Securities code: Chongqing Water Group Co.Ltd(601158) securities abbreviation: Chongqing Water Group Co.Ltd(601158) Announcement No.: pro 2022012 bond Code: 163228 bond abbreviation: 20 Yushui 01
Bond Code: 188048 bond abbreviation: 21 Yushui 01
Chongqing Water Group Co.Ltd(601158)
With regard to the announcement on the purchase of unit structured deposit products of Chongqing rural commercial bank, the company and all members of the board of directors guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Financial product seller: Chongqing Rural Commercial Bank Co.Ltd(601077)
Amount of financial products to be purchased: 500 million yuan
Name of wealth management product: Chongqing Rural Commercial Bank Co.Ltd(601077) unit structured deposit product
Term of financial products: 60 days
Review procedures: the purchase of financial products by the company has been reviewed and approved at the 15th meeting of the Fifth Board of directors held on March 31, 2022, and the board of directors of the company has authorized the management of the company to handle the specific matters of the purchase of financial products.
1、 Overview of financial products to be purchased this time
(I) purpose of financial products to be purchased
In order to improve the efficiency of capital use and reduce the financial cost, Chongqing Water Group Co.Ltd(601158) (hereinafter referred to as “the company”) purchases Chongqing Rural Commercial Bank Co.Ltd(601077) the principal guaranteed floating income unit structured deposit product with temporarily idle working capital on the basis of ensuring the liquidity and safety of capital according to the business plan and capital use.
(II) source of funds
The source of funds for the company to purchase financial products this time is the company’s own funds.
(III) basic information of financial products to be purchased
The company plans to sign the unit structured deposit agreement of Chongqing rural commercial bank and other documents with Chongqing Rural Commercial Bank Co.Ltd(601077) Jiangbei sub branch, and invest 500 million yuan (in words: 500 million yuan only) to purchase Chongqing Rural Commercial Bank Co.Ltd(601077) unit structured deposit products (hereinafter referred to as “Chongqing Rural Commercial Bank structured deposit”) for 60 days. The structured deposit of Chongqing rural commercial bank is principal guaranteed floating income type, Chongqing Rural Commercial Bank Co.Ltd(601077) provides complete guarantee for the principal, and pays the due income to the company according to the relevant provisions of the product agreement.
Calculation and description of the expected rate of return of the product: the rate of return of the deposit product is divided into fixed income and floating income. The fixed rate of return is 0%, and the floating interest rate is determined according to the price performance of the linked EUR / USD spot exchange rate. If the spot exchange rate of EUR / USD on the observation date is lower than or equal to (spot-0.3000), the annual interest rate is 3.9%; Or if the spot exchange rate of EUR / USD on the observation date is higher than (spot-0.3000) and lower than (spot + 0.3000), the annual interest rate is 3.6%; Otherwise, the annual interest rate is 1.6%.
(observed price reference value spot: the spot exchange rate price of EUR / USD displayed on the bfix page of Bloomberg system at 3pm Tokyo time on the value date)
Depositor’s interest = deposit principal × (minimum interest rate + floating interest rate) × Actual deposit days ÷ 365
Actual deposit days refer to the days from the value date (including the current day) to the maturity date (excluding the current day); Interest is accurate to two decimal places.
Estimated annualized income of the entrusted party’s products
Name type name (10000 yuan) yield amount (10000 yuan)
Chongqing Rural Commercial Bank Chongqing Rural Commercial Bank 1.60% 131.51
Bank Co., Ltd. financial bank structure 50000 or 3.60% or 295.89
Company Jiangbei sub branch product deposit or 3.90% or 320.55%
Product revenue structure refers to whether the annualized expected revenue constitutes a relationship
Term type arrangement yield (if any) joint transaction
Break even
60 day float – no
profit
(IV) the company’s internal control over relevant risks
The company strictly abides by the principle of prudent investment. After strict evaluation and screening of bank financial products, the company chooses to buy bank principal guaranteed financial products with high safety, low risk and short term. At the same time, the company performs the decision-making procedures in strict accordance with the relevant provisions of the company’s investment and financing and guarantee management system, and the relevant agreements and contracts are issued with a letter of opinion by a professional law firm.
2、 Details of financial products to be purchased this time
(I) main terms of the contract for the proposed purchase of financial products
Party A: Chongqing Water Group Co.Ltd(601158)
Address: No. 1, Longjiawan, Yuzhong District, Chongqing
Party B: Chongqing Rural Commercial Bank Co.Ltd(601077) Jiangbei sub branch
Address: 1-1, No. 10, Yanghe East Road, Jiangbei District, Chongqing
Product type breakeven floating income
Deposit currency: RMB
Spot exchange rate of linked object EUR / USD
Deposit term: 60 days
During the duration of the early maturity deposit, the depositor has no right to terminate the deposit in advance.
Product scale: 500 million yuan
Subscription period: March 28, 2022 to April 6, 2022
Value date: April 8, 2022
Maturity date: June 7, 2022
Observation Date: May 5, 2022
(II) investment direction of funds to be purchased financial products
The financial product to be purchased by the company this time is the structured deposit product of Chongqing rural commercial bank, which is fully guaranteed by Chongqing Rural Commercial Bank Co.Ltd(601077) providing principal.
(III) risk control analysis
Based on the principle of strict risk control, the company strictly evaluates and selects bank financial products, and will sign structured deposit agreement and other documents with Chongqing Rural Commercial Bank Co.Ltd(601077) Jiangbei sub branch, Chongqing Rural Commercial Bank Co.Ltd(601077) in the above-mentioned documents to clearly ensure the safety of deposit principal. During the duration of this product, the company will pay attention to the fluctuation of the spot exchange rate of EUR / USD linked to the structured deposit, and strengthen risk control and supervision to ensure that the financial management funds are fully recovered when due.
3、 Information about the financial product seller
The counterparty of the company’s purchase of structured deposits of Chongqing rural commercial bank is Chongqing Rural Commercial Bank Co.Ltd(601077) Jiangbei sub branch. The company now holds 125 million shares of Chongqing Rural Commercial Bank Co.Ltd(601077) with a shareholding ratio of 1.10%. In addition, Chongqing Rural Commercial Bank Co.Ltd(601077) has no relationship with our company in terms of property rights and personnel.
4、 Impact on the company
As of December 31, 2021, the company has total assets of 2924478928761 yuan, total liabilities of 1274106170614 yuan, net assets of 1650372758147 yuan, net cash flow from operating activities of 273470490194 yuan, net assets attributable to shareholders of listed companies of 1643435246936 yuan and current assets of 604740553695 yuan (including monetary capital of 266425957962 yuan).
The purchase of structured deposits is 500 million yuan, accounting for 3.04% and 8.27% of the company’s net assets, current assets and monetary funds attributable to shareholders of listed companies as of December 31, 2021
And 18.77%. The company is a public utility listed company. The asset liability ratio of the company was 43.57% on December 31, 2021. On the premise of ensuring daily operation and capital safety, the company conducts short-term capital operation, which is conducive to improving the efficiency of capital use and will not affect the normal needs of daily capital turnover and the normal development of main business. According to the latest accounting standards, the company’s purchase of structured deposit business is included in the trading financial assets in the balance sheet, and the income obtained is included in the investment income in the income statement.
5、 Risk tips
Chongqing is a rural commercial bank with low capital preservation risk.
6、 Implementation of decision-making procedures and opinions of independent directors
The company’s proposed purchase of financial products has been deliberated and approved at the 15th meeting of the Fifth Board of directors held on March 31, 2022. It is agreed that the company will invest 500 million yuan (in words: 500 million yuan only) to purchase Chongqing Rural Commercial Bank Co.Ltd(601077) structured deposit products (Principal Guaranteed floating income type), and authorize the company’s management to handle specific matters. According to the relevant provisions of the company’s investment, financing and guarantee management system, the company invested 500 million yuan to purchase the structured deposits of Chongqing rural commercial bank, which does not need to be submitted to the general meeting of shareholders for deliberation and approval.
The independent directors of the company express their independent opinions on the company’s proposed purchase of financial products as follows: on the premise of ensuring the daily operation and capital safety, the company uses its own funds to invest in short-term breakeven financial products, which is conducive to improving the efficiency of capital use, will not affect the normal needs of the company’s daily capital turnover, will not affect the normal development of the company’s main business, and the proposed purchase of financial products does not constitute a related party transaction, It does not harm the interests of the company and minority shareholders.
7、 As of the date of this announcement, the company has used its own funds to purchase financial products in the last 12 months
Amount: 10000 yuan
Actual investment, actual receipt, actual uncollected serial number, financial product type, amount received back to principal income, principal amount
1 Industrial Bank Co.Ltd(601166) structured deposit 5 Shenzhen Airport Co.Ltd(000089) 7.53
2 Structural deposit of Chongqing Rural Commercial Bank 5 Tunghsu Azure Renewable Energy Co.Ltd(000040) 7.23
3. China China Everbright Bank Company Limited Co.Ltd(601818) structured deposit 5 Tunghsu Azure Renewable Energy Co.Ltd(000040) 6.25
Total 15 Shenzhen China Bicycle Company (Holdings) Limited(000017) 11.01
The maximum amount invested in a single day in the last 12 months is 50000
Maximum daily investment amount in the last 12 months / net assets of the last year (%) 3.03
Cumulative income of financial products in the last 12 months / net profit of the last year (%) 0.82
Currently used financial limit 0
Unused financial limit 50000
Total financial limit: 50000
It is hereby announced.
Chongqing Water Group Co.Ltd(601158) Group Co., Ltd. board of directors April 2, 2022
