Securities code: 605296 securities abbreviation: Yunnan Shennong Agricultural Industry Group Co.Ltd(605296) Announcement No.: 2022-007 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: China Construction Bank Corporation(601939) Kunming Chengnan sub branch
Cash management amount: 200 million yuan
Name of cash management product: China China Construction Bank Corporation(601939) Yunnan branch unit RMB customized structured deposit
Cash management period: 98 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
Name of the entrusted party product type product name amount (expected annual income yuan) profit rate (yuan)
China Construction Bank
China China Construction Bank Corporation(601939) equity bank financial management industry bank Yunnan Branch
Kunming conduct unit of Co., Ltd. people’s 20000 1.6% – 3.20% 85.92-171.84 Chengnan sub branch currency customized knot
Structured deposit
Product term income type structured arrangement refers to whether the annualized expected income constitutes
Rate of return (if any) related party transactions
98 day Principal Guaranteed floating income none — no
benefit
(IV) the company’s internal control over risks related to entrusted financial management
1. Relevant personnel of the company’s financial department will timely analyze and track the investment direction of financial products and project progress. If risk factors that may affect the company’s capital safety are found in the assessment, corresponding measures will be taken 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 safety, duration 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 a standing book 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: China China Construction Bank Corporation(601939) Yunnan branch unit RMB customized structured deposit; 2. Product type: Principal Guaranteed floating income;
3. Revenue calculation days: 98 days;
4. Product risk rating: low risk;
5. Contract signing date: January 21, 2022;
6. Value date: January 21, 2022;
7. Maturity date: April 29, 2022;
8. Investment scope: the principal part is included in the unified management of China’s China Construction Bank Corporation(601939) internal funds, the income part is invested in financial derivatives, and the product income is linked to the performance of financial derivatives;
9. Product income Description: calculate the income according to the customer’s investment principal, the investment days of each investment principal and the actual annualized rate of return; Actual annualized rate of return = 3.2% × n1/N+1.6% × N2 / N, 3.2% and 1.6% are annualized returns. Where N1 is the number of Tokyo working days when the reference index is within the reference interval (including the interval boundary) during the observation period, N2 is the number of Tokyo working days when the reference index is outside the reference interval (excluding the interval boundary) during the observation period, and N is the number of Tokyo working days during the observation period. The expected minimum annualized rate of return available to customers is 1.6%, and the expected maximum annualized rate of return is 3.2%. The estimated income is not equal to the actual income, please take the actual yield to maturity as the standard;
10. Income payment frequency: one-time payment when due;
11. Reference index: euro / US dollar exchange rate. The euro / US dollar middle price displayed on Bloomberg’s “bfix” page at 3 p.m. Tokyo time on each Tokyo working day during the observation period is expressed as the number of US dollars convertible to one euro. (II) investment direction of entrusted financial management funds
China China Construction Bank Corporation(601939) Yunnan branch unit RMB customized structured deposit: 200 million yuan, the principal part is included in the unified management of China China Construction Bank Corporation(601939) internal funds, the income part is invested in financial derivatives, and the product income is linked to the performance of financial derivatives.
(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
China Construction Bank Corporation(601939) Kunming Chengnan sub branch is a branch of China Construction Bank Corporation(601939) , which is listed on the main board of Shanghai stock exchange with the stock code of 601939.
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 200 million yuan, accounting for 19.12% 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. Under the condition of ensuring the normal operation of the company, this entrusted financial management is to use idle self owned funds for appropriate cash management, 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 future main business, financial status, operating results and cash flow.
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 this cash management 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 income fluctuation. Please pay attention to the investment risk.
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 of the 2020 annual general meeting of shareholders to the date of holding the 2021 annual general meeting of shareholders. Within the authorized amount, the funds 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 116000 92000 798.34 24000
product
Non breakeven floating
2. Income bank manager 69000 13000 177.50 56000
Financial products
Total 185000 105000 975.84 80000
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 80000
Unused financial limit 80000
Total financial limit 160000
It is hereby announced.
Yunnan Shennong Agricultural Industry Group Co.Ltd(605296) board of directors January 22, 2022
