Securities code: Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) securities abbreviation: Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) Announcement No.: 2022030 Jiangsu Changshu Automotive Trim Group Co.Ltd(603035)
Announcement on using idle self owned funds for cash management
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.
Important content tips:
Total amount of cash management: no more than RMB 200 million
Product category: choose an appropriate time to buy financial products with high security and good liquidity in stages, including but not limited to financial products, fixed income securities, structured deposits and other financial products.
Term of validity: valid within 12 months from the date of deliberation and approval by the board of directors.
Within the above quota and term, the funds can be used on a rolling basis.
1、 Basic information of cash management using idle self owned funds
Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) (hereinafter referred to as “the company”) in order to make full use of the short-term temporarily idle self owned funds, improve the use efficiency and income of funds, and further improve the overall performance level of the company, the company plans to use the idle self owned funds with a total amount of no more than 200 million yuan for cash management on the premise of ensuring the sufficient working capital required by the daily production and operation of the company and its subsidiaries and ensuring the safety of funds, The details are as follows:
1. Product category: choose an appropriate time to buy financial products with high security and good liquidity in stages, including but not limited to financial products, fixed income securities, structured deposits and other financial products.
2. Usage limit: the total amount of idle self owned funds to be used to purchase financial products shall not exceed RMB 200 million.
3. Validity period of the resolution: it shall be valid within 12 months from the date of deliberation and adoption by the board of directors. During the period of validity of the resolution, the company can use it in rolling within the amount of available funds according to the term of cash management products.
4. Implementation method: the board of directors authorizes the chairman to exercise the decision-making power within the above limit and sign relevant contract documents or agreements, and the management of the company organizes relevant departments to implement it.
5. Information disclosure
The company will do a good job of relevant information disclosure in accordance with the relevant provisions of Shanghai Stock Exchange and other regulatory agencies.
2、 Deliberation procedures of the board of directors
On April 18, 2022, the sixth meeting of the Fourth Board of directors held by the company deliberated and adopted the proposal on cash management with idle self owned funds. Voting results: 7 in favor, 0 against and 0 abstention. All independent directors of the company have expressed their independent opinions on this matter.
The review procedures comply with the relevant provisions of the company law, the stock listing rules of Shanghai Stock Exchange, the articles of association and other laws and regulations, and meet the regulatory requirements.
3、 Independent opinion
The independent directors of the company expressed independent opinions on the proposal on cash management with idle self owned funds as follows:
1. On the premise of ensuring the working capital required by the daily production and operation of the company and its subsidiaries, the company uses some idle self owned funds for cash management, which helps to improve the use efficiency of self owned funds, improve the utilization rate of funds, and further improve the overall investment income level of the company, which is in line with the interests of the company and all shareholders. The company’s decision-making procedure of using some idle self owned funds to purchase financial products this time complies with the articles of association and other relevant provisions.
2. On the premise of ensuring the working capital required by the daily production and operation of the company and its subsidiaries, the company ensures the safety, liquidity and compliance of financial funds. The use of some idle self owned funds to purchase financial products will not affect the daily operation of the company and its subsidiaries, and there will be no damage to the interests of the company and shareholders, especially small and medium-sized shareholders.
To sum up, we agree that the company, on the premise of ensuring the working capital required for the daily production and operation of the company and its subsidiaries, will use some idle self owned funds with a total amount of no more than RMB 200million to purchase financial products with high security and good liquidity, including but not limited to financial products, fixed income securities, structured deposits and other financial products. The term is one year from the date of deliberation and approval by the board of directors. Idle self owned funds can be used in rolling within the above limit and term.
4、 Investment risk and risk control measures
1. Investment risk
The cash financial products the company plans to buy belong to low-risk investment varieties, but it is not ruled out that they will be affected by macro policies and systemic risks in the financial market. In order to prevent risks, the company will choose the opportunity to buy financial products with high safety and good liquidity, including but not limited to financial products, fixed income securities, structured deposits and other financial products, and the risk is within the controllable range.
2. Risk control measures
The company will establish approval and execution procedures for the purchase of cash management products with its own funds in accordance with the principle of separating decision-making, implementation and supervision functions to ensure standardized operation. The Finance Department of the company will keep close contact with the trustee of cash management, and timely analyze and track the progress of cash management products. If the assessment finds that there are risks that may affect the safety of funds, the company will take corresponding measures in time to control investment risks and ensure the safety of funds. The independent directors and the board of supervisors of the company have the right to supervise at any time.
5、 Impact on the company
The company and its subsidiaries use some idle self owned funds for cash management on the premise that it does not affect the normal development of the company’s main business and ensure the company’s working capital demand and capital security. Through appropriate financing of idle self owned funds, we can increase the rate of return on working capital and obtain a certain return on investment, which is conducive to further improve the overall performance level of the company and obtain more return on investment for the shareholders of the company. It is hereby announced.
Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) board of directors April 19, 2022
