Zhuhai HUAFA Group Finance Co., Ltd
2021 annual risk continuous assessment report
According to the requirements of Shenzhen Stock Exchange’s self regulatory guidelines for listed companies No. 7 – transactions and related party transactions, Zhuhai Huajin Capital Co.Ltd(000532) (hereinafter referred to as “the company”) examined the financial license, business license and other documents of Zhuhai HUAFA Group Finance Co., Ltd. (hereinafter referred to as “finance company” or “company”), including balance sheet, income statement Regular financial reports of financial companies, including cash flow statements, etc., and understand the dynamics of internal control and risk supervision indicators of the financial company, and evaluate the business qualification, business and risk status of the financial company. The specific situation is reported as follows:
1、 Basic information of finance company
Finance company is a non bank financial institution established with the approval of Bank Of China Limited(601988) industry supervision and Administration Commission to provide financial management services for Zhuhai HUAFA Group Co., Ltd. (hereinafter referred to as “HUAFA group”) and its member units. It was approved to prepare for establishment on February 8, 2013 and obtained the opening Reply of Bank Of China Limited(601988) industry supervision and Administration Commission on September 4 of the same year (YJF [2013] No. 459), The financial license (license No.: 00367142) was obtained on September 6 of the same year, the industrial and commercial registration was handled and the business license (Registration No.: 440003 Shenzhen Zhongheng Huafa Co.Ltd(000020) 370) was obtained on September 9 of the same year, and the initial registered capital was RMB 1 billion.
On September 15, 2015, the finance company renewed its business license (Unified Social Credit Code: 914404 Xinxing Ductile Iron Pipes Co.Ltd(000778) 8756xy).
On November 29, 2016, the finance company increased its capital to RMB 1.5 billion.
On February 6, 2018, the finance company increased its capital to RMB 2 billion.
On January 15, 2021, the finance company renewed the financial license (license No.: 00370170) due to the change of registration place, and renewed the business license (Unified Social Credit Code: 914404 Xinxing Ductile Iron Pipes Co.Ltd(000778) 8756xy) on April 21 of the same year.
On September 23, 2021, the finance company renewed the new version of financial license (license No.: 00971815) according to the regulatory requirements; On December 14 of the same year, the shareholders of the finance company changed and the business license was renewed (Unified Social Credit Code: 914404 Xinxing Ductile Iron Pipes Co.Ltd(000778) 8756xy).
Legal representative: Xu Jili
Registered address: 26th floor, Hengqin international financial center building, cross gate Central Business District, Hengqin new area, Zhuhai
Registered capital: 2 billion yuan
Enterprise type: other limited liability companies
The equity structure is as follows:
Name of shareholder contribution amount (RMB 10000) contribution proportion
Zhuhai HUAFA Group Co., Ltd. 6 Fawer Automotive Parts Limited Company(000030) %
Zhuhai Huachuang Investment Management Co., Ltd. 4 Shenzhen Zhongheng Huafa Co.Ltd(000020) %
Zhuhai HUAFA trading Holding Co., Ltd. 4 Shenzhen Zhongheng Huafa Co.Ltd(000020) %
Zhuhai cross gate CBD Construction Holding Co., Ltd. 2 Shenzhen Ecobeauty Co.Ltd(000010) %
Huafa Industrial Co.Ltd.Zhuhai(600325) 20,000 10%
Zhuhai HUAFA Investment Holding Group Co., Ltd. 2 Shenzhen Ecobeauty Co.Ltd(000010) %
Total 2 Ping An Bank Co.Ltd(000001) 00%
Business scope: handle financial and financing consulting, credit assurance and related consulting and agency business for member units; Assist member units to realize the receipt and payment of transaction funds; Approved insurance agency business; Provide guarantee to member units; Handle entrusted loans and entrusted investment between member units; Handle bill acceptance and discount for member companies; Handle the internal transfer settlement between member units and the corresponding settlement and clearing scheme design; Absorbing deposits from member units; Handle loans and financial leases for member units; Engage in interbank lending; Underwriting corporate bonds of member units; Securities investment, etc; Other business approved by the Financial Regulatory Commission.
2、 Internal control of finance company
(I) control environment
In accordance with the provisions of its articles of association, the finance company has established the board of shareholders, the board of directors, the board of supervisors and other governance institutions, and formulated the rules of procedure of the shareholders’ meeting, the rules of procedure of the board of directors, the rules of procedure of the board of supervisors and other systems to clarify the rights and responsibilities of the governance layer.
Under the board of directors, there are risk management committee, audit committee, information technology management committee and investment decision-making committee, which are respectively responsible for reviewing the work planning, basic systems and other major matters related to risk management, audit, information technology and investment decision-making, regularly assessing relevant risks and putting forward countermeasures.
The operation management is responsible for the specific implementation of the company’s daily operation and management, and exercises its functions and powers within the scope of authorization in accordance with laws, regulations and the articles of association. Under the general manager’s office meeting, there are professional committees such as credit review committee, asset liability and interest rate management committee and Investment Review Committee to consider major matters related to business within the scope of authorization of the general manager’s office meeting.
The finance company has set up ten departments: settlement business department, credit business department, capital business department, financial management department, risk management department, audit management department, comprehensive management department (including human resources function), innovation and development department, investment business department and information technology department, which are respectively responsible for the development of different businesses and providing logistics management support. The finance company has continuously improved the construction of internal control system, put the standardized operation, prevention and resolution of financial risks in the first place of all work, strengthened the professional ethics and professional quality of employees through training and education, established, consolidated and improved the risk prevention awareness of employees, established rules and regulations covering all businesses and internal management, and formed an internal control system of pre prevention, in-process control and post supervision and correction.
The financial company has sound governance structure, standardized management and operation, and established an organizational structure with reasonable division of labor, clear responsibilities, mutual checks and balances and clear reporting relationship. The organization chart is as follows:
(II) risk identification and assessment
The finance company has established a sound internal control management system and formulated the comprehensive risk management measures, the five level classification management measures for asset risk and the working measures for reporting major events and important information. The operation management of the company has organized the implementation of the internal control system, and all business departments have formulated applicable standardized business processes, operation specifications and risk prevention measures according to the business attributes and risk characteristics The operation management shall regularly identify and evaluate the operation and management risks and formulate countermeasures.
(III) important control activities
1. Settlement business control
(1) Based on the principle of standardized management, the finance company has formulated the settlement business management measures, the settlement business operation procedures, the settlement account management measures, the online settlement management measures, the important blank voucher management measures, the RMB demand deposit management measures, the fixed deposit management measures, the notice deposit management measures, and the structured deposit business management measures Settlement business systems such as the measures for the administration of agreed deposits, the measures for the emergency management of the settlement business system, the measures for the administration of the registration and inquiry of paper commercial bills in the electronic commercial bill system, the measures for the administration of the electronic commercial bill business and the emergency plan for the operation of the electronic commercial bill system have defined the operation norms and control standards of the settlement business and effectively prevented relevant business risks.
(2) The finance company has prepared the post description of the settlement business department, defined the work responsibilities, authorities and reporting routes of each post, and established a risk management mechanism from pre prevention, in-process control to post supervision of each business link, such as double review system, post backup mechanism, post supervision link, large payment confirmation system and reconciliation system.
2. Capital business control
(1) The finance company has formulated the measures for the management of current capital business of financial institutions, the measures for the management of capital positions, the operation instructions of the capital business department, the measures for the management of capital plans, the measures for the management of RMB capital certification business, the measures for the management of interbank deposits, the operating procedures for interbank deposits, and the measures for the management of interbank deposits The fund business management measures and operation processes, such as the operation specifications for interbank deposit business, the interbank credit management measures, the interbank lending management measures, the interbank lending operation procedures, the interbank certificate of deposit business management measures, have effectively prevented relevant business risks.
(2) In order to prevent liquidity risk, the finance company pays close attention to the actual use and income of the group and member units, analyzes the fund trend, timely adjusts and plans the use of funds, and does a good job in position management to ensure the fund demand of member units; In the operation of fund deposit business, a interbank inquiry system has been established to review level by level and control fund risk.
3. Credit business control
(1) Finance companies carry out credit business in strict accordance with regulatory requirements. A loan management system for separation and approval of loans has been set up, and the rules for the credit review committee, the management measures for member units’ credit business, the management method of self operated loans, the management method of entrusted loan business, the management method of enterprise credit information base database, the management of enterprise credit reference business, the management of fixed assets loans, and the management of pre loan investigation have been formulated. Measures for the administration of commercial bill acceptance, measures for the administration of commercial bill discount, measures for the administration of bill rediscount business, measures for the administration of commercial bill rediscount business, measures for the administration of bill repurchase, measures for the administration of credit business archives, measures for the administration of real estate development loans, self inspection and self correction system for credit compliance and information security, emergency response plan for credit information security incidents Emergency plan for credit risk, measures for the management of M & a loan business, measures for the management of financial business of extended industrial chain, measures for the management of China factoring business of extended industrial chain finance, measures for the management of commercial bill discount business of extended industrial chain finance, measures for the management of guarantee business, measures for the management of credit guarantee, provisions on the management of mortgage and pledge warrants, operating rules for customer credit risk rating Credit risk emergency plan and other credit business systems and rules.
(2) The finance company determines the review procedure and approval authority according to the loan scale, type, term and guarantee conditions, and reviews and approves the loan in strict accordance with the procedure and authority. The finance company has established and improved the work responsibilities of the credit department and credit posts. The post setting of the credit department has a reasonable division of labor and clear responsibilities.
4. Investment business control
(1) In order to meet the needs of investment business, the finance company has formulated the rules of procedure of the investment decision-making committee and the rules of procedure of the investment review committee to clarify the responsibilities and authorities of the investment decision-making committee and the Investment Review Committee; At the same time, it has formulated the measures for the administration of securities investment, the operating procedures for securities investment, the measures for the administration of bond repurchase transactions, the measures for the administration of bond lending, the measures for the administration of entrusted investment business, the measures for the administration of corporate bonds of underwriting member units, the operating procedures for corporate bonds of underwriting member units, market risk emergency plan and other investment business management systems and operating procedures, Prevent relevant business risks.
(2) The finance company has established and improved the responsibilities and authorities of the investment business department, determined the investment decision-making procedures and approval authorities, and implemented them in strict accordance with relevant regulations.
5. Internal audit control
The finance company implements the supervision and inspection system combining daily audit and internal audit, and has formulated the internal control management measures, internal control evaluation management measures, case accountability management measures, senior management accountability measures for violations and dereliction of duty, discipline inspection system (Trial), case prevention and control management measures, case prevention and control evaluation implementation measures, employee compliance code The measures for the performance evaluation of directors, supervisors and senior executives by the board of supervisors, the measures for the management of internal audit, the measures for the management of criminal cases, the measures for the management of self-assessment of money laundering and terrorist financing risks and other systems conduct daily audit and internal audit on the company’s operation and management activities. The audit management department shall be responsible for the daily audit and internal audit of the financial company, and supervise and inspect the implementation of the company’s internal control and the legality, compliance, safety, accuracy and effectiveness of the company’s operation and management activities.
6. Information system control
(1) The finance company has formulated information system security management system, information system authorized operation management measures, data management measures, data backup management measures, computer room management measures, computer system emergency management measures, network information system security emergency response plan, network management measures, information project management measures, information system change management measures Information system management systems such as information system outsourcing management measures, information system operation management measures, rules of procedure of Information Technology Management Committee and emergency plan for information technology outsourcing services standardize the use of terminal equipment and establish an effective mechanism for information classification, protection system and unified authorization. Formulate backup strategies for different systems, establish a backup management system, realize the automation of data backup and ensure the security of the company’s information. The finance company shall organize data recovery drills irregularly to verify the correctness of data recovery process and the effectiveness of backup data. (2) The financial company network realizes the physical isolation between the business network and the office network, and implements the special machine. Different logical areas are reasonably divided in the business network, and corresponding security equipment or access control strategies are deployed. The company has no information security events caused by improper network area division and inadequate prevention and control measures.
