Harbin Dongan Auto Engine Co.Ltd(600178)
Risk disposal plan for carrying out financial business with Ordnance Equipment Group Finance Co., Ltd
In order to effectively prevent, timely control and resolve the capital risks of Harbin Dongan Auto Engine Co.Ltd(600178) (hereinafter referred to as "the company") and its holding subsidiaries in carrying out financial business in Ordnance Equipment Group Finance Co., Ltd., and ensure the safety and liquidity of funds, this risk disposal plan is hereby formulated.
Chapter I organizational structure and responsibilities
Article 1 a special working group on capital risk shall be established
The company established a special working group on capital risk (hereinafter referred to as the "working group"). The general manager of the company shall serve as the group leader as the first responsible person of the capital risk prevention and disposal and working group; The chief accountant of the company acts as the Deputy group leader and is specifically responsible for the daily supervision and management related work; Members of the leading group include personnel from the finance department, the audit and legal department, the board office and other relevant departments.
The working group is responsible for tracking, evaluating, preventing, controlling and resolving the capital risk of the company's financial business in Ordnance Equipment Group Finance Co., Ltd., and assigning special personnel to carry out the work related to capital risk; The working group is responsible for communicating with the finance company and completing relevant information disclosure.
Article 2 responsibilities of the special working group on capital risk
(I) the leading group shall uniformly lead the emergency disposal of financial business risks and be fully responsible for the prevention and disposal of financial business risks.
(II) the company's finance and other relevant departments are responsible for implementing various risk control measures, coordinating with each other and jointly preventing and resolving risks according to the division of responsibilities.
(III) the working group should pay timely attention to the operation of Ordnance Equipment Group Finance Co., Ltd., strengthen communication with Ordnance Equipment Group Finance Co., Ltd., and ensure that information monitoring is in place and risk prevention is effective.
(IV) strengthen the monitoring of risks, timely report to the leading group if problems are found, and take decisive measures to prevent the spread and spread of risks and minimize the risk of financial business.
Chapter II Risk Report and information disclosure
Article 3 establish a risk reporting system
The company shall dynamically track relevant information of Ordnance Equipment Group Finance Co., Ltd. and strengthen risk assessment management. During the duration of related party transactions with the finance company, the working group shall prepare a risk continuous assessment report every half a year, submit it to the board of directors for deliberation after being approved by the general manager's office meeting of the company, and disclose it simultaneously with the semi annual report and annual report.
Article 4 the capital transactions between the company and Ordnance Equipment Group Finance Co., Ltd. shall strictly comply with the requirements of relevant laws and regulations on connected transactions, and perform the decision-making procedures and disclosure obligations. The working group shall coordinate the annual audit accounting firm to submit special instructions on deposits, loans and other financial businesses involving the connected transactions of the financial company every year.
Article 5 when the financial Co., Ltd. of Ordnance Equipment Group has the risk of abnormal capital fluctuation, the working group shall timely obtain the information from the financial company, China Ordnance Equipment Group Co., Ltd. or the regulatory authority, sort it out, form a written report and submit it to the board of directors.
Article 6 the measures that the company has taken and plans to take when the deposit of Ordnance Equipment Group Finance Co., Ltd. changes shall be disclosed in the form of interim report.
Article 7 No unit or individual may conceal, delay or make a false report on the risks of financial business, or instruct others to conceal, delay or make a false report.
Chapter III Risk Identification and disposal
Article 8 in case of any of the following circumstances, the Ordnance Equipment Group Finance Co., Ltd. shall immediately start the risk prevention and disposal mechanism:
(I) the Ordnance Equipment Group Finance Co., Ltd. violates Article 31, 32 or 33 of the measures for the administration of enterprise group finance companies; (note)
(II) any financial index of Ordnance Equipment Group Finance Co., Ltd. does not meet the requirements specified in Article 34 of the measures for the administration of enterprise group finance companies; (note)
(III) major events such as run on deposits, failure to pay due debts, overdue large loans or guaranteed advances, serious failure of computer system, robbery or fraud, serious disciplinary violations and criminal cases involving directors or senior managers of Ordnance Equipment Group Finance Co., Ltd; (IV) major institutional changes, equity transactions or business risks that may affect the normal operation of Ordnance Equipment Group Finance Co., Ltd;
(V) the balance of loans granted by Ordnance Equipment Group Finance Co., Ltd. to a single shareholder exceeds 50% of the registered capital of the finance company or the capital contribution of the shareholder to the finance company;
(VI) the balance of the company's deposits in Ordnance Equipment Group Finance Co., Ltd. accounts for more than 30% of the balance of deposits absorbed by the finance company;
(VII) the liabilities of the shareholders of Ordnance Equipment Group Finance Co., Ltd. to the finance company are overdue for more than one year;
(VIII) there is a serious payment crisis in Ordnance Equipment Group Finance Co., Ltd;
(IX) the loss of Ordnance Equipment Group Finance Co., Ltd. exceeds 30% of the registered capital in the current year or 10% of the registered capital for three consecutive years;
(x) Ordnance Equipment Group Finance Co., Ltd. is subject to administrative punishment by Bank Of China Limited(601988) insurance supervision and Administration Commission and other regulatory authorities for violation of laws and regulations;
（11） Ordnance Equipment Group Finance Co., Ltd. was ordered to rectify by Bank Of China Limited(601988) industry supervision and Administration Commission;
（12） Other matters that may bring potential safety hazards to the funds deposited by the listed company. Article 9 after the occurrence of financial business risks, relevant staff shall immediately report to the leading group, which shall timely understand the information, sort out and analyze it and report it to the board of directors of the company. It is not allowed to falsely report or conceal the deposit or risk to others.
Article 10 when the working group starts the prevention and disposal procedure, it shall urge the Ordnance Equipment Group Finance Co., Ltd. to provide detailed information, understand the situation through multiple channels and analyze the dynamics of the risk. At the same time, according to the risk causes and risk conditions, it shall implement various risk mitigation measures and responsibilities specified in the risk plan, and formulate the risk emergency treatment plan. The plan shall be revised and supplemented in time according to the changes of financial business risk and the problems found in the implementation. The risk emergency treatment plan mainly includes the following contents:
(I) division of responsibilities, measures to be taken, tasks to be completed and objectives to be achieved of all departments and units.
(II) organization and implementation of various risk mitigation measures.
(III) supervision and guidance on the implementation of risk mitigation measures.
Article 11 in view of the emerging risks, the working group shall hold a joint meeting with the Ordnance Equipment Group Finance Co., Ltd. and require the Ordnance Equipment Group Finance Co., Ltd. to take positive measures to carry out risk self rescue and avoid the spread and spread of risks. If necessary, the financial Co., Ltd. of ordnance equipment group shall be required to suspend or stop issuing new loans and organize the recovery of funds; Sell the securities held immediately; Recover the interbank funds offered by banks to avoid corresponding risks and ensure that the safety and liquidity of the company's funds are not affected.
Chapter IV Disposal of follow-up matters
Article 12 after the sudden deposit risk subsides, the working group shall strengthen the supervision of the Ordnance Equipment Group Finance Co., Ltd., require the Ordnance Equipment Group Finance Co., Ltd. to enhance its financial strength, improve its anti risk ability, re evaluate the deposit risk of the Ordnance Equipment Group Finance Co., Ltd., and appropriately adjust the deposit proportion.
Article 13 the working group and Ordnance Equipment Group Finance Co., Ltd. shall carefully analyze and summarize the causes and consequences of sudden deposit risks, learn experiences and lessons, and do a better job in the prevention and disposal of deposit risks more effectively.
Chapter V supplementary provisions
Article 14 the board of directors of the company reserves the right to interpret this plan.
Article 15 the plan shall be implemented from the date of deliberation and approval by the board of directors of the company.
Harbin Dongan Auto Engine Co.Ltd(600178) board of directors March 15, 2022
note appended:
Measures for the administration of financial companies of enterprise groups
Article 31 a finance company shall not engage in offshore business, and shall not engage in any form of cross-border capital business except for the business in paragraph 2 of Article 28 of these measures.
Article 32 the business scope of the company shall be specified in the articles of association after being approved by the financial supervision committee. Financial companies shall not handle non-financial businesses such as industrial investment and trade.
The financial company shall report to the Bank Of China Limited(601988) Industry Regulatory Commission for the record to subdivide the business types within the approved business scope, except for the intermediary business that does not involve creditor's rights or debts. Article 33 the business scope of the branch of the finance company shall be authorized by the finance company in accordance with the principle of prudent operation within its business scope and reported to the Bank Of China Limited(601988) Industry Regulatory Commission for the record. The branch of a finance company shall not handle guarantee, inter-bank lending and the business specified in Article 29 of these measures.
Article 34 When conducting business, a finance company shall comply with the following requirements for the proportion of assets and liabilities:
(I) the capital adequacy ratio shall not be less than 10%;
(II) the balance of borrowed funds shall not be higher than the total capital;
(III) the guarantee balance shall not be higher than the total capital;
(IV) the ratio of short-term securities investment to total capital shall not be higher than 40%;
(V) the ratio of long-term investment to total capital shall not be higher than 30%;
(VI) the ratio of self owned fixed assets to total capital shall not be higher than 20%.
Bank Of China Limited(601988) the Industry Regulatory Commission may adjust the above proportion according to the needs of the business development or prudential supervision of the finance company.
