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Jiangxi Hongdu Aviation Industry Co.Ltd(600316)
About AVIC Finance Co., Ltd
Continuous risk assessment report
1、 Basic information of AVIC Finance Co., Ltd
AVIC Finance Co., Ltd. (hereinafter referred to as “AVIC finance”) is a non bank financial institution with the status of enterprise legal person approved by Bank Of China Limited(601988) Industry Regulatory Commission and registered with the State Administration for Industry and commerce.
Based on the reorganization of the former Xi’an Aircraft Industry Group Finance Co., Ltd. and the former Guizhou Aviation Industry Group Finance Co., Ltd., AVIC finance was jointly funded and established by China Aviation Industry Group Co., Ltd. and its subordinate member units. It was officially established in April 2007. After four capital increases and equity changes, the current registered capital is 395138 million yuan and there are four shareholder units. Among them, the contribution of China Aviation Industry Group Co., Ltd. is 262938 million yuan, accounting for 66.54% of the registered capital; AVIC Investment Holding Co., Ltd. contributed 1112.5 million yuan, accounting for 28.16% of the registered capital Avic Xi’An Aircraft Industry Group Company Ltd(000768) contribution: 144 million yuan, accounting for 3.64% of the registered capital Guizhou Guihang Automotive Components Co.Ltd(600523) contribution: 65.5 million yuan, accounting for 1.66% of the registered capital. The above contribution amount and shareholding ratio are the situation after the recent equity change. At present, the industrial and commercial change is being handled.
Financial license institution code: l0081h21 Ping An Bank Co.Ltd(000001)
Legal representative: Dong Yuan
Registered address: No. 10 b, Middle East Third Ring Road, Chaoyang District, Beijing
Business scope of AVIC Finance: Insurance concurrent agency business (the insurance concurrent agency business license is valid until December 7, 2023); 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; 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; Issue financial corporate bonds upon approval. 2、 Basic information of AVIC financial internal control
(I) control environment
AVIC finance has established the board of shareholders, the board of directors and the board of supervisors in accordance with the provisions of the company law, and has clearly stipulated the responsibilities of the board of directors, directors, supervisors and senior managers in risk management. The board of Directors consists of four professional committees, namely, the strategic development committee, the risk management committee, the audit committee and the assessment and Remuneration Committee, with directors with relevant professional knowledge as members to assist the board of directors in the investigation and decision-making of major strategic development, risk management, internal audit and personnel remuneration. AVIC has a sound financial 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, which provides necessary preconditions for the effectiveness of risk management. AVIC finance has set up the organizational structure in accordance with the principle of mutual checks and balances among decision-making system, execution system and supervision feedback system. The organization chart of AVIC finance is as follows:
(II) risk identification and assessment
AVIC finance has set up a risk management committee under the board of directors to supervise and guide risk management. AVIC finance has established three lines of defense for risk management. All departments and branches are the first line of defense for risk management, the risk management department is the second line of defense for risk management, and the internal control audit department is the third line of defense for risk management. AVIC finance has established a sound hierarchical authorization management system, with clear division of responsibilities among departments and posts and clear reporting relationship at all levels. Through the reasonable setting of departments and post responsibilities, a risk control mechanism of mutual supervision and restriction between departments and posts has been formed. The risk management committee is responsible for analyzing and evaluating the risk status and risk management efficiency, supervising the risk control, putting forward suggestions and reporting to the board of directors. (III) control activities
1. Settlement business control
In terms of settlement and fund management, AVIC finance has formulated settlement management and business systems such as department responsibilities and post responsibilities of settlement department and settlement account management measures in accordance with various regulatory laws and regulations. Each business system has a detailed operation process to clarify the business links, executive roles, main business activities, key input and output and main business rules of the process, so as to effectively control business risks.
On the one hand, AVIC finance mainly relies on the fund settlement system for system control. The fund settlement system supports customers’ multi-level authorization and approval of business to prevent customers’ operational risks. Member units open settlement accounts in AVIC finance, and realize fund settlement by logging in AVIC finance fund settlement system and submitting online instructions or written instructions; The fund settlement system supports the online reconciliation function to realize the timely reconciliation between AVIC finance customer accounts and customer bank accounts.
On the other hand, AVIC finance strictly follows the principles of equality, voluntariness, fairness and good faith to handle deposit business for member units, and the relevant policies are implemented in strict accordance with the relevant provisions of the CBRC and the people’s Bank of China, so as to fully ensure the safety of the funds of member units and safeguard the legitimate rights and interests of all parties.
2. Credit management
In terms of credit business management, AVIC finance strictly implements credit management. At the beginning of each year, according to the financing balance of member units and the financing needs of the new year, combined with the financial capital status of AVIC, it determines the customer credit line plan, strictly handles credit business within the credit line, strictly controls risks, and makes the business both planned and balanced. At the same time, the credit department has formulated detailed management measures and operation processes for each credit business, such as loan, discount and factoring, innovated business, and implemented the management principle of “system first, business later”. China Aviation finance and credit business will implement the three check system effectively, and carry out pre loan investigation, loan review and post loan inspection. The loan can only be granted after the credit business is reviewed by the risk department, discussed and approved by the loan review committee and approved level by level. The single and cumulative business of each credit business of the branch shall be subject to authorization management. The business exceeding the authorization shall be reported to AVIC finance headquarters for approval after being discussed and approved by the loan review committee of the branch. The credit department and risk management department of the headquarters shall regularly inspect the branches every year.
3. Information system control
AVIC finance has established perfect software and hardware facilities and network security system, comprehensively used digital certificates, encryption and other technical measures to ensure the security and stability of the information system, and passed the three-level evaluation of information system security protection. AVIC finance is directly connected with 17 Commercial and policy banks such as industry, agriculture, China Construction, CDB and Guangfa, as well as the ticket exchange and foreign exchange trading center, and adopts a special line to ensure safe and efficient data transmission.
4. Audit supervision
AVIC finance implements the internal audit supervision system, establishes the internal audit system, defines the responsibilities and authorities of internal audit institutions and auditors, the work contents and procedures of internal audit, and standardizes the review of specific internal control, the management of audit archives and other related matters.
The internal control and audit department is responsible for the internal audit business, supervise and inspect the implementation of internal control, the legality, compliance, safety, accuracy and effectiveness of business and financial activities, find the weak links of internal control, imperfect management and various risks caused thereby, and put forward valuable improvement opinions and suggestions to the audit committee of the board of directors. (IV) overall evaluation of risk management
All businesses of AVIC finance can be carried out in strict accordance with the system and process, without major operational risks; All regulatory indicators meet the requirements of regulatory authorities; The business operation is legal and compliant, the management system is sound, and the risk management is effective.
3、 AVIC financial operation management and risk management
(I) financial operation of AVIC
Project 20172018 20192020 2021
Assets 1095515744675710692663889414114288003993241343416639855319471968958283 total
Owner’s equity 4982378930885751787219306543728326947112642269391154228030908 total
Absorbing member doc 1042599070880510075168502513107302256118121267722866619318305710530413 digit deposit balance
Business 110975962453254892455687231501268632226151069019318801048955 total revenue
Profit 895961577621048837322691029398175657574778016986578152912 total
Net profit 6698674538576733942303791941107645689139424565720361667
(II) financial management of AVIC
Since its establishment, AVIC finance has always adhered to the principle of steady operation and strictly followed the
Company law of the people’s Republic of China, banking regulatory law of the people’s Republic of China, enterprise
Accounting standards, measures for the administration of financial companies of enterprise groups and relevant national financial regulations and articles
And the articles of association to standardize business behavior and strengthen internal management.
According to the understanding and evaluation of AVIC’s financial risk management, as of December 31, 2021
As of the date, no capital, credit, audit, information management and other aspects related to the financial statements were found
There are major defects in our risk control system.
(III) financial supervision indicators of AVIC
According to the measures for the administration of financial companies of enterprise groups, the supervision of AVIC Finance
The pipe indexes meet the specified requirements:
Classification index name regulatory requirements end of 2017 end of 2018 end of 2019 end of 2020 end of 2021
Capital adequacy ratio ≥ 13.82% and 13.15% respectively
Non performing credit asset ratio ≤ 4% 0.00% 0.00% 0.00% 0.00% 0.00% risk non-performing loan ratio ≤ 5% 0.00% 0.00% 0.00% 0.00% asset loss reserve adequacy ratio ≥ 100% —-
Classification index name regulatory requirements end of 2017 end of 2018 end of 2019 end of 2020 end of 2021
Loan loss reserve adequacy ratio ≥ 100% —–
Liquidity ratio ≥ 25%, 75.25%, 70.79%, 69.49%, 73.09%, 72.09%
Proportion of sexual deposits and loans – 26.71%, 30.16%, 30.36%, 29.65%, 19.58%
Risk RMB excess reserve ratio – 63.58%, 71.15%, 68.22%, 68.65%, 58.40%
Remarks: 1. The above total assets do not include entrusted loans.
2. The RMB excess provision rate includes the company’s deposits in commercial banks.
3. As of December 31, 2021, the assets and loans of the finance company are normal.
4、 Deposits and loans of the company in AVIC Finance
As of December 31, 2021, the balance of the company’s financial deposit in AVIC was
48127634701 yuan, no loan business occurred, and AVIC finance did not provide guarantee to the company.
5、 Risk assessment opinions
Based on the above analysis and judgment, the company believes that:
(I) AVIC finance has a legal and valid financial license《
