Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2020-061

Anhui Tongfeng Electronics Co., LTD
Announcement on the use of their own idle funds to purchase capital protection financial products

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.

I. Overview of the purchase of break-even financial products

In order to improve the efficiency of the company's use of funds and reduce the precipitation of funds, the Company will use no more than 50 million RMB of its own idle funds to purchase break-even financial products of financial institutions without affecting the normal operation.

Ii. Details of the purchase of break-even financial products this time

1. Purpose of investment

In order to improve the use efficiency of the company's own funds and make rational use of idle funds, on the basis of ensuring the liquidity and security of funds, part of the idle funds are used to invest in short-term break-even financial products to increase the company's earnings.

2. Investment Amount:

The company plans to use its own capital of no more than 50 million yuan to invest in break-even financial products. Within the above quota, the funds can be used on a rolling basis, and the total amount of financial products purchased by the company at any point shall not exceed the above quota. The maturity of a single wealth management product is no more than one year.

3. Investment varieties

The company will strictly control risks in accordance with relevant regulations, conduct strict evaluation and screening of financial products, and purchase financial products of financial institutions (including banks, securities, insurance and other formal financial institutions) with high security, good liquidity, low risk and investment term of no more than 12 months.

4. Investment term

Within 12 months after the board of directors deliberation and approval.

5. Sources of funds

The company has its own idle funds.

6. Implementation method

After deliberation and approval by the board of directors, within the scope and validity period of the quota, the board of directors of the company shall authorize the chairman of the board to exercise the investment decision-making power and sign relevant contract documents, and the CFO shall be responsible for the specific purchase matters.

Third, the impact of the purchase of break-even financial products on the company

Under the condition of ensuring normal operation and capital safety, the company can use part of its own idle funds to buy capital protection financial products with high security, good liquidity and low risk, which will not affect the normal operation of the company's business, and can improve the efficiency of capital use and obtain certain investment income.

Iv. Risk and risk control measures of this purchase of break-even financial products

Capital preservation financial products of financial institutions belong to the varieties of low-risk investment, but the financial market is affected by macro-economy, which does not exclude the impact of market fluctuations on this investment. The Company will purchase financial products in strict accordance with relevant laws, regulations, articles of association and other relevant rules and regulations, and intervene timely and appropriately according to changes in the economic situation and financial market. In view of the possible risks, the company has formulated the following measures:

1. The company's financial management Center is responsible for the management of matters related to the purchase of break-even financial products from financial institutions. The financial management center will establish the ledger management, the economic activities of the use of funds to establish a complete and sound accounting accounts, do a good job in the use of funds financial accounting work; Timely analyze and track the investment of financial products and the progress of the project. If adverse factors are found or judged, timely take corresponding measures to control investment risks;

2. The company's internal audit department is responsible for internal supervision and regular comprehensive inspection of the invested financial products;

3. The independent directors and the Board of supervisors shall have the right to supervise and inspect the use of funds to purchase break-even financial products, and may hire professional institutions to audit if necessary.

V. Performance of the decision procedure for purchasing break-even financial products

On December 11, 2020, the Company held the second meeting of the ninth Board of Directors and the second meeting of the ninth Board of Supervisors, deliberated and approved the Motion on Using its own idle Funds to Purchase capital protection financial Products, and agreed to use no more than 50 million RMB of its own idle funds without affecting normal operations. Buy financial institutions capital protection financial products.

The independent directors of the company expressed their independent opinions on this proposal. The independent directors believed that: On the premise of ensuring the capital demand for daily operation and effectively controlling investment risks, the company uses its own idle funds to purchase capital protection financial products of financial institutions, which is conducive to improving the efficiency of the company's fund use and increasing investment returns. It will not affect the development of the company's main business and will not harm the interests of the company and all shareholders, especially the interests of small and medium-sized shares. All the independent directors agreed to the Motion on Using their Own idle Funds to Buy capital protection financial Products.

At the same time, the board of directors authorizes the chairman of the board to exercise the investment decision-making power and sign relevant contract documents within the scope and validity period of the quota. The CFO of the company is responsible for the specific purchase matters.

According to the Shanghai Stock Exchange Listing Rules and other laws, regulations, normative documents, the Articles of Association and other relevant provisions, the purchase of capital protection financial products with its own idle funds shall not exceed the authority of the board of directors for examination and approval, and need not be submitted to the general meeting of shareholders for deliberation.

Vi. The Company's use of its own funds for financial management in the last 12 months

The company has not used its own funds for financial management in the last 12 months.



This is to announce.