Securities code: Shenzhen Huaqiang Industry Co.Ltd(000062) securities abbreviation: Shenzhen Huaqiang Industry Co.Ltd(000062) Announcement No.: 2022015 Shenzhen Huaqiang Industry Co.Ltd(000062)
About the use of self owned idle funds by the company and its holding subsidiaries
Announcement of 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.
Important content tips:
1. Investment type: use its own idle funds to purchase low-risk financial products (including structured deposit products).
2. Investment amount: no more than 1 billion yuan (including 1 billion yuan). The financial management quota can be used in a circular and rolling manner. During the validity period of the quota, the investment amount of the company and its holding subsidiaries' low-risk financial products (including the relevant amount reinvested with the entrusted financial management investment income) shall not exceed the above financial management quota at any time point.
3. Special risk tip: the company and its holding subsidiaries use idle funds to purchase low-risk financial products is a financial management method for the company to improve the use efficiency of idle funds on the premise of controllable risk. The risk is low. However, due to the changes of macroeconomic situation or market fluctuations, the actual income of entrusted financial management is uncertain. Investors are reminded to pay attention to investment risks.
1、 Overview of entrusted financial investment
The company held a meeting of the board of directors on March 9, 2022, deliberated and approved the proposal on the company and its holding subsidiaries using their own idle funds for entrusted financial management, and agreed that the company and its holding subsidiaries use their own idle funds to purchase low-risk financial products (including structured deposit products).
1. Investment purpose: the company and its holding subsidiaries use their own funds temporarily idle to purchase low-risk financial products in order to improve the use efficiency of idle funds and the income of cash assets, as well as to improve the return of shareholders. The purchase of the above-mentioned financial products will not affect the development of the company's main business.
2. Financial limit: no more than 1 billion yuan (including 1 billion yuan). The aforesaid financial management limit shall be valid within 12 months from the date of deliberation and approval by the board of directors of the company. The above-mentioned financial management limit can be used in a circular and rolling manner. During the validity period of the limit, the investment amount of the company and its holding subsidiaries' low-risk financial products (including the relevant amount reinvested with the entrusted financial management investment income) shall not exceed the above-mentioned financial management limit at any time point.
3. Investment method: purchase financial products with high security, good liquidity and low risk (including structured deposit products).
4. Investment period: the financial management quota shall be valid within 12 months from the date of deliberation and approval by the board of directors of the company. The maximum investment period of a single product shall not exceed 6 months.
5. Source of funds: the funds for the company and its holding subsidiaries to purchase low-risk financial products are limited to their own idle funds, and do not involve raised funds or bank credit funds.
2、 Review procedure
The company held a meeting of the board of directors on March 9, 2022 and deliberated and adopted the proposal on the company and its holding subsidiaries using their own idle funds for entrusted financial management. According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange and the articles of association, the proposal is within the deliberation authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation.
3、 Risk situation and risk control measures
1. Risk situation
The company and its holding subsidiaries use idle funds to purchase low-risk financial products with low risk. It is a financial management method for the company to improve the use efficiency of idle funds on the premise of controllable risk. However, due to changes in the macroeconomic situation or market fluctuations, the actual income of entrusted financial management is uncertain.
2. Risk control measures
(1) System construction: the company has formulated the entrusted financial management system, which clearly stipulates the risk control, decision-making procedures, reporting system, internal control and information disclosure of entrusted financial management of the company and its holding subsidiaries, so as to effectively standardize the entrusted financial management behavior and control the investment risk of financial products.
(2) Product selection: before purchasing financial products, the company will conduct comparative analysis between multiple counterparties and multiple products, and choose financial products with high security, good liquidity and low risk.
(3) Counterparty Management: when purchasing financial products, the company will choose banks and other financial institutions with good credit and financial conditions, strong profitability and no bad credit records as the trustee, and sign a written contract with the trustee to clarify the amount, term, investment variety, rights, obligations and legal responsibilities of both parties. (4) Strengthen operation management: the company's fund settlement center is the specific handling department of entrusted financial management, and a special person is assigned to be responsible for the management of entrusted financial management matters. In the process of entrusted financial management, the company will put risk prevention in the first place, strictly control the investment of financial products, make prudent decisions, closely track the progress and investment safety of entrusted financial management, strengthen risk control and supervision, and take timely measures to control investment risks if any situation that may affect the safety of the company's funds is found.
4、 Impact on the company
On the premise of ensuring the daily operation and capital safety, the company and its holding subsidiaries have fully estimated and calculated that the purchase of low-risk financial products with their own idle funds will not affect the normal development of their main business, and will help to improve the use efficiency of idle funds and the income of cash assets.
According to the accounting standards for business enterprises - No. 37, financial instruments and their related items shall be recognized in the accounting standards for business enterprises - financial management statement, and the relevant items shall be reflected in the accounting standards for business enterprises - No. 37.
5、 Opinions of independent directors
The independent directors of the company believe that the company and its holding subsidiaries use their own idle funds to purchase low-risk financial products (including structured deposit products). The approval procedures are legal and compliant, and the internal control procedures are sound, which can effectively prevent risks, will not damage the interests of the company and all shareholders, will not affect the daily operation of the company, and is conducive to improving the use efficiency of the company's funds. It is agreed that the company will use its own idle funds to purchase low-risk financial products within the limit of no more than 1 billion yuan (including 1 billion yuan).
6、 Documents for future reference
1. Resolutions of the board of directors;
2. Opinions of independent directors;
3. Entrusted financial management system.
It is hereby announced.
Shenzhen Huaqiang Industry Co.Ltd(000062) board of directors March 11, 2022
