Securities code: Wuhu Conch Profiles And Science Co.Ltd(000619) securities abbreviation: Wuhu Conch Profiles And Science Co.Ltd(000619) Announcement No.: 202217 Wuhu Conch Profiles And Science Co.Ltd(000619) announcement on entrusted financial management using its own idle funds the company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
On March 25, 2022, the 17th meeting of the 9th board of directors of Wuhu Conch Profiles And Science Co.Ltd(000619) (hereinafter referred to as "the company") deliberated and adopted the proposal on using the company's own idle funds for entrusted financial management by 9 votes, 0 votes against and 0 abstentions. The directors agreed with the company that the total amount of self owned funds should not exceed RMB 300 million on the premise of ensuring the normal operation turnover and project investment, For bank financial products with low investment risk, the details are announced as follows:
1、 Investment overview
1. Investment purpose: in order to improve the use efficiency of funds and make rational use of idle funds, on the premise of ensuring the company's normal operation turnover and project investment and other capital needs, use some of its own idle funds to invest in low-risk bank financial products and increase the company's income.
2. Investment quota: the company uses its own idle funds with a total quota of no more than 300 million yuan to invest in bank financial products with low risk. Within the above limit, the funds can be used on a rolling basis. 3. Investment type: in order to control risk, the funds within the above limit can only be used to buy low-risk bank financial products, not for securities investment, and not to buy bank financial products with stocks and their derivatives as the investment object.
4. Investment period: within 12 months from the date of deliberation and approval by the board of directors of the company. The investment period of a single bank financial product shall not exceed 12 months.
5. Source of funds: idle funds owned by the company and its subsidiaries. At present, the cash flow of the company is relatively abundant. Under the condition of ensuring the working capital required for the normal operation of the company, it is expected that there will be phased idle funds, and the source of funds is legal and compliant.
2、 Investment risk analysis and risk control measures
1. Investment risk
(1) Although bank financial products belong to low-risk investment varieties, the financial market is greatly affected by 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, and the actual income of bank financial products is uncertain;
(3) Operational risks of relevant staff.
2. For investment risks, the proposed measures are as follows:
(1) The board of directors of the company authorizes the management of the company to exercise the investment option and sign relevant contract documents, and the financial principals of the company and subsidiaries are responsible for organizing the implementation. The professionals of the company's finance department will timely analyze and track the investment direction of bank 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 Audit Office of the company is responsible for auditing and supervising the use and custody of low-risk investment and wealth management funds, comprehensively inspecting all investment projects of bank wealth management products at the end of each quarter, reasonably predicting the possible gains and losses of various investments according to the principle of prudence, and reporting to the audit committee of the board of directors;
(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;
(4) In accordance with the relevant provisions of Shenzhen Stock Exchange, the company will disclose the investment of low-risk bank financial products and the corresponding profits and losses in the periodic report during the reporting period.
3、 Impact on the company
1. The company's investment in low-risk bank financial products with idle self owned funds is implemented on the premise of ensuring the company's daily operation and capital safety, which will not affect the needs of the company's daily capital turnover and the normal development of the company's main business.
2. Through moderate and low-risk financial management, we can improve the efficiency of capital use, obtain certain capital benefits, further improve the overall performance level of the company and seek more return on investment for the shareholders of the company.
4、 Independent opinions of independent directors
The independent directors carefully reviewed the company's proposal on using the company's own idle funds for entrusted financial management, reviewed the company's operation, financial status and internal control system, and expressed the following opinions:
1. The company's use of idle funds for financial management has been deliberated and approved at the 17th meeting of the ninth board of directors, and the relevant approval procedures have been fulfilled.
2. The company's internal control system is relatively perfect, the company's internal control measures and systems are sound, and the safety of funds can be guaranteed.
3. On the basis of ensuring the normal operation and capital safety of the company, using some idle funds and choosing opportunities to invest in low-risk bank financial products is conducive to improving the efficiency of capital use, obtaining certain income and further improving the overall performance level of the company.
Therefore, we unanimously agree that the company will use its own idle funds with a total amount of no more than 300 million yuan to invest in bank financial products with low risk.
5、 Directory of documents for future reference
1. Resolutions of the 17th meeting of the ninth board of directors of the company;
2. Resolutions of the 10th meeting of the 9th board of supervisors of the company;
3. Independent opinions of independent directors on matters related to the 17th meeting of the ninth board of directors. It is hereby announced.
Wuhu Conch Profiles And Science Co.Ltd(000619) board of directors
March 26, 2022
