Securities code: Yifan Pharmaceutical Co.Ltd(002019) securities abbreviation: Yifan Pharmaceutical Co.Ltd(002019) Announcement No.: 2022030 Yifan Pharmaceutical Co.Ltd(002019)
Announcement on using self owned funds for entrusted financial management
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Important content tips:
1. Investment type: on the premise of controlling risks, the company purchases short-term low-risk financial products with high safety and good liquidity through banks, securities companies and other financial institutions with legal business qualifications, including but not limited to fixed income financial products, principal guaranteed floating financial products, structured deposits, etc.
2. Investment amount: the accumulated transaction amount at any time point shall not exceed RMB 2000000000. The amount of funds within the limit can be used in a rolling manner. The accumulated amount for 12 consecutive months shall not exceed 50% of the company's latest audited net assets. 3. Special risk tip: entrusted financial management is greatly affected by changes in policy risk, market risk, liquidity risk and operational risk, and the investment income is uncertain. Please pay attention to the investment risk. 1、 Overview of investment
1. Purpose of investment: in order to improve the fund use efficiency of Yifan Pharmaceutical Co.Ltd(002019) (hereinafter referred to as "the company"), increase the company's income and maximize the interests of shareholders, while ensuring the capital demand of daily operation and effectively controlling investment risks, the company plans to apply for using its own idle funds to carry out entrusted financial management business. 2. Investment period and amount: the cumulative transaction amount at any time point shall not exceed RMB 2 million, and the funds within the quota can be used on a rolling basis. The cumulative amount for 12 consecutive months shall not exceed 50% of the company's latest audited net assets. The time limit shall be within 12 months after the deliberation and approval of the board of directors.
3. Investment method: the company will strictly control risks in accordance with relevant regulations, strictly evaluate and screen financial products, and purchase short-term financial products with low risk, good liquidity and high security, including but not limited to fixed income, principal guaranteed floating financial products, structural deposits, etc. The entrusted financial products invested by the company shall not be used for the purpose of stocks and their derivatives, securities investment funds and the above investment.
4. Source of funds: the company uses idle self owned funds as the source of funds for entrusted financial management, which is legal and compliant.
2、 Review procedure
On April 11, 2022, the company held the 23rd Meeting of the 7th board of directors, deliberated and approved the proposal on using self owned funds for entrusted financial management, and agreed that the company and its subsidiaries within the scope of consolidated statements would use idle self owned funds with a limit of no more than RMB 2 million to purchase banks with legal business qualifications under the condition of ensuring the capital needs of normal production and operation Securities companies and other financial institutions short-term low-risk financial products, while authorizing the chairman to exercise investment decision-making power within the limit and sign relevant legal documents. This proposal is within the scope of the deliberation authority of the board of directors, does not involve related party transactions, and does not need to be deliberated by the general meeting of shareholders.
3、 Investment risk analysis and risk control measures
(I) investment risk
1. Policy risk: financial products are designed according to current effective laws, regulations and policies. If relevant laws and regulations or national macro policies change, it may affect the normal investment, cashing and other behaviors of financial products, resulting in the failure of financial products to obtain full product income.
2. Market risk: the financial products to be purchased by the company and its subsidiaries within the scope of consolidated statements belong to low-risk varieties, but the financial market is affected by macro-economy, so it is not excluded that the investment is affected by market fluctuations. 3. Liquidity risk: for products with definite investment term, the capital liquidity risk caused by not redeeming financial products in advance before the expiration of the investment term.
4. Income risk: the company and its subsidiaries within the scope of the consolidated statements will intervene in a timely and appropriate manner according to the economic situation and changes in the financial market, and the relevant entrusted financial product business may be linked to the financial index or other types of business. Therefore, the actual income of the investment is unpredictable and there may be a certain range difference.
5. Operational risk: due to internal management process defects, personnel operation errors and other events, it may lead to the subscription of financial products, transaction failure and fund allocation failure, resulting in the loss of income of the company and its subsidiaries. (II) risk control measures
1. The company will timely analyze and track the investment direction of financial products and project progress. Once adverse factors are found or judged, the company will timely take corresponding preservation measures to control investment risks.
2. The Audit Department of the company has the right to conduct daily supervision over the entrusted financial management business and regularly audit and verify the use of funds.
3. For entrusted financial management, the company will select qualified professional financial institutions with good credit status, good financial status, no bad credit record and strong profitability as the trustee, and sign a written contract with the trustee to clarify the amount, period, investment varieties, rights, obligations and legal liabilities of both parties, and require guarantee when necessary.
The board of directors of the company appoints the chief financial officer of the company to track the progress of entrusted financial management and the safety of investment. The chief financial officer shall report to the board of directors in time when he finds any abnormality in the entrusted financial management of the company, so that the board of directors can take effective measures to recover the funds immediately and avoid or reduce the losses of the company.
4. Independent directors can inspect the entrusted financial management. On the basis of internal audit and verification of the company, independent directors are mainly verified by the audit committee of the board of directors. If necessary, two or more independent directors have the right to appoint an independent external audit institution to conduct special audit of entrusted financial management.
4、 Impact of entrusted financial management on the company
Without affecting the normal production and operation and ensuring the safety of funds, using the temporarily idle self owned funds to buy short-term low-risk financial products can improve the efficiency of fund use, increase the company's income and seek more investment returns for the company and shareholders through appropriate financial management.
5、 Opinions of independent directors
The independent directors believe that the deliberation and voting procedures of the company's use of its own idle funds for entrusted financial management comply with relevant laws and regulations and the articles of association. The company and its subsidiaries within the scope of consolidated statements use idle self owned funds with a limit of no more than RMB 2 million to purchase short-term low-risk financial products of financial institutions with legal business qualification, which is conducive to improving the use efficiency of self owned funds and increasing the income of self owned funds, will not adversely affect the production and operation of the company and its subsidiaries within the scope of consolidated statements, is in line with the interests of the company, and will not damage the company and all shareholders, Especially the interests of minority shareholders. Agree that the company and its subsidiaries within the scope of consolidated statements use their own idle funds for entrusted financial management.
It is hereby announced.
Yifan Pharmaceutical Co.Ltd(002019) board of directors April 13, 2022
