Securities code: 605296 securities abbreviation: Yunnan Shennong Agricultural Industry Group Co.Ltd(605296) Announcement No.: 2022-006 Yunnan Shennong Agricultural Industry Group Co.Ltd(605296)
Announcement on the progress of using some idle self owned funds for cash management
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.
Important content tips:
Cash management trustee: Kunming Chajie sub branch of Fudian Bank Co., Ltd
Cash management amount: 50 million yuan
Name of cash management product: “Furong balance” Xinyi series RMB financial management plan phase 2202
Cash management period: 197 days
Review procedures performed: Yunnan Shennong Agricultural Industry Group Co.Ltd(605296) (hereinafter referred to as “the company”) held the 25th meeting of the third board of directors on June 7, 2021 and the 2020 annual general meeting of shareholders on June 29, 2021, and deliberated and adopted the proposal on using some idle self owned funds for cash management, It is agreed that the company and its subsidiaries use temporarily idle self owned funds with a maximum amount of no more than RMB 1.6 billion for cash management. The authorization period is from the date of deliberation and approval of the 2020 annual general meeting of shareholders to the date of convening the 2021 annual general meeting of shareholders. The funds within the authorized amount can be used on a rolling basis. For details, please refer to the company’s disclosure in China Securities Journal, Shanghai Securities News, Securities Daily, securities times and the official website of Shanghai Stock Exchange (www.sse. Com. CN.) on June 8, 2021 Announcement on using some idle self owned funds for cash management (Announcement No.: 2021-006).
1、 Overview of entrusted financial management
(I) purpose of cash management
In order to improve the use efficiency of idle self owned funds, make rational use of idle self owned funds and increase the rate of return on capital deposits, on the premise of not affecting the normal development of the company’s main business and ensuring the company’s working capital demand and capital safety, the company can improve the company’s capital income and bring more return on investment to the company and shareholders by making rational use of idle self owned funds for cash management.
(II) source of funds
The funds for this cash management come from the company’s temporarily idle own funds.
(III) basic information of entrusted financial products
1. “Financial balance” Xinyi series RMB financial management plan phase 2202
Name of the entrusted party product type product name amount (expected annual income yuan) profit rate (yuan)
Fudian bank shares have “financial balance”
Kunming Chajie bank financial product Xinyi series Co., Ltd. 5000 4.20% 113.34
Sub branch pinminyuan financial management plan
Phase 2202
Product term income type structured arrangement refers to whether the annualized expected income constitutes
Rate of return (if any) related party transactions
197 days non breakeven floating none — no
profit
(IV) the company’s internal control over risks related to entrusted financial management
1. The relevant personnel of the company’s financial department will timely analyze and track the investment direction of financial products and the progress of the project. If the evaluation finds that there are risk factors that may affect the safety of the company’s funds, they will take corresponding measures in time to control financial risks.
2. According to the progress of self owned fund investment projects, the finance department selects appropriate financial products according to the security, term and income of financial products, which shall be reviewed by the chief financial officer and submitted to the chairman for approval.
3. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and may hire professional institutions to audit when necessary.
4. The financial department of the company must establish an account to manage the purchased financial products, establish and improve the accounting accounts, and do a good job in the accounting of the use of funds.
5. The company will perform the obligation of information disclosure in accordance with relevant laws and regulations and the Yunnan Shennong Agricultural Industry Group Co.Ltd(605296) articles of association.
2、 Details of this entrusted financial management
(I) main terms of entrusted financial management contract
1. Product Name: “Furong balance” Xinyi series RMB financial management plan phase 2202;
2. Product type: fixed income, closed net worth and public offering products;
3. Income type: non breakeven floating income type;
4. Product risk rating: low risk;
5. Contract signing date: January 18, 2022;
6. Value date: January 18, 2022;
7. Investment scope: the investment scope of this financial management plan is creditor’s rights assets, including: 1 Money market assets: deposits, certificates of deposit, deposits, repurchase and other money market assets; 2. Fixed income assets: Treasury bonds, local government bonds, central bank bills, financial bonds, corporate bonds, corporate bonds, convertible bonds, asset-backed securities issued in the inter-bank market and stock exchange market, and various debt financing instruments; 3. Other fixed income assets: public securities investment funds invested in the above assets and other fixed income assets or asset management products that meet the requirements of laws, regulations and supervision;
8. Product unit net value: product unit net value = (total asset value of financial products – total liabilities of financial products) / total share of financial products. The total asset value includes the total value of all assets under the financial products, and the total liability refers to the funds borrowed in the name of the financial products and the expenses payable for the products (including the above product expenses other than floating performance remuneration, taxes payable, etc.). The unit net value of the initial product is 1;
9. Product fee: 1. Custody fee, Industrial And Commercial Bank Of China Limited(601398) charged, rate 0.01% / year; 2. Floating performance remuneration: if the actual annualized rate of return after deducting the above relevant fees at the maturity of the product exceeds the performance comparison benchmark, the excess part of Fudian bank and investors will receive floating performance remuneration in the proportion of 8:2.
(II) investment direction of entrusted financial management funds
“Furong balance” Xinyi series RMB financial management plan phase 2202: 50 million yuan, invested in creditor’s rights assets, including: 1 Money market assets: deposits, certificates of deposit, deposits, repurchase and other money market assets; 2. Fixed income assets: national debt, local government bonds, central bank bills, financial bonds, corporate bonds, corporate bonds, convertible bonds, asset-backed securities issued in the inter-bank market and stock exchange market, and various debt financing instruments; 3. Other fixed income assets: public securities investment funds invested in the above assets and other fixed income assets or asset management products that meet the requirements of laws, regulations and supervision.
(III) risk control analysis
The company uses idle self owned funds to purchase mainly low-risk investment products within the authorized limit. The Finance Department of the company will timely analyze and track the investment direction of financial products and project progress. If it is found that there are risk factors that may affect the safety of the company’s funds, it will take corresponding measures in time to control investment risks. 3、 Information of entrusted financial management trustee
Kunming Chajie sub branch of Fudian Bank Co., Ltd. is a branch of Fudian Bank Co., Ltd., which is a provincial local joint-stock commercial bank in Yunnan Province.
The board of directors has conducted due diligence on the basic information of the trustee, and the trustee meets the requirements of the company’s entrusted financial management. The trustee has no relationship with the company, the controlling shareholder of the company, the person acting in concert and the actual controller of the company.
4、 Impact on the company
The main financial data of the company in the latest year and the first period are as follows:
Unit: Yuan
Project December 31, 2020 September 30, 2021 / January September 2020
Total assets 2875491047.82 5063967661.26
Total liabilities: 615948088.88 584164029.50
Total owner’s equity 2259542958.94 4479803631.76
Net profit attributable to shareholders of the listed company 1137918758.60 228883305.36
Net cash flow from operating activities 885828665.54 220991423.23
As of September 30, 2021, the monetary capital of the company was 1046013223.18 yuan. The financial products purchased by the company with idle self owned funds amounted to 50 million yuan, accounting for 4.78% of the monetary capital at the end of the latest period.
The company does not have the situation of purchasing financial products with large liabilities. This entrusted financial management is to use idle self owned funds for appropriate cash management under the condition of ensuring the normal operation of the company, improve the use efficiency of funds, obtain certain income and obtain more returns. The entrusted financial management period is short, which will not have a significant impact on the company’s main business, financial status, operating results and cash flow in the future.
According to the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments, the company lists the purchased financial products as “trading financial assets”, and the financial income is included in the “investment income”.
5、 Risk tips
Although the products to be purchased by the company for cash management this time belong to low-risk financial products, the financial market is greatly affected by the macro economy. It is not excluded that the investment is affected by income risk, interest rate risk, liquidity risk, policy risk, information transmission risk, force majeure risk and other factors, resulting in principal loss and income fluctuation, Please pay attention to investment risks.
6、 Implementation of decision-making procedures, opinions of independent directors and opinions of recommendation institutions
The company held the 25th meeting of the third board of directors on June 7, 2021 and the 2020 annual general meeting of shareholders on June 29, 2021, deliberated and adopted the proposal on using some idle self owned funds for cash management, and agreed that the company and its subsidiaries use temporarily idle self owned funds with a maximum amount of no more than RMB 1.6 billion for cash management, The authorization period starts from the date of deliberation and approval by the 2020 annual general meeting of shareholders to the date of convening the 2021 annual general meeting of shareholders. The funds within the authorized amount can be used on a rolling basis. For details, please refer to the company’s disclosure in China Securities Journal, Shanghai Securities News, Securities Daily, securities times and the official website of Shanghai Stock Exchange (www.sse. Com. CN.) on June 8, 2021 Announcement on using some idle self owned funds for cash management (Announcement No.: 2021-006).
The independent directors and the sponsor of the company have respectively expressed their opinions on the company’s use of idle self owned funds for cash management.
7、 As of the date of this announcement, the company has used its own funds for entrusted financial management in the last 12 months
Amount: 10000 yuan
No. actual investment of financial products actually recovered principal and actual income not recovered amount of this type (including this time)
Breakeven floating income
Yiyi bank wealth management 96000 92000 798.34 4000
product
Non breakeven floating
2. Income bank manager 69000 13000 177.50 56000
Financial products
Total 165000 105000 975.84 60000
The maximum amount invested in a single day in the last 12 months is 80000
Maximum daily investment amount in the last 12 months / net assets of the last year 35.41
（%）
Cumulative income from entrusted financial management in the last 12 months / net profit of the last year (%) 0.86
Currently, the used financial management limit is 60000
Unused financial limit 100000
Total financial limit 160000
