Securities code: Hunan Aihua Group Co.Ltd(603989) securities abbreviation: Hunan Aihua Group Co.Ltd(603989) Announcement No.: 2022032 convertible bond Code: 113504 convertible bond abbreviation: Aihua convertible bond
Hunan Aihua Group Co.Ltd(603989)
Announcement on using idle self owned funds of the company to purchase 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. Important content tips:
Investment quota: no more than RMB 1.5 billion, and the funds within the above quota can be used on a rolling basis
Investment type: the company can purchase financial products directly, or the company can purchase financial products issued by banks, securities companies and other financial institutions, but can not directly invest in domestic and foreign stocks. The term of individual financial management shall not exceed 12 months.
Investment period: 12 months after the deliberation and approval of the general meeting of shareholders
Deliberation procedure: on April 2, 2022, the company held the sixth meeting of the Fifth Board of directors and the sixth meeting of the Fifth Board of supervisors, deliberated and adopted the proposal on using the company's idle self owned funds to purchase financial products respectively, and the independent directors issued written opinions. The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation and approval Hunan Aihua Group Co.Ltd(603989) (hereinafter referred to as "the company") held the 6th meeting of the 5th board of directors and the 6th meeting of the 5th board of supervisors on April 2, 2022, deliberated and adopted the proposal on using the company's idle self owned funds to purchase financial products. In order to improve the use efficiency of the company's idle self owned funds, increase the company's capital income and improve the return of shareholders, on the premise of ensuring the daily operation capital demand, it is agreed that the company will use the maximum amount of idle self owned funds of no more than RMB 1.5 billion for cash management, which will be effective within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company. Within the validity period of the above quota and resolution, the funds can be used on a rolling basis. The details are as follows:
1、 Basic information of using idle self owned funds to purchase financial products this time
(I) investment purpose
In order to improve the use efficiency of funds and make rational use of idle funds, we can improve the use efficiency of funds and obtain certain investment income through appropriate cash management without affecting normal operation.
(II) investment amount
It is proposed to use the maximum amount of idle self owned funds of no more than RMB 1.5 billion for cash management. Within the above amount, the funds can be used on a rolling basis.
(III) variety of financial products
The company can purchase financial products directly, or the company can purchase financial products issued by banks, securities companies and other financial institutions, but can not directly invest in domestic and foreign stocks. The term of individual financial management shall not exceed 12 months. (IV) investment period
Valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company.
(V) source of funds
The source of funds for cash management of the company is its own funds.
(VI) implementation mode
Within the scope of the above investment quota, the chairman is authorized to exercise investment decisions and sign relevant contract documents, including but not limited to: selecting qualified financial institutions, varieties of financial products, clarifying investment amount, investment period, signing contracts or agreements, etc. The financial department of the company is responsible for organizing the implementation and establishing the investment account.
2、 Investment risk and risk control measures
When purchasing investment products, although the company selects medium and low-risk investment varieties in principle, because the financial market is greatly affected by the macro-economy, it is not ruled out that the investment is affected by market fluctuations, the investment income is uncertain, and there is even the risk of principal loss.
In order to minimize the investment risk, the company will take the following measures:
1. The company will strictly abide by the principle of prudent investment, strictly screen the issuers, and select issuers with good reputation, high compliance and strong capital security. Financial assets such as financial products held by the company cannot be used for pledge.
2. Establish an investment account, track and analyze the investment direction and project progress of various financial products in time, and take corresponding preservation measures in time to control investment risks once adverse factors are found or judged.
3. The Audit Department of the company is responsible for auditing and supervising the investment of various financial products, auditing the specific investment every quarter and reporting to the audit committee.
4. Independent directors and supervisors have the right to supervise and inspect the use of funds, and can hire external specialized agencies to audit when necessary.
5. The company will timely disclose the specific investment and corresponding profit and loss under the authorization in accordance with relevant regulations.
3、 Impact on the company
The company's use of some idle self owned funds to purchase financial products is implemented on the premise of ensuring normal production and operation and ensuring capital safety, which will not affect the company's daily capital turnover needs and the normal development of the company's main business. Through appropriate investment in financial products, it is conducive to improve the efficiency of capital use, obtain certain investment income, and obtain more investment returns for the company and shareholders.
4、 Relevant review and approval procedures
The sixth meeting of the Fifth Board of directors and the sixth meeting of the Fifth Board of supervisors of the company deliberated and approved the proposal on using the company's idle self owned funds to purchase financial products, which needs to be submitted to the general meeting of shareholders of the company for deliberation and approval.
5、 Description of special opinions
(I) opinions of independent directors
The company's use of idle self owned funds to purchase financial products has fulfilled the necessary approval procedures and complies with the provisions of relevant regulations and rules such as the Listing Rules of Shanghai Stock Exchange, the articles of association, which is conducive to improving the use efficiency of idle funds, obtaining a certain investment income, will not affect the normal development of the company's main business, and will not damage the interests of minority shareholders. We agree that the company will use some of its own funds for entrusted financial management.
(II) opinions of the board of supervisors
The board of supervisors believes that the company's use of idle self owned funds to purchase financial products will not affect the company's daily capital turnover needs and the normal development of the company's main business. On the premise of ensuring liquidity and capital safety, the company will use the maximum amount of idle self owned funds of no more than RMB 1.5 billion for cash management, which is conducive to improving the company's capital use efficiency and increasing the company's capital income, In line with the interests of the company and all shareholders. The board of supervisors expressed no objection.
It is hereby announced.
Hunan Aihua Group Co.Ltd(603989) board of directors
April 6, 2022
