Securities code: 002317 Announcement No.: 2022-004
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317)
Announcement on the progress of using 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.
1、 Overview
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) (hereinafter referred to as “the company”) convened the 14th meeting of the 7th board of directors and the 8th meeting of the 7th board of supervisors on October 27, 2021, deliberated and adopted the proposal on using idle self owned funds for entrusted financial management, and agreed that the company and its subsidiaries (subsidiaries within the scope of the company’s consolidated statements) should ensure the capital needs of daily production and operation and project construction, On the premise of effective risk control, use idle self owned funds of no more than RMB 300 million for entrusted financial management. The term is 12 months from the date of deliberation and approval by the board of directors, and the transaction amount at any time point within the term shall not exceed RMB 300 million. Within the above term and limit, the funds can be used on a rolling basis.
For details of the above, please refer to the company’s publication in the securities times and cninfo (www.cn. Info. Com. CN.) on October 28, 2021 Relevant announcements.
According to the above resolution, the company used idle self owned funds of RMB 60 million to purchase financial products on January 24, 2022. The specific contents are announced as follows:
2、 Financial products purchased this time
On January 24, 2022, the company used its idle self owned funds of RMB 60 million to purchase one-year regular open-ended net worth property management products of Dongguan bank Yulan financial management value growth Nianfeng No. 22. The specific contents are as follows: (I) product name: Dongguan bank Yulan financial value growth Nianfeng No. 22 one-year regular open net worth financial product
(II) income type: non breakeven floating income
(III) source of funds: self owned funds
(IV) financial management currency: RMB
Securities code: 002317 Announcement No.: 2022-004
(V) subscription amount: 60 million yuan
(VI) starting date of income: January 25, 2022
(VII) holding period of financial management: 12 months
(VIII) expected annualized rate of return: the performance benchmark of the first financial holding period of the product is 4.25% – 4.6% (annualized). This product is a net worth financial product with no expected rate of return. Its performance will fluctuate with the market and has uncertainty. The actual income is determined by the net value at the time of product redemption.
(IX) description of related relationship: the company has no related relationship with Dongguan bank.
(x) product risk tips:
1. Policy risk: this financial product is designed based on the current relevant regulations and policies. In case of major adjustment of national macro policies and changes in the financial market environment and other policy factors, it may affect the normal operation of investment, cashing and other behaviors of financial products, resulting in the reduction or even zero of the principal and income of this financial product.
2. Credit risk: if the obligor under the basic assets of this product may default, the customer may face the risk of loss of income, partial loss of principal, or even total loss of principal.
3. Interest rate risk: the change of market interest rate during the financial management of financial products may affect the value change of assets invested in financial products, and then affect the income of financial products.
4. Liquidity risk: during the duration of this financial product, investors can only apply for purchase and redemption within the time specified in the product manual, which may affect the capital arrangement of investors and bring liquidity risk. Any working day within the duration of financial products triggers large redemption terms. At this time, Dongguan bank has the right to refuse the redemption application, which may affect the capital arrangement of investors and bring liquidity risk.
5. Reinvestment risk: during the duration of financial products, Dongguan bank has the right to terminate financial products in advance. If the financial product is terminated in advance, the actual financial period of the financial product will be less than the predetermined period, and investors will face the risk of reinvestment.
6. Management risk: in the process of product operation, due to the limitations of subjective factors such as product manager’s knowledge, experience, judgment, decision-making and skills in basic asset management, it will have a certain impact on product operation and management, thus affecting customer income and even causing the risk of capital loss of the product.
7. Information transmission risk: Dongguan bank issued the operation and liquidation information announcement of financial products in accordance with the provisions of “early redemption, early termination and due liquidation” and “information disclosure and complaint method” in the relevant product manual.
Securities code: 002317 Announcement No.: 2022-004
8. Other risks: refers to the occurrence of force majeure factors such as natural disasters and wars, which will seriously affect the normal operation of the financial market, may affect the normal acceptance, investment and repayment of financial products, and even lead to the reduction of income and loss of principal of the financial products.
3、 Investment risk analysis and risk control measures
(I) the risks that the financial products purchased by the company may face include policy risk, credit risk, interest rate risk, liquidity risk, reinvestment risk, management risk, information transmission risk, other risks and other common risks of bank financial products. The bank financial products purchased this time are non breakeven floating income financial products, and the bank does not provide guarantee commitment for the principal and income of such financial products.
(II) for possible investment risks, the company plans to take the following measures:
1. The company will strictly abide by the principle of prudent investment, and the investment amount will be operated in strict accordance with the amount approved by the board of directors.
2. The company will strengthen market analysis and research, timely adjust the investment strategy and scale, and take corresponding risk control measures in time to strictly control the investment risk once adverse factors are found or judged.
3. The company has formulated the securities investment and derivatives trading management system, which makes detailed provisions on the company’s investment principles, scope, authority, internal audit process, internal reporting procedures, supervision of fund use, responsible departments and responsible persons, which can effectively prevent investment risks. At the same time, the company will earnestly implement relevant internal management systems and strictly control risks.
4. Select financial institutions with legal business qualifications for transactions. If necessary, external personnel with rich investment practical management experience can be hired to provide consulting services for the company’s venture capital, so as to ensure that the company carries out strict and scientific demonstration before investment and provide reasonable suggestions for correct decision-making.
5. The Audit Department of the company is responsible for the audit and supervision of the investment, the pre audit, in-process supervision and post audit of the invested products, the comprehensive review of various investments every half a year and the timely report of the inspection results to the audit committee.
6. Independent directors and the board of supervisors have the right to supervise and inspect the products invested by the company, and can hire professional institutions to audit when necessary.
4、 Impact on the daily operation of the company
The company adheres to the principle of prudent investment and conducts appropriate investment with its own funds on the premise of ensuring normal operation
Securities code: 002317 Announcement No.: 2022-004
The entrusted financial management business will not affect the normal needs of the company’s daily capital turnover and the normal development of the company’s main business. Through appropriate investment and financial management business, it is conducive to improve the use efficiency of the company’s funds and the income of cash assets, and further improve the overall performance level of the company, which is in line with the interests of the company and all shareholders.
5、 Purchase of financial products within 12 months before the announcement date
As of the announcement date, the company and its subsidiaries have not purchased financial products in the past 12 months.
6、 Documents for future reference
(I) resolutions of the 14th meeting of the 7th board of directors of the company;
(II) Dongguan bank Yulan wealth management value growth Nianfeng No. 22 one-year regular open net worth wealth management product manual.
It is hereby announced.
Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) board of directors January 25, 2002
