Securities code: Cansino Biologics Inc(688185) securities abbreviation: Cansino Biologics Inc(688185) Announcement No.: 2022020 Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) company
Announcement on using idle 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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) company (hereinafter referred to as “the company”) held the 8th meeting of the 2nd board of directors and the 11th meeting of the 2nd board of supervisors on March 25, 2022, deliberated and adopted the proposal on cash management with idle self owned funds, and agreed that the company, on the premise of ensuring that the normal development of the company’s main business is not affected and the demand for working capital and risk are controllable, Use temporarily idle self owned funds of up to RMB 4 billion for cash management to purchase investment products with low risk, good liquidity and high security (including but not limited to structural deposits, agreed deposits, call deposits, time deposits, large certificates of deposit, income certificates, etc.), and the authorization period is within 12 months from the date of deliberation and approval of the board of directors. Within the above limit and term, the funds can be used circularly and rolling. The board of directors authorizes the chairman to exercise investment decision-making power and sign relevant documents within the validity of the above quota and resolution. The specific matters shall be organized and implemented by the financial management center of the company. The independent directors and the board of supervisors of the company have expressed clear consent to the above matters.
1、 Overview of cash management with self owned funds
(I) purpose of cash management
Under the condition of ensuring the working capital required for the normal operation of the company, improve the utilization efficiency of funds, make rational use of idle funds and increase the income of the company.
(II) source of funds
The capital source of the company’s proposed cash management is the company’s own funds temporarily idle, which will not affect the normal operation of the company.
(III) amount and term
The company plans to carry out cash management. The maximum balance in a single day shall not exceed RMB 4 billion. Within this limit, the funds can be used on a rolling basis.
(IV) authorization matters
The term of this authorization is within 12 months from the date of deliberation and approval by the board of directors of the company. The board of directors of the company authorizes the chairman to perform daily approval procedures for investment and financial products business, and the financial management center of the company is responsible for organizing the implementation. (V) types of investment products
The company will abide by the principle of prudent investment, strictly screen the issuers, and select investment products with low risk, good liquidity and high security (including but not limited to structural deposits, agreement deposits, call deposits, time deposits, large certificates of deposit, income certificates, etc.).
2、 Impact on the company
The company uses idle self owned funds for cash management without affecting the normal development of the company’s main business and ensuring that the demand for working capital and risk are controllable. It is conducive to improve the efficiency of the company’s capital use, increase capital income, and seek more investment returns for the company and shareholders, which will not have a significant impact on the company’s future main business, financial status, operating results and cash flow.
3、 Investment risk and risk control measures
(I) investment risk
Although the company chooses low-risk investment products, the financial market is greatly affected by the macro-economy. The company will intervene appropriately 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.
(II) risk control measures
1. The company will handle relevant cash management business in strict accordance with relevant laws and regulations such as the Listing Rules of science and Innovation Board of Shanghai Stock Exchange and the articles of association.
2. In accordance with the principle of separating decision-making, execution and supervision functions, the company establishes and improves the approval and execution procedures to ensure the standardized operation of cash management matters, and timely analyzes and tracks the investment direction and progress of investment products. Once it is found that there are risk factors that may affect the safety of the company’s funds, it will take preservation measures in time to control investment 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.
4. The company will perform the obligation of information disclosure in a timely manner in strict accordance with the relevant provisions of the China Securities Regulatory Commission and the stock exchange.
4、 Relevant review procedures
The company held the 8th meeting of the 2nd board of directors and the 11th meeting of the 2nd board of supervisors on March 25, 2022, deliberated and approved the proposal on cash management with idle self owned funds, and agreed that the company should use temporary idle self owned funds of no more than RMB 4 billion for cash management. The independent directors and the board of supervisors of the company have expressed clear consent to the above matters.
5、 Description of special opinions
(I) opinions of independent directors
The independent directors of the company believe that on the premise of ensuring the capital and capital safety required for the normal operation of the company, the company uses the temporarily idle self owned capital of no more than RMB 4 billion for cash management to purchase investment products with low risk, good liquidity and high safety, which is conducive to improving the utilization rate of idle self owned capital, obtaining certain investment income and obtaining more returns for the company and shareholders. The use of some idle self owned funds for cash management this time has fulfilled the necessary review procedures, in line with the relevant provisions of the articles of association, and there is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders.
Therefore, we agree to the proposal on using idle self owned funds for cash management.
(II) opinions of the board of supervisors
The board of supervisors believes that the company’s use of idle self owned funds with a limit of no more than RMB 4 billion for cash management this time complies with the provisions of relevant laws, regulations, rules and other normative documents such as the Listing Rules of science and Innovation Board of Shanghai Stock Exchange and the Listing Rules of securities on the stock exchange of Hong Kong Limited, and the company’s use of idle self owned funds for cash management this time is to ensure the safety of funds On the premise that the operation is legal and compliant and the daily operation is not affected, there is no damage to the interests of the company’s shareholders, especially the interests of small and medium-sized shareholders, which is in line with the interests of the company and all shareholders, and is conducive to improving the company’s capital use efficiency and obtaining good capital return.
In conclusion, the board of supervisors of the company agrees that the company uses its own funds temporarily idle for cash management. It is hereby announced.
Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) board of directors March 28, 2022
