China Communications Construction Company Limited(601800)
Continuous risk assessment report of CCCC Finance Co., Ltd
1、 Basic information of finance company
CCCC Finance Co., Ltd. (hereinafter referred to as "finance company") is a non bank financial institution established in July 2013 with the approval of Bank Of China Limited(601988) Industry Regulatory Commission. The code of the company's financial license institution is l0071h21 Ping An Bank Co.Ltd(000001) , and the unified social credit code of the business license is 9111 Shenzhen Quanxinhao Co.Ltd(000007) 1677369e.
China Communications Construction Co., Ltd. is jointly invested by China Communications Group Co., Ltd. with a capital of 800 RMB 6015 and 800 RMB of which 800 is jointly held by China Communications Construction Co., Ltd. The company has 2275 customers and 62 employees. The business scope of the finance company includes: (I) handling financial and financing consulting, credit assurance and related consulting and agency business for member units; (II) assist member units to realize the receipt and payment of transaction funds; (III) approved insurance agency business; (IV) providing guarantee to member units; (V) handling entrusted loans between member units; (VI) handle bill acceptance and discount for member units; (VII) handle the internal transfer settlement between member units and the corresponding settlement and clearing scheme design; (VIII) absorbing deposits from member units; (IX) handle loans and financial leases for member units; (x) engaging in interbank lending; （11） Underwriting corporate bonds of member units; （12） Equity investment in financial institutions; （13） Securities investment (excluding stock investment); （14） Consumer credit, buyer's credit and financial leasing of products of member units; Part time insurance agency business (the validity of the license is extended to November 25, 2022). At present, the above businesses have been carried out except item 11 (underwriting corporate bonds of member units), item 12 (equity investment in financial institutions) and item 14 (consumer credit, buyer's credit and financial leasing of member units' products).
2、 Basic information of internal control of finance company
In 2021, the finance company deeply carried out the construction of internal control and compliance management. The internal control mechanism was continuously improved, the risk control measures were effective and powerful, all businesses were carried out in accordance with the law, the compliance atmosphere was strong, all regulatory indicators met the regulatory requirements, and there was no punishment or risk event.
(I) organizational structure and operation
According to the requirements of modern corporate governance structure, the financial company establishes the shareholders' meeting, the board of directors, the board of supervisors and the company's management in accordance with the principle of "three separate meetings, three separate powers, effective restriction and coordinated development". The board of shareholders, the board of directors, the board of supervisors and the management of the company shall exercise the decision-making power, supervision power and management power in accordance with the relevant rules of procedure and management system, and bear the corresponding obligations and responsibilities, so as to form an organizational structure of the company in which the decision-making system, execution system and supervision feedback system check and balance each other.
The board of directors of the finance company has an audit committee and a risk management committee. Among them, the audit committee is responsible for supervising the company's internal audit system and its implementation, reviewing the company's internal control system, and pre examining the contents related to the responsibilities of the Committee in the proposal of the board meeting, so as to promote the standardized, steady and sustainable development of the company and ensure the safe and steady operation of the company; The risk management committee is responsible for formulating various risk management systems, regularly assessing the company's risk management status, reviewing major risk matters, studying, planning and making suggestions on major investment decisions, and pre examining the contents of the committee's responsibilities in the proposal of the board of directors, so as to prevent major risks and promote compliant operation.
The senior management of the finance company has a credit review committee and an investment decision-making committee. The main responsibilities of the credit review committee are to carefully review and approve the credit business in accordance with the relevant national policies, laws, regulations and regulatory requirements, in combination with the requirements of the company's strategic development plan and comprehensive risk management, as well as the objectives and tasks of the annual credit work, so as to promote the sustainable, steady and effective development of the credit business; The investment decision-making committee is mainly responsible for investment decision-making and decision-making on major matters.
The members of the above special committees are composed of directors, supervisors, management and heads of relevant functional departments. The company sets up senior management positions such as general manager and deputy general manager. The front desk includes the company's settlement business department, credit business department and financial development department; The middle office includes planning and finance department, risk management department and information technology department; The backstage includes the office, the audit department and the party masses work department, with clear rights and responsibilities.
(II) control activities
1. Authorization management and internal control
In accordance with the company law, the articles of association and various rules of procedure, the finance company has formulated the authorization management measures and the guidelines for major authorities of the organization, and defined the authorization management system in the form of system. The company implements a level by level limited authorization system combining direct authorization and sub authorization for the senior management in accordance with the authorization management measures, with clear reporting relationship. The general manager implements top-down authorization under the authorization of the board of directors, and the deputy general manager reports to the general manager. The general manager is responsible for the daily operation and management of the finance company, and the deputy general managers in charge are respectively in charge of the front, middle and back office functional departments. The department managers of each functional department are responsible to the deputy general manager or general manager in charge, implement and report the daily operation work.
2. Settlement business control
In accordance with the rules and regulations of relevant state departments and the people's Bank of China, the finance company carries out business in accordance with the business management measures and business operation processes such as the measures for the management of collection and payment settlement business and the measures for the management of RMB settlement account, so as to first clarify the operation specifications and control standards in the procedures and processes, and effectively control the business risks.
In terms of deposit business of member units, the finance company strictly abides by the principles of equality, voluntariness, fairness and good faith, operates strictly within the normative authority issued by the regulatory department, ensures the safety of funds of member units and protects the legitimate rights and interests of all parties. In terms of centralized fund management and internal transfer settlement business, member units open settlement accounts in the financial company, and realize fund settlement by logging in to the financial company's business system and submitting instructions online or submitting written instructions to the financial company, so as to strictly ensure the safety, quickness and smoothness of settlement, and have high data security at the same time. All manual businesses of the settlement business department are operated by two persons, one for handling and one for review, so as to ensure timely and accurate accounting and timely feedback in case of problems.
3. Credit business control
The credit business of finance company includes working capital loan, project loan / syndicated loan, factoring, discount, bill acceptance, letter of guarantee, entrusted loan, etc. The basic process of credit business is divided into five stages: application acceptance, investigation and evaluation (credit rating), review and approval, credit issuance and post loan management. The finance company makes credit granting according to the principle of unity of safety, efficiency and liquidity. Guided by the company's credit rules and regulations, the credit business department strictly implements the "three checks" system of loans, carefully investigates the authenticity and legitimacy of the trade background of credit business and capital demand, strictly reviews the purchase contracts and value-added tax invoices provided by the borrower, carries out quarterly post loan inspection after the loan is issued, and strengthens the management of the use of credit funds to ensure the legitimacy of the use of credit funds.
4. Internal audit control
The finance company implements the internal audit supervision system, formulates relatively complete internal audit management methods and operating procedures, and conducts internal audit and supervision on various business and management activities of the company. The audit department is responsible for the internal audit of the financial company, supervising and inspecting the implementation of the company's internal control, the legality, compliance, safety, accuracy and effectiveness of business and financial activities, and putting forward valuable improvement opinions and suggestions to the senior management of the financial company according to the internal control weaknesses, management imperfections and various risks found in the audit.
5. Information system control
The fund management platform, the core system of the finance company, integrates customer management, fund management and information management, integrates business processing, process control and risk management, and effectively integrates the integrated operation functions of account management, receipt and payment accounting, credit financing, information collection and decision analysis.
The information system of the finance company has formed a "payment and settlement platform" to improve the settlement and business processing capacity, an "external interface platform" to stably connect enterprises and banks, a "statistical analysis platform" to provide decision-making analysis for operation and management, and an "operation and maintenance platform" to ensure operation safety. The settlement efficiency and quality of the core business system have been significantly improved, and the function of the fund settlement platform has been enhanced, which has achieved the effect of taking the capital stock with the capital flow. The credit business system of the finance company realizes the online operation of the whole process of credit management, credit expenditure, corporate contract billing, post loan management, etc., systematically controls key nodes and operations, and effectively resolves operational and compliance risks.
(III) overall evaluation of internal control
The internal control system of the financial company is relatively perfect and implemented effectively. In terms of capital management, the company has better controlled the risk of capital flow; In terms of credit business, the company has established corresponding credit business risk control procedures to control the overall risk at a reasonable level.
3、 Operation management and risk management of finance company
(I) operation
By the end of December 2021, the total assets of the finance company were 44.085 billion yuan, the operating revenue was 1.190 billion yuan, the total profit was 355 million yuan, the net profit was 285 million yuan, the non-performing loan ratio was 0, and the operation was in good condition.
(II) management
The finance company has always adhered to the principle of sound operation, standardized its business behavior and strengthened its internal management in strict accordance with the company law of the people's Republic of China, the law of the people's Republic of China on banking supervision and administration, the measures for the administration of financial companies of enterprise groups, the accounting standards for business enterprises, relevant national financial laws and regulations and the articles of association of the company. As of December 31, 2021, the company's financial statements and capital management system have not been found to have significant risks and defects according to the audit and evaluation of the company's financial statements and capital management system.
(III) regulatory indicators
Standard value of S / N indicator actual value at the end of December 2021
1. Capital adequacy ratio ≥ 10% 24.56%
2. Proportion of borrowed funds ≤ 100% 0.00%
3. Guarantee ratio ≤ 100% 22.63%
4. Investment ratio ≤ 70% 2.79%
5. Proportion of self owned fixed assets ≤ 20% 0.01%
4、 Deposits and loans of related companies in financial companies
The amount of deposits absorbed by the finance company from related parties is about 7.974 billion yuan, accounting for 19.8% of the total deposits of the finance company, and the deposit interest payable to related parties is 130 million yuan; The credit services provided to related parties are about 3.958 billion yuan.
According to the company's understanding and evaluation of risk management, no major defects are found in the risk management of the financial company, and there are no risk problems in the related deposit and loan and other financial businesses between the financial company and related parties.
To sum up, Finance Co., Ltd. has legal and effective financial license and business license of enterprise legal person, and has established a relatively complete and reasonable internal control system, which can better control risks; There is no violation of the provisions of the measures for the administration of financial companies of enterprise groups issued by Bank Of China Limited(601988) Insurance Regulatory Commission, and all regulatory indicators meet the relevant requirements of the measures.
5、 Risk assessment opinions
As a non bank financial institution, its business scope, business content and process, internal risk control system and other measures are strictly supervised by the China Banking and Insurance Regulatory Commission. The financial company operated well in 2021, there were no major management risks, and the risks of deposit and loan and financial business between related parties were controllable. The decision-making procedures of the board of directors comply with the relevant national laws, regulations and the articles of association, and there is no damage to the rights and interests of the company and minority shareholders.
China Communications Construction Company Limited(601800) March 30, 2022
