Securities code: Huabao Flavours & Fragrances Co.Ltd(300741) securities abbreviation: Huabao Flavours & Fragrances Co.Ltd(300741) Announcement No.: 2022021 Huabao Flavours & Fragrances Co.Ltd(300741)
Announcement on using some idle self owned funds to purchase financial products
The company and all members of the board of directors except Mr. Lin Jiayu guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.
Huabao Flavours & Fragrances Co.Ltd(300741) (hereinafter referred to as "the company") held the 24th Meeting of the second board of directors and the 11th meeting of the second board of supervisors on March 25, 2022, and deliberated and adopted the proposal of the company on using some idle self owned funds to purchase financial products. It is agreed that the company (including the company's subsidiaries, the same below) will use idle self owned funds of no more than 2.5 billion yuan to purchase financial products with high security, good liquidity and investment period of no more than 12 months (including but not limited to bank financial products, fund company products, etc.) without affecting the normal operation of the company. The above quota for purchasing financial products is valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company. Within the above quota, the funds can be used on a rolling basis. The relevant matters are explained as follows:
1、 Investment overview
(I) investment purpose
In order to improve the efficiency of capital use, on the premise of not affecting normal production and operation, the company can reasonably use some temporarily idle funds to buy financial products, which can increase capital income and create greater value for the company and shareholders. (II) types and duration of investment products
The company will strictly control risks in accordance with relevant regulations and purchase financial products with high security, good liquidity and investment period of no more than 12 months (including but not limited to bank financial products, fund company products, etc.).
(III) investment quota
The company uses idle self owned funds of no more than 2.5 billion yuan to purchase financial products. Within the above limit, the funds can be used on a rolling basis.
(IV) implementation mode
Within the above limit, authorize the chairman or his designated person to exercise the decision-making power and sign relevant legal documents.
(V) validity of the resolution
The resolution of using idle self owned funds to purchase financial products shall be valid within 12 months from the date of deliberation and adoption by the general meeting of shareholders of the company.
(VI) information disclosure
The company will timely fulfill the disclosure obligations in accordance with the provisions of relevant laws, regulations and normative documents such as the Listing Rules of gem shares of Shenzhen Stock Exchange, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 - standardized operation of listed companies on GEM.
2、 Investment risk and risk control measures
(I) investment risk
1. The products invested by the company belong to investment varieties with high safety and good liquidity, but the financial market is greatly affected by the macro-economy, so it is not ruled out that the investment is affected by market fluctuations.
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.
(II) risk control measures
1. The company will conduct strict screening and risk assessment on investment products, select investment products with high safety, good liquidity and a term of no more than 12 months, and clarify the amount, term, investment varieties, rights, obligations and legal liabilities of both parties.
2. The financial department of the company shall timely analyze and track the investment direction and progress of financial products. If the evaluation finds that there are risk factors that may affect the safety of the company's funds, it will take corresponding measures in time to control the investment risk. 3. The board of directors has the right to inspect and supervise the use of funds by independent audit institutions when necessary.
4. The internal audit department of the company is responsible for auditing and supervising the use and custody of funds of investment products.
5. The company will do a good job of relevant information disclosure in accordance with the relevant provisions of Shenzhen Stock Exchange.
3、 Impact on the company
The company adheres to the principle of standardized operation and prudent investment. On the premise of not affecting the normal operation of the company, using idle self owned funds to buy financial products will not affect the normal development of the company's main business. At the same time, it can improve the efficiency of fund use, increase the income level of the company and obtain better investment return for shareholders.
4、 Special opinions
The proposal of the company to use some idle self owned funds to purchase financial products has been deliberated and adopted at the 24th Meeting of the second board of directors and the 11th meeting of the second board of supervisors held on March 25, 2022. The independent directors and the board of supervisors expressed their opinions on this matter.
(I) opinions of the board of directors
The board of directors agrees that the company can use idle self owned funds of no more than 2.5 billion yuan to purchase financial products without affecting the normal operation of the company. Within the above limit, the funds can be used in a rolling manner. Within the scope of investment quota, authorize the chairman or his designated personnel to exercise the investment decision-making power and sign relevant legal documents. The validity period of the resolution shall be 12 months from the date of deliberation and adoption by the general meeting of shareholders.
(II) opinions of independent directors
The use of idle self owned funds of no more than RMB 2.5 billion to purchase financial products this time is conducive to further improve the use efficiency of the company's funds. The contents of the proposal and decision-making procedures comply with the provisions of relevant laws and regulations, do not affect the normal operation of the company, and do not damage the interests of the company and small and medium-sized shareholders. Therefore, the independent directors agreed to use idle self owned funds to purchase financial products and agreed to submit the proposal to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The board of supervisors agrees that the company can use idle self owned funds of no more than RMB 2.5 billion to purchase financial products without affecting the normal operation of the company. Within the above limit, the funds can be used on a rolling basis. The use of idle self owned funds to purchase financial products this time is conducive to further improve the company's fund use efficiency and comply with the provisions of relevant laws and regulations.
5、 Documents for future reference
(I) resolution of the 24th Meeting of Huabao Flavours & Fragrances Co.Ltd(300741) the second board of directors;
(II) opinions of Huabao Flavours & Fragrances Co.Ltd(300741) independent directors on matters related to the 24th Meeting of the second board of directors;
(III) resolution of the 11th meeting of Huabao Flavours & Fragrances Co.Ltd(300741) the second board of supervisors.
It is hereby announced.
Huabao Flavours & Fragrances Co.Ltd(300741) board of directors
March 26, 2022
