Securities code: Shanghai Step Electric Corporation(002527) stock abbreviation: Shanghai Step Electric Corporation(002527) Announcement No.: pro 2022021 Shanghai Step Electric Corporation(002527)
Announcement on using some idle self owned funds to purchase 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.
Important content tips:
1. Investment type: short-term financial products issued by banks, securities companies, asset management companies and other financial institutions with high security and good liquidity.
2. Investment quota: no more than 80 million yuan.
3. Special risk tips: market risk, liquidity risk, failure of actual income to meet expectations, and operation, supervision and management risk of staff.
Shanghai Step Electric Corporation(002527) (hereinafter referred to as “the company”) deliberated and adopted the proposal on using some idle self owned funds to purchase financial products at the 20th meeting of the 5th board of directors and the 14th meeting of the 5th board of supervisors held on April 23, 2022. On the premise of ensuring daily operation and capital safety, the company will further improve the efficiency of capital use and increase the company’s income, It is agreed that the company and its subsidiaries intend to use some idle self owned funds to purchase short-term financial products issued by banks, securities companies, asset management companies and other financial institutions with high security and good liquidity, with a limit of no more than 80 million yuan. Within the above limit, the funds can be used on a rolling basis. The investment term shall be within 12 months from the date of deliberation and approval at the 20th meeting of the Fifth Board of directors.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and other relevant provisions, this investment and wealth management matter does not involve related party transactions, and it is within the approval authority of the board of directors of the company and does not need to be submitted to the general meeting of shareholders of the company for deliberation. Relevant matters are hereby announced as follows:
1、 Using some idle self owned funds to purchase financial products
1. Investment purpose
In order to improve the use efficiency of the company’s funds and increase the return of shareholders, on the premise of ensuring that the company’s daily operation is not affected, combined with the fund use plan and effectively controlling risks, reasonably use some idle self owned funds to buy financial products.
2. Investment amount
On the premise of ensuring the daily operation and ensuring the safety of funds, the company and its subsidiaries plan to use idle self owned funds of no more than 80 million yuan. Within the above limit, the funds can be used on a rolling basis, and the transaction amount at any point in the investment period (including the relevant amount of reinvestment of the income of the above investment) shall not exceed the investment limit.
3. Investment mode
The company plans to use idle self owned funds to purchase short-term financial products issued by banks, securities companies, asset management companies and other financial institutions with high security and good liquidity. Investment products shall not be pledged.
4. Investment period
Within 12 months from the date of deliberation and adoption at the 20th meeting of the Fifth Board of directors.
5. Source of funds: self owned funds
2、 Review procedure
This matter has been deliberated and adopted at the 20th meeting of the 5th board of directors and the 14th meeting of the 5th board of supervisors. The independent directors and the board of supervisors of the company have expressed clear consent to this matter.
The company will timely perform the disclosure obligation according to the progress of using its own funds to purchase financial products in accordance with the relevant laws, regulations and normative documents of China Securities Regulatory Commission and Shenzhen Stock Exchange.
3、 Investment risk analysis and risk control measures
1. Investment risk
(1) The financial products to be purchased by the company and its subsidiaries belong to low-risk investment varieties, but the financial market is greatly affected by the macro-economy, so it is not excluded that the investment is affected by market fluctuations.
(2) It may face liquidity risk, actual income does not meet expectations, and staff operation and supervision and management risk.
2. Risk control measures
(1) The funds within the above limit can only buy financial products with a term of no more than 12 months.
(2) The financial department of the company will timely analyze and track the investment direction of financial products and the progress of the project. Once adverse factors that may affect the safety of the company’s funds are found or judged, corresponding preservation measures will be taken in time to control the investment risk. (3) The internal audit department of the company is responsible for auditing and supervising the use and custody of financial funds, reasonably predicting all possible gains and losses, and reporting to the audit committee and the board of directors in a timely manner.
(4) The independent directors and the board of supervisors of the company shall supervise and inspect the use of funds, and may hire professional institutions to audit when necessary.
(5) The company will timely perform the obligation of information disclosure in accordance with relevant regulations.
4、 Impact of investment on the company
On the premise of ensuring the daily operation and ensuring the safety of funds, in order to further improve the use efficiency of funds and increase the company’s income, the company and its subsidiaries intend to use some idle self owned funds to purchase financial products, which will not affect the normal development of the main business of the company and its subsidiaries.
Through appropriate cash management, the company can improve the efficiency of capital use, obtain certain investment benefits, improve the overall performance level of the company, and seek more return on investment for the company’s shareholders.
5、 Opinions issued by independent directors and board of supervisors
(I) opinions of independent directors
The company and its subsidiaries have fulfilled the corresponding approval procedures for the purchase of financial products with some idle self owned funds, which is in line with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board.
On the premise of ensuring normal operation and capital safety, the company and its subsidiaries use some idle self owned funds to purchase financial products, which can effectively improve the efficiency of capital use and increase the company’s income, which is in line with the interests of the majority of investors. We agree that the company and its subsidiaries use some idle self owned funds of no more than 80 million yuan to purchase financial products.
(II) opinions of the board of supervisors
After verification, the company and its subsidiaries intend to use idle self owned funds of no more than 80 million yuan (the amount can be used on a rolling basis) to purchase financial products on the premise of ensuring the normal operation of the company and ensuring the safety of funds, which is in line with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board. It is conducive to improve the use efficiency of funds and increase the return of funds, will not have an adverse impact on the operation of the company and its subsidiaries, and is in line with the interests of the company and all shareholders. There is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders.
6、 Documents for future reference
1. Resolutions of the 20th meeting of the 5th board of directors of the company;
2. Resolutions of the 14th meeting of the 5th board of supervisors of the company;
3. Independent opinions of independent directors on matters related to the 20th meeting of the Fifth Board of directors;
4. Opinions of the board of supervisors on matters related to the 14th meeting of the 5th board of supervisors.
It is hereby announced
Shanghai Step Electric Corporation(002527) board of directors
April 26, 2022
