Securities code: Tianjin Yiyi Hygiene Products Co.Ltd(001206) securities abbreviation: Tianjin Yiyi Hygiene Products Co.Ltd(001206) Announcement No.: 2022003 Tianjin Yiyi Hygiene Products Co.Ltd(001206)
Announcement on using idle self owned funds for cash management
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.
Tianjin Yiyi Hygiene Products Co.Ltd(001206) (hereinafter referred to as “the company”) held the 24th Meeting of the second board of directors on March 4, 2022, deliberated and adopted the proposal on cash management with idle own funds, and agreed that without affecting the normal operation of the company and its wholly-owned subsidiaries, Idle self owned funds with a limit of no more than 100 million yuan (including 100 million yuan) shall be used for cash management. The service life shall not exceed 12 months from the date of deliberation and approval by the board of directors. Within the above-mentioned period and limit, the funds can be used on a rolling basis. The proposal is within the authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation. The specific matters are hereby announced as follows:
1、 Investment overview
(I) investment purpose
On the premise of not affecting the normal operation and controllable risk of the company and its wholly-owned subsidiaries, the rational use of idle self owned funds for cash management is conducive to improving the efficiency of capital use, increasing capital income and obtaining more returns for the company and shareholders.
(II) source of funds
The company idle its own funds.
(III) investment varieties
The company and its wholly-owned subsidiaries will strictly control risks in accordance with relevant regulations, strictly evaluate financial products, and plan to purchase financial products with high security, good liquidity, low and medium risk and relatively fixed income through banks, trusts, securities and other financial institutions.
(IV) investment amount and term
The company and its wholly-owned subsidiaries intend to use idle self owned funds of no more than 100 million yuan (including 100 million yuan) for cash management, with a service life of no more than 12 months from the date of deliberation and approval by the board of directors. Within the above quota and period, the funds can be used circularly and continuously.
(V) validity of the resolution
The implementation period of using idle self owned funds for cash management is valid within 12 months (including 12 months) from the date of deliberation and approval by the board of directors of the company.
(VI) implementation mode
Within the scope and validity of the quota, the board of directors of the company authorizes the management to handle relevant matters, and the financial department of the company is responsible for the specific implementation of the matters.
2、 Investment risk and risk control measures
(I) investment risk
1. The company and its wholly-owned subsidiaries use their own funds for cash management, which belongs to low-risk investment, but the financial market is greatly affected by macro-economy, so it is not excluded that this investment is affected by market fluctuations;
2. The company and its wholly-owned subsidiaries will timely and appropriately intervene according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable;
3. The operation and supervision of relevant staff are out of control.
(II) risk control measures
The company and its wholly-owned subsidiaries make decisions, manage, inspect and supervise cash management matters in strict accordance with relevant laws, regulations and rules, such as the stock listing rules of Shenzhen Stock Exchange (revised in 2022), the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, and Tianjin Yiyi Hygiene Products Co.Ltd(001206) articles of association, To ensure the security of funds, the following measures are taken:
1. The company will conduct pre audit and risk assessment, pay attention to the situation of investment products in time, and analyze the investment direction of financial products and project progress. If the assessment finds that there are risk factors that may affect the safety of funds, the company will take corresponding measures in time to control investment risks;
2. Purchase financial products with high security, good liquidity, medium and low risk and relatively fixed income;
3. The relevant departments of the company are responsible for auditing and supervising the use and custody of the funds of the invested products, and reporting to the audit committee of the board of directors;
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;
5. The company will timely disclose the purchase of financial products and relevant profits and losses in strict accordance with the relevant provisions of the CSRC and Shenzhen Stock Exchange.
3、 On the impact of using idle self owned funds for cash management on the company
Based on the principles of standardized operation, risk prevention and prudent investment, the company and its wholly-owned subsidiaries use idle self owned funds for cash management on the premise of ensuring daily operation and capital safety, which will not affect the normal needs of daily capital turnover and the normal development of main business; It is conducive to improving the efficiency of capital use and obtaining a good return on investment, which is in line with the interests of all shareholders of the company.
4、 Review procedures and relevant opinions on the use of idle self owned funds for cash management
(I) deliberations of the board of directors
The 24th Meeting of the second board of directors of the company deliberated and approved the proposal on using idle self owned funds for cash management. In order to further improve the efficiency of fund use and make rational use of idle self owned funds, without affecting the daily production and operation of the company and its wholly-owned subsidiaries and ensuring the safety and liquidity of funds, It is agreed that the company and its wholly-owned subsidiaries use idle self owned funds with a limit of no more than 100 million yuan (including 100 million yuan) for cash management, and purchase financial products with high security, good liquidity, medium and low risk and relatively fixed income through banks, trusts, securities and other financial institutions, with a service life of no more than 12 months (including 12 months) from the date of deliberation and approval by the board of directors, Within the above-mentioned period and limit, the funds can be used on a rolling basis. The board of directors of the company authorizes the company’s management to handle relevant matters, which shall be implemented by the finance department.
(II) opinions of independent directors
The independent directors’ independent opinions on the use of idle self owned funds for cash management of the company and its wholly-owned subsidiaries are as follows: after verification, on the premise of not affecting the daily operation of the company and its wholly-owned subsidiaries and ensuring capital liquidity, the company and its wholly-owned subsidiaries use idle self owned funds for cash management, which is conducive to improving the use efficiency of self owned funds and increasing investment income, In line with the interests of the company. The cash management has gone through the necessary examination and approval procedures, in line with the relevant provisions of laws, regulations and normative documents, and there is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. Therefore, it is unanimously agreed that the company and its wholly-owned subsidiaries use idle self owned funds with a total amount of no more than 100 million yuan (including 100 million yuan) for cash management. (III) verification opinions of the recommendation institution
After verification, the sponsor believes that the company’s use of idle self owned funds for cash management has been deliberated and approved by the board of directors, the independent directors have issued clear consent opinions and fulfilled the necessary legal procedures, The above matters comply with the requirements of relevant laws and regulations such as the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, the stock listing rules of Shenzhen Stock Exchange (revised in January 2022), which is conducive to improving the efficiency of capital use and will not affect the normal operation of the company and its wholly-owned subsidiaries, It is in line with the interests of the company and all shareholders, and there is no situation that damages the interests of the company and all shareholders, especially minority shareholders.
To sum up, Huarong securities has no objection to Tianjin Yiyi Hygiene Products Co.Ltd(001206) this use of idle self owned funds for cash management.
5、 Documents for future reference
1. Resolution of the 24th Meeting of Tianjin Yiyi Hygiene Products Co.Ltd(001206) the second board of directors; 2. Independent opinions of Tianjin Yiyi Hygiene Products Co.Ltd(001206) independent directors on matters related to the 24th Meeting of the second board of directors;
3. Verification opinions of Huarong Securities Co., Ltd. on Tianjin Yiyi Hygiene Products Co.Ltd(001206) using idle self owned funds for cash management.
It is hereby announced.
Tianjin Yiyi Hygiene Products Co.Ltd(001206) board of directors March 7, 2022
