Securities code: 000504 securities abbreviation: Nanhua Bio-Medicineco.Ltd(000504) Announcement No.: 2022-009 Nanhua Bio-Medicineco.Ltd(000504)
Announcement on using idle self owned funds to invest in low-risk bank financial products
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.
In order to improve the use efficiency and income of funds, improve the rate of return on assets and make rational use of temporarily idle funds, Nanhua Bio-Medicineco.Ltd(000504) (hereinafter referred to as “the company”) held the third meeting of the 11th board of directors on January 25, 2022, deliberated and adopted the proposal on using temporarily idle funds to invest in short-term financial products of low-risk banks, It is agreed that the company will use the temporarily idle funds with a limit of no more than 100 million yuan to invest in low-risk bank financial products. The details are as follows:
1、 Investment overview of short-term financial products
1. Investment quota: temporarily idle funds with a balance of no more than 100 million yuan.
2. Investment type: short-term financial products issued by low-risk banking institutions.
3. Investment period: to December 31, 2022; Within this period, the quota can be used in a circular and rolling manner. 4. Source of funds: the company temporarily idle its own funds.
5. Implementation method: authorize the company’s management to handle relevant matters within the limit, which shall be implemented by the company’s financial department.
2、 Investment risk analysis and risk control measures of short-term financial products
1. Internal control and investment risk:
(1) The company invests in strict accordance with the requirements of regulations and systems such as the Listing Rules of Shenzhen Stock Exchange and the articles of association.
(2) The company has formulated the management system for foreign investment and the Approval Measures for authorization of fund payment to standardize the company’s foreign investment behavior, which is conducive to the company’s prevention of investment risks and ensure the safety and effective appreciation of investment funds.
(3) Although short-term bank financial products belong to low-risk investment varieties, the financial market is greatly affected by the macro-economy, and it is not ruled out that the investment is affected by market fluctuations.
(4) The company will intervene timely and appropriately according to the economic situation and changes in the financial market, so the actual income of short-term investment is unpredictable.
(5) Operational risks of relevant staff.
2. For investment risks, the proposed measures are as follows:
(1) The funds within the above quota can only buy low-risk financial products within one year and shall not be used for securities investment.
(2) The Finance Department of the company 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, it will take corresponding measures in time to control the investment risk.
(3) According to the relevant regulations of Shenzhen Stock Exchange, the company will disclose the investment of financial products and corresponding profits and losses in the periodic report during the reporting period.
3、 Impact on the company
On the premise of ensuring normal operation, the company will use its own temporary idle funds to purchase bank financial products with low risk and high liquidity, which will not affect the normal turnover of the company’s daily funds and the normal development of the company’s business; It is conducive to improving the efficiency of temporarily idle self owned funds and improving the return on assets, which is in line with the interests of the company and all shareholders.
4、 Decision making procedure
In accordance with the relevant provisions of Shenzhen Stock Exchange’s stock listing rules, Shenzhen Stock Exchange’s self regulatory guidelines for listed companies No. 1 – standardized operation of main board listed companies and the articles of association, the company’s plan to use temporarily idle self owned funds to purchase low-risk bank financial products has been deliberated and adopted at the third meeting of the 11th board of directors of the company. This matter shall be submitted to the general meeting of shareholders of the company for deliberation after being deliberated and approved by the board of directors of the company.
It is hereby announced.
Nanhua Bio-Medicineco.Ltd(000504) board of directors January 26, 2022
