Stock abbreviation: Shanying International Holdings Co.Ltd(600567) Stock Code: Shanying International Holdings Co.Ltd(600567) Announcement No.: pro 2022031
Bond abbreviation: Shanying convertible bond bond Code: 110047
Bond abbreviation: ying19 convertible bond Code: 110063
Shanying International Holdings Co.Ltd(600567)
Announcement on carrying out commodity futures hedging 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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Shanying International Holdings Co.Ltd(600567) (hereinafter referred to as "the company") convened the 15th meeting of the 8th board of directors on April 15, 2022, deliberated and adopted the proposal on developing commodity futures hedging business, and agreed that the company and its holding subsidiaries should carry out commodity futures hedging business, with the maximum amount of margin not exceeding 27 million yuan, which can be used on a rolling basis, Valid within 12 months from the date of deliberation and approval by the board of directors of the company. The transaction need not be submitted to the general meeting of shareholders for deliberation. The relevant information is hereby announced as follows:
1、 Purpose of commodity futures hedging business
In the process of daily operation, the company purchases a large amount of power coal, starch and pulp, and their prices are obviously affected by market fluctuations. In order to reduce the adverse impact of raw material price fluctuations on the company's production and operation, the company plans to carry out hedging business, make full use of the function of futures market, lock the purchase price of raw and auxiliary materials, effectively manage the risks caused by price fluctuations, improve the operation level of the enterprise and ensure the healthy and sustainable operation of the enterprise.
2、 Basic information of commodity futures hedging business
(I) types of commodity futures hedging business
The varieties of commodity futures hedging business to be carried out by the company are limited to the futures varieties of raw and auxiliary materials required for the production and operation of the company and its holding subsidiaries, including power coal, starch, pulp, etc.
(II) trading scale of commodity futures hedging business in 2022
According to the relevant provisions of Shanying International Holdings Co.Ltd(600567) derivatives investment management specification, according to the production and operation plan and the principle of prudence, it is expected that the maximum amount of margin occupied by relevant commodity futures hedging business in 2022 will not exceed 27 million yuan. If the proposed deposit exceeds the above limit, the approval procedure for additional limit will be implemented in accordance with the relevant provisions of the company.
(III) source of funds
The company has its own funds.
(IV) transaction term
Within the above limits, the board of directors authorizes the chairman of the company to examine and approve the relevant matters of commodity futures hedging business, and implement them in accordance with the provisions of the company's internal control system for commodity futures hedging business. The term and resolution of this commodity futures hedging business are valid within 12 months from the date of deliberation and approval by the board of directors of the company. Within the above limit, the funds can be recycled.
3、 Risk analysis of commodity futures hedging business
1. Price fluctuation risk: the futures market changes greatly, which may lead to the deviation of the price change direction from the company's prediction and judgment, resulting in the loss of futures trading.
2. Capital risk: futures trading adopts the margin and mark to market system. 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. Technical risk: due to uncontrollable and unpredictable system failure, network failure and communication failure, the trading system operates abnormally, causing problems such as delay, interruption or data error of trading instructions, resulting in corresponding risks.
4. Other risks: in the course of business, if the operators fail to conduct commodity futures hedging operation according to the specified procedures or do not fully understand the commodity futures information, operational risks will be brought.
4、 Risk control measures taken by the company
(I) the company has formulated the financial derivatives investment risk control and information disclosure system and the internal control system of commodity futures hedging business to make clear provisions on the risk control, review procedures, follow-up management and information disclosure of commodity futures hedging business.
(II) the company will strictly control the type and scale of commodity futures hedging business, do not conduct complex commodity futures hedging business beyond the actual needs of operation, and do not engage in commodity futures speculation. The amount of commodity futures hedging shall not exceed the upper limit of the authorized amount approved by the board of directors or the general meeting of shareholders.
(III) the legal compliance center of the company will regularly audit and supervise the risk control procedures to be followed for commodity futures hedging business. Through the establishment of an effective internal control system, we will regularly supervise and inspect the standardization of commodity futures hedging business, the effectiveness of internal control mechanism and the authenticity of information disclosure.
(IV) the company will regularly organize relevant personnel involved in commodity futures hedging business to carry out professional training, and continuously strengthen the professional ethics education of relevant personnel to improve their business level.
5、 Accounting policies for the company's commodity futures hedging business
The company conducts corresponding accounting calculations on commodity futures trading business in accordance with relevant provisions and guidelines such as accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 24 - hedge accounting, accounting standards for Business Enterprises No. 39 - fair value measurement, etc.
The scale of the company's commodity hedging business matches the current scale of the company's own funds, operation and actual needs, and will not affect the company's normal production and operation activities.
It is hereby announced.
Shanying International Holdings Co.Ltd(600567) board of directors April 16, 2002
