Securities code: 601899 securities abbreviation: Zijin Mining Group Company Limited(601899) No.: pro 2022-005 Zijin Mining Group Company Limited(601899)
Announcement on the subsidiary’s financial business in 2022
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. Zijin Mining Group Company Limited(601899) (hereinafter referred to as “the company”) held the first interim meeting of the seventh board of directors in 2022 on January 14, 2022, deliberated and adopted the plan on Zijin Mining Group Company Limited(601899) investment (Shanghai) Co., Ltd. to carry out financial business in 2022, and agreed to allow subordinate enterprises in the financial sector of the company to carry out financial business without affecting the normal operation and effective risk control of the company, On the basis of the original authorized amount (RMB 2.1 billion and US $100 million or equivalent foreign currency), the new authorized amount is RMB 2.3 billion, and the total authorized amount is RMB 4.4 billion and US $100 million or equivalent foreign currency, accounting for about 2.76% of the company’s latest audited total assets and 8.91% of the net assets attributable to the parent company. Relevant matters are hereby announced as follows:
1、 Implementation subject
The subject of this investment is Zijin Mining Group Company Limited(601899) investment (Shanghai) Co., Ltd., Zijin Mining Group Company Limited(601899) group Capital Investment Co., Ltd., Zijin Mining Group Company Limited(601899) equity investment management (Xiamen) Co., Ltd., Zijin Mining Group Company Limited(601899) asset management (Xiamen) Co., Ltd., a wholly-owned subsidiary of the company.
The above implementation entities take financial businesses such as investment management and asset management as their main businesses. Among them, Zijin Mining Group Company Limited(601899) equity investment management (Xiamen) Co., Ltd. is the manager of private equity and venture capital funds registered with China Securities Investment Fund Industry Association, Zijin Mining Group Company Limited(601899) asset management (Xiamen) Co., Ltd. is a private securities investment fund manager registered with China Securities Investment Fund Industry Association.
2、 Basic information of financial business
(I) securities investment and derivatives business
1. Investment scope
Secondary market stocks, stock fixed increase, ETF, whole market commodity futures / options, stock index futures / options, foreign exchange derivatives business and public and private funds with financial derivatives as the main investment targets.
2. Authorization limit and term
Authorize the use of no more than RMB 2 billion for securities investment, mainly in industries related to the company’s main business or upstream and downstream; Authorize the use of no more than RMB 300 million for proprietary commodity and stock index derivatives investment; Authorize the use of foreign currencies not exceeding US $100 million or equivalent for foreign exchange derivatives investment; Authorized to use no more than RMB 1 billion for fof configuration investment. Within the above limit, the funds can be used on a rolling basis, and the authorization period is valid within 12 months from the date of deliberation and approval by the board of directors.
(II) equity investment business
1. Investment scope
Equity projects and equity funds.
2. Authorization limit and term
The authorized use of no more than RMB 600 million for equity investment can be used on a rolling basis within the above limit, and the authorization period is valid within 12 months from the date of deliberation and approval by the board of directors.
(III) investment in fixed income business such as bonds
1. Investment scope
The whole market issues bond assets, money market instruments, asset-backed securities and their derivatives according to law.
2. Authorization limit and term
The authorized use of no more than RMB 500 million for fixed income business such as bonds can be used on a rolling basis within the above limit, and the authorization period is valid within 12 months from the date of deliberation and approval by the board of directors.
3、 Source of funds
The source of funds is the company’s own funds and does not involve the company’s raised funds.
4、 Investment risk and risk control measures
(I) investment risk
1. Market risk
When the company carries out relevant financial business transactions, it will be affected by international and Chinese economic policies and economic situation, exchange rate and interest rate fluctuations and other factors, with certain market risks. The company will timely and appropriately intervene according to the economic situation and changes in the financial market.
2. Liquidity risk
The redemption and sale of investment products and the realization of investment income are affected by the price factors of corresponding products and need to abide by the corresponding transaction settlement rules and agreements. Compared with monetary funds, there is a certain liquidity risk.
3. Operational risk
When conducting transactions, if the operators fail to conduct trading operations according to the specified procedures or fail to fully understand the information of investment products, operational risks will be brought.
(II) risk control measures
1. Based on the national financial regulatory laws and regulations, the company adheres to the principle of prudent investment, strengthens market analysis and research, abides by the principle of large portfolio allocation, establishes a complete risk management organizational structure and carries out comprehensive risk management.
2. The company and its subsidiaries have formulated comprehensive risk management measures, various work management systems and business management systems, prepared various work standard operating procedures, strictly implemented investment rules and stop loss mechanism, and effectively prevented and controlled investment risks.
3. The financial business risk management of the company and its subsidiaries shall follow the principles of comprehensiveness, independence, matching of rights and responsibilities, consistency and timely effectiveness; In the process of risk identification, assessment, response, reporting, monitoring and management system evaluation, pay attention to the correlation, mutual influence and circular interaction between various links, timely update and improve when the internal environment, market environment and regulatory environment change, and use information technology means to ensure the effective implementation of risk control.
5、 Impact on the company
On the premise of not affecting the company’s normal operation and effective risk control, the company’s subsidiaries in the financial sector carry out relevant financial businesses, give full play to the company’s relevant license, platform resource advantages and investment functions in the financial business sector, which can improve the efficiency of capital use and do not harm the interests of the company’s shareholders, especially the minority shareholders. 6、 Review procedures for implementation
(I) deliberations of the board of directors
The company held the first extraordinary meeting of the seventh board of directors in 2022 on January 14, 2022, and deliberated and adopted the plan on Zijin Mining Group Company Limited(601899) investment (Shanghai) Co., Ltd. to carry out financial business in 2022. This plan is within the scope of the deliberation authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The independent directors believe that: on the premise of ensuring daily operation and controlling risks, the company makes rational use of its own funds to carry out financial business, which is conducive to improving the use efficiency of funds and will not have an adverse impact on the company’s main business. The relevant approval procedures for the company’s financial business comply with relevant national laws, regulations and the articles of association, and the company has formulated relevant systems to effectively prevent and control investment risks. The company’s financial business will not harm the interests of the company and all shareholders. We unanimously agree to carry out this business.
Zijin Mining Group Company Limited(601899) board of directors
January 17, 2002
