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Securities code: 300154 securities abbreviation: Shenzhen Riland Industry Group Co.Ltd(300154) Announcement No.: 2022-006 Shenzhen Riland Industry Group Co.Ltd(300154)
Announcement on using some idle self owned funds for entrusted financial management
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.
Shenzhen Riland Industry Group Co.Ltd(300154) (hereinafter referred to as “the company”) held the 6th meeting of the 5th board of directors on January 21, 2022, deliberated and adopted the proposal on using part of idle self owned funds for entrusted financial management, and agreed that the company and its holding subsidiaries use idle self owned funds with an amount of no more than RMB 320 million for entrusted financial management without affecting the normal operation of the company. The relevant matters are hereby announced as follows:
1、 Overview of entrusted financial management
1. The purpose of entrusted financial management: to improve the company’s capital use efficiency, increase investment income, improve the company’s profitability, and seek more benefits for the company and shareholders.
2. Entrusted financial management subject: the company and its holding subsidiaries (subsidiaries within the scope of consolidated statements).
3. Entrusted financial products: the company will strictly control risks in accordance with relevant regulations, strictly evaluate and screen financial products, and select various financial products with good liquidity and high security in banks, securities companies, trust companies, fund companies and other financial institutions.
4. Source of funds: the funds used by the company and its holding subsidiaries for entrusted financial management are some idle self owned funds of the company and its holding subsidiaries.
5. Entrusted financial management quota: the company and its holding subsidiaries intend to use idle self owned funds with a quota of no more than RMB 320 million for entrusted financial management. Within the above quota, the funds can be used jointly by the company and its holding subsidiaries.
6. Investment term: valid within one year from the date of adoption at the sixth meeting of the Fifth Board of directors (calculated by the time point of purchasing financial products).
7. Implementation method: within the limit approved by the board of directors, the president of the company is responsible for organizing the financial department to implement it.
8. The use of idle self owned funds for entrusted financial management does not involve related party transactions, nor does it constitute a major asset liability
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Group.
9. Decision making procedure: this matter has been deliberated and adopted at the 6th meeting of the 5th board of directors of the company, and the board of supervisors and independent directors have expressed their consent. According to the articles of association and other provisions, this matter does not meet the deliberation standard of the general meeting of shareholders, so it is not necessary to submit it to the general meeting of shareholders for deliberation.
2、 Investment risk analysis and risk control measures
1. Investment risk
(1) Although the entrusted financial products have been strictly evaluated, the financial market is greatly affected by macroeconomic, fiscal and monetary policies, exchange rate and capital. It is not excluded that the investment is affected by market fluctuations;
(2) The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of entrusted financial management is unpredictable;
(3) Operational risks of relevant personnel.
2. Risk control measures
(1) The company will make decisions, manage, inspect and supervise entrusted financial management matters in strict accordance with the articles of association and entrusted financial management system, and strictly control the safety of funds;
(2) After the approval of the board of directors, the president of the company shall be responsible for organizing the financial department to implement it and establish a tracking and monitoring mechanism. The finance department shall assign special personnel to track the progress and investment safety, and report to the board of directors in time in case of abnormalities, so as to take effective measures to recover funds and avoid or reduce losses of the company;
(3) The audit and supervision department of the company is responsible for reviewing the approval, actual operation, fund use and profit and loss of financial product business, urging the financial department to timely handle the accounts and verify the financial treatment;
(4) Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and can hire professional institutions to audit if necessary;
(5) The company will timely perform the obligation of information disclosure in accordance with the relevant provisions of Shenzhen Stock Exchange.
3、 Impact on the company and its holding subsidiaries
1. The company and its holding subsidiaries use some idle self owned funds for entrusted financial management, which is implemented on the premise of ensuring that it does not affect the daily operation of the company and its holding subsidiaries, does not affect the normal capital turnover needs of the company and its holding subsidiaries, and does not affect the normal development of the main business of the company and its holding subsidiaries;
2. Through appropriate entrusted financial management, we can improve the efficiency of fund use, obtain certain investment benefits, further improve the overall performance level of the company, and seek more return on investment for the company and shareholders.
4、 Opinions of the board of supervisors
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The board of supervisors believes that the company and its holding subsidiaries can use some idle self owned funds for entrusted financial management without affecting the normal operation of the company, which can improve the use efficiency and income of the company’s funds and will not affect the development of the company’s normal business. It is agreed that the company and its holding subsidiaries use idle self owned funds with a limit of no more than RMB 320 million for entrusted financial management.
5、 Independent opinions of independent directors
The independent directors carefully considered the proposal on using some idle self owned funds for entrusted financial management and expressed the following opinions:
1. The proposal on using some idle self owned funds for entrusted financial management has been deliberated and adopted at the 6th meeting of the 5th board of directors of the company, and the board of supervisors has expressed its consent.
2. The company’s internal control system is relatively perfect, with sound internal control measures and systems, and the safety of funds can be guaranteed. 3. On the premise of not affecting the normal operation of the company, the company and its holding subsidiaries use some idle self owned funds for entrusted financial management, which can improve the use efficiency and income of the company’s funds, will not adversely affect the company’s production and operation activities, and is in line with the interests of the company, its holding subsidiaries and all shareholders.
6、 Documents for future reference
1. Resolutions of the 6th meeting of the 5th board of directors of the company;
2. Resolutions of the 6th meeting of the 5th board of supervisors of the company;
3. Independent directors’ independent opinions on relevant matters of the sixth meeting of the Fifth Board of directors of the company.
It is hereby announced.
Shenzhen Riland Industry Group Co.Ltd(300154) board of directors January 21, 2002
