Securities code: Zhejiang Supcon Technology Co.Ltd(688777) securities abbreviation: Zhejiang Supcon Technology Co.Ltd(688777) Announcement No.: 2022021 Zhejiang Supcon Technology Co.Ltd(688777)
Announcement on carrying out cross-border two-way RMB capital pool business
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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Zhejiang Supcon Technology Co.Ltd(688777) (hereinafter referred to as the “company” or ” Zhejiang Supcon Technology Co.Ltd(688777) “) held the 11th meeting of the 5th board of directors on April 9, 2022, deliberated and adopted the proposal on developing cross-border two-way RMB capital pool business, and planned to use the wholly-owned subsidiary Shanghai Zhiying Technology Co., Ltd. (hereinafter referred to as “Zhiying technology”) as the host enterprise, Carry out cross-border two-way RMB capital pool business in UOB (China) Co., Ltd. The relevant information is hereby announced as follows:
1、 Background and purpose of fund pool business
With the layout of the company’s internationalization strategic plan, the business of overseas subsidiaries has been carried out in an orderly manner, and the demand for cross-border settlement and financing is growing. There is an urgent need to open up domestic and foreign capital channels. In order to better realize the company’s centralized management and system connection of domestic and foreign funds and support the development of overseas business of the company (including domestic and foreign wholly-owned and holding subsidiaries directly or indirectly held), the company plans to use Zhiying technology, a wholly-owned subsidiary, as the host enterprise to carry out cross-border two-way RMB capital pool business in Dahua Bank (China) Co., Ltd., so as to further realize the integrated management of cross-border funds between domestic and foreign companies, Carry out centralized adjustment and collection management of RMB fund surplus and shortage, reduce the cost of fund use, improve the efficiency of fund use, and better provide financial support for the daily operation of overseas subsidiaries. 2、 Fund pool business
(I) Business Overview
Cross border two-way RMB fund pool business refers to the cross-border RMB fund balance and shortage adjustment and collection business carried out by the company between domestic and foreign member enterprises according to its own operation and management needs, so as to facilitate the centralized management of the company’s cross-border funds and support the operational fund management activities between the company and the member units in the pool.
In view of the business needs of the company, the company (including domestic and foreign wholly-owned and holding subsidiaries directly or indirectly holding shares) plans to apply to UOB (China) Co., Ltd., which has the ability of international settlement business, for the opening of cross-border capital pool business, and designate Zhiying technology, a wholly-owned subsidiary of the company, as the host enterprise,.
The board of directors of the company authorizes the financial principal of the company or other persons authorized by the board of directors to be fully responsible for handling various specific matters related to the business. The validity of the authorization is from the date of deliberation and approval of this proposal by the board of directors to the date of termination of the full-functional cross-border two-way RMB capital pool business described in this proposal.
(II) host enterprise
Shanghai Zhiying Technology Co., Ltd.
(III) settlement bank
Dahua Bank (China) Co., Ltd.
(IV) fund pool members
All wholly-owned and holding subsidiaries of the company at home and abroad have the right to participate in the company’s cross-border capital pool business. Subsequent companies can adjust the name and number of the above member subsidiaries participating in the business according to the actual business development needs.
(V) capital security
1. The special account of the company’s capital pool is only used for the collection and transfer of RMB funds among the members of the capital pool. It is only used for transfer and remittance to the agreed account number. It is not used for non capital pool business or other settlement business. The funds in the account are not used for stock market investment and non self use real estate;
2. The member enterprises supervised by the company into the pool are wholly-owned or holding subsidiaries within the scope of the company’s consolidated statements to ensure the company’s effective control over the capital pool. If a member enterprise fails to meet the pool entry requirements due to changes in equity and investment relations, the company will timely apply to the bank for corresponding adjustment and change;
3. The company’s pooled funds will strictly comply with the bank management requirements and the relevant provisions of the cross-border RMB fund pool to ensure the legal and compliant use of the fund pool;
4. After the company builds the capital pool, the capital entering the pool is the cash flow generated by the production and operation and industrial investment activities of the member enterprises of the capital pool. There is no cash flowing into the pool generated by external financing, and the use of the capital pool is legal; The deposit bank of the capital pool will conduct due diligence on the source and use of the company’s capital pool in accordance with the regulations;
5. The company will follow the relevant provisions of cross-border RMB capital pool and clarify its responsibilities and obligations in anti money laundering, anti-terrorism financing and anti tax evasion.
3、 Risk management mode
(I) the company shall handle cross-border two-way RMB capital pool business in strict accordance with the relevant management requirements of the bank, and open a special RMB deposit account, which is specially used for cross-border two-way RMB capital pool business within the scope of listed companies;
(II) the company’s internal audit department is responsible for regular or irregular audit and supervision of the use of funds in the company’s fund pool, and comprehensive inspection of funds and related businesses in all fund pools;
(III) the company will strictly abide by the Listing Rules of Shanghai Stock Exchange and the relevant provisions of the people’s Bank of China, and legally carry out the above capital pool business.
4、 Impact of this event on the company
This event does not affect the normal operation of the company and its subsidiaries. It aims to meet the capital needs of the company and its subsidiaries for business development and daily operation, and is conducive to improving the overall capital utilization rate of the company. There is no situation that damages the legitimate rights and interests of the company and shareholders, and will not have an adverse impact on the company’s future financial status and operating results. 5、 Risk tips
The company’s capital pool business is likely to be affected by force majeure factors such as macroeconomic fluctuations, domestic and foreign laws and regulations supervision, trade friction and exchange rate fluctuations. The company will pay close attention to macroeconomic, industry trends and international situation, strengthen management and minimize capital risk. Please pay attention to investment risks. It is hereby announced.
Zhejiang Supcon Technology Co.Ltd(688777) board of directors April 12, 2022
