Fujian Sunner Development Co.Ltd(002299)
Feasibility analysis report on Securities and derivatives trading
1、 Background and necessity of securities investment and derivatives trading
Due to the increasing uncertainty of the bulk Shenzhen Agricultural Products Group Co.Ltd(000061) price and the exchange rate fluctuations of various countries, the company intends to participate in the placement or purchase of new shares, bond investment, forward, futures, swaps (swaps) and options and other products or financial instruments with mixed characteristics of the above products, as well as other investment activities recognized by Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”) on the premise of effective risk control, To effectively smooth the impact of raw material price fluctuations on the company, improve the use efficiency of its own funds, improve the return on assets of the company, and realize the appreciation of the company’s funds.
2、 Overview of securities investment and derivatives trading business
Investment type: the company’s independent proprietary account is used for investment, and the investment scope includes new share placement or subscription, bond investment, forward, futures, swaps (swaps) and options and other products or financial instruments with mixed characteristics of the above products, as well as other investment behaviors recognized by Shenzhen Stock Exchange.
Proposed investment amount: the fund balance used for securities investment and derivatives trading at any time point shall not exceed 50 million yuan (including 50 million yuan). Within the scope of this limit, it is freely distributed among investment products and can be recycled and used jointly by the company and its subsidiaries.
Business term: the funds within the above limit can be used on a rolling basis from the date when the securities investment and derivatives trading proposal is deliberated and approved by the shareholders’ meeting to the date of the next annual shareholders’ meeting.
3、 On the feasibility of securities investment and derivatives trading
The company has formulated Fujian Sunner Development Co.Ltd(002299) securities investment and derivatives trading system and Fujian Sunner Development Co.Ltd(002299) foreign investment management system, which clearly stipulates the basic principles, investment and trading scope, decision-making authority, approval procedures, business management and audit of securities investment and derivatives trading, so as to ensure that the risk of securities investment and derivatives trading of the company can be controlled.
4、 Risk analysis and control measures for securities investment and derivatives trading
(I) investment risk
1. Market risk and credit risk
The securities investment of the company will be affected by many factors such as macro-economy and industry cycle; When the company carries out derivatives trading business, it will be affected by international and Chinese economic policies and economic situation, planting area and harvest changes of major grain producing countries, exchange rate and interest rate fluctuations and other factors, with certain market risk and credit risk. The company will timely and appropriately intervene according to the economic situation and the changes in the securities market and derivatives market. 2. Liquidity risk
The redemption and sale of investment products and the realization of investment income are affected by the price factors of corresponding products and need to abide by the corresponding transaction settlement rules and agreements. Compared with monetary funds, there is a certain liquidity risk. 3. Operational risk
When conducting transactions, if the operators fail to conduct foreign exchange derivatives transactions according to the specified procedures or fail to fully understand the derivatives information, operational risks will be brought.
(II) risk control measures
1. The company will strictly abide by the principle of prudent investment, invest within the limit approved by the general meeting of shareholders, issue operation instructions in strict accordance with the provisions of the company’s management system, and operate only after approval according to the provisions; Strictly abide by the principle of optimal matching between risk and return.
2. The company will strictly screen the counterparties, only carry out derivatives transactions with financial institutions with sound operation, good credit and qualified operation of financial derivatives trading business, and invite external professional investment and legal affairs services institutions to provide consulting services for the company’s financial derivatives transactions and scientific and rigorous investment strategies and suggestions for the company when necessary.
3. The company has formulated Fujian Sunner Development Co.Ltd(002299) securities investment and derivatives trading system and Fujian Sunner Development Co.Ltd(002299) foreign investment management system, which have made detailed provisions on the principles, scope, authority, internal audit process, internal reporting procedures, supervision of fund use, responsible departments and responsible persons of the company’s securities investment and derivatives trading, so as to effectively prevent investment risks.
4. The independent directors and the board of supervisors have the right to supervise and inspect the derivative financial products purchased by the company, and can hire professional institutions to audit when necessary.
5、 Conclusion on the feasibility of securities investment and derivatives trading
Securities investment and derivatives trading conducted by the company include products such as placement or subscription of new shares, bond investment, forward, futures, swaps (swaps) and options, or financial instruments with mixed characteristics of the above products, as well as other investment behaviors recognized by Shenzhen Stock Exchange, so as to reduce the rise of the company’s raw material purchase price and the impact of production cost volatility, so as to realize the healthy development of the company in the industrial chain, And to a certain extent, improve the use efficiency of its own funds, improve the return on assets of the company, and realize the appreciation of the company’s funds. At the same time, the company has established a perfect internal control system. To sum up, it is feasible for the company to conduct securities investment and derivatives trading.
Fujian Sunner Development Co.Ltd(002299) board of directors
April 21, 2002
