Securities code: Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) securities abbreviation: Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) Announcement No.: 2022019 Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226)
Announcement on the continued hedging business of steel bank e-commerce and its subsidiaries
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.
Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) (hereinafter referred to as "the company") deliberated and adopted the proposal on the continued hedging business of gangyin e-commerce and its subsidiaries at the 18th meeting of the 5th board of directors held on April 13, 2021, and agreed to Shanghai gangyin e-commerce Co., Ltd. (hereinafter referred to as "gangyin e-commerce"), the holding subsidiary of the company Shanghai tieju mechanical equipment Co., Ltd. (hereinafter referred to as "Shanghai tieju"), Shanghai Shanda Industry Co., Ltd. (hereinafter referred to as "Shanda industry"), Shanghai jiuchongjin Supply Chain Management Co., Ltd. (hereinafter referred to as "jiuchongjin") and its subsidiary Shanghai Subo jiuchongjin New Material Technology Co., Ltd. (hereinafter referred to as "Subo jiuchongjin") carry out steel variety hedging business, The relevant information is hereby announced as follows:
1、 The purpose of steel hedging business carried out by steel bank e-commerce and its subsidiaries
As a spot steel trading platform, steel bank e-commerce mainly includes construction steel, hot rolled coil, etc; Shanghai tieju, Shanda industry, jiuchongjin and Subo jiuchongjin are enterprises that focus on providing raw material distribution services for end users. The raw materials provided are mainly construction steel, hot rolled coil, etc. In order to avoid the impact of steel price fluctuation on normal operation, gangyin e-commerce and its subsidiaries Shanghai tieju, Shanda industry, jiuchongjin and Subo jiuchongjin plan to carry out hedging business for steel varieties.
At the 18th meeting of the 5th board of directors held on April 13, 2022, the company deliberated and adopted the proposal on continued hedging business of steel bank e-commerce and its subsidiaries. According to the provisions of the company's hedging system and in combination with the company's business, steel bank e-commerce and its subsidiaries Shanghai tieju, Shenda industry, jiuchongjin Su Bo Jiujin plans to use the deposit of no more than 60 million yuan to carry out futures hedging business, which is valid for one year from the date of deliberation and approval of this shareholders' meeting. And the 2023 hedging plan will remain valid until it is approved by the 2022 annual general meeting of shareholders and the board of directors of the company does not make a new proposal or modify or approve it.
2、 Type and quantity of hedging
1. Trading varieties: rebar, hot coil and other futures listed on Shanghai Futures Exchange.
2. Position: the maximum position of steel bank e-commerce and its subsidiaries shall not exceed 80000 tons, and their futures position shall not exceed their own inventory in principle.
3. The margin shall be controlled within 60 million yuan.
4. Source of funds: self owned funds of gangyin e-commerce, Shanghai tieju, Shanda industry, jiuchongjin and Subo jiuchongjin.
5. Hedging period: one year from the date of deliberation and approval by the general meeting of shareholders. And the 2023 hedging plan will remain valid until it is approved by the 2022 annual general meeting of shareholders and the board of directors of the company does not make a new proposal or modify or approve it.
3、 Risk analysis of hedging business
1. Price fluctuation risk: the futures market changes greatly, which may produce price fluctuation risk and cause losses in futures trading.
2. Capital risk: futures trading adopts margin and mark to market system, which may bring capital risk of insufficient margin.
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.
4、 Risk control measures
1. Gangyin e-commerce and its subsidiaries match the hedging business with their business operations to hedge the risk of price fluctuation to the greatest extent. The hedging business of steel bank e-commerce and its subsidiaries is limited to steel commodity futures traded in domestic futures exchanges.
2. Gangyin e-commerce and its subsidiaries will reasonably dispatch and strictly control the capital scale of hedging, and reasonably plan and use the margin in accordance with the relevant fund management system. Within one year from the date of adoption of this proposal by the shareholders' meeting, all hedging businesses of steel bank e-commerce must be strictly limited to the approved hedging plan and shall not operate beyond the scope.
3. The company will arrange and use professionals in strict accordance with the relevant internal control system, establish a strict authorization and post restraint system, strengthen the professional ethics education and business training of relevant personnel, and improve the comprehensive quality of relevant personnel.
4. The company has set up a trading, communication and information service facility system that meets the requirements to ensure the normal operation of the trading system and the normal development of trading work. In case of failure, even if corresponding treatment measures are taken to reduce losses.
The company will timely announce the risk impact events of hedging business.
5、 Determination principle of fair value
The fair value of steel hedging of the company is determined according to the settlement price on the last trading day of each accounting reporting period.
6、 Accounting policies and accounting principles
The company conducts accounting in accordance with the accounting policies stipulated in the accounting standards for business enterprises issued by the Ministry of finance. 7、 Relevant review and approval procedures
The 18th meeting of the 5th board of directors and the 15th meeting of the 5th board of supervisors held on April 13, 2022 deliberated and adopted the proposal on continued hedging business of steel bank e-commerce and its subsidiaries. This proposal needs to be submitted to the general meeting of shareholders for deliberation and approval. This proposal shall be valid for one year from the date of adoption by the general meeting of shareholders. The independent directors expressed their independent opinions on the proposal: the company has formulated the hedging business management system, strengthened internal control, implemented risk prevention measures, improved operation and management level, and formulated specific operating procedures for the company's hedging business. Steel bank e-commerce and its subsidiaries choose to use the hedging function of futures instruments to carry out hedging business, which can effectively reduce the risk of market price fluctuation, is conducive to its stable production and operation, and is in line with the interests of the company and all shareholders. We agree to this hedging business. 8、 Documents for future reference
1. Resolutions of the 18th meeting of the 5th board of directors of the company;
2. Resolutions of the 15th meeting of the 5th board of supervisors of the company;
3. Independent opinions of independent directors on relevant matters.
It is hereby announced.
Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) board of directors
April 15, 2022
