China Securities Co.Ltd(601066)
About China Resources Chemical Innovative Materials Co.Ltd(301090)
Special verification opinions on Securities and derivatives investment in 2021
China Securities Co.Ltd(601066) (hereinafter referred to as ” China Securities Co.Ltd(601066) ” securities “and” sponsor “) as the sponsor of China Resources Chemical Innovative Materials Co.Ltd(301090) (hereinafter referred to as” China Resources Chemical Innovative Materials Co.Ltd(301090) “and” company “) for initial public offering and listing on GEM, in accordance with relevant provisions such as Shenzhen stock exchange gem stock listing rules, Shenzhen Stock Exchange self regulatory guidelines for listed companies No. 2 – standardized operation of listed companies on GEM, The securities and derivatives investment in China Resources Chemical Innovative Materials Co.Ltd(301090) 2021 was carefully checked, and the details are as follows:
1、 Review and approval of securities and derivatives investment
On February 7, 2021, the 14th meeting of the first board of directors of the company deliberated and approved the proposal on the feasibility analysis report of commodity futures hedging business and the proposal on the annual plan and business authorization of futures hedging of the company in 2021. In order to avoid the adverse impact of raw material price fluctuation on the production and operation of the company, control business risks and ensure the healthy and sustainable growth of main business, The meeting agreed that the scale of raw materials purchased by the company through futures contracts in 2021 should not exceed 50% of the raw materials required for production, that is, the hedging scale of raw materials in 2021 should be no more than 903000 tons of PTA and 357000 tons of MEG purchased by the company through futures contracts. According to the maximum amount of position margin on a single trading day, the capital scale of the company’s hedging business in 2021 is no more than 498.54 million yuan. Within this limit, it can be recycled, and the capital source is the company’s own funds.
Select appropriate PTA and MEG futures contracts to buy according to the sales quantity and delivery time interval of the sales order and the activity of PTA and MEG futures contracts; Close the position of the purchase contract or physical delivery contract according to the actual situation of the purchase of raw materials.
2、 Implementation of raw material hedging business in 2021
List the year-end position contract amount and market value, actual profit and loss, floating profit and loss and cumulative transaction amount of commodities, Financial Futures (options) and derivatives investment by category:
Category PTA MEG total
1、 Financial derivatives business at the beginning of the year
1. Number of position contracts 75320005755000132870002. Amount of position contracts 2813107178822927540170510586119583. Market value of position contracts 289664640 Zhejiang Jingu Company Limited(002488) 4620 Yunnan Baiyao Group Co.Ltd(000538) 510840004. Amount of OTC position contracts II. Financial derivatives business at the end of the year
1. Number of position contracts 2913100010135000392660002. Amount of position contracts 142258835924532399391501954987750743. Market value of position contracts 145158821924498628821501950217040744. Amount of OTC position contracts III. trading and profit and loss
1. The accumulated transaction amount of the current year is 3663516460 Goldenmax International Technology Ltd(002636) 8932 Zte Corporation(000063) 00409660002. The actual profit and loss of the current year is 16159452000163765850003253 Ningbo Water Meter (Group) Co.Ltd(603700) 03. The floating profit and loss is 2899986000 -3377057000 -477071000. The company’s hedging business is mainly to hedge the risk of price fluctuation of raw materials. During the reporting period, when the overall price of raw materials fluctuated little, the effect of the application of hedging instruments was small; When the price of raw materials continues to decline or rise in one direction, the effect of the application of hedging instruments is higher.
From the impact of the hedging business on the company’s financial data and operating performance, the hedging business has a great impact on the company’s financial data in 2021, but it is in line with the fluctuation of the market price of raw materials of the corresponding hedged items.
In order to avoid the operating risks brought to the company by the fluctuation of PTA and MEG market prices, the company uses futures hedging tools to lock in some product profits. From the gross profit of various products of the company this year, it basically maintains a normal level or is consistent with the market level.
3、 Risk analysis of the company’s response to hedging business
The company does not carry out hedging business for the purpose of speculation and arbitrage, mainly to effectively avoid the impact of raw material price fluctuations on the company, but there are still the following risks:
(1) Price fluctuation risk: the change ⼤ of futures market may produce price fluctuation risk and cause the loss of futures book.
(2) Capital risk: the hedging transaction issues operation instructions according to the authority specified in the relevant system of the company. If the investment amount is too large, it may cause capital liquidity risk, and even be forced to close the position because it is too late to supplement the margin, resulting in actual losses.
(3) Internal control risk: futures trading is highly professional and complex, which may lead to risks caused by imperfect internal control system.
(4) Technical risk: technical risk may be caused by incomplete computer system, network failure, etc. (5) Policy risk: if there are significant changes in policies, laws and regulations related to derivatives market and hedging trading business, it may cause market fluctuations or risks caused by inability to trade.
4、 The company’s risk control measures for hedging business
(1) The company matches commodity futures hedging business with production and operation, strictly controls the scale of futures hedging business, and shall not exceed the usage of PTA and MEG required by the company’s annual production and operation, so as to hedge the risk of raw material price fluctuation caused by forward orders.
(2) The company strictly controls the capital scale of hedging, reasonably plans and uses the margin, does not affect the normal production and operation of the company, and carries out hedging business operations in strict accordance with the provisions of the company’s management system.
(3) The futures hedging transaction management system has made clear provisions on the hedging business quota, variety range, approval authority, internal audit process, responsible department and person, internal risk report and handling procedures. The company controls all links in strict accordance with the system.
(4) The company has set up trading, communication and information service facilities and systems that meet the requirements to ensure the normal operation of the trading system and the normal development of trading work.
5、 Opinions of independent directors on the company’s securities and derivatives investment in 2021
According to the relevant regulations of Shenzhen Stock Exchange, the independent directors carefully checked the company’s investment in Securities and derivatives in 2021. After verification, the company did not make securities investment in 2021 and only carried out the hedging business of raw material futures. We believe that the company’s funds for futures hedging business come from the company’s own funds, which has not affected the development of the company’s main business. The company carried out the hedging business of raw material futures in strict accordance with the requirements of relevant laws and regulations, the articles of association and relevant systems of the company, and performed the corresponding approval procedures. There was no violation of relevant laws, regulations and rules, and there was no damage to the interests of the company and minority shareholders.
6、 Verification opinions of the recommendation institution
The sponsor believes that the company’s securities and derivatives investment has not violated the provisions of relevant laws, regulations and normative documents such as the Shenzhen Stock Exchange GEM Listing Rules, Shenzhen Stock Exchange listed companies self regulatory guidelines No. 2 – standardized operation of GEM listed companies, and complies with the provisions of the China Resources Chemical Innovative Materials Co.Ltd(301090) articles of association, and the decision-making procedures are legal and compliant.
(there is no text on this page, which is the signature page of China Securities Co.Ltd(601066) special verification opinions on China Resources Chemical Innovative Materials Co.Ltd(301090) 2021 securities and derivatives investment)
Sponsor representative:
Zhao Xu, Li Xudong
China Securities Co.Ltd(601066) mm / DD / yyyy
