Securities code: Jiangsu Tongli Risheng Machinery Co.Ltd(605286) securities abbreviation: Jiangsu Tongli Risheng Machinery Co.Ltd(605286) Announcement No.: 2022016 Jiangsu Tongli Risheng Machinery Co.Ltd(605286)
Announcement on using self owned funds for cash management
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.
Important content tips:
Cash management trustee: commercial banks and other financial institutions with legal business qualifications.
Cash management amount: no more than 100 million yuan (including this amount).
Term of cash management authorization: within 12 months from the date of deliberation and approval by the board of directors, within the scope and term of the limit, the funds can be recycled and rolled, and returned to the company’s own fund account after expiration.
Varieties of cash management products: financial products with high security and good liquidity.
Deliberation procedures performed: Jiangsu Tongli Risheng Machinery Co.Ltd(605286) (hereinafter referred to as “the company”) held the fourth meeting of the second board of directors on March 17, 2022, deliberated and adopted the proposal on cash management with its own funds, and agreed that the company should use its own funds for cash management to maintain and increase the value of funds. This proposal does not need to be submitted to the general meeting of shareholders for deliberation.
1、 Investment overview
1. Investment purpose
On the premise of ensuring the company’s daily operation capital demand and capital safety, use idle self owned funds for cash management, improve the use efficiency of idle self owned funds, improve the return on assets, and seek better return on investment for the company and shareholders.
2. Source of funds
Idle self owned funds of the company and its subsidiaries.
3. Investment quota
According to the current capital situation of the company, the company and its subsidiaries plan to jointly use no more than RMB 100 million (including this amount) for cash management. Within the above investment limit, the funds of each investor can be used on a rolling basis.
4. Product variety
The company will strictly control risks in accordance with relevant regulations, and the products invested with idle self owned funds are financial products with high safety and good liquidity
5. Authorization period
It shall be valid within 12 months from the date of deliberation and approval by the board of directors. Within the scope and duration of the limit, the funds can be recycled and rolled, and returned to the company’s own fund account after expiration.
6. Implementation and authorization
The company’s investment management department shall be responsible for the execution of relevant legal decisions, and the financial management department shall be responsible for the execution of relevant legal decisions.
2、 Cash management risk control measures
1. The company will strictly abide by the principle of prudent investment and choose stable investment varieties.
2. The company will abide by the principle of prudent investment, strictly screen the issuers, and select financial institutions with good reputation and strong capital security ability. The Finance Department of the company will timely analyze and track the situation of investment products. If risk factors that may affect the safety of the company’s funds are found in the assessment, corresponding measures will be taken in time to control the risks. 3. 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、 Information of the trustee
The trustee of the cash management products to be purchased by the company is a bank and other financial institution with legal business qualification, and the risk will be strictly controlled according to the credit status of the trustee.
4、 Impact on the company
1. Main financial indicators of the company in the latest year and the first period:
Unit: Yuan
Main accounting data December 31, 2021 September 30, 2021
(audited) (Unaudited)
Total assets 199947051302199432942381
Total liabilities 5253213293355514357582
Net attributable to shareholders of the parent company 147414918369143918584799
assets
January December 2021 (audited) January September 2021 (Unaudited)
Cash flow from operating activities -13492013518 -228866314
Net amount
As of December 31, 2021, the monetary capital of the company was 28274876465 yuan. The amount of the company’s current cash management accounts for 35.37% of the company’s monetary capital in the latest period. The company uses its own funds temporarily idle for cash management on the premise of ensuring the company’s daily operation and capital safety. The company will follow the principle of “capital safety, risk prevention and standardized operation”, which will not affect the normal turnover needs of the company’s daily capital and the normal development of the company’s main business, It does not involve the use of raised funds.
2. Accounting treatment
The company’s cash management products will be handled in strict accordance with the requirements of the “new standards for financial instruments”, which may affect the subjects of “trading financial assets” and “monetary funds” in the balance sheet, and the subjects of “financial expenses”, “profit and loss from changes in fair value” and “investment income” in the income statement.
5、 Risk tips
The financial products to be purchased by the company are mainly financial products with high safety and good liquidity, but the financial market is greatly affected by the macro economy. It is not ruled out that the investment is affected by the market fluctuation risk, the macro-economic situation and the systematic risk caused by the change of monetary policy, fiscal policy and other macro policies, and the actual income of the investment is unpredictable.
6、 Approval procedures performed and relevant opinions
(I) deliberations of the board of directors
On March 17, 2022, the fourth meeting of the second board of directors deliberated and approved the proposal on using self owned funds for cash management, which agreed that the company should use self owned funds for cash management to maintain and increase the value of funds. This proposal does not need to be submitted to the general meeting of shareholders for deliberation and approval.
(II) opinions of independent directors of the company
The independent directors of the company believe that on the premise of ensuring daily operation and controlling risks, the company follows the principle of “standardized operation, risk prevention and capital safety”, and makes rational use of its own funds for cash management, which is conducive to improving the efficiency of capital use, will not affect the normal development of its main business, will not affect the capital turnover of the company, and will not involve the use of raised funds.
The voting procedure of this matter complies with the requirements of relevant laws and regulations, and has fulfilled the necessary approval procedures, which is in line with the long-term development of the company and the interests of the company’s shareholders.
Independent directors unanimously agree that the company uses its own funds for cash management.
7、 As of the date of this announcement, the company has used its own funds for cash management in the last 12 months. Unit: 10000 yuan
No. financial product type actual investment amount actual principal recovered actual income outstanding principal amount
1 bank financial products 1066080010660800 186.98 0.00
Total 1066080010660800 186.98 0.00
The maximum daily investment amount in the last 12 months is 540000
Maximum daily investment amount in the last 12 months / net assets of the last year (%) 3.66
Cumulative income from cash management in the last 12 months / net profit of the last year (%) 1.24
Currently, the used financial limit is 0.00
Unused financial limit 1000000
Total financial limit 1000000
It is hereby announced.
Jiangsu Tongli Risheng Machinery Co.Ltd(605286) board of directors March 19, 2022
