China Industrial Securities Co.Ltd(601377)
About Suzhou Kelida Building & Decoration Co.Ltd(603828) use
Verification opinions on entrusted financial management of some idle raised funds
China Industrial Securities Co.Ltd(601377) (hereinafter referred to as ” China Industrial Securities Co.Ltd(601377) ” or “our company”) as the sponsor of Suzhou Kelida Building & Decoration Co.Ltd(603828) (hereinafter referred to as ” Suzhou Kelida Building & Decoration Co.Ltd(603828) “) non-public offering of shares in 2020, according to the administrative measures for securities issuance and listing recommendation business of China Securities Regulatory Commission (hereinafter referred to as “CSRC”) According to the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies, the stock listing rules of Shanghai Stock Exchange and the measures for the management of raised funds by listed companies of Shanghai Stock Exchange, China Industrial Securities Co.Ltd(601377) has carefully verified the matters that Suzhou Kelida Building & Decoration Co.Ltd(603828) intends to use some idle raised funds for entrusted financial management, And expressed the following opinions:
1、 Investment overview
(I) investment purpose
In order to further improve the use efficiency of funds and make rational use of idle raised funds, on the premise of not affecting the company’s daily operation and ensuring the construction and use of the company’s investment projects with raised funds, the company plans to use some idle raised funds not exceeding RMB 20 million to purchase bank principal guaranteed financial products, so as to better maintain and increase the value of the company’s funds.
(II) investment quota
The company plans to use part of the idle raised funds not exceeding RMB 20 million to purchase bank principal guaranteed financial products, and the fund limit can be used on a rolling basis within 12 months (on the premise of ensuring the construction and use of the raised funds).
(III) investment varieties
The financial products invested by the company with some idle raised funds are bank principal guaranteed financial products, which shall not be used for securities investment and other high-risk investments, and shall not buy financial products with stocks, their derivatives and unsecured bonds as investment targets.
Investment products shall not be pledged, and the special product settlement account (if applicable) shall not deposit non raised funds or be used for other purposes. If the special product settlement account is opened or cancelled, the company shall timely report to the exchange for filing and announcement. (IV) investment period
It shall be valid within one year from the date of deliberation and approval at the 25th meeting of the Fourth Board of directors of the company.
(V) source of funds
The funds used by the company to invest in bank principal guaranteed financial products are the funds raised by the company’s non-public offering of shares in 2020.
As of January 22, 2022, the total amount of bank financial products purchased by the company with funds raised from non-public offering of shares was 20 million yuan.
2、 Investment risk analysis and risk control measures
(I) investment risk
1. Although the principal guaranteed financial products purchased by the company are short-term low-risk products, the financial market is greatly affected by the macro-economy, and it is not excluded that the investment is affected by market fluctuations.
2. The company intervenes timely and appropriately according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable.
3. Operation and monitoring risks of relevant staff.
(II) risk control measures
1. Within the limit, the board of directors of the company authorizes the chairman to exercise the investment decision-making power and sign relevant contracts, including but not limited to: selecting a qualified professional financial institution as the trustee, specifying the amount and period of entrusted financial management, selecting the variety of entrusted financial management products, signing contracts and agreements, etc.
2. The Audit Department of the company is responsible for auditing and supervising the use and custody of low-risk investment and wealth management funds, and reasonably predicting the possible gains and losses of various investments according to the principle of prudence.
3. The independent directors and the board of supervisors of the company have the right to supervise and inspect the use of the above idle raised funds, and can hire professional institutions to audit when necessary.
4. The Finance Department of the company must establish an account to manage short-term financial products, establish and improve accounting accounts, and do a good job in accounting the use of funds.
5. The company will perform the obligation of information disclosure on the purchase of financial products in accordance with the relevant provisions of Shanghai Stock Exchange.
3、 Impact on the company
(I) the company uses some idle raised funds to invest in short-term Principal Guaranteed bank financial products with high safety and good liquidity, which is implemented on the premise of ensuring that the investment plan of raised funds will not be affected, will not affect the normal turnover needs of the company’s project construction of raised funds, and there is no behavior of changing the purpose of raised funds.
(II) moderate low-risk short-term financial management can improve the efficiency of capital use, obtain certain investment benefits and seek more investment returns for the company’s shareholders.
4、 Verification opinions of the sponsor
On the premise of ensuring the normal construction of the company’s fund-raising projects, not changing the purpose of the fund-raising, and effectively controlling the investment risk of the fund-raising, it is in the interests of the company and all shareholders to invest in principal guaranteed financial products with some idle fund-raising funds not exceeding RMB 20 million. Suzhou Kelida Building & Decoration Co.Ltd(603828) the proposal of using some idle raised funds for entrusted financial management has been adopted at the 25th meeting of the Fourth Board of directors and the 16th meeting of the Fourth Board of supervisors. The board of supervisors and independent directors have expressed clear consent, and the decision-making process of this matter is legal and compliant. Therefore, China Industrial Securities Co.Ltd(601377) has no objection to Suzhou Kelida Building & Decoration Co.Ltd(603828) entrusted financial management with some idle raised funds.
(there is no text on this page, which is the seal page of China Industrial Securities Co.Ltd(601377) verification opinions on Suzhou Kelida Building & Decoration Co.Ltd(603828) using some idle raised funds for entrusted financial management) sponsor representative:
Mu Baomin Wan
China Industrial Securities Co.Ltd(601377) mm / DD / yy
