China Industrial Securities Co.Ltd(601377)
About Elite Color Environmental Resources Science&Technology Co.Ltd(002998)
Verification opinions on using some idle raised funds for cash management
China Industrial Securities Co.Ltd(601377)
1、 Basic information of funds raised from initial public offering
With the approval of the reply on the approval of Elite Color Environmental Resources Science&Technology Co.Ltd(002998) initial public offering of shares (zjxk [2020] No. 1309) issued by the China Securities Regulatory Commission, the total amount of funds raised by the company in this offering is RMB 477357700. After deducting the relevant issuance expenses of RMB 458213 million, the net amount of funds actually raised by the company is RMB 431536400. The above raised funds have been verified by Dahua Certified Public Accountants (special general partnership) and a capital verification report (dhyz [2020] No. Addsino Co.Ltd(000547) ) has been issued. The company has adopted a special account storage system for the raised funds. After the raised funds are received, they have been deposited in the special account for the raised funds, and signed a supervision agreement for the raised funds with the sponsor and the commercial bank storing the raised funds.
2、 Idle raised funds
According to the prospectus for Elite Color Environmental Resources Science&Technology Co.Ltd(002998) initial public offering of shares, the investment projects and use plans of the funds raised by the company’s public offering of shares are as follows:
Unit: 10000 yuan
No. project name total project investment proposed to be invested by raised funds
Total income
1 annual output of 220000 tons of functional composite low 43200 Guangzhou Haige Communications Group Incorporated Company(002465) 922 Elite Color Environmental Resources Science&Technology Co.Ltd(002998)
Melting point fiber project phase II
2 new R & D center project 10 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 93184 Elite Color Environmental Resources Science&Technology Co.Ltd(002998)
3. Supplementary working capital 22 Ping An Bank Co.Ltd(000001) 356257
Total 75200004315364
The company makes capital investment according to the progress of project construction, and some of the raised funds are idle in the process. In order to improve the use efficiency of the company’s funds, on the premise of ensuring that it does not affect the normal operation of the company, the construction of raised funds and the use plan of raised funds, use some idle raised funds for cash management, increase the company’s cash income and obtain more returns for the company and shareholders.
3、 Basic information of cash management using some idle raised funds
(I) investment quota and term
In order to improve the use efficiency of the raised funds, the company plans to use part of the idle raised funds with a maximum amount of no more than RMB 30 million for cash management. The service life is valid within 12 months from the date of deliberation and approval by the board of directors of the company. The above amount is within the validity period of the resolution, and the funds can be used on a rolling basis.
(II) investment varieties
In order to control risks, the funds within the above quota are mainly used to purchase investment products issued by financial institutions with high security, good liquidity, breakeven agreement and a term of no more than 12 months.
(III) implementation mode and authorization
The board of directors of the company authorizes the management of the company to exercise the decision-making power within the above validity period and capital limit, and the specific matters shall be organized and implemented by the financial department of the company.
(IV) information disclosure
The board of directors of the company is responsible for timely performing the obligation of information disclosure in accordance with the relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange, and disclosing various investments and profits and losses in detail in regular reports.
4、 Impact on the daily operation of the company
The company plans to use part of the idle raised funds for cash management, which is implemented on the premise of ensuring the funds required by the company’s raised investment projects and ensuring the safety of the raised funds. It will not affect the normal turnover needs of the company’s daily funds and the normal operation of the raised funds projects, nor will it affect the normal development of the company’s main business. At the same time, timely cash management of some idle raised funds can obtain certain investment income and seek more investment returns for the company and shareholders.
5、 Investment risk and risk control measures
(I) investment risk
1. Although the company intends to purchase financial products from banks and other financial institutions with low risk and high liquidity, the financial market is affected by macro-economy, and the above investment is affected by market fluctuations.
2. The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of the investment is unpredictable.
(II) risk control measures
1. The management of the company exercises the investment decision-making power, including (but not limited to) selecting high-quality cooperative financial institutions, clarifying the amount and period of cash management, and selecting the variety of cash management products. The financial center of the company is responsible for organizing the implementation, timely analyzing and tracking the progress of cash management projects of financial institutions. Once adverse factors are found or judged, corresponding preservation measures must be taken in time to control investment risks;
2. The Audit Department of the company is responsible for the audit and supervision of the use and custody of the funds of this authorized investment. At the end of each quarter, it shall conduct a comprehensive inspection of all investment projects, reasonably predict the possible gains and losses of various investments according to the principle of prudence, and report to the Audit Committee;
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. Once adverse factors are found or judged, corresponding preservation measures will be taken in time to control investment risks;
4. The company will carry out cash management in strict accordance with the requirements of relevant rules and regulations such as the Listing Rules of Shenzhen Stock Exchange, the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies, the articles of association and the management system of raised funds, strengthen the analysis and research of relevant product targets, earnestly implement various internal control systems of the company and strictly control investment risks.
6、 Relevant approval procedures and audit opinions
At the second meeting of the third board of directors and the second meeting of the third board of supervisors held on April 13, 2022, the company deliberated and adopted the proposal on the use of some idle raised funds for cash management, and agreed that the company would use the temporary idle raised funds with an amount not exceeding RMB 30 million for cash management. The independent directors of the company carefully reviewed the proposal on using some idle raised funds for cash management and issued clear consent opinions.
7、 Verification opinions of the recommendation institution
Upon verification, China Industrial Securities Co.Ltd(601377) believes that:
Elite Color Environmental Resources Science&Technology Co.Ltd(002998) the proposal of using idle raised funds for cash management has been deliberated and approved at the second meeting of the third board of directors and the second meeting of the third board of supervisors, and the independent directors of the company have also expressed their explicit consent. The decision-making procedure of this matter is legal and compliant.
Therefore, China Industrial Securities Co.Ltd(601377) has no objection to Elite Color Environmental Resources Science&Technology Co.Ltd(002998) using some idle raised funds for cash management.
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Sponsor representative:
Tang Yongjun Mao Zufeng
China Industrial Securities Co.Ltd(601377) mm / DD / yyyy
