Securities code: Sichuan Huiyu Pharmaceutical Co.Ltd(688553) securities abbreviation: Sichuan Huiyu Pharmaceutical Co.Ltd(688553) Announcement No.: 2022022 Sichuan Huiyu Pharmaceutical Co.Ltd(688553)
Announcement on the temporary use of idle financial products
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.
Sichuan Huiyu Pharmaceutical Co.Ltd(688553) (hereinafter referred to as “the company”) held the 22nd Meeting of the first board of directors and the 13th meeting of the first board of supervisors on April 6, 2022, and deliberated and adopted the proposal on the company’s use of temporarily idle own funds to purchase financial products. On the premise of ensuring that the normal operation of the company and its subsidiaries will not be affected, it is agreed that the company and its subsidiaries use their own idle funds of no more than RMB 4 billion (including this amount) for entrusted financial management, and timely purchase financial products of financial institutions with low risk, high security and good liquidity. The service life is within 12 months from the date of deliberation and approval by the 2021 annual general meeting of shareholders. Within the above quota and period, the funds can be invested circularly and used on a rolling basis. Within the scope and validity period of the above quota, the management of the company is authorized to exercise the investment decision-making power and sign relevant contract documents, including but not limited to: selecting the qualified issuer of financial products, clarifying the financial amount, period, selecting the variety of financial products, signing contracts and agreements, etc. The relevant financial departments of the company are responsible for the specific implementation of this matter. This proposal needs to be submitted to the general meeting of shareholders for deliberation. The relevant information is hereby announced as follows:
1、 Overview of using temporarily idle self owned funds to purchase financial products
(I) purpose of investment products
On the premise of not affecting the normal operation and capital safety of the company and its subsidiaries, improve the utilization rate of idle self owned funds, make rational use of self owned funds, increase the company’s income and obtain more returns for the company and its shareholders.
(II) types of investment products
The company and its subsidiaries intend to use idle self owned funds to purchase low-risk financial products of financial institutions with high security and good liquidity, including but not limited to structured deposits, agreed deposits, call deposits, time deposits, large certificates of deposit, income certificates, trusts and other financial products. Investment products shall not be used for pledge or investment for the purpose of securities investment.
(III) capital source and amount of investment products
The source of financial products purchased by the company and its subsidiaries is the company’s temporarily idle self owned funds, and the amount shall not exceed RMB 4 billion (including this amount). Within the above limit and time limit, the funds can be recycled and used on a rolling basis.
(IV) authorization period
The authorization period is valid from the date of deliberation and approval of the 2021 annual general meeting of shareholders to the date of holding the 2022 annual general meeting of shareholders.
(V) implementation mode
After being deliberated and approved by the general meeting of shareholders of the company, the management of the company is authorized to exercise the investment decision-making power and sign relevant contract documents, including but not limited to: selecting the qualified issuer of financial products, clarifying the amount and period of financial products, selecting the variety of financial products, signing contracts and agreements, etc. The financial department of the company is responsible for the specific implementation of this matter.
(VI) information disclosure
The company will timely perform the obligation of information disclosure in accordance with the requirements of the company law, the securities law, the Listing Rules of Shanghai Stock Exchange on the science and innovation board and other relevant rules.
2、 Investment risk and risk control measures
(I) investment risk
The company has selected financial products with low and medium risk, high safety, good liquidity and short-term (no more than 12 months). As the financial market is greatly affected by the macro economy, the company will invest an appropriate amount of funds in a timely manner 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. After the approval of the board of directors, the chairman of the company is authorized to sign relevant legal documents or make decisions on relevant matters within the validity period and limit of the above authorization. The Finance Department of the company is responsible for organizing the implementation, timely analyzing and tracking the investment direction of financial products and project progress. Once adverse factors are found or judged, corresponding preservation measures must be taken in time to control investment risks.
2. In accordance with the requirements of relevant laws and regulations, the company has established and improved the special system of fund management, standardized the approval and implementation procedures of cash management, and ensured the effective development and standardized operation of cash management.
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 Listing Rules of science and Innovation Board of Shanghai Stock Exchange.
3、 Impact on daily production and operation of the company
1. Based on the principles of standardized operation, risk prevention, prudent investment, value preservation and appreciation, the company and its subsidiaries used idle self owned funds to purchase financial products on the premise of ensuring daily operation, which did not affect the normal production and operation of the company and its subsidiaries.
2. The company and its subsidiaries use idle self owned funds to purchase financial products, which can improve the use efficiency of idle self owned funds, increase the company’s income and obtain more returns for the company and shareholders. 4、 Review procedures and independent opinions
(I) deliberations of the board of directors and the board of supervisors
On April 6, 2022, the company held the 22nd Meeting of the first board of directors and the 13th meeting of the first board of supervisors respectively, deliberated and adopted the proposal on the company’s use of temporarily idle self owned funds to purchase financial products, and agreed that the company and its subsidiaries use their own idle funds of no more than RMB 4 billion (including this amount) for entrusted financial management, and timely purchase financial products with high safety and good liquidity, The service life is within 12 months from the date of deliberation and approval by the 2021 annual general meeting of shareholders. Within the above quota and period, the funds can be invested circularly and used on a rolling basis. This proposal still needs to be submitted to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The independent directors of the company believe that on the premise of not affecting the normal operation and main business development of the company, the company plans to use up to RMB 4 billion of idle self owned funds to buy financial products of financial institutions with low risk, high safety and good liquidity, which improves the use efficiency of the company’s funds, makes rational use of idle self owned funds, maintains capital liquidity and increases the company’s income, It can seek more investment returns for the company and shareholders, does not affect the normal operation of the company, and does not damage the interests of the company and all shareholders, especially small and medium-sized shareholders.
In conclusion, the independent directors of the company agree that the company plans to use no more than 4 billion yuan (including this amount) to temporarily idle its own funds to purchase financial products.
It is hereby announced.
Sichuan Huiyu Pharmaceutical Co.Ltd(688553) board of directors April 7, 2022
