Securities code: Shanghai Huitong Energy Co.Ltd(600605) securities abbreviation: Shanghai Huitong Energy Co.Ltd(600605) Announcement No.: pro 2022012 Shanghai Huitong Energy Co.Ltd(600605)
Announcement on the use of idle funds for financial 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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
The company and its subsidiaries intend to use their own idle funds for financial management. The balance at the time of financial management shall not exceed the latest audited net assets of the company, and the funds can be used in a rolling manner within this limit. Select financial products with high security for financial management, including but not limited to bank financial products and structured deposits with simple structure and high principal guarantee.
There is no related relationship between the company and the banks and other financial institutions that intend to purchase financial products, and this financial management does not constitute a related party transaction.
This matter has been deliberated and approved at the 18th meeting of the 10th board of directors of the company and will be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
1、 Basic information of using idle funds for financial management this time
1. Investment purpose
In order to improve the use efficiency of the company’s funds, the company and its subsidiaries intend to use their own idle funds for financial management and increase the company’s income without affecting the company’s main business operation and daily capital flow.
2. Financial limit
The total time point balance of using idle raised funds and other idle funds for financial management shall not exceed the latest audited net assets of the company, and the funds can be used on a rolling basis within this limit.
3. Financial products
Select bank financial products and structured deposits with simple structure and high principal guarantee.
2、 Risk management measures of the company
1. The company will purchase financial products with high security, and clarify the amount, duration, rights, obligations and legal responsibilities of both parties.
2. The company has established a sound internal control system related to fund management. The financial department of the company will arrange relevant personnel to predict and predict the financial products, and timely analyze and monitor the investment direction and project progress of the financial products after purchase. If the evaluation finds that there are risk factors that may affect the safety of the company’s funds, corresponding measures will be taken in time to control the investment risk.
3. The independent directors and the board of supervisors of the company have the right to supervise and inspect the use of funds, and can hire professional institutions to audit when necessary.
3、 Impact on the company
The company and its subsidiaries use phased idle funds to purchase financial products on the premise of ensuring the daily operation and capital safety of the company, which will not affect the capital turnover needs of the company’s daily business and the normal development of the company’s main business. Through appropriate financial management, we can improve the efficiency of fund use, obtain certain income, further improve the overall performance level of the company, and obtain more return on investment for the company’s shareholders, which is in line with the interests of the company and all shareholders.
4、 Review procedure
This matter has been deliberated and approved at the 18th meeting of the 10th board of directors of the company and will be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
5、 Entrusted financial management of self owned funds in the last 12 months
As of the date of this announcement, the company has not used its own funds for entrusted financial management in the past 12 months.
It is hereby announced.
Shanghai Huitong Energy Co.Ltd(600605) board of directors April 2, 2022
