Qingdao Weilong Valve Co., Ltd. about using idle s

Qingdao Weilong Valve Co., Ltd. announcement on the progress of using idle self owned funds for cash management

the second meeting of the third board of directors and the second meeting of the third board of supervisors held on April 24, 2018 considered and passed the proposal on continuing to use idle self owned funds for cash management.

the second meeting of the third board of directors held on April 24, 2018 The second meeting of the third board of supervisors deliberated and passed the proposal on continuing to use idle self owned funds for cash management, and agreed that the company should use idle self owned funds for cash management, with a limit of no more than 150 million yuan. The 150 million yuan wealth management limit can be used in a rolling manner, and the investment period will be effective within one year from the date of deliberation and approval of the second meeting of the third board of directors. The independent directors of the company expressed their consent to this proposal

for details, see the announcement on continuing to use idle self owned funds for cash management published by the company on the designated information disclosure media China Securities Journal, Shanghai Securities News, securities times, securities and cninfo () on April 24, 2018

I. redemption of expired financial products

on September 17, 2018, the company bought financial products of 30million yuan and 20million yuan from Industrial Bank (15.750, 0.09, 0.57%) Qingdao Jimo branch and CITIC Bank (5.540, 0.02, 0.36%) Chengyang branch respectively. For details, see China Securities Journal, Shanghai Securities News, securities times, securities "Announcement on the progress of cash management using idle self owned funds and idle raised funds" (Announcement No.:) on cninfo ()

the company redeemed the above expired financial products recently, and recovered the principal respectively: Industrial Bank Qingdao Jimo branch 30million yuan, CITIC Bank Chengyang branch 20million yuan; Financial income: 344054.79 yuan, 224383.56 yuan

II. Main information of continuing to use idle self owned funds to purchase financial products this time

the company recently used idle self owned funds to purchase financial products of RMB 20million and RMB 30million respectively from Chengyang branch of China CITIC Bank and Qingdao Jimo branch of Industrial Bank, Now the relevant information is announced as follows:

(I) the main contents of the company's purchase of financial products are as follows:

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(II) approval procedures

the dawn of the dream of a powerful country in previous history

this purchase of financial products has been deliberated and approved at the second meeting of the third board of directors and the second meeting of the third board of supervisors held on April 24, 2018, and the sponsor The independent directors of the company expressed their independent opinions on this

III. description of related relationship

the company has no related relationship with the above trustee

IV. investment risks and risk control measures

1. Investment risks

(1) although the company will choose to invest in appropriate financial products with low risks according to the actual situation of idle funds, the financial market is greatly affected by the macro-economy, and it is not excluded that this investment is affected by market fluctuations

(2) the company will conduct entrusted financial management in a timely and appropriate manner according to the economic situation and changes in the financial market, so the actual income of investment is unpredictable

2. Risk control measures

(1) the company purchases financial products with high security, good liquidity, low risk and a term of less than 12 months (inclusive)

(2) the financial department will be responsible for the specific implementation of decisions. The finance department will be responsible for formulating the plan for purchasing financial products, reasonably purchasing financial products and establishing investment accounts, and timely analyzing and tracking the changes in the net value of products to ensure the safety of financial funds

(3) the internal audit department of the company is responsible for auditing and supervising the use and custody of funds caused by the long-term non replacement of hydraulic oil or unclean hydraulic oil of the invested products, and reporting to the audit committee of the board of directors

(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 audit when necessary

(5) the company will disclose the investment products and relevant profits and losses during the reporting period in accordance with the relevant provisions of Shenzhen Stock Exchange

v. impact on the company

the company uses its own idle funds for entrusted financial management on the premise of ensuring the company's daily operation and fund safety, which will not affect the normal turnover needs of the company's daily funds, will not affect the normal development of the company's main business such as non proportional stress, and will not involve the use of raised funds. Through appropriate entrusted financial management, we can obtain a certain return on investment and seek a better return on investment for the company and shareholders

VI. purchase of bank financial products in the 12 months before the announcement date

the company used idle self owned funds to purchase financial products in the 12 months before the announcement date. See the following table for details:

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as of the announcement date, the principal and income of the expired financial products have been recovered as scheduled. The company's accumulated undue balance of using idle own funds to purchase financial products is 55 million yuan (including 50million yuan purchased this time), and the above undue balance does not exceed the limit approved by the company's board of directors and the general meeting of shareholders to purchase financial products

VII. Documents for future reference

1 Bank receipts of relevant financial products

it is hereby announced

board of directors of Qingdao Weilong Valve Co., Ltd.

December 18, 2018