Securities code: 000993 securities abbreviation: Fujian Mindong Electric Power Limited Company(000993) Announcement No.: 2022 pro-06 Fujian Mindong Electric Power Limited Company(000993)
Announcement on using idle self owned funds for cash management
The company and all members of its board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
Fujian Mindong Electric Power Limited Company(000993) (hereinafter referred to as "the company") deliberated and adopted the proposal on using idle self owned funds for cash management at the 40th interim meeting of the seventh board of directors held on January 26, 2022, and agreed that the company would use idle self owned funds of no more than RMB 300 million for cash management for the purchase of structured deposits or principal guaranteed financial products, The authorization period is valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company. Within the validity period of the limit and resolution, the cash management business can be carried out circularly and continuously, and the funds can be used on a rolling basis. The proposal on the use of idle self owned funds for cash management deliberated and adopted at the 34th interim meeting of the original seventh board of directors was suspended. The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation. The specific contents are announced as follows:
1、 Basic information of cash management using idle free funds this time
In order to improve the capital utilization efficiency of the company, without affecting the normal operation of the company, combined with the actual operation situation of the company, the idle self owned funds of the company are used for timely cash management, so as to improve the capital utilization efficiency, increase the cash management income and obtain more returns for the company and shareholders.
(II) amount and term
The company plans to use idle self owned funds of no more than RMB 300 million for cash management, and the service life is valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company. Within the validity period of the limit and resolution, the cash management business can be carried out circularly and on a rolling basis, and the funds can be used on a rolling basis.
(III) variety and scope of investment products
The company intends to use idle self owned funds to purchase structural deposits or principal guaranteed financial products with high security and good liquidity from banks or other financial institutions. The investment period shall not exceed 12 months. It shall not be used for securities investment, nor shall it purchase products with stocks, derivatives and unsecured bonds as investment targets.
(IV) source of funds
According to the use plan of self owned funds, it is expected that some funds will be temporarily idle for a period of time. On the premise of ensuring the working capital required for daily operation, the company will carry out cash management of some idle self owned funds. (V) implementation mode
Within the limit, authorize the chairman of the company or the authorized personnel of the chairman of the company to finalize and sign relevant implementation agreements or contracts and other documents. The specific investment activities are organized and implemented by the Finance Department of the company, including but not limited to: selecting qualified professional financial institutions, clarifying the amount and period of cash management, selecting products / business types, signing contracts and agreements, etc.
(VI) income distribution mode
The income belongs to the company.
(VII) information disclosure
The company will timely disclose information on relevant businesses on a quarterly basis in accordance with the guidelines for the standardized operation of companies listed on the main board of Shenzhen Stock Exchange and other relevant requirements in combination with the characteristics of short term and high investment frequency of its own investment products.
(VIII) description of association relationship
The company's use of idle funds for cash management does not constitute a related party transaction, and there is no behavior of changing the purpose of funds in a disguised form.
2、 Investment risk and risk control measures
(I) investment risk
1. Although the investment products with high security have been strictly evaluated, the financial market is greatly affected by the macro-economy, so it is not ruled out that the investment is affected by market fluctuations;
2. 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;
3. Operation and monitoring risks of relevant staff.
(II) risk control measures
1. Strictly select investment objects and select products issued by subjects with good reputation, large scale, ability to ensure capital safety, good operating efficiency and strong capital operation ability;
2. The Finance Department of the company will establish an investment account and will analyze and track the changes in the net value of products in real time. 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. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and can hire professional institutions to audit when necessary;
4. The internal audit department of the company shall conduct daily supervision on the use of funds, conduct comprehensive inspection on investment products regularly, and reasonably predict the possible gains and losses of various investments according to the principle of prudence;
5. The company will timely disclose relevant business information on a quarterly basis in accordance with relevant regulations.
3、 Impact on the daily operation of the company
Under the condition of ensuring normal operation, the company uses idle funds for cash management, which will not affect the normal development of the company's main business. At the same time, it can improve the use efficiency of funds, obtain certain investment income and obtain more investment returns for the company and shareholders.
4、 Relevant review and approval procedures
(I) deliberations of the board of directors
The 40th extraordinary meeting of the 7th board of directors deliberated and approved the proposal on using idle self owned funds for cash management, and agreed that the company should use idle self owned funds of no more than RMB 300 million for cash management for the purchase of structured deposits or principal guaranteed financial products. The authorization period is valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company, Within the validity period of the limit and resolution, the cash management business can be carried out circularly and on a rolling basis, and the funds can be used on a rolling basis. The proposal on the use of idle self owned funds for cash management deliberated and adopted at the 34th interim meeting of the original seventh board of directors was suspended.
(II) relevant opinions of independent directors
The deliberation procedure of the company's proposal on using idle self owned funds for cash management complies with relevant laws and regulations and the relevant provisions of the articles of association. Under the condition of ensuring normal operation, the company uses idle funds for cash management, which will not affect the normal development of the company's main business. At the same time, it can improve the use efficiency of funds, obtain certain investment income and obtain more investment returns for the company and shareholders. There is no situation that damages the interests of the company and all shareholders, especially minority shareholders. To sum up, we agree that the company uses idle self owned funds for cash management.
(III) the proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation.
5、 Documents for future reference
(I) resolutions of the 40th extraordinary meeting of the 7th board of directors of the company;
(II) independent opinions of independent directors on matters related to the 40th interim meeting of the seventh board of directors. It is hereby announced.
Fujian Mindong Electric Power Limited Company(000993) board of directors January 26, 2022
