Securities code: Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) securities abbreviation: Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) Announcement No.: 2022012 Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773)
Announcement on the progress of using some idle raised 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.
Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) (hereinafter referred to as ” Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) ” or “the company”) the third meeting of the seventh board of directors and the second meeting of the seventh board of supervisors respectively deliberated and adopted the proposal on cash management with some idle raised funds, and agreed that the company would not affect the construction of investment projects with raised funds and the normal operation of the company, The idle raised funds of no more than 890 million yuan shall be used for cash management for the purchase of principal guaranteed financial products with high safety and short-term (no more than one year). The service life is 24 months from the date of deliberation and approval by the board of directors of the company. Within the above use period and limit, the funds can be used on a rolling basis. For details, please refer to the company’s designated information disclosure media and cninfo (www.cn. Info. Com. CN.) on April 29, 2020 Announcement on using some idle raised funds for cash management (Announcement No.: 2020030).
Recently, the company’s subsidiary Beijing Kanghong biomedical Co., Ltd. (hereinafter referred to as “Beijing Kanghong”) used some idle raised funds for cash management. The relevant information is hereby announced as follows: I. progress of cash management
(I) Bank Of China Limited(601988) financial products
Affiliated bank Bank Of China Limited(601988) Wuhou sub branch
1. Product Name: linked structured deposits (institutional customers)
2. Product Code: csdvy202213616 csdvy202213617
3. Product type: principal guaranteed minimum return type
4. The purchase amount is 59 million yuan and 61 million yuan
5. Starting date of income: March 10, 2022 March 10, 2022
6 expiry date April 26, 2022 April 27, 2022
7 product life 47 days 48 days
(1) The rate of return is determined according to the following formula: if (1) the rate of return is determined according to the following formula: if at the observation point, the linked index [less than the observation point, the linked index [greater than the observation level], after deducting the product cost (if any), the level], after deducting the product cost (if any), The guaranteed rate of return of products [1.3000%] the guaranteed rate of return of products [1.3100%] (annual rate); If at the observation time point, the hook (annual rate); If at the observation time point, the linked index is [greater than or equal to the observation level], the index is deducted [less than or equal to the observation level], after deducting the product cost (if any), the product obtains the highest rate of return [3.2900%] (annual rate) after deducting the product cost (if any). Maximum yield [3.3000%] (annual rate). (2) The linked index is Bloomberg’s “[bfix EURUSD]” (2) the linked index is the middle price of [euro / USD spot exchange rate] published on Bloomberg’s “[bfix EURUSD]” page, rounded to the decimal point rate], Round to [four places] after the decimal point. If one day Bloomberg bfix page [four]. If there is no relevant data on the actual rate of return on page 8 of Bloomberg bfix on a certain day, Bank Of China Limited(601988) will be determined as there is no relevant data on the surface, Bank Of China Limited(601988) will be determined by notarization and rational business methods. Notarization attitude and rational business mode. (3) The benchmark value is 14:00 (3) Beijing time on the benchmark day. The benchmark value is the central price of [euro / US dollar] published on the “bfix EURUSD” page of Bloomberg and the central price of [euro / US dollar] published on the “bfix EURUSD” page of Bloomberg, Round to [four places] after the decimal point. If rounded to [four places] after the decimal point. If there is no relevant data on Bloomberg bfix page on a certain day, if there is no relevant data on Bloomberg bfix page on a certain day, Bank Of China Limited(601988) will handle the data with notarization attitude, and Bank Of China Limited(601988) will be determined with notarization attitude and rational business method. Determined by the commercial way.
(4) Observation level: reference value -0.0205. (4) Observation level: reference value + 0.0340.
(5) The base date is March 10, 2022.
(5) The base date is March 10, 2022.
(6) The observation period / time point is April (6) 2022. The observation period / time point is 14:00 Beijing time on April 21, 2022. At 14:00 Beijing time on the 22nd.
(7) The calculation basis of product income is act365. (7) The calculation basis of product income is act365.
9. Source of funds: idle raised funds
10. Related relationship: Beijing Kanghong has no related relationship with Bank Of China Limited(601988) Wuhou sub branch
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11. Risk disclosure
This structured deposit product has investment risks. It only guarantees the minimum return rate agreed in the product subscription fund and the subscription power of attorney of this structured deposit, and does not guarantee the return higher than the minimum return rate. Investors should fully understand the investment risks and invest cautiously.
(1) Policy risk: this structured deposit product is designed according to the current laws and regulations, relevant regulatory provisions and policies. If the national macro policies, market laws and regulations and relevant regulatory provisions change, it may affect the normal operation of the acceptance, investment operation, liquidation and other businesses of this structured deposit product, resulting in the reduction of the actual rate of return of this product; It may also cause the product to violate the relevant provisions of national laws and regulations or other policies, resulting in the invalidation, cancellation, dissolution or early termination of the product.
(2) Market risk: affected by various market factors and macro policy factors, the price change of the linked index may affect investors’ inability to obtain product returns higher than the guaranteed yield.
(3) Liquidity risk: this structured deposit product does not provide a redemption mechanism before the maturity date, and investors do not have the right to unilaterally terminate in advance within the term of the product, which may lead to the risk that investors cannot cash in at any time when they need funds, and may cause investors to lose other investment opportunities.
(4) Credit risk: under the extreme circumstances of Bank Of China Limited(601988) credit risk, such as being revoked or filed for bankruptcy according to law, it will have an impact on the payment of principal and income of this structured deposit product.
(5) Risk of early termination: during the duration of this structured deposit product, in case of major changes in laws, regulations, regulatory provisions, or force majeure, this product can be terminated in advance. In the case of early termination, investors face the risk of failing to obtain the principal and expected return within the scheduled period.
(6) Information transmission risk: during the duration of this structured deposit product, investors shall timely query the relevant information of this structured deposit product according to the information disclosure method specified in the product manual. If the investor fails to inquire in time or due to the influence of communication failure, system failure and other force majeure factors other than Bank Of China Limited(601988) reasons, the investor cannot understand the product information in time, which affects the investor’s investment decision, All responsibilities and risks arising from this (including but not limited to missing fund use and Reinvestment opportunities due to failure to obtain information in time) shall be borne by the investors themselves. In addition, if the effective contact information reserved in Bank Of China Limited(601988) is changed, the investor shall timely notify Bank Of China Limited(601988) . If the investor fails to inform the change of contact information in time, Bank Of China Limited(601988) may not be able to contact the investor in time when it deems it necessary, and may affect the investor’s investment decision. All responsibilities and risks arising therefrom shall be borne by the investor.
(7) Interest rate and inflation risk: during the duration of this structured deposit product, even if the people’s Bank of China adjusts the deposit interest rate and / or loan benchmark rate, the actual rate of return of this product may not be adjusted accordingly. At the same time, there is a risk that the actual rate of return of investors may be lower than the inflation rate, resulting in negative actual rate of return of investors.
(8) Risk of failure of the product: if the raising period of the structured deposit product expires, the total amount raised does not reach the lower limit of scale (if agreed), or the market is violent or other circumstances that make it difficult for the product to be established occur, and it is difficult to provide the product to investors in accordance with the provisions of the product manual after Bank Of China Limited(601988) reasonable judgment, Bank Of China Limited(601988) has the right to announce that the product is not established. At this time, investors should actively pay attention to Bank Of China Limited(601988) relevant announcements, and make timely reinvestment arrangements for the returned funds, so as to avoid the loss of investment opportunities due to mistakenly believing that the structured deposit product is established according to the original plan.
(9) Other risks: including but not limited to unforeseen, unavoidable and insurmountable force majeure events such as natural disasters, financial market crisis, war or national policy changes, or unexpected events such as banking system failure, communication failure, power interruption and suspension of trading in the investment market, which may affect the establishment of structured deposit products, investment operation, capital return Information disclosure, announcement and notice may have an impact, and may even lead to the reduction of the actual rate of return of the product and even the loss of principal. Any loss caused by force majeure and the risk of accidents not caused by Bank Of China Limited(601988) shall be borne by the investor, and Bank Of China Limited(601988) shall not bear any responsibility.
2、 Risk control measures
(I) investment risk
1. Although the cash management varieties of the above investments belong to low-risk investment varieties, the financial market is greatly affected by the macro-economy, and it is not excluded that such investments are affected by market fluctuations.
2. The actual return of short-term investment is unpredictable.
3. Operational risks of relevant personnel.
(II) risk control measures
1. For cash management, the company will select qualified professional financial institutions with good credit status, good financial status, no bad credit record and strong profitability as the trustee, and sign a written contract with the trustee to clarify the amount, period, investment variety, rights, obligations and legal responsibilities of both parties.
2. During the implementation period, the financial department shall timely analyze and follow up the investment direction and project progress of cash management varieties. Once adverse factors are found or judged, corresponding preservation measures will be taken in time to control investment risks.
3. The financial department shall regularly conduct a comprehensive inspection of all cash management investment projects, and reasonably predict the possible gains and losses of various investments according to the principle of prudence.
4. Strengthen the quality and relevant skills of operators.
5. The internal audit department of the company regularly audits and supervises the use and custody of funds purchased by the company for financial products.
6. 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.
3、 Impact on the company’s operation
1. The company uses some idle raised funds to invest in short-term financial products with high safety and low risk, which is implemented on the premise of ensuring that the investment plan of raised funds is not affected, and will not affect the normal turnover needs of the company’s project construction of raised funds.
2. Through appropriate low-risk short-term financial management, we can improve the efficiency of capital use, obtain certain investment benefits, and seek more investment returns for the company and shareholders.
4、 Cash management within 12 months before the announcement date
As of the date of this announcement, the company used the temporarily idle raised funds for cash management, and the undue balance was 120 million yuan, which did not exceed the amount range and service life approved by the board of directors of the company. The details are as follows:
Order bank name product name product type purchase amount value date maturity date whether investment income (yuan) No. (10000 yuan) redemption
1 Bank Of Chengdu Co.Ltd(601838) Jinjin “Furong Jincheng” single customized 2500
