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Securities code: 300154 securities abbreviation: Shenzhen Riland Industry Group Co.Ltd(300154) Announcement No.: 2022-008 Shenzhen Riland Industry Group Co.Ltd(300154)
Announcement on the use of some idle self owned funds for treasury bond reverse repurchase business
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”) convened the sixth meeting of the Fifth Board of directors and the sixth meeting of the Fifth Board of supervisors on January 21, 2022, and deliberated and adopted the proposal on using some idle self owned funds for national debt reverse repurchase business, It is agreed that the company and its holding subsidiaries use idle self owned funds with an amount of no more than RMB 110 million to conduct treasury bond reverse repurchase business without affecting the normal operation of the company. The relevant matters are hereby announced as follows:
1、 Investment overview
1. Investment purpose: in order 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 on the premise of ensuring the company’s daily operation capital demand and capital safety.
2. Investor: the company and its holding subsidiaries (subsidiaries within the scope of consolidated statements).
3. Investment scope: Treasury reverse repurchase products listed and traded on Shenzhen Stock Exchange and Shanghai Stock Exchange.
4. Source of funds: the funds used by the company and its holding subsidiaries for treasury bond reverse repurchase business are part of the idle self owned funds of the company and its holding subsidiaries.
5. Investment quota: the company and its holding subsidiaries intend to use idle self owned funds with a quota of no more than RMB 110 million for treasury bond reverse repurchase business. Within the above limit, the funds can be used on a rolling basis.
6. Investment term: valid within one year from the date of adoption at the sixth meeting of the Fifth Board of directors of the company. 7. Implementation: the Finance Department of the company is the specific handling department of national debt reverse repurchase investment, and the head of the finance department is the first person responsible for the transaction.
8. The use of idle self owned funds for treasury bond reverse repurchase does not involve related party transactions, nor does it constitute a major asset restructuring.
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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
Although the national debt reverse repurchase is a low-risk investment, the financial market is greatly affected by the macro-economy, and the market fluctuation may have a certain impact on the investment income. The company will intervene appropriately according to the economic situation and changes in the financial market, but the risk of market fluctuation is not excluded.
2. Risk control measures
(1) The company will reasonably carry out treasury bond reverse repurchase investment within the authorized amount in combination with production and operation, fund use plan, etc., and ensure that the investment funds are idle self owned funds of the company and its holding subsidiaries.
(2) The Finance Department of the company is the specific handling department of national debt reverse repurchase investment, and the head of the finance department is the first person responsible for the transaction.
(3) The audit and supervision department of the company is the supervision department of national debt reverse repurchase investment. The audit and supervision department shall conduct pre audit, in-process supervision and post audit on the company’s treasury bond reverse repurchase investment business. The audit and supervision department is responsible for reviewing the approval, actual operation, fund use and income of the national debt reverse repurchase investment business, urging the finance department to conduct accounting treatment in time and verify the accounting treatment. The person in charge of the audit and supervision department is the first person responsible for the supervision obligation.
(4) 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.
(5) The board of directors of the company is responsible for timely performing the obligation of information disclosure in accordance with the relevant provisions of the CSRC and 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 national debt reverse repurchase business, 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 the use of some idle self owned funds for national debt reverse repurchase business, we can improve the use efficiency of funds, obtain certain investment benefits, further improve the overall performance level of the company and seek more investment returns 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 improve the use efficiency and income of the company’s funds and will not affect the development of the company’s normal business by using some idle self owned funds for national debt reverse repurchase business without affecting the company’s normal operation. It is agreed that the company and its holding subsidiaries use some idle self owned funds with an amount of no more than RMB 110 million to carry out treasury bond reverse repurchase business.
5、 Independent opinions of independent directors
The independent directors carefully considered the proposal on using some idle self owned funds for national debt reverse repurchase business and expressed the following opinions:
1. The proposal on using some idle self owned funds for treasury bond reverse repurchase business 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 national debt reverse repurchase business, 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
