Securities code: Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) Announcement No.: 2022023
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317)
Announcement on the progress of using idle self owned funds for entrusted financial 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.
1、 Overview
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) (hereinafter referred to as “the company”) held the 14th meeting of the 7th board of directors and the 8th meeting of the 7th board of supervisors on October 27, 2021, deliberated and adopted the proposal on using idle self owned funds for entrusted financial management, It is agreed that the company and its subsidiaries (subsidiaries within the scope of the company’s consolidated statements) use idle self owned funds of no more than RMB 300 million for entrusted financial management on the premise of ensuring the demand for daily production and operation and project construction funds and effectively controlling risks. The term is 12 months from the date of deliberation and approval by the board of directors, and the transaction amount at any time point within the term shall not exceed RMB 300 million. Within the above term and limit, the funds can be used on a rolling basis.
For details of the above, please refer to the company’s publication in the securities times and cninfo (www.cn. Info. Com. CN.) on October 28, 2021 Relevant announcements.
According to the above resolution, the company used idle self owned funds of RMB 50 million to purchase financial products on March 7, 2022. The specific contents are announced as follows:
2、 Financial products purchased this time
On March 7, 2022, the company used idle self owned funds of RMB 50 million to purchase unit structured deposits of Dongguan bank. The details are as follows:
(I) product name: unit structured deposit of Dongguan bank
(II) product type: Principal Guaranteed floating income
(III) source of funds: self owned funds
(IV) currency: RMB
(V) subscription amount: 50 million yuan
Securities code: Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) Announcement No.: 2022023
(VI) product value date: March 9, 2022
(VII) product expiration date: March 6, 2023
(VIII) expected / reference annualized rate of return: 2.20% – 4.10%
(IX) description of related relationship: the company has no related relationship with Dongguan bank.
(x) product risk tips:
1. Principal and interest risk: Dongguan bank provides guarantee commitment for the principal of the structured deposit, but does not guarantee that the structured deposit can achieve the highest return. The final return of the structured deposit depends on the price change of the linked object and is affected by many factors of the market.
2. Policy risk: this deposit is designed for the current relevant regulations and policies. If the national macro policies and relevant market regulations and policies change, it may affect the normal process of deposit acceptance, investment and repayment, and even reduce the interest of this deposit.
3. Liquidity risk: during the duration of the product, customers do not have the right to withdraw and redeem in advance.
4. Information transmission risk: Dongguan bank will disclose the information of structured deposits in accordance with the agreement on “information disclosure” in this product manual. If the customer fails to inquire in time, or due to the influence of communication failure, system failure and other force majeure factors, the depositor cannot understand the deposit information in time, which affects the customer’s investment decision, the resulting responsibilities and risks shall be borne by the customer.
5. If the deposit scale of Dongguan bank fails to meet the requirements of this agreement or the structural risk of offering deposits to customers fails to meet the requirements of this regulation, and the deposit scale of Dongguan bank is difficult to meet the requirements of this agreement or the relevant policies of the market after the establishment of this agreement, or the structural risk of offering deposits to customers fails to meet the requirements of this regulation, Dongguan bank has the right to decide whether the structured deposit is not established.
6. Data source risk: in the calculation of the deposit yield, the price level of the linked object provided by the data provider needs to be used. If the reference page provided by the data provider agreed in the product manual cannot give the required price level at that time, Dongguan bank will select a reasonable price level recognized by the market for calculation based on the principles of fairness, impartiality and fairness.
7. Risk of early termination: in case of major changes in laws, regulations and regulatory provisions during the duration of structured deposits, requiring the termination of this product, Dongguan bank has the right to terminate structured deposits in advance.
8. Force majeure risk: refers to the occurrence of force majeure factors such as natural disasters and wars, which may affect the normal progress of the value, duration and maturity of the deposit, and even lead to the reduction of the income of the deposit and even the loss of the principal, which shall be borne by the customer.
Securities code: Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) Announcement No.: 2022023
3、 Investment risk analysis and risk control measures
(I) the risks that the financial products purchased by the company may face include policy risk, credit risk, interest rate risk, liquidity risk, reinvestment risk, management risk, information transmission risk, other risks and other common risks of bank financial products. The bank financial products purchased this time are non breakeven floating income financial products, and the bank does not provide guarantee commitment for the principal and income of such financial products.
(II) for possible investment risks, the company plans to take the following measures:
1. The company will strictly abide by the principle of prudent investment, and the investment amount will be operated in strict accordance with the amount approved by the board of directors.
2. The company will strengthen market analysis and research, timely adjust the investment strategy and scale, and take corresponding risk control measures in time to strictly control the investment risk once adverse factors are found or judged.
3. The company has formulated the securities investment and derivatives trading management system, which makes detailed provisions on the company’s investment principles, scope, authority, internal audit process, internal reporting procedures, supervision of fund use, responsible departments and responsible persons, which can effectively prevent investment risks. At the same time, the company will earnestly implement relevant internal management systems and strictly control risks.
4. Select financial institutions with legal business qualifications for transactions. If necessary, external personnel with rich investment practical management experience can be hired to provide consulting services for the company’s venture capital, so as to ensure that the company carries out strict and scientific demonstration before investment and provide reasonable suggestions for correct decision-making.
5. The Audit Department of the company is responsible for the audit and supervision of the investment, the pre audit, in-process supervision and post audit of the invested products, the comprehensive review of various investments every half a year and the timely report of the inspection results to the audit committee.
6. Independent directors and the board of supervisors have the right to supervise and inspect the products invested by the company, and can hire professional institutions to audit when necessary.
4、 Impact on the daily operation of the company
The company adheres to the principle of prudent investment. On the premise of ensuring normal operation, the entrusted financial management business with its own funds will not affect the normal turnover of the company’s daily funds and the normal development of the company’s main business. Through appropriate investment and financial management business, it is conducive to improve the use efficiency of the company’s funds and the income of cash assets, and further improve the overall performance level of the company, which is in line with the interests of the company and all shareholders.
Securities code: Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) Announcement No.: 2022023
5、 Purchase of financial products within 12 months before the announcement date
As of the announcement date, the company and its subsidiaries have purchased a total of 110 million financial products in the past 12 months
Yuan (including this time). The details are as follows:
Order company trustee name product name type fund purchase amount expected annual income so-called source (10000 yuan) profit rate (10000 yuan)
Dongguan bank Yulan
Guangdong Zhongsheng Dongguan bank financial value growth non breakeven idle products not 1 Pharmaceutical Co., Ltd. Nianfeng No. 22 received its own Shanghai Pudong Development Bank Co.Ltd(600000) 4.25% – 4.60% of the mature company’s regular open-ended net profit funds one year
Value based financial products
Guangdong Zhongsheng Dongguan bank Dongguan bank unit breakeven floating idle products are not 2 Pharmaceutical Co., Ltd. structural deposit dynamic income has its own 500000 2.20% – 4.10% of the company’s funds due
6、 Documents for future reference
(I) resolutions of the 14th meeting of the 7th board of directors of the company;
(II) product description of unit structured deposits of Dongguan bank.
It is hereby announced.
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) board of directors
March 8, 2002
