Securities code: Changhong Meiling Co.Ltd(000521) , 200521 securities abbreviation: Changhong Meiling Co.Ltd(000521) , hongmeiling B Announcement No.: 2022023 Changhong Meiling Co.Ltd(000521)
Announcement on carrying out bill pool business
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.
According to the needs of the company’s business development and financing work, in order to reduce the occupation of the company’s funds by notes receivable and improve the use efficiency of the company’s current assets, the company and its subsidiaries were approved to apply for a special credit line of up to RMB 400 million from Industrial Bank Co.Ltd(601166) Hefei Branch through the resolution of the 16th meeting of the 10th board of directors held by Changhong Meiling Co.Ltd(000521) (hereinafter referred to as “the company” or “the company”) on March 29, 2022, It is agreed that the company and its subsidiaries apply to Ping An Bank Co.Ltd(000001) Hefei Branch for a special credit line of up to 300 million yuan for the bill pool, and that the company and its subsidiaries apply to Jiujiang Bank Co., Ltd. Hefei Branch for a special credit line of up to 400 million yuan for the bill pool, with a credit term of one year.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange of Shenzhen Stock Exchange and the articles of association and authorization management system of the company, the development of the above bill pool business will enable the company to apply to commercial banks for a special credit line of bill pool in the last 12 months, which will exceed 10% of the company’s latest audited net assets. This matter still needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The relevant information is described as follows:
1、 Overview of bill pool business
1. Business introduction
“Bill pool” business is a bill management service provided by cooperative financial institutions for the company and its subsidiaries. In order to meet the needs of enterprise customers for unified management and overall use of commercial bills held by them, cooperative financial institutions provide enterprises with comprehensive bill management services integrating bill trusteeship and collection, bill pledge pool financing, bill discount, Bill agent query, business statistics and other functions.
2. Implementation purpose of bill pool business
The company deposits some bills receivable into cooperative financial institutions for centralized management and handles the new issuance and collection of bank acceptance bills, which is conducive to saving the company’s resources, reducing the occupation of funds, improving the use efficiency of the company’s current assets and maximizing the rights and interests of the company and shareholders.
3. Cooperative financial institutions under agreement and implementation quota
The company and its subsidiaries intend to apply to Industrial Bank Co.Ltd(601166) Hefei Branch for a special credit line of up to RMB 400 million for the bill pool, to Ping An Bank Co.Ltd(000001) Hefei Branch for a special credit line of up to RMB 300 million for the bill pool, and to Jiujiang Bank Co., Ltd. Hefei Branch for a special credit line of up to RMB 400 million for the bill pool. Within the business term, the quota can be used on a rolling basis. The final actual credit line shall be subject to the final approval amount of each bank mentioned above.
4. Term of validity
Term of validity: one year from the date of approval by the bank.
2、 Risk and risk control of bill pool business
1. Liquidity risk
To carry out the bill pool business, the company needs to open a special margin account for the pledge financing business of the bill pool in the cooperative financial institution as the entry account for the due collection of the pledged bills under the bill pool. The inconsistency between the due dates of notes receivable and notes payable will cause the collected funds to enter the margin account of the company applying to the cooperative financial institution for issuing commercial bills, which will have a certain impact on the liquidity of the company’s funds.
Risk control measures: the company can eliminate this impact by replacing the margin with newly received notes, and the capital liquidity risk is controllable.
2. Guarantee risk
The company uses the bills entering the bill pool as pledge and applies to the cooperative financial institution for issuing acceptance bills for payment. The guarantee limit of the company and its subsidiaries is the pledge limit of the bill pool. The bills have formed a preliminary guarantee function for this business. With the maturity of the pledged bills, the collection and settlement of foreign exchange are handled, resulting in the insufficient amount of the pledged bills, which leads to the cooperative bank requiring the company to provide additional guarantee.
Risk control measures: after the company and its subsidiaries carry out bill pool business with cooperative financial institutions, the company will arrange special personnel to connect with cooperative banks, establish pledge bill account, track management, and timely arrange the company’s newly received bills into the pool to ensure the pledge rate of bill pool. In addition, if subsidiaries need this amount, they need to obtain the consent of the company in advance. Therefore, the guarantee risk of bill pool business is relatively controllable and the risk is small.
3. The commercial banks that intend to carry out the bill pool business this time are neither the subject of breach of credit nor the person subject to breach of credit.
3、 Impact of bill pool business implementation on the company
With the continuous expansion of the company’s business scale, in the process of collecting sales payment, due to the increase of customers for bill settlement, the company collects a large number of commercial bills for payment settlement. At the same time, the company often issues commercial bills in cooperation with suppliers.
The company deposits some bills receivable into cooperative financial institutions for centralized management and handles the new issuance and collection of bank acceptance bills, which is conducive to saving the company’s resources, reducing the occupation of funds, improving the use efficiency of the company’s current assets and maximizing the rights and interests of the company and shareholders.
4、 Independent opinions of independent directors
In accordance with the Listing Rules of Shenzhen Stock Exchange, self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of main board listed companies, articles of association, independent director system and other relevant provisions, the independent opinions on the company’s application for special credit line of bill pool from commercial banks are as follows: at present, the company is in good operation and stable financial condition. The company carries out bill pool business, which can comprehensively manage the company’s bills receivable and bills payable to be issued, revitalize the company’s bill assets, reduce the company’s capital occupation, optimize the financial structure and improve the capital utilization rate.
Therefore, we agree that the company and its subsidiaries apply to Industrial Bank Co.Ltd(601166) Hefei Branch for a special credit line of up to RMB 400 million for the bill pool; Apply to Ping An Bank Co.Ltd(000001) Hefei Branch for a special credit line of up to RMB 300 million for the bill pool; Apply to Hefei Branch of Jiujiang Bank Co., Ltd. for a special credit line for the bill pool of up to RMB 400 million. At the same time, the accumulated spot balance of bills in the bill pool business between the company and its subsidiaries and the above-mentioned banks shall not exceed the maximum credit line applied, and the above-mentioned line can be used on a rolling basis.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange and the articles of association and authorization management system, the development of the above bill pool business will enable the company to apply to commercial banks for a special credit line of bill pool in the last 12 months, which exceeds 10% of the company’s latest audited net assets, and needs to be submitted to the general meeting of shareholders for deliberation and approval. We agree to submit this proposal to the general meeting of shareholders for deliberation.
5、 Documents for future reference
1. The resolution of the 16th meeting of the 10th board of directors signed by the attending directors and stamped with the seal of the board of directors; 2. Independent opinions of independent directors on relevant proposals of the 16th meeting of the 10th board of directors;
3. Other documents required by SZSE.
It is hereby announced
Changhong Meiling Co.Ltd(000521) board of directors March 31, 2002
