Securities code: Dayu Water-Saving Group Co.Ltd(300021) securities abbreviation: Dayu Water-Saving Group Co.Ltd(300021) Announcement No.: 2022034 bond Code: 123063 bond abbreviation: Dayu convertible bond
Dayu Water-Saving Group Co.Ltd(300021)
Announcement on using some idle self owned funds for cash management
The company and all members of its board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Dayu Water-Saving Group Co.Ltd(300021) (hereinafter referred to as ” Dayu Water-Saving Group Co.Ltd(300021) ” or “the company”) held the 62nd (temporary) meeting of the 5th board of directors and the 40th (temporary) meeting of the 5th board of supervisors on March 8, 2022, deliberated and adopted the proposal on cash management using some idle self owned funds, and agreed to ensure that it will 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 its own idle funds of no more than 150 million yuan for cash management, with a service life of 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. The details are 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 through cash management of 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 quota
The company plans to use no more than 150 million yuan of idle self owned funds for cash management, which can be recycled and rolled within the above limit.
(III) investment period
The validity period of cash management is 12 months from the date of deliberation and approval of the 62nd (Interim) meeting of the Fifth Board of directors of the company.
(IV) investment varieties
This cash management is intended to be used to purchase medium and low risk Financial products with good liquidity (including but not limited to financial products, asset management plans, structured deposits, money market funds, bond funds, national debt reverse repurchase, securities company income certificates, stock and depositary receipt investments and Shenzhen securities issued by commercial banks, securities companies, fund companies, insurance companies, trust companies, financial asset investment companies, private fund managers or other financial institutions) Other investment behaviors recognized by the stock exchange).
(V) source of funds
The company idle its own funds.
(VI) implementation mode
Investment products must be purchased in the name of the company. The board of directors authorizes the chairman of the company to exercise investment decision-making power within the above limit and sign relevant documents. The person in charge of the company’s financial management center is responsible for organizing the implementation, and the Fund Department of the financial management center is the specific handling department.
(VII) information disclosure
The company will, in accordance with the relevant provisions of Shenzhen Stock Exchange GEM Listing Rules, Shenzhen Stock Exchange listed companies self regulatory guidelines No. 2 – standardized operation of GEM listed companies, and listed companies self regulatory guidelines No. 7 – transactions and related party transactions, Disclose the progress and implementation of cash management with temporarily idle own funds.
2、 Investment risk analysis and risk control measures
(I) investment risk
(1) Although the financial products planned to be purchased belong to the category of low-risk investment and have been strictly evaluated, the financial market is greatly affected by the macro-economy, and it is not ruled out that such investment will be affected by market fluctuations.
(2) The company will intervene timely and appropriately according to the macroeconomic situation and changes in the financial market, so the actual income of short-term investment can not be expected.
(3) Investment products may have policy risks, credit risks, market risks, liquidity risks, management risks, early termination risks, force majeure and accident risks, and other risks disclosed by the trustee. (4) Operation and monitoring risks of relevant staff.
(II) for investment risks, the proposed measures are as follows:
1. The board of directors of the company authorizes the chairman of the company to exercise the investment decision-making power within the scope of investment quota and sign relevant contracts. The person in charge of the company’s financial management center is responsible for organizing the implementation, and the Fund Department of the financial management center is the specific handling department. According to the company’s financial status, cash flow status and interest rate changes, as well as the resolutions of the board of directors on investment and wealth management, the capital Department of the financial center judges the capital source, investment scale and expected income of wealth management, and reviews the content and risk assessment of wealth management products.
2. The Fund Department of the financial management center will analyze and track the progress in time. Once it is found that there are risk factors that may affect the company’s fund safety, it will take preservation measures in time to control the investment risk.
3. The company’s internal audit department is responsible for auditing and supervising the use and custody of the company’s funds for purchasing financial products, comprehensively inspecting all investment projects of financial products every quarter, reasonably predicting the possible gains and losses of various investments according to the principle of prudence, and reporting to the company’s board of directors and Audit Committee.
4. The board of supervisors and independent directors of the company 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 relevant information in accordance with the relevant provisions of Shenzhen Stock Exchange. 3、 The impact of using some idle self owned funds for cash management on the company’s daily operation
Adhering to the principles of standardized operation, risk prevention, prudent investment, value preservation and appreciation, the company uses temporarily idle self owned funds for cash management on the premise of ensuring the daily operation and capital safety of the company, which will not affect the normal turnover needs of the company’s daily funds and the normal development of the company’s main business; By investing in appropriate short-term principal guaranteed financial products and financial products with high safety, strong liquidity and low risk, it is conducive to improve the use efficiency of the company’s temporarily idle own funds, obtain certain capital income, and bring more investment income to the company and all shareholders.
4、 Review and approval procedures and relevant opinions
1. Perform approval procedures
On March 8, 2022, the company held the 62nd (Interim) meeting of the 5th board of directors and the 40th (Interim) meeting of the 5th board of supervisors, deliberated and adopted the proposal on using some idle self owned funds for cash management, and agreed that on the premise of ensuring that it does not affect the needs of the company’s production, operation and business development and effectively controlling risks, The company plans to use its own idle funds of no more than 150 million yuan for cash management, and the service life is within 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. The above matters fall within the approval authority of the board of directors and do not need to be submitted to the general meeting of shareholders for deliberation.
2. Independent directors express independent opinions
The independent directors of the company believe that the company plans to use no more than 150 million yuan of idle self owned funds for cash management without affecting the normal operation, in order to improve the efficiency of the use of funds and increase the company’s income, and there is no damage to the interests of shareholders of the company, especially small and medium-sized shareholders; The company has established a relatively sound internal control system and can effectively implement it, which provides a strong guarantee for the development of the company’s investment and wealth management business.
This item has fulfilled the necessary examination and approval procedures and met the requirements of relevant laws and regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange. Therefore, we agree that the company will use no more than 150 million yuan of idle self owned funds for cash management. Within the above limit and validity period, the funds can be used on a rolling basis.
5、 Documents for future reference
1. Resolutions of the 62nd (Interim) meeting of the 5th board of directors;
2. Resolutions of the 40th (Interim) meeting of the 5th board of supervisors;
3. Independent opinions of independent directors on matters related to the 62nd (Interim) meeting of the Fifth Board of directors of the company;
It is hereby announced.
Dayu Water-Saving Group Co.Ltd(300021) board of directors March 9, 2022
