Risk disposal plan for deposits in AVIC Finance Co., Ltd. chapter I General Provisions
Article 1 in order to effectively prevent, timely control and resolve the capital risk of China Avionics Systems Co.Ltd(600372) (hereinafter referred to as ” China Avionics Systems Co.Ltd(600372) ” or “the company”) in the deposit of AVIC Finance Co., Ltd. (hereinafter referred to as “AVIC finance”), maintain the safety of funds and ensure the liquidity of funds, this deposit risk disposal plan is hereby formulated.
Chapter II deposit risk disposal organization and responsibilities
Article 2 the specific implementation plan of the company’s financial department is the risk disposal plan. The department leader of the company’s planning and finance department is the responsible person.
Article 3 the disposal of deposit risk shall follow the following principles:
(I) the planning and Finance Department of the company, as the specific implementation Department of the risk disposal plan, should pay close attention to the daily operation of the aviation industry finance company. Once any sign of risk is found, the disposal plan should be started immediately to carry out risk prevention and control;
(II) actively plan and implement various measures to prevent and resolve risks;
(III) collect information and focus on prevention. Supervise and urge the aviation industry finance company to provide relevant information in time, pay attention to the operation of the aviation industry finance company, and timely understand the information from China Aviation Industry Group Co., Ltd., other group member units or regulatory authorities, so as to ensure that the information monitoring is in place and the risk prevention is effective;
(IV) early warning and timely disposal. Strengthen risk monitoring, obtain information from member units or regulatory authorities and other channels, and find and report deposit risks early to prevent risk diffusion and spread.
Chapter III information report and disclosure
Article 4 China Avionics Systems Co.Ltd(600372) shall report regularly and disclose the deposits, loans and other financial services related to the related party transactions of AVIC finance company. A continuous risk assessment report shall be issued every six months and disclosed simultaneously with the semi annual report and annual report.
Article 5 during the duration of related party transactions, China Avionics Systems Co.Ltd(600372) shall assign special personnel to dynamically evaluate and supervise the risk status of funds deposited in the aviation industry finance company, and actively take measures to protect the interests of the company. In case of any risk situation determined in the risk disposal plan, AVIC finance company shall timely notify China Avionics Systems Co.Ltd(600372) , and cooperate with China Avionics Systems Co.Ltd(600372) to fulfill the obligation of information disclosure.
Article 6 China Avionics Systems Co.Ltd(600372) and AVIC finance company shall perform decision-making procedures and information disclosure obligations in strict accordance with the requirements of relevant laws and regulations on connected transactions.
Chapter IV deposit risk disposal procedures and measures
Article 7 in case of any of the following situations, the aviation industry finance company shall immediately start the risk disposal procedure:
(I) the aviation industry finance company violates Article 31, 32 or 33 of the measures for the administration of enterprise group finance companies;
(II) any financial index of the aviation industry finance company does not meet the requirements specified in Article 34 of the measures for the administration of enterprise group finance companies;
(III) major events such as withdrawal of deposits, failure to pay due debts, overdue large loans or guaranteed advances, serious failure of computer system, robbery or fraud, serious violation of discipline and criminal cases involving directors or senior managers of aviation industry finance company;
(IV) major institutional changes, equity transactions or business risks that may affect the normal operation of the aviation industry finance company;
(V) the balance of loans granted by the aviation industry finance company to a single shareholder exceeds 50% of the registered capital of the aviation industry finance company or the capital contribution of the shareholder to the aviation industry finance company; (VI) China Avionics Systems Co.Ltd(600372) the balance of deposits in AVIC finance accounts for more than 30% of the balance of deposits absorbed by AVIC finance;
(VII) the liabilities of the shareholders of AVIC finance company to AVIC finance company are overdue for more than one year;
(VIII) the aviation industry finance company has a serious payment crisis;
(IX) the loss of AVIC finance company in the current year exceeds 30% of the registered capital or 10% of the registered capital for three consecutive years;
(x) AVIC finance company is subject to administrative punishment by Bank Of China Limited(601988) Insurance Regulatory Commission and other regulatory authorities for violation of laws and regulations;
（11） Aviation industry finance company was ordered to rectify by Bank Of China Limited(601988) Insurance Regulatory Commission;
（12） Other matters that may bring potential safety hazards to the company’s deposited funds.
Article 8 after the occurrence of deposit risk, the relevant business personnel shall timely understand the information, form a written document and report it to the person in charge of the planning and finance department.
Article 9 after the company’s planning and finance department starts the risk disposal procedure, it shall organize personnel to urge the aviation industry finance company to provide detailed information and understand the situation through multiple channels. When necessary, it can enter the site to investigate the causes of deposit risk and analyze the dynamics of risk. At the same time, according to the risk causes and risk conditions, it shall implement various risk resolution measures and responsibilities specified in the risk resolution plan and formulate risk treatment plan. The risk treatment plan shall be revised and supplemented in time according to the changes of deposit risk and the problems found in the implementation. The emergency treatment plan mainly includes the following contents:
(I) tasks to be completed and objectives to be achieved;
(II) organization and implementation of various risk mitigation measures;
(III) supervision and guidance on the implementation of risk mitigation measures.
Article 10 in view of the emerging risks, China Avionics Systems Co.Ltd(600372) shall require the aviation industry finance company to take positive measures to carry out risk self rescue and avoid risk diffusion and spread, including delaying or stopping the issuance of new loans and organizing the recovery of funds; Sell the Treasury bonds or other bonds held immediately; The funds of the interbank lending banks shall be recovered no matter whether they are due or not; Seek the opportunity to transfer the unexpired loans to other financial institutions and recover the loan principal and interest in time. When necessary, jointly draft documents and seek help from AVIC to ensure that the safety and liquidity of the company’s funds are not affected.
Chapter V handling of follow-up matters
Article 11 after the sudden deposit risk of the business and financial risk of the aviation industry finance company subsides, the company’s planning and finance department shall strengthen the supervision of the aviation industry finance company, require the aviation industry finance company to enhance its capital strength, improve its anti risk ability, re evaluate the deposit risk of the aviation industry finance company, and adjust the deposit proportion and other financial business scale.
Article 12 the planning and Finance Department of the company and the aviation industry finance company shall carefully analyze and summarize the causes and consequences of the sudden deposit risk, draw lessons from experience, and do a better job in the prevention and disposal of deposit risk. If the factors affecting the risk cannot be eliminated, take action to withdraw all deposits.
Chapter VI supplementary provisions
Article 13 the board of directors of the company reserves the right to interpret this plan.
Article 14 this plan shall be implemented from the date of adoption by the board of directors.
