Securities code: Henan Liliang Diamond Co.Ltd(301071) securities abbreviation: Henan Liliang Diamond Co.Ltd(301071) Announcement No.: 2022005 Henan Liliang Diamond Co.Ltd(301071)
Announcement on using idle self owned funds for cash management
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
Henan Liliang Diamond Co.Ltd(301071) (hereinafter referred to as “the company”) held the 14th meeting of the second board of directors and the 10th meeting of the second board of supervisors on February 25, 2022, deliberated and adopted the proposal on cash management with idle self owned funds. In order to improve the efficiency of fund use and increase shareholder returns, and ensure that it does not affect the needs of the company’s production, operation and business development, On the premise of effective risk control, the company plans to use idle self owned funds for cash management, so as to better maintain and increase the value of the company’s cash and protect the interests of the company’s shareholders. The company plans to use idle self owned funds of no more than RMB 500 million (including this amount) for cash management. The board of directors authorizes the company’s management to exercise decision-making power, and the company’s finance department is responsible for the specific organization and implementation. The details are hereby announced as follows:
1、 Basic information of cash management using idle self owned funds this time
(I) investment purpose
On the premise of controlling risks and not affecting the normal development of the company’s main business, the company can improve the use efficiency of its own funds, obtain a certain investment income and seek more investment returns for the company’s shareholders by appropriately managing its idle own funds, which will not affect the development of the company’s main business or damage the interests of shareholders, In line with the interests of the company and all shareholders.
(II) investment varieties
The company will strictly control risks in accordance with relevant regulations and use idle self owned funds to purchase low-risk financial products within the limit of 500 million yuan.
(III) investment amount and term
The company plans to use idle self owned funds of no more than RMB 500 million (including this amount) for cash management. The validity period of cash management is one year from the date of deliberation and approval of the company’s 2021 annual general meeting of shareholders. Within the validity period of the above quota and resolution, it can be recycled and used.
(IV) implementation mode
The board of directors authorizes the management of the company to exercise relevant investment decision-making power within the scope and validity of the resolution, and sign relevant contract documents. The specific matters shall be organized and implemented by the Finance Department of the company. This authorization takes effect from the date of deliberation and approval of the company’s 2021 annual general meeting of shareholders and is valid for one year.
(V) income distribution mode
The income obtained from the company’s use of idle self owned funds for cash management will be used to supplement the working capital required for the company’s operation.
(VI) information disclosure
The company will fulfill the obligation of information disclosure according to relevant regulations and timely disclose the progress of idle self owned funds for cash management.
2、 Investment risk and risk control measures
(I) investment risk analysis
1. Although financial products have been strictly evaluated, the financial market is greatly affected by the macro-economy, and it is not ruled out that the investment is affected by market fluctuations.
2. The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable.
3. Operation and monitoring risks of relevant staff.
(II) risk control measures
1. The company will strictly abide by the principle of prudent investment and choose low-risk investment varieties. It shall not be used for other securities investment, and shall not purchase bank financial products with stocks and their derivatives and unsecured bonds as the investment object.
2. Relevant personnel of the Finance Department of the company will timely analyze and track the investment direction of financial products and project progress. If risk factors that may affect the safety of the company’s funds are found in the assessment, corresponding preservation measures will be taken in time to control investment risks.
3. The Audit Department of the company shall conduct daily supervision on the use and custody of financial funds, and regularly audit and verify the use of financial funds.
3、 Impact on the daily operation of the company
The company’s use of idle self owned funds for cash management is carried out on the premise of ensuring the funds required by the company and ensuring the safety of self owned funds, which does not affect the normal turnover needs of the company’s project funds and the normal development of production and operation, and there is no situation of changing the use of self owned funds in a disguised form. Through appropriate cash management, it is conducive to improve the use efficiency of the company’s funds, which is in line with the interests of the company and all shareholders.
4、 Review procedures and relevant opinions for implementation
(I) deliberations of the board of directors
The company held the 14th meeting of the second board of directors on February 25, 2022, deliberated and approved the proposal on cash management with idle self owned funds, and agreed to use idle self owned funds to purchase low-risk financial products within the limit of 500 million yuan. This authorization will take effect from the date of deliberation and approval by the company’s 2021 annual general meeting of shareholders and will be valid for one year, Within the validity period of the above quota and resolution, it can be recycled and used.
(II) deliberation of the board of supervisors
The company held the 10th meeting of the second board of supervisors on February 25, 2022, deliberated and approved the proposal on cash management with idle self owned funds, and agreed to use idle self owned funds to purchase low-risk financial products within the limit of 500 million yuan. This authorization will take effect from the date of deliberation and approval by the company’s 2021 annual general meeting of shareholders and will be valid for one year, Within the validity period of the above quota and resolution, it can be recycled and used.
(III) opinions of independent directors
After careful review, the independent directors of the company expressed the following independent opinions on this matter: on the premise of controlling risks and not affecting the normal development of the company’s main business, the company can improve the use efficiency of its own funds, obtain certain investment income and seek more investment returns for the company’s shareholders by appropriately managing its idle own funds, It will not affect the development of the company’s main business, nor does it damage the interests of shareholders, which is in line with the interests of the company and all shareholders.
Therefore, the independent directors of the company unanimously agree that the company will use idle self owned funds of no more than RMB 500 million (including this amount) for cash management without affecting the construction of investment projects and normal production and operation.
5、 Documents for future reference
1. Henan Liliang Diamond Co.Ltd(301071) the resolution of the 14th meeting of the second board of directors;
2. Henan Liliang Diamond Co.Ltd(301071) the resolution of the 10th meeting of the second board of supervisors;
3. Henan Liliang Diamond Co.Ltd(301071) independent directors’ independent opinions on matters related to the 14th meeting of the second board of directors.
It is hereby announced.
Henan Liliang Diamond Co.Ltd(301071) board of directors
February 28, 2002
