Securities code: Lihuayi Weiyuan Chemical Co.Ltd(600955) securities abbreviation: Lihuayi Weiyuan Chemical Co.Ltd(600955) Announcement No.: 2022025 Lihuayi Weiyuan Chemical Co.Ltd(600955)
Announcement on the progress of using idle raised funds for cash management, redemption at maturity and continuing cash management
The company and all members of the board of directors guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
● entrusted financial management trustee: Bank Of China Limited(601988)
● the entrusted financial management amount: 140 million yuan
● name of structured deposit management institution:
● term of entrusted financial management: short term
● review procedures performed: Lihuayi Weiyuan Chemical Co.Ltd(600955) (hereinafter referred to as “the company”) the third meeting of the second board of directors and the second extraordinary general meeting of the company in 2021 have considered and approved the proposal on the use of temporarily idle raised funds and self owned funds for cash management, and agreed that the company use temporarily idle raised funds of no more than RMB 2.463 billion for cash management, The investment period of cash management with raised funds shall not exceed 12 months. Within the above limit, the funds can be used circularly and continuously. After the cash management of idle raised funds expires, the principal and income shall be returned to the special account for raised funds. For details, please refer to the official website of Shanghai Stock Exchange (www.sse. Com. CN.) on September 25, 2021 Announcement of Lihuayi Weiyuan Chemical Co.Ltd(600955) on cash management with temporarily idle raised funds and self owned funds (Announcement No.: 2021007) I. The use of idle raised funds for cash management due redemption this time
The company purchased RMB structured deposit financial products from Bank Of China Limited(601988) on November 29, 2021. For details, please refer to the official website of Shanghai Stock Exchange (www.sse. Com. CN.) on November 30, 2021 The disclosed announcement of Lihuayi Weiyuan Chemical Co.Ltd(600955) on the progress of cash management with temporarily idle raised funds (Announcement No.: 2021024), of which 100 million yuan will be redeemed on March 2, 2022. The details are as follows:
Annual income of product gold
Order trustee product name amount product term interest rate redemption amount actual income
No. Name (ten thousand (day) (%) (ten thousand yuan) (ten thousand yuan)
(yuan)
1. Bank of China linked structured deposit (machine 1000092 3.0561000077.03)
Bank (customer)
2、 Overview of this entrusted financial management
(I) purpose of entrusted financial management
The construction of the company’s fund-raising projects is advancing in an orderly manner. According to the project implementation progress and payment process, there are some temporarily idle raised funds. In order to improve the efficiency of fund use and make rational use of the temporarily idle raised funds, the company plans to use the temporarily idle raised funds for cash management without affecting the normal implementation progress of the fund-raising projects, On the premise of not affecting the daily operation fund demand and fund safety, using some temporarily idle raised funds for cash management can improve the fund use efficiency, obtain certain investment income, further improve the overall performance level of the company and seek more investment returns for the company and shareholders.
(II) source of funds
The company is temporarily idle to raise funds.
(III) basic information of entrusted financial products
The amount of the entrusted product is expected to be annualized. Is the estimated income of the entrusted product a party name type? Product name (the 10000 profit rate and income type are related to each other) transaction amount
China structural Bank Of China Limited(601988) linked bond and principal guarantee minimum
Bank deposit structured deposit (10000 institutional customers): 1.53% – 4.47% / income type no
(household)
China structural Bank Of China Limited(601988) linked bond and principal guarantee minimum
Bank deposits and structured deposits (institutional customers) 1.53% – 4.05% / income type no
(household)
(IV) the company’s internal control over risks related to entrusted financial management
1. When purchasing financial products, the company will choose investment products with good liquidity, high security and guaranteed principal. The term of investment products purchased with idle raised funds shall not exceed 12 months. Clarify the amount, term, investment type, rights, obligations and legal responsibilities of both parties of the investment products.
2. The financial department of the company shall establish an investment account and timely analyze and track the changes in the net value of products. 3. The company establishes idle fund management regulations, and the internal audit institution of the company is responsible for auditing and supervising the use and custody of funds purchased by the company for investment products.
4. 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 when necessary.
The company will timely analyze the relevant situation of financial products, prevent financial risks and ensure the safety of funds. The company will timely perform the obligation of information disclosure in accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange.
3、 Details of this entrusted financial management
(I) main terms of entrusted financial management contract
1. The company purchased RMB 100 million structured deposits from Bank Of China Limited(601988) this time. The details are as follows:
Product name Bank Of China Limited(601988) linked structured deposit (institutional customer)
Product type: principal guaranteed minimum return type
The principal amount is 100 million yuan
Transaction date: March 2, 2022
Start date: March 3, 2022
Maturity date: July 6, 2022
Product life (day) 125 days
Customers’ expected annualized rate of return is 1.53% – 4.47%
2. The company purchased RMB 40 million structured deposits from Bank Of China Limited(601988) this time.
The details are as follows:
Product name Bank Of China Limited(601988) linked structured deposit (institutional customer)
Product type: principal guaranteed minimum return type
The principal amount is 40 million yuan
Transaction date: March 2, 2022
Start date: March 3, 2022
Maturity date: April 7, 2022
Product life (day) 35 days
The customer’s expected annualized rate of return is 1.53% – 4.05%
(II) risk control analysis
In order to control risks and fund safety, the company will define the principles, scope, authority and approval process of investment and financial management in strict accordance with the requirements of internal control management; Arrange special personnel to be responsible for managing the duration of financial products, establish account and tracking mechanism, establish and improve complete accounting accounts for the economic activities of fund use, do a good job in the accounting of fund use, and strengthen risk control and supervision.
The bank structured deposit product purchased by the company this time is principal guaranteed and minimum return type. The product has high safety, good liquidity and meets the principal guaranteed requirements. The risk of the product is low and meets the internal management requirements of the company.
4、 Information of entrusted financial management trustee
(I) basic information of the trustee
Entrusted party of this entrusted financial management: Bank Of China Limited(601988)
(II) there is no relationship between the above financial trustee and the company, the controlling shareholder of the company, the person acting in concert and the actual controller.
(III) the company has long paid attention to the public opinion reports and relevant information related to the trustee, and has not found any situation that may damage the development of the entrusted financial management of the company.
5、 Impact on the company
The use of some temporarily idle raised funds for cash management and the purchase of products with high safety, good liquidity and meeting the breakeven requirements will not have a significant impact on the company’s future main business, financial status, operating results and cash flow.
The company uses some temporarily idle raised funds for cash management on the premise of ensuring the funds required by the company’s raised funds for investment projects and ensuring the safety of raised funds, which helps to improve the use efficiency of raised funds, does not affect the normal progress of raised funds projects and the normal development of the company’s main business. Through the appropriate and timely cash management of the temporarily idle raised funds, we can obtain a certain investment income, which is conducive to further improve the overall performance level of the company and seek more investment returns for the company and shareholders.
6、 Risk tips
This time, the company uses the temporarily idle raised funds for entrusted financial management. The bank structured deposit products purchased are principal guaranteed and minimum return type. The products have high safety, good liquidity and meet the principal guaranteed requirements. They are low-risk investment products with controllable investment risk, but it does not rule out that the investment income is affected by macroeconomic fluctuations.
7、 Implementation of decision-making procedures and opinions of independent directors, board of supervisors and recommendation institutions
According to the resolution of the third meeting of the second board of directors of the company and the deliberation and approval of the second extraordinary general meeting of shareholders of the company in 2021 on October 15, 2021, it is agreed that the company will use the temporarily idle raised funds of no more than RMB 2.463 billion for cash management, the term of the investment products purchased by the idle raised funds shall not exceed 12 months, and the amount, term Investment varieties, rights, obligations and legal liabilities of both parties, etc.
Independent directors expressed independent opinions on the company’s use of temporarily idle raised funds for cash management: they believed that the company’s use of temporarily idle raised funds for cash management would not affect the normal progress of the investment plan of raised funds, there was no situation of changing the purpose of raised funds in a disguised form, and would not have a negative impact on the company’s main business, At the same time, it is conducive to improving the use efficiency of idle raised funds and obtaining more investment returns for the company and shareholders, which is in line with the relevant provisions of the stock listing rules of Shanghai Stock Exchange, the measures for the administration of raised funds of listed companies of Shanghai Stock Exchange, and the regulatory guidelines for listed companies No. 2 – regulatory requirements for the administration and use of raised funds of listed companies. In conclusion, it is agreed that the company will use idle raised funds of no more than RMB 2.463 billion for cash management.
After verification, the board of supervisors believes that: the products invested by the company’s temporarily idle raised funds meet the capital preservation requirements. The company’s use of the temporarily idle raised funds for cash management will not affect the normal progress of the investment plan of the raised funds, nor will it have a negative impact on the company’s main business. At the same time, it is conducive to improving the use efficiency of the idle raised funds, Obtain more return on investment for the company and shareholders. In conclusion, the board of supervisors agreed that the company should use idle raised funds of no more than RMB 2.463 billion for cash management.
After verification, the recommendation institution believes that the company has fulfilled the necessary legal procedures for the cash management of the temporarily idle raised funds, which is in line with the stock listing rules of Shanghai Stock Exchange The provisions of relevant laws, regulations and normative documents such as the measures for the administration of funds raised by listed companies of Shanghai Stock Exchange and the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of funds raised by listed companies. This event is conducive to improving the efficiency of capital use and is in line with the interests of the company and all shareholders. The use of temporarily idle raised funds for cash management will not affect the construction of raised investment projects and the use of raised funds, there is no case of changing the purpose of raised funds in a disguised manner, there is no case of damaging the interests of the company and all shareholders, especially minority shareholders, and will not affect the normal operation of the investment plan of raised funds. The recommendation institution has no objection to the company’s use of temporarily idle raised funds for cash management.
8、 As of the date of this announcement, the company has used the raised funds for entrusted financial management in the past 12 months, with an amount of 10000 yuan
Serial No. financial product type actual investment actual recovery actual uncollected amount principal income principal amount
1 China China Construction Bank Corporation(601939) “customized unit of Shandong branch” 85 Renhe Pharmacy Co.Ltd(000650) 00 458.5120000 structured deposit 2021 issue 10
2 Bank Of China Limited(601988) linked structured deposits (institutional customers) 5500035000 189.5120000
China Industrial And Commercial Bank Of China Limited(601398) linked exchange rate range cumulative method
3. Civil currency structured deposit product – special account type, phase 316, 3 Fawer Automotive Parts Limited Company(000030) 000 L in 2021
China Industrial And Commercial Bank Of China Limited(601398) linked exchange rate
