Securities code: 002353 securities abbreviation: Yantai Jereh Oilfield Services Group Co.Ltd(002353) Announcement No.: 2022-003 Yantai Jereh Oilfield Services Group Co.Ltd(002353)
Announcement on using self owned idle funds to purchase bank financial products
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.
Yantai Jereh Oilfield Services Group Co.Ltd(002353) (hereinafter referred to as “the company”) held the 18th meeting of the 5th board of directors and the 15th meeting of the 5th board of supervisors respectively on January 11, 2022, deliberated and adopted the proposal on using its own idle funds to purchase bank financial products. In order to revitalize the company’s idle funds and improve the efficiency of fund use, without affecting the company’s normal business activities, Based on the principle of safe and prudent investment, the company plans to use its own idle funds to purchase bank financial products or structured deposits in 2022, with a maximum balance of no more than RMB 120 million at any time point. Within the above quota range and authorization period, it can be used jointly by the company and its wholly-owned and holding subsidiaries. The details are as follows:
1、 Basic information
1. Investment purpose: under the condition of fully ensuring the capital demand of the company’s daily operation and not affecting the company’s normal operation and development, improve the use efficiency and capital income level of the company’s short-term self owned idle funds, make rational use of idle funds, enhance the company’s profitability and obtain income for the company and shareholders.
2. Investment quota: according to the company’s capital situation, in 2022, the company plans to purchase bank financial products or structured deposits with its own funds, and the total balance at any time point shall not exceed RMB 120 million, and there is no upper limit on the cumulative amount. The above quota can be jointly used by the company and its wholly-owned and holding subsidiaries within one year from the date of deliberation and approval by the board of directors, and the chairman of the company is authorized to exercise the investment decision-making power, which shall be handled by the chief financial officer of the company. The handler shall strictly abide by the company’s internal control systems such as the company’s financial management system for short-term idle monetary funds and relevant laws and regulations.
3. Investment type: in order to control risk, the investment type is the issuing subject, which is the stable bank financial products or structural deposits with high security, good liquidity, low risk and maturity within 12 months (inclusive) of commercial banks. The company will select qualified professional financial institutions with good credit and financial conditions, no bad credit records and strong profitability as the trustee, and sign a written contract with the trustee to clarify the amount, term, investment varieties, rights, obligations and legal liabilities of both parties.
4. Source of funds: under the condition of ensuring the funds required for the normal operation and development of the company, the source of funds for the above investment of the company is its own idle funds.
5. Decision making and implementation method: this item was approved at the 18th meeting of the Fifth Board of directors on January 11, 2022. This item falls within the approval authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation.
6. The company intends to purchase the financial products of commercial banks without affiliated relationship, and this item does not constitute a connected transaction.
2、 Investment risk analysis and risk control measures
1. Investment risk although prudent bank financial products belong to low-risk investment varieties, the financial market is greatly affected by macro-economy, and it is not excluded that the investment is affected by market fluctuations; The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable.
2. For investment risks, the proposed measures are as follows:
The company will carry out relevant financial management business in strict accordance with the requirements of relevant laws and regulations such as the Listing Rules of Shenzhen Stock Exchange, the articles of association and the financial management system of short-term idle monetary funds, strengthen the analysis and research of relevant financial products, seriously implement various internal control systems of the company and strictly control investment risks.
(1) The Audit Department of the company shall conduct daily supervision and regularly audit and verify the use of funds;
(2) The person in charge of the company’s capital and financing department tracks the progress of financial management and investment safety. If any risk factors that may affect the company’s capital safety are found, timely take corresponding measures to control investment risks and report to the board of directors to avoid or reduce the company’s losses;
(3) The independent directors of the company shall inspect the use of investment and financial management funds and give relevant independent opinions;
(4) The board of supervisors of the company has the right to conduct regular or irregular inspection on the company’s financial management. If any illegal operation is found, it can propose to convene the board of directors to review and stop the relevant investment activities of the company.
3、 Impact on the daily operation of the company
On the premise of ensuring that it does not affect the daily operation and capital safety, the company uses some idle self owned funds to buy bank financial products or structured deposits, which is conducive to improving the capital use efficiency, obtaining certain investment income, further improving the overall performance level of the company and obtaining more investment returns for shareholders.
4、 Approval procedures and internal control
1. The company will invest in strict accordance with the requirements formulated by the Shenzhen Stock Exchange Stock Listing Rules, the articles of association and other laws and regulations.
2. The company has formulated the financial management system of short-term idle monetary funds to standardize the entrusted financial management of the company, which is conducive to the company’s prevention of investment risks and ensure the safety and effective appreciation of investment funds.
3. The approval procedure shall be carried out in accordance with the articles of association and the financial management system of short-term idle monetary funds. 5、 Opinions of independent directors and board of supervisors of the company
Opinions of independent directors of the company: the company’s current financial situation is stable. On the premise of ensuring liquidity and capital safety, using its own idle funds to buy bank financial products or structural deposits is conducive to improving the use efficiency of the company’s own funds and increasing the company’s own capital income on the premise of risk control, without adverse impact on the company’s operation and in line with the interests of the company, Do not harm the interests of the company and all shareholders, especially minority shareholders. Therefore, we agree that the total balance of bank financial products or structured deposits purchased by the company with its own funds in 2022 shall not exceed RMB 120 million at any time point. Within the above quota scope and authorization period, it can be used jointly by the company and wholly-owned and holding subsidiaries.
Opinion of the board of supervisors of the company: on the basis of ensuring the normal operation and capital safety of the company, using some of its own idle funds and choosing the opportunity to invest in financial products with high safety and liquidity is conducive to improving the efficiency of capital use and increasing the investment income of the company. There is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. We agree that the total balance of bank financial products or structured deposits purchased by the company with its own funds in 2022 shall not exceed RMB 120 million at any time. Within the above limit range and authorization period, it can be used jointly by the company and wholly-owned and holding subsidiaries.
It is hereby announced.
Yantai Jereh Oilfield Services Group Co.Ltd(002353) board of directors
January 11, 2022
