certificate products. Any loss caused by the risk of force majeure and accidents shall be borne by the company itself, and Guosheng securities company shall not bear any responsibility for it.
3. Impact on the company
Under the condition of ensuring the normal use of funds required for production and operation, the company makes financial investment with its own idle funds, which has no significant impact on the company’s production and operation.
6、 Other matters
1. As of the announcement date, the total amount of bank financial products and trust investments purchased by the company with its own funds and raised funds in the past 12 months amounted to 1734.6 million yuan (including 50 million yuan this time), and the undue financial funds were 120 million yuan (including 50 million yuan this time), accounting for 9.32% of the total audited assets of the company in the latest period (2020). Not exceeding the amount range and investment period of the board of directors authorized by the general meeting of shareholders to invest in bank financial products and trust products;
2. The Finance Department of the company conducted a full investigation on the investment in advance and submitted a feasibility report to the board of directors. The feasibility study report shall be approved by the general manager and submitted to the chairman for approval. The audit department regularly audits the company’s investment behavior and gives opinions.
3. The company promises not to use idle raised funds to temporarily supplement working capital, change the investment direction of raised funds to permanently supplement working capital, and permanently use the over raised funds to supplement working capital or repay bank loans within 12 months after this investment.
4. The principal and income of trust and bank financial products purchased in the past and expired were recovered on schedule without loss.
7、 Documents for future reference
1. Guosheng Securities Co., Ltd. income voucher transaction agreement signed by the company and Guosheng Securities Co., Ltd.
It is hereby announced.
Jiangsu Nanfang Bearing Co.Ltd(002553) board of directors
February 24, 2002
