Securities code: 603038 securities abbreviation: Dongguan Huali Industries Co.Ltd(603038) Announcement No.: 2022-001 Dongguan Huali Industries Co.Ltd(603038)
Announcement on the due redemption of some idle raised funds for purchasing financial products
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
1、 Review of authorization of idle raised funds to purchase financial products
Dongguan Huali Industries Co.Ltd(603038) (hereinafter referred to as “the company”) held the 17th meeting of the 5th board of directors and the 13th meeting of the 5th board of supervisors on August 10, 2021, deliberated and adopted the proposal on using some idle raised funds for cash management. In order to improve the use efficiency of raised funds and make rational use of idle raised funds, On the premise of not affecting the normal progress of the investment projects with raised funds, it is agreed that the company will use the temporarily idle raised funds with a total amount of no more than RMB 150 million for cash management, and timely purchase low-risk principal guaranteed financial products or structured deposits with high safety and liquidity. Within the above limit, the funds can be used on a rolling basis. The validity period of the authorization limit shall be valid within 12 months from the date of deliberation and approval by the board of directors. This matter does not need to be submitted to the general meeting of shareholders for deliberation. See the website of Shanghai Stock Exchange (www.sse. Com.. CN.) for details And the announcement on using some idle raised funds for cash management (Announcement No.: 2021-055) disclosed by the information disclosure media designated by the company.
2、 Due redemption of financial products purchased with some idle raised funds this time
The company purchased 20 million yuan of financial products from Industrial Bank Co.Ltd(601166) . The financial product will be redeemed on December 31, 2021. The details are as follows:
Trustee name product name amount annualized income amount
Type (10000 yuan) rate of return (yuan)
Financial products of Industrial Bank Co.Ltd(601166) joint stock bank Dongguan Huali Industrial Co., Ltd
Ltd. 32 day seal 20003.08% 54005.48
Closed product
3、 Risk control measures
The company’s choice of financial products is based on the premise of ensuring capital safety and liquidity, but the investment process of financial products does not rule out the impact of market fluctuations on financial returns, which has a certain investment risk.
For the investment risk of financial products, the company strictly follows the relevant provisions of the company to effectively prevent investment risk and ensure capital safety. The company mainly takes the following measures:
1. The Finance Department of the company will timely analyze and track the investment direction of financial products and the progress of the project. If it is found that there are risk factors that may affect the safety of funds, it will take corresponding measures in time to control the investment risk. 2. The Finance Department of the company implements authorization management for the purchase of financial products, and establishes standing books to facilitate the management of financial products, establish and improve accounting accounts, and do a good job in accounting the use of funds; Regularly report to the board of directors on the investment principal and income of financial products.
3. The Audit Department of the company shall regularly or irregularly inspect the purchase of financial products, supervise the financial department to implement risk management policies and risk management procedures, strictly review whether the purchase amount and risk nature of financial products are within the scope authorized by the board of directors of the company, and report to the board of directors of the company immediately if they exceed the scope of authorization. 4. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and may hire professional institutions to audit when necessary.
4、 Impact on the company
The company uses some idle raised funds to invest in financial products on the premise of ensuring the safety of the company’s raised funds, which will not affect the normal development of the company’s main business, improve the use efficiency of idle raised funds, obtain certain investment benefits, and will not affect the construction of investment projects and the use of raised funds, There is no behavior of changing the purpose of the raised funds in a disguised form, which 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.
5、 As of the date of this announcement, the company and its subsidiaries have used the raised funds for entrusted financial management in the past 12 months as follows:
Actual investment actual recovery actual income not recovered serial number financial product type amount principal amount (RMB (RMB) (RMB 10000) RMB 10000)
1 bank financial products 8000631145.21-
2 bank financial products 6000453698.63-
3. Bank financial products 200054005.48-
4 bank financial products 2000 — 2000
5. Financial products of securities companies 2000 — 2000
6. Financial products of securities companies 2000 — 2000
7 bank financial products 2500 — 2500
8 bank financial products 2500 — 2500
9 bank financial products 2000 — 2000
Total 29000160001138849.3213000
Maximum daily investment amount in the last 12 months (10000 yuan) 15000
Maximum daily investment amount in the last 12 months / net assets of the last year (%) 13.78
Cumulative income from entrusted financial management in the last 12 months / net profit of the last year (%) 3.27
At present, the used financial management limit (10000 yuan) is 13000 yuan
Unused financial management limit (RMB 10000)
Total financial management limit (10000 yuan) 15000
It is hereby announced.
Dongguan Huali Industries Co.Ltd(603038) board of directors January 4, 2022
