2. Approval procedures

The "Proposal on the Use of Idle Raised Funds for Cash Management" has been reviewed and approved at the third meeting of the fourth board of directors, the third meeting of the fourth board of supervisors and the first extraordinary general meeting of shareholders in 2020. The company is independent

The directors, the board of supervisors and the sponsor have all expressed their opinions expressly and agreed. The amount and time limit for the purchase of capital-guaranteed wealth management products are within the scope of approval, and there is no need to submit it to the company's board of directors and shareholders' meeting for deliberation.

Relationship description

The company and its subsidiaries do not have an associated relationship with the above-mentioned banks.

Investment risk analysis, risk control measures

The products purchased by the company for cash management are low-risk investment products, but it does not rule out that the investment is affected by market fluctuations. In view of the possible income risks, the company has formulated the following measures:

1. On the basis of ensuring that the company's normal production and operation will not be affected, according to the company's idle fund-raising situation, select suitable products for the safety, duration and profitability of investment products.

2. The financial department, audit department and securities department of the company conduct pre-review and assessment of risks, pay attention to the situation of investment products in time, analyze the investment direction of financial products, and the progress of projects. If the assessment finds that there are risk factors that may affect the company’s financial security, they will be taken in a timely manner Corresponding measures to control investment risks.

3. The company's audit department is responsible for auditing and supervising the use and custody of funds.

4. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and can hire professional institutions to conduct audits when necessary.

5. The company will perform relevant information disclosure obligations in a timely manner in accordance with relevant regulations.

Impact on the company

The company uses idle raised funds for cash management under the premise of ensuring the progress of the company's raised funds investment project and ensuring the safety of funds, and does not affect the company's raised funds investment project development and normal production and operation; at the same time, through appropriate cash management, It can improve the efficiency of capital use, obtain a certain investment income, and seek more investment returns for the company's shareholders. There is no conflict with the implementation plan of the raised funds investment project, and there is no disguised change of the investment direction of the raised funds.