5I5J Holding Group Co.Ltd(000560)
Special note on investment in Securities and financial products in 2021
In accordance with the securities law of the people's Republic of China, 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 laws, regulations and normative documents, the articles of association and the company's securities investment management system, 5I5J Holding Group Co.Ltd(000560) (hereinafter referred to as "the company") the board of directors carefully checked the investment of securities and financial products of the company and its subsidiaries in 2021. The relevant information is explained as follows: I. overview of investment in Securities and financial products
1. Purpose and term of securities investment
Combined with the specific situation of the company's business development and the use of its own funds, in order to improve the use efficiency of the company's and its subsidiaries' own idle funds, make rational use of its own idle funds and increase capital income, it was approved by the ninth meeting of the 10th board of directors and the 2020 annual board of directors and the 2020 annual general meeting of shareholders held on April 26, 2021 and May 26, 2021 respectively, On the premise of controlling the investment risk and not affecting the working capital required for the normal operation of the company and its subsidiaries, the total amount of self owned idle capital investment that the company and its subsidiaries can invest in Securities and financial products is 330 million yuan. Within the total amount of the above investment, the funds can be recycled. The investment period starts from the date when the company's 2020 annual general meeting deliberates and approves the investment quota to the date when the 2021 annual general meeting of shareholders deliberates the investment quota of relevant securities and financial products is held. Within the above investment limit approved by the general meeting of shareholders, the board of directors has submitted to the general meeting of shareholders to authorize the operation and management of the company to determine the specific investment period according to the situation.
2. Securities investment quota, investment direction and capital source
The total investment amount of the company's securities and financial products approved by the company's annual general meeting in 2020 is 330 million yuan. The investment direction and specific amount are as follows:
(1) Among them, the investment amount of RMB 2 million is used for entrusted financial management (including bank financial products and trust products), placement or subscription of new shares, securities repurchase, secondary stock market investment, bond investment and other securities investment recognized by Shenzhen Stock Exchange.
(2) Among them, the investment amount of 130 million yuan is used to purchase low-risk financial products and other risk controllable financial products with a single investment period of no more than one year, and the income is distributed in cash.
The above total investment amount of securities and financial products of 330 million yuan can be recycled, and the investment funds are the self owned idle funds of the company and its subsidiaries.
2、 Investment in Securities and financial products in 2021
Within the investment quota of securities and financial products approved by the general meeting of shareholders, the company and its subsidiaries mainly purchased medium and short-term bank financial products and trust financial products with idle funds in 2021. The investment amount of securities and financial products at any point in the investment period (including the relevant amount of reinvestment from the income of the above investment) shall not exceed the investment amount of 3300 million yuan. As of December 31, 2021, the book balance of securities and financial products investment held by the company was 175013 million yuan, and the profit and loss in the reporting period was 283945 million yuan. The main details are as follows:
Unit: 10000 yuan
The funds of entrusted financial management are not recovered within the time limit. The specific type of entrusted financial management comes from the amount of entrusted financial management and the accrued impairment amount of the undue balance
Idle self owned funds of bank financial products 343627001092047
Trust financial products idle self owned funds 6334481
Total 406971811092047
In 2021, the company used idle self owned funds to purchase financial products, resulting in an investment income of 245158 million yuan. 3、 Implementation of internal control system for securities investment
In order to regulate the company's securities investment behavior and relevant information disclosure, effectively control risks, improve investment returns and safeguard the interests of the company and shareholders, the company has formulated the securities investment management system in accordance with the company law of the people's Republic of China, the securities law of the people's Republic of China, the stock listing rules of Shenzhen Stock Exchange and other laws, regulations, normative documents and the provisions of the articles of association, It defines the norms and processes of securities investment management, and makes specific provisions on the principles, approval authorities, approval procedures, responsible departments and persons, risk control and information disclosure of securities investment, which can effectively prevent investment risks. In 2021, the company carried out securities investment operation, standardized management and risk control in strict accordance with relevant regulations such as the stock 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 the company's securities investment management system. The specific implementation is as follows:
1. Strictly implement the securities investment management system and other relevant investment systems. In the specific operation, the company takes effective measures to strengthen the control of investment decision-making, investment implementation and risk control, strengthen investment responsibility, prevent and control investment risks, and ensure the safety of the company's funds.
2. The funds used for investment in Securities and financial products come from the company's own idle funds. In 2021, the amount of investment in Securities and financial products by the company and its subsidiaries did not exceed the amount approved by the general meeting of shareholders, which did not affect the operation of the company's operating funds and external payments, and did not affect the normal development of the company's business. 3. The company did not use the raised funds, loans and other special funds for high-risk investment, and did not violate the provisions of relevant laws, regulations and normative documents.
In 2022, on the premise of effectively controlling investment risks and not affecting the working capital required for the normal operation of the company and its subsidiaries, the company will continue to improve capital use efficiency and increase capital income through low-risk financial management, securities investment and other means.
4、 Opinions of independent directors
After review, the independent directors of the company believe that: the company has established a relatively comprehensive internal control system for securities and financial products investment, and the securities and financial products investment carried out by the company during the reporting period did not violate the provisions of relevant laws, regulations and normative documents, and met the relevant provisions of the articles of association and the securities investment management system; During the reporting period, the company's investment in Securities and financial products came from the company's idle own funds. The scale of funds was controllable, and the safety of funds could be effectively guaranteed, which did not affect the normal development of the company's business. It is hereby explained.
5I5J Holding Group Co.Ltd(000560) board of directors
April 27, 2022
