Shanghai Huayi Group Corporation Limited(600623)
About Shanghai Shanghai Huayi Group Corporation Limited(600623) Finance Co., Ltd
Risk disposal plan for related party transactions
Chapter I General Provisions
Article 1 in order to effectively prevent, timely control and resolve the risk of Shanghai Shanghai Huayi Group Corporation Limited(600623) Finance Co., Ltd. (hereinafter referred to as “finance company”) providing deposits, loans and other financial services for Shanghai Huayi Group Corporation Limited(600623) (hereinafter referred to as “the company” or “the company”) affiliated companies, and maintain the safety of funds, this emergency response plan is hereby formulated in combination with the relevant requirements of Bank Of China Limited(601988) Insurance Regulatory Commission and other regulatory bodies.
Chapter II Risk Disposal organization and disposal principles
Article 2 the finance company is responsible for controlling the financial service risks of the borrower. The risk management committee under the board of directors of the finance company is responsible for risk prevention and disposal, and the credit review committee established by the finance company is responsible for daily risk control, prevention and disposal.
Article 3 the finance company shall take risk control measures in accordance with the risk management system of Shanghai Shanghai Huayi Group Corporation Limited(600623) Finance Co., Ltd. and the measures for the classified management of asset risks of Shanghai Shanghai Huayi Group Corporation Limited(600623) Finance Co., Ltd.
Article 4 the emergency treatment of risks shall follow the following principles:
1. Early warning and timely disposal. The risk of loan business should be found and reported early, and decisive measures should be taken to control and resolve it in time to prevent the spread and spread of risk.
2. Perform their respective duties and cooperate in unity. According to the division of responsibilities, actively plan and implement various risk prevention and resolution measures, coordinate with each other, and jointly control and resolve risks.
3. The combination of prevention and chemical warfare focuses on prevention. Strengthen risk monitoring, provide relevant information in time, monitor timely and effectively, and improve the ability to deal with all kinds of sudden risks.
Chapter III Risk Report
Article 5 the risk management department of the finance company shall implement the key special account report in accordance with the relevant provisions of the measures for the management of loan business of Shanghai Shanghai Huayi Group Corporation Limited(600623) Finance Co., Ltd., including but not limited to the following contents:
1. The borrower’s loans and repayment in the finance company;
2. Operating conditions and financial indicators of the borrower;
3. Other risk analysis and evaluation affecting the capital safety of listed companies.
Article 6 in case of any of the following circumstances in Article 7 of the borrower, the risk management department of the finance company shall timely obtain information from the borrower, sort out and analyze it, form a report on major credit risk matters, and submit it to the credit review committee of the finance company. The report includes but is not limited to the following contents: the changes of the borrower’s existing business in the finance company, the description of emergencies, the possible impact of the event on the loan business of the finance company, the emergency disposal measures to be taken by the finance company, etc.
Chapter IV risk emergency response procedures and measures
Article 7 in case of any of the following circumstances, the borrower shall immediately start the emergency treatment mechanism: 1. Although the loan business of the borrower in the finance company is not due, there is interest arrears; 2. The borrower is overdue in the loan business of the finance company;
3. The directors or senior managers of the borrower are involved in serious disciplinary violations, criminal cases and other major matters;
4. Major institutional changes, equity transactions or business risks that may affect the normal operation of the borrower;
5. The borrower’s loan business in other financial institutions is overdue;
6. The borrower has other major events that may bring potential safety hazards to the loan business of the financial company and the liquidity of the listed company.
Article 8 in case of any of the situations mentioned in Article 7 above, the finance company shall immediately start the emergency handling procedures, urge the borrower to provide detailed information and understand the situation through multiple channels. If necessary, it can enter the site to investigate the causes of loan business risks, analyze the dynamics of risks, and formulate risk emergency handling plans in time. The emergency response plan shall be revised and supplemented in time according to the changes of loan business risk and the problems found in the implementation.
Article 9 the emergency response plan mainly includes the following contents:
1. Contents of emergency treatment measures;
2. Division and implementation of emergency treatment measures;
3. Supervision and inspection of emergency treatment measures.
Article 10 in order to avoid the spread and spread of risks, the emergency treatment measures that the finance company can take for the borrower include but are not limited to: recovering the loan in advance, suspending or stopping the issuance of new loans, freezing the account of the loan enterprise, notifying the guarantor to perform the responsibility for compensation, disposing of the loan collateral, transferring the loan to other financial institutions and other necessary measures.
Article 11 the finance company may hold a joint meeting with the borrower to seek solutions to risks, strive to minimize capital risks and ensure that the safety and liquidity of the finance company’s funds are not affected.
Article 12 the finance company shall carry out the risk prevention and disposal of the borrower’s financial service business according to the responsibility requirements specified in the emergency treatment plan, earnestly implement various chemical insurance measures and actively do a good job in risk disposal.
Chapter V disposal of follow-up matters
Article 13 after the risk disposal is completed, the finance company shall re evaluate the risk of the borrower, adjust relevant credit policies, strengthen the supervision of loan business and prevent new credit risks.
Article 14 the finance company shall carefully analyze and summarize the causes and consequences of the borrower’s loan business risks, draw experiences and lessons, and do a better job in the prevention and disposal of follow-up loan business risks.
Chapter VI supplementary provisions
Article 15 the financial company shall be responsible for the interpretation of this plan. If the relevant national policies and regulations are adjusted, it shall revise it accordingly.
Article 16 the plan shall come into force and be implemented after being deliberated and approved by the board of directors of the company.
Shanghai Huayi Group Corporation Limited(600623) March 25, 2022
