Stock Code: Jiangsu Azure Corporation(002245) stock abbreviation: Jiangsu Azure Corporation(002245) No.: 2022016 Jiangsu Azure Corporation(002245)
Announcement on using self owned funds to purchase financial products
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、 Investment overview
Jiangsu Azure Corporation(002245) (hereinafter referred to as “the company”) held the 25th meeting of the 5th board of directors on March 19, 2022. The meeting deliberated and adopted the proposal on using self owned funds to purchase financial products. In order to improve the efficiency of using the company’s temporarily idle self owned funds, it is agreed that the company can use idle self owned funds to purchase financial products with high safety and reliability on the premise of ensuring that the normal operation of the company is not affected and risks are effectively controlled Low risk financial products with good liquidity to increase the company’s income. The amount shall not exceed RMB 1 million, which can be recycled. The management of the company is authorized to handle relevant matters, and the authorization period is from the date of adoption of the general meeting of shareholders to the date of convening the annual general meeting of shareholders of the next year.
2、 Internal control system of investment
All along, the company has continuously improved its governance structure and established a relatively perfect internal control system. The articles of association and the general manager’s working rules and other relevant systems have set up a series of authorities for foreign investment. At the same time, the company has established the foreign investment management system, which clearly stipulates the investment decision-making authority and procedures of foreign investment matters, special provisions on venture capital, information disclosure and internal information reporting procedures, implementation, inspection and supervision, and the responsibilities of directors, general managers, other managers and relevant responsible units.
3、 Risk analysis of investment and risk control measures to be taken by the company
In order to effectively control risks, the company invests in short-term (no more than one year) low-risk financial products. However, the financial market is greatly affected by the macro-economy. The company will intervene in a timely and appropriate amount according to the economic situation and changes in the financial market, but it does not rule out that the investment is affected by market fluctuations. For possible investment risks, the company proposes the following measures:
1. The Finance Department of the company will timely analyze and track the investment direction of financial products and project progress. If adverse factors are found or judged, corresponding measures will be taken in time to control investment risks;
2. The Audit Department of the company is the supervision department of the financial product business, which focuses on the audit and supervision of the company’s purchase of financial product business by combining regular and irregular inspection;
3. Independent directors, the board of supervisors and the recommendation institution have the right to supervise and inspect the company’s purchase of financial products;
4. The company will timely perform the obligation of information disclosure in accordance with the relevant provisions of Shenzhen Stock Exchange.
4、 Impact of investment on the company
1. The company plans to reasonably use its own funds to purchase bank financial products according to the actual capital situation, and has fulfilled the necessary legal procedures, which will help to improve the efficiency of capital use and will not affect the normal development of the company’s main business.
2. Through appropriate low-risk short-term financial management and timely cash management of temporarily idle self owned funds, we can obtain a certain investment income, which is conducive to further improve the overall performance level of the company and seek more investment returns for the company and shareholders.
5、 Opinions of independent directors
The opinions of the independent directors of the company are as follows: according to the actual capital situation and within a certain amount, the company reasonably uses its own funds to purchase bank financial products, which will help to improve the efficiency of capital use and obtain a certain return of income, will not affect the normal development of the company’s main business, and is in line with the interests of the company and all shareholders. The company has fulfilled the necessary legal procedures and the approval procedures are in compliance. Meanwhile, the company has established sound internal control procedures to prevent possible risks. We agree to submit the purchase of financial products with our own funds to the general meeting of shareholders for deliberation.
6、 Opinions of the board of supervisors
After deliberation, the board of supervisors held that the company should reasonably use its own funds to purchase bank financial products according to the actual capital situation, so as to improve the capital income. The amount should not exceed RMB 1 million. The amount can be recycled, which is helpful to improve the efficiency of capital use and obtain more income for the company. There is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. The company’s approval procedures comply with the relevant provisions of laws and regulations and the articles of association. The board of supervisors agreed to the company’s purchase of financial products with its own funds.
7、 Other matters
The company promises that if the purchase of financial products involves venture capital matters, the company will not use idle raised funds to temporarily supplement working capital, change the investment direction of raised funds to permanently supplement working capital, permanently use the over raised funds to supplement working capital or repay bank loans within 12 months after the actual occurrence.
8、 Documents for future reference 1. Resolutions of the 25th meeting of the 5th board of directors of the company; 2. Resolutions of the 21st Meeting of the 5th board of supervisors of the company; 3. Independent opinions of independent directors on relevant matters.
Jiangsu Azure Corporation(002245) board of directors March 22, 2002
