Securities code: Beijing Kingsoft Office Software Inc(688111) securities abbreviation: Beijing Kingsoft Office Software Inc(688111) Announcement No.: 2022011 Beijing Kingsoft Office Software Inc(688111)
Announcement on Authorizing the continued use of idle self owned funds to purchase 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 legal responsibility for the authenticity, accuracy and completeness of its contents.
Beijing Kingsoft Office Software Inc(688111) (hereinafter referred to as “the company”) held the 22nd Meeting of the second board of directors and the 19th meeting of the second board of supervisors on March 23, 2022. The meeting deliberated and adopted the proposal on Authorizing the continued use of idle self owned funds to purchase financial products. On the premise of ensuring the daily operation capital demand and capital safety, It is agreed that the company (including the subsidiaries directly or indirectly controlled) shall use the temporarily idle self owned funds of no more than RMB 600 million to purchase low-risk financial products with high safety and good liquidity. The validity period is from the date of deliberation and approval of the 2021 annual general meeting of shareholders to the 2022 annual general meeting of shareholders. Within the above limit and period, the balance of financial products shall not exceed the above limit, The transaction amount of the company’s purchase of financial products can be allocated according to the actual situation, and the funds can be used in a rolling manner within the above limit. At the same time, authorize the chairman to sign relevant legal documents or make decisions on relevant matters, and agree that the specific investment activities shall be organized and implemented by the Finance Department of the company. The details are as follows:
1、 The use of temporarily idle self owned funds to purchase financial products this time
1. Investment purpose
In order to improve the efficiency of the use of funds, without affecting the normal operation of the company, use temporarily idle self owned funds to buy financial products and increase the company’s income.
2. Capital source and investment amount
The source of funds for this purchase of financial products is the temporarily idle self owned funds of the company or wholly-owned and holding subsidiaries, and the amount is no more than RMB 600 million. Within the validity period of the above amount and resolution, the funds can be used on a rolling basis.
3. Investment varieties
The type of investment is low-risk financial products with a bank investment period of no more than 12 months. The company will strictly control risks in accordance with relevant regulations, strictly evaluate financial products, and select financial products with low risk, good liquidity and relatively good investment return.
4. Validity of resolution
The validity of the resolution is from the date of deliberation and approval of the 2021 annual general meeting to the 2022 annual general meeting.
5. Implementation mode
Within the limit, the board of directors of the company authorizes the chairman to sign relevant legal documents or make decisions on relevant matters. The specific investment activities are jointly organized and implemented by the Finance Department of the company.
6. Information disclosure
The company will timely perform the obligation of information disclosure in accordance with the requirements of the company law, the securities law, the Listing Rules of Shanghai Stock Exchange on the science and innovation board and other relevant rules.
7. Association description
The trustee of the company’s proposed purchase of financial products is a bank and has no relationship with the company.
2、 Investment risk analysis and risk control measures
1. Investment risk
(1) Due to the impact of market fluctuations, financial products have a certain interest rate risk;
(2) The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable;
(3) As the changes of national macro policies and market related policies may affect the expected income of financial products or the safety of financial principal, there are policy risks in investment;
(4) Operational risks of relevant staff.
2. Risk control measures
(1) After the approval of the board of directors, the board of directors authorizes the chairman of the company to sign relevant contract documents within the above investment limit. The relevant personnel of the company’s financial department will timely analyze and track the investment direction of financial products and the progress of the project. If the evaluation finds that there are risk factors that may affect the safety of the company’s funds, they will take corresponding measures in time to control the investment risk.
(2) The company and its subsidiaries purchase financial products with high security and good liquidity, and the risk is controllable. At the same time, strictly abide by the principle of prudent investment, screen investment objects, and select products issued by units with good reputation, large scale, ability to ensure capital safety, good operating efficiency and strong capital operation ability. The company will timely track the investment direction of financial products according to the market situation. If potential risk factors are found, the company will organize evaluation, and timely take corresponding preservation measures according to the evaluation results to control the investment risk.
(3) The company and its subsidiaries have established and improved the special system of the company’s fund management in accordance with the requirements of relevant laws and regulations, standardized the approval and implementation procedures of cash management, and ensured the effective development and standardized operation of cash management.
(4) The board of directors of the company will timely perform the obligation of information disclosure in accordance with the relevant provisions of Shanghai Stock Exchange.
3、 Impact on the company
1. Based on the principles of standardized operation, risk prevention, prudent investment, value preservation and appreciation, the company used idle self owned funds to purchase low-risk and highly liquid financial products on the premise of ensuring the working capital required for daily operation, which did not affect the normal production and operation of the company.
2. Through appropriate investment in breakeven financial products, the company can improve the efficiency of capital use, increase investment benefits, further improve the overall performance level of the company, and seek more return on investment for the company’s shareholders.
4、 Review procedure
At the 22nd Meeting of the second board of directors and the 19th meeting of the second board of supervisors held on March 23, 2022, the company considered and approved the proposal on Authorizing the continued use of idle self owned funds to purchase financial products, and agreed that the company (including its wholly-owned and holding subsidiaries) should use the temporarily idle self owned funds not more than RMB 600 million to purchase financial products, The validity period is from the date of deliberation and approval of the 2021 annual general meeting to the 2022 annual general meeting. Within the above limit and period, the funds can be used on a rolling basis. At the same time, authorize the chairman to sign relevant legal documents or make decisions on relevant matters, and agree that the specific investment activities shall be organized and implemented by the Finance Department of the company. The matter still needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The independent directors of the company have expressed independent opinions on this matter, which are disclosed on the website of Shanghai Stock Exchange on the same day (www.sse. Com. CN) Independent opinions of Beijing Kingsoft Office Software Inc(688111) independent directors on relevant proposals of the 22nd Meeting of the second board of directors of the company.
It is hereby announced.
Beijing Kingsoft Office Software Inc(688111) board of directors March 24, 2022
