Huatai United Securities Co., Ltd
About Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd
Verification opinions on cash management with idle self owned funds in 2022
As a continuous supervision and recommendation institution for initial public offering of Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd. (hereinafter referred to as ” Eastroc Beverage (Group) Co.Ltd(605499) ” or “the company”) in accordance with the measures for the administration of securities issuance and listing recommendation business, the stock listing rules of Shanghai Stock exchange and other relevant provisions, Huatai United Securities Co., Ltd. (hereinafter referred to as “Huatai United Securities” or “sponsor”) checked the company’s use of idle self owned funds for cash management in 2022. The specific verification conditions and opinions are as follows:
1、 Overview of this entrusted financial management
(I) purpose of entrusted financial management
On the premise of ensuring the daily operation capital demand and capital safety of the company and its subsidiaries, in order to improve the capital use efficiency and increase the company’s income, combined with the company’s business strategy and overall development plan, the company and its subsidiaries plan to use some idle self owned funds for cash management.
(II) source of funds
The investment funds are idle self owned funds of the company. The source of funds is legal and compliant, which is implemented on the premise of ensuring the normal implementation of the company’s and its subsidiaries’ normal fund use plan and the working capital required for daily operation.
(III) types of financial products
Low risk financial products of financial institutions such as banks, securities companies, insurance companies or trust companies. (IV) amount and term of financial products
The use period of idle self owned funds not exceeding 500 million yuan is from the date of deliberation and approval by the general meeting of shareholders to the date of holding the annual general meeting of shareholders in 2022. Within the above use period and limit, the funds can be recycled and rolled.
(V) the company’s internal control over risks related to entrusted financial management
1. Control security risks
The management of the company arranges relevant personnel of the investment department to analyze, evaluate, suggest and track the implementation of financial products, and has established a relatively perfect authorization and control system, which can make prudent decision-making and approval. During the investment period, once the person in charge judges or finds that there are adverse factors, the company will take corresponding preservation measures in time to control the investment risk to the greatest extent and ensure the safety of funds.
2. Guard against liquidity risk
The company will select the appropriate type and duration of financial products according to the use plan of its own funds to ensure that it will not affect the normal use of its own funds. The company’s independent directors, the audit committee of the board of directors and the board of supervisors have the right to supervise and inspect the use of their own funds. If necessary, they can hire professional institutions to audit, and the expenses shall be borne by the company. The investment scope of this investment and financial management is mainly the low-risk financial products of financial institutions such as banks, securities companies, insurance companies or trust companies, which meet the requirements of the company’s internal fund management.
2、 Impact on the company
The company’s use of idle self owned funds for cash management is implemented on the premise of ensuring that the normal business development of the company and its subsidiaries is not affected. Through appropriate investment in low-risk financial products, the company can obtain certain capital income, improve the company’s capital use efficiency, and meet the interests of the company and all shareholders.
3、 Risk tips
The above financial products purchased by the company this time are low-risk financial products of financial institutions such as banks, securities companies, insurance companies or trust companies, but the situation affecting the principal and income caused by policy risk, market risk, delayed payment risk, liquidity risk, force majeure and accident risk is still not excluded. 4、 Implementation of decision-making procedures
This matter has been deliberated and approved at the 13th meeting of the second board of directors and the 12th meeting of the second board of supervisors of the company. The independent directors of the company have expressed clear consent. This matter needs to be submitted to the general meeting of shareholders of the company for deliberation. Within the specified limit, the chairman of the company is authorized to exercise relevant decision-making power and sign relevant documents. His authority includes but is not limited to selecting qualified issuers of financial products, determining financial amount, selecting financial products, signing relevant contracts and agreements, etc. The investment department of the company is responsible for handling relevant matters.
5、 As of the date of issuance of this verification opinion, the company has used its own funds for entrusted financial management in the last 12 months
Amount: 10000 yuan
Unrecovered serial number financial product type actual investment amount actual principal actual income
Principal amount
1 bank financial products 43670011 Shenzhen Properties & Resources Development (Group) Ltd(000011) 20.65326700
Total 43670011 Shenzhen Properties & Resources Development (Group) Ltd(000011) 20.65326700
The maximum amount invested in a single day in the last 12 months is 40000
Maximum daily investment amount in the last 12 months / net assets of the last year (%) 9.44%
Cumulative income from cash management in the last 12 months / net profit of the last year (%) 0.94%
The cash management limit used at present is 326700
Unused cash management limit 73300
Total cash management limit 400000
6、 Verification opinions of the recommendation institution
After verification, the sponsor believes that the company is in good operating condition. On the premise of ensuring the normal business development of the company and its subsidiaries, in order to improve the efficiency of the use of funds, make rational use of idle self owned funds and increase the capital income of the company, the company and its subsidiaries intend to use idle self owned funds with a quota of no more than 500 million yuan to buy low-risk financial products, The service life is from the date of deliberation and approval by the general meeting of shareholders to the date of holding the annual general meeting of shareholders in 2022. Within the above service life and limit, the funds can be recycled and used in a rolling manner, which is in the interests of the company and all shareholders. The proposal that the company use idle self owned funds to purchase financial products has been deliberated and adopted at the 13th meeting of the second board of directors and the 12th meeting of the second board of supervisors, and the independent directors of the company have also expressed explicit consent. The proposal needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
In conclusion, the recommendation institution has no objection to the company’s use of idle self owned funds for cash management.
