Stock Code: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) securities abbreviation: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) Announcement No.: 2022023 Suzhou Chunxing Precision Mechanical Co.Ltd(002547)
Announcement on carrying out bill pool business
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.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (hereinafter referred to as “the company”) held the 9th meeting of the 5th board of directors on April 24, 2022, deliberated and approved the proposal on developing bill pooling business, and agreed that the company and its subsidiaries and commercial banks of China should carry out bill pooling business with a total spot balance of no more than 500 million yuan. The matter still needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The relevant information is hereby announced as follows:
1、 Overview of bill pool business
1. Business Overview
Bill pool business refers to the comprehensive bill management service provided by agreement banks to enterprises, which integrates bill trust and collection, bill pledge pool financing, bill discount, Bill agent query, business statistics and other functions to meet the needs of enterprise customers for unified management and overall use of commercial bills held by them.
2. Cooperative bank
The cooperative bank to carry out the bill pool business is a commercial bank with good credit standing in China. The specific cooperative bank requests the board of directors of the company to authorize the management of the company to select according to the cooperative relationship between the company and commercial banks, the bill pool service ability of commercial banks and other comprehensive factors.
3. Business period
The development period of bill pool business is within two years from the date of deliberation and approval by the 2021 annual general meeting of shareholders. 4. Business quota
The company and its subsidiaries share a bill pool limit of no more than 500 million yuan, that is, the cumulative spot balance of pledged and mortgaged bills used to carry out bill pool business with all cooperative banks does not exceed 500 million yuan. This limit can be used on a rolling basis during the business term. The management of the company is authorized to determine the specific amount of each transaction according to the business needs of the company and its subsidiaries and the principle of maximizing the interests of the system.
5. Guarantee mode
Under the premise of controllable risk, the company and its subsidiaries can adopt various guarantee methods for the establishment and use of bill pool, such as maximum amount pledge, general pledge, certificate of deposit pledge, bill pledge, guarantee deposit pledge and so on. The specific form and amount of each guarantee are authorized to be determined by the management of the company according to the business needs of the company and its subsidiaries and the principle of maximizing the interests of the system.
2、 Purpose of bill pool business
With the expansion of business scale, the company and its subsidiaries collect a large number of commercial acceptance bills, bank acceptance bills, letters of credit and other valuable bills in the process of collecting sales payment due to the increase of customers using bills for settlement. At the same time, the company and its subsidiaries often settle accounts by issuing commercial acceptance bills, bank acceptance bills, letters of credit and other valuable bills in cooperation with suppliers.
1. After receiving bills, the company and its subsidiaries can deposit the bills receivable into the agreement bank through the bill pool business for centralized management. The bank handles custody, delegated collection and other businesses on behalf of the bank, which can reduce the cost of the company’s management of various valuable bills.
2. The company and its subsidiaries can use the outstanding stock of valuable bill assets in the bill pool as pledge, and issue commercial acceptance bills, bank acceptance bills, letters of credit and other valuable bills that do not exceed the pledge amount for the payment of suppliers’ loans and other operating funds, which is conducive to reducing the occupation of monetary funds, improving the use efficiency of current assets and maximizing shareholders’ equity.
3. To carry out the bill pool business, the bills receivable and bills payable to be issued of the company and its subsidiaries can be managed as a whole, so as to reduce the company’s capital occupation, optimize the financial structure and improve the capital utilization rate.
3、 Risks and risk control measures of bill pool business
1. Liquidity risk
In order to carry out the bill pool business, the company and its subsidiaries need to open a special margin account for the pledge financing business of the bill pool in the cooperative bank as the entry account for the due collection of the pledged bills under the bill pool. If the due dates of notes receivable and notes payable are inconsistent, the collected funds will enter the margin account of the company and its subsidiaries applying to the cooperative bank for issuing commercial bills, and there may be capital liquidity risk of the company and its subsidiaries.
Risk control measures: the company and its subsidiaries ensure that the capital liquidity risk is controllable by replacing the margin with newly received notes.
2. Business model risk
The company and its subsidiaries pledge the bills entered into the bill pool, apply to the cooperative bank for issuing commercial bills to pay the supplier’s payment for goods and other business expenses, and handle collection and settlement after the maturity of the pledged bills; If the bills cannot be collected normally when they are due, and the amount of the pledged bills is insufficient, there may be a risk that the cooperative bank may require the company and its subsidiaries to provide additional guarantees.
Risk control measures: after the company and its subsidiaries carry out the bill pool business with the cooperative bank, they will arrange special personnel to connect with the cooperative bank, establish the bill pool account, track and manage, timely understand the collection and settlement of expired bills, and arrange the new bills received by the company and its subsidiaries to enter the pool, so as to ensure the safety and liquidity of the bills entering the pool.
4、 Decision making procedures and organizational implementation of bill pool business
1. Authorize the management of the company to exercise the decision-making power of specific operations within the limit and sign relevant contract documents, including but not limited to selecting qualified commercial banks, determining the specific limit, collateral, guarantee form and amount of bill pool that can be used by the company and its subsidiaries;
2. Authorize the company’s capital department to organize and implement the bill pool business. The capital Department of the company will timely analyze and track the business progress of the bill pool. If adverse factors are found or judged, it will timely take corresponding measures to control risks and report to the board of directors of the company at the first time;
3. The internal audit department of the company is responsible for auditing and supervising the development of bill pool business;
4. Independent directors have the right to supervise and inspect the specific conditions of the company’s bill pool business.
5、 Documents for future reference
1. Resolution of the 9th meeting of the 5th board of directors.
It is hereby announced.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) board of directors
April 26, 2002
