Securities code: Xgd Inc(300130) securities abbreviation: Xgd Inc(300130) Announcement No.: 2022015 Xgd Inc(300130)
Announcement on the company and its subsidiaries using their own 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.
In order to improve the use efficiency of self owned funds, make rational use of idle self owned funds and increase the company’s income, Xgd Inc(300130) (hereinafter referred to as “the company” or ” Xgd Inc(300130) “) held the 17th meeting of the 5th board of directors on March 28, 2022, and deliberated and adopted the proposal on the company and its subsidiaries using their own funds to purchase financial products, It is agreed that the company and its subsidiaries intend to use idle self owned funds with a total amount of no more than 1 billion yuan to purchase investment products with good liquidity, high security and a term of no more than 12 months (including but not limited to income bank financial products, structured deposits, securities firm income certificates, etc.), and the company and its subsidiaries shall not have any affiliated relationship with the financial institutions providing financial products. Within the above limit, the funds can be used on a rolling basis, and the validity period is from the date when the proposal is considered and adopted at the 17th meeting of the Fifth Board of directors to April 30, 2023.
1、 Investment overview
(I) basic information of foreign investment
1. Investment quota
Idle self owned funds with a total amount of no more than 1 billion yuan. Within the above limit, the funds can be used on a rolling basis.
2. Investment varieties
In order to control risks, the funds within the above limit can only be used to buy investment products with good liquidity, high security and a term of no more than 12 months (including but not limited to income bank financial products, structured deposits, securities firm income certificates, etc.), and shall not buy financial products or trust products with stocks, their derivatives and unsecured bonds as investment objects.
3. Investment term and authorization
From the date of deliberation and adoption at the 17th meeting of the Fifth Board of directors to April 30, 2023. If the duration of a single transaction exceeds the authorization period, the authorization period will be automatically extended to the termination of the transaction. The board of directors authorizes the general manager and management of the company to sign all documents within the above limit.
4. Source of funds
The funds used by the company and its subsidiaries for investment in financial products are self owned idle funds.
5. Association relationship
The company has no relationship with the financial institutions providing financial products.
(II) approval procedure
The proposal on the company and its subsidiaries using their own funds to purchase financial products has been deliberated and adopted at the 17th meeting of the 5th board of directors and the 15th meeting of the 5th board of supervisors held on March 28, 2022, and the independent directors have expressed their consent.
(III) information disclosure
The company will perform the obligation of information disclosure in accordance with the requirements of relevant laws and regulations, departmental rules, normative documents and the articles of association.
4、 Purpose of investment, existing risks and impact on the company
(I) investment purpose
In order to improve the efficiency of capital use, we should reasonably use idle self owned funds to increase the capital income of the company without affecting the normal operation of the company.
(II) existing risks and Countermeasures
1. Although the financial products have been strictly evaluated, the financial market is greatly affected by the macro-economy. It is not ruled out that the investment may be 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.
In view of the above investment risks, the proposed measures are as follows:
(1) The company will strictly abide by the principle of prudent investment and choose low-risk investment varieties. It shall not be used for other securities investment, and shall not purchase financial products with stocks, their derivatives and unsecured bonds as the investment object.
(2) The planning and finance center of the company will timely analyze and track the investment direction of financial products and project progress. If it is found that there are risk factors that may affect the safety of the company’s funds, it will take corresponding measures in time to control investment risks.
(3) The audit and supervision department of the company shall conduct daily supervision on the use and custody of financial funds, and regularly audit and verify the use of financial funds.
(4) The board of supervisors and independent directors of the company have the right to supervise and inspect the use of funds, and can hire professional institutions to audit when necessary.
(5) The company will do a good job of relevant information disclosure in accordance with the relevant provisions of Shenzhen Stock Exchange.
(III) impact on the company
1. On the premise of ensuring the daily operation and capital safety, the company uses its own idle funds to buy financial products with low risk and high liquidity. The purchase of this financial product will not affect the normal turnover of the company’s daily capital and the normal development of the company’s main business.
2. By investing in financial products with moderate low risk and high liquidity, it is conducive to improve the efficiency of capital use, increase the income of cash assets, further improve the overall performance level of the company and fully protect the interests of shareholders. 3、 Opinions of independent directors
After carefully reviewing the proposal on the company and its subsidiaries using their own funds to purchase financial products, the independent directors of the company believe that the company’s internal control is relatively perfect, the operation is good and the financial situation is stable. Purchasing financial products without affecting the normal operation and capital safety of the company is conducive to further improving the use efficiency of their own funds and increasing the capital income of the company. The company uses idle self owned funds with a quota of no more than 1 billion yuan to purchase financial products. The approval procedure is legal and will not have an adverse impact on the company’s business activities. We agree that the company will use idle self owned funds to purchase financial products.
4、 Opinions of the board of supervisors
After verification, the board of supervisors believes that the decision-making procedures of the company’s plan to use idle self owned funds to purchase low-risk and highly liquid financial products comply with the articles of association, the management system of foreign investment and the guidelines for the standardized operation of companies listed on the gem of Shenzhen Stock Exchange.
On the premise of ensuring the daily operation of the company, the company plans to use idle self owned funds of no more than RMB 1 billion to purchase investment products with low risk, high liquidity and a term of no more than 12 months (including but not limited to income bank financial products, structured deposits, securities dealer income certificates, etc.), which is conducive to improving the use efficiency and income of the company’s funds and does not damage the interests of the company and minority shareholders, The decision-making procedure of this matter is legal and compliant, and all supervisors unanimously agree to use idle self owned funds to purchase financial products.
5、 Documents for future reference
1. Xgd Inc(300130) the resolution of the 17th meeting of the 5th board of directors;
2. Xgd Inc(300130) the resolution of the 15th meeting of the 5th board of supervisors;
3. Xgd Inc(300130) independent directors’ independent opinions on 2021 annual report and related matters
4. Xgd Inc(300130) opinions of the board of supervisors on relevant matters of the company.
It is hereby announced.
Xgd Inc(300130) board of directors
March 30, 2022
