Securities code: Shanghai Geoharbour Construction Group Co.Ltd(605598) securities abbreviation: Shanghai Geoharbour Construction Group Co.Ltd(605598) Announcement No.: 2022022 Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd
Announcement on carrying out asset pool business
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd. (hereinafter referred to as ” Shanghai Geoharbour Construction Group Co.Ltd(605598) ” the company “) held the 10th meeting of the second board of directors on April 29, 2022, deliberated and adopted the proposal on carrying out asset pool business. It is agreed that the company and its subsidiaries within the scope of merger shall carry out asset pool business with Chinese commercial banks of no more than RMB 300 million, and the management of the company is authorized to make specific decisions and implement within the approved quota. The relevant information is hereby announced as follows:
1、 Overview of asset pool business
（1） Business Overview
Asset pool business refers to a comprehensive financial service platform integrating asset management and financing services provided by cooperative banks to meet the needs of enterprises or enterprise groups for unified management and overall use of their financial assets. It is the main carrier for cooperative banks to provide liquidity services to enterprises. Cooperative banks rely on the asset pool platform to carry out financial assets pool entry, pool exit, pledge financing and other businesses and services for enterprises or enterprise groups.
Assets in the asset pool include but are not limited to certificates of deposit, commercial bills, letters of credit and other financial assets held by enterprises. （2） Cooperative bank
The cooperative bank that the company plans to carry out asset pool business is a commercial bank with good credit in China. The company will make a comprehensive selection according to the cooperative relationship with commercial banks, the service capacity of commercial banks’ asset pool business, capital security and other factors.
（3） Business term
The development period of the above asset pool business shall be subject to the period agreed in the final contract signed between the company and the bank.
（4） Implementation subject and amount
The company and its subsidiaries within the scope of merger plan to share an asset pool limit of no more than RMB 300 billion, which shall be used within the validity period authorized by the board of directors.
(V) validity of the resolution
Twelve months from the date of deliberation and approval of this board of directors.
2、 Purpose of asset pool business
The company deposits the certificates of deposit, commercial bills, letters of credit and other financial assets in the cooperative bank for centralized management, and handles the business of entering and leaving the pool of financial assets and pledge financing, which can reduce the management cost of valuable bills; Using the stock financial assets in the asset pool as a pledge to handle valuable bills such as commercial bills to pay the supplier’s payment for goods and other funds incurred in operation can effectively revitalize the company’s financial assets, reduce the occupation of funds and improve the use efficiency of the company’s financial assets.
3、 Risk and risk control of asset pool business
（1） Liquidity risk
When carrying out asset pool business, the company needs to open a special margin account for asset pool pledge financing business in the cooperative bank as the entry account for the due collection of pledged bills under the asset pool. The inconsistency between the due dates of notes receivable and notes payable will cause the collected funds to enter the company’s margin account, which will have a certain impact on the liquidity of the company’s funds.
The company can eliminate this impact by replacing the margin with newly received notes, and the capital liquidity risk is controllable.
（2） Business model risk
The company uses the certificate of deposit and commercial bill entering the asset pool as pledge, and applies to the cooperative bank for issuing bank acceptance bills to pay the supplier’s payment for goods and other funds in operation. With the maturity of the pledged bills, the company handles the collection and settlement. If the bills cannot be collected normally at maturity, the amount of the pledged bills is insufficient, resulting in the cooperative bank requiring the company to provide additional guarantee.
The company will arrange a special person to connect with the cooperative bank, establish an asset pool account, track and manage, timely understand the collection and settlement of expired bills, and arrange the company’s newly received bills to enter the pool, so as to ensure the safety and liquidity of the bills entering the pool. It is hereby announced.
Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd. board of directors April 30, 2022
