Guangzhou Development Group Incorporated(600098) Group Finance Co., Ltd
2021 annual risk assessment report
According to the requirements of Shanghai Stock Exchange self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 5 – transactions and related party transactions, Guangzhou Development Group Incorporated(600098) (hereinafter referred to as “the company”) has checked whether it has a valid financial license and business license of enterprise legal person; Obtain and review regular financial reports including balance sheet, income statement and cash flow statement, and evaluate the business qualification, business and risk status of Guangzhou Development Group Incorporated(600098) Group Finance Co., Ltd. (hereinafter referred to as “finance company”), a wholly-owned subsidiary of the company.
After evaluation and review, the company believes that the financial company has legal and effective financial license and business license of enterprise legal person; It is not found that the financial company violates the provisions of the measures for the administration of financial companies of enterprise groups, and the asset liability ratio of the financial company meets the requirements of Article 34 of the measures.
The specific risk assessment is described as follows:
1、 Basic information of finance company
The finance company was approved by the Guangdong Supervision Bureau of Bank Of China Limited(601988) insurance supervision and Administration Commission (financial license institution code: l0245h244010001) and registered with Guangzhou market supervision and Administration Bureau (Unified Social Credit Code: 91440101ma59edxb6q). It was invested by Guangzhou Development Group Incorporated(600098) (contribution ratio: 70%, contribution amount: RMB 700 million) Guangzhou Development Group Incorporated(600098) Electric Power Group Co., Ltd. (10% contribution, 100 million yuan contribution), Guangzhou Gas Group Co., Ltd. (10% contribution, 100 million yuan contribution), Guangzhou Development Group Incorporated(600098) Energy Logistics Group Co., Ltd. (10% contribution, 100 million yuan contribution)
(RMB 100 million) a non bank financial institution jointly invested RMB 1 billion in August 2016.
According to the reply of Guangdong banking and Insurance Regulatory Bureau on Guangzhou Development Group Incorporated(600098) Group Finance Co., Ltd. opening securities investment (except stock investment) (Yue Yin Bao Jian Fu [2020] No. 164), with the approval of Guangdong banking and Insurance Regulatory Bureau, the business scope of the finance company in local and foreign currencies includes: handling 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 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; Portfolio investment (except stock investment). The business scope of the financial company has not changed during the reporting period.
2、 Basic information of internal control of finance company
(I) control environment
The financial company has established a perfect corporate governance structure in accordance with the requirements of modern enterprise system and financial supervision department. The finance company implements the general manager responsibility system under the leadership of the board of directors, and has established the corporate governance structure of the board of shareholders, the board of directors, the board of supervisors and the management organization. There are three professional committees under the board of directors, including risk management committee, budget management committee and audit committee. According to the requirements of business development and internal control management, there are seven departments, including general affairs department, finance department, risk control department, capital department, credit department, settlement department and audit department. The organizational structure is as follows:
(II) risk identification and assessment
The internal control management system of the finance company is perfect, the management level organizes the implementation of the internal control system, and each business department formulates and fully implements standardized operation procedures, operation standards and risk prevention measures for each specific business, and identifies, monitors, evaluates and controls various risk matters in business operation and management; The risk control department shall establish a risk management system, improve the risk identification and evaluation mechanism, and organize business departments to improve business risk management measures; The audit department shall supervise and evaluate the implementation of internal control, business operation and standardized management. Each department has a clear division of labor and clear rights and responsibilities.
(III) important risk control activities
The finance company has established a comprehensive risk management organizational structure composed of different levels and responsibilities, and stipulated the shareholders’ meeting, the board of directors and the risk management committee
The board of directors, the board of supervisors, the general manager, the credit review committee and the operation decision-making committee, as well as the risk control responsibilities of the division of labor and cooperation of various departments, defined the working procedures of the separation of front office, middle office and back office, and built a three-way risk prevention and control system composed of business, risk and audit.
1. Credit business risk control
The finance company has formulated 14 credit risk management systems and norms. In the operation of specific credit business, following the principles of “truthfulness, objectivity, impartiality” and “first rating credit, then using the letter”, we should carry out the process of pre credit investigation, loan review and post loan inspection, so as to control the loan separation and control the credit risk effectively. The pre loan credit department and risk control department strictly implement the principle of “separation of loan review”, analyze and evaluate the credit status of the proposed credit customers from the industry, operation, finance and other aspects according to objective standards, master the project risk status, make a comprehensive evaluation of the customer’s solvency, and objectively and fairly evaluate the credit rating, credit extension and single business. Strengthen process control during lending, adhere to the principle of comprehensive approval, control the pace of loan issuance in strict accordance with the credit line, focus on reviewing the compliance, integrity and authenticity of loan materials, and the credit review committee performs its duties normally. After the loan, the credit department and risk control department are required to grasp the business situation of the borrower in real time and dynamically through on-site and off-site methods, so as to ensure that the borrower’s use of loan funds is in compliance with the law and can repay the principal and interest of the loan on time. In 2021, the operation and profitability of the company’s member units were generally good, and the loan risk classification was normal. At the end of 2021, the loan balance of the finance company was 2.9 billion yuan, which had nothing to do with note loans. The overall solvency of the credit customers of the finance company was stable, and the credit risk remained at a low level. The finance company shall timely and fully withdraw the provision for asset impairment. In 2021, the withdrawal standard of loan impairment provision will be increased from 2% at the end of 2020 to 2.5%. By increasing the withdrawal proportion of loan loss provision, the risk offset ability of the finance company will be further improved.
2. Risk control of capital business
The finance company has formulated 10 fund management systems such as funds, interbank lending and securities investment to standardize the development of various fund businesses. The finance company counts the fund position every day, regularly collects various fund flow information such as the fund collection and payment plan and financing plan of the member units, and forecasts the liquidity gap in the short term in the future, so as to determine the liquidity suitability and identify the liquidity risk in time; Always pay attention to the changes in the capital market caused by changes in external market factors such as interest rates, strengthen capital position management and form a reasonable asset liability distribution structure. The finance company carefully selects the fund deposit bank, strictly reviews the risk factors such as the interbank deposit business plan, the deposit bank rating, the credit report and the compliance of operating procedures, so as to ensure that the interbank deposit business risk is controllable.
Before each regular deposit, the finance company forecasts the impact of liquidity and reasonably arranges capital investment. The operation decision-making committee of the finance company operates well, and the approval, authorization and operation of investment business are in compliance. Since it was approved to start securities investment business (excluding stock investment) in 2020, the finance company has carried out fund business prudently and steadily, with lower risk compared with other investment businesses, and strictly set the access conditions for fund companies and fund products. Approved in June 2021, the fund business balance of the finance company was adjusted from 700 million yuan to less than 800 million yuan, and the single fund company was still controlled within 400 million yuan. There was no negative investment income of relevant products, and the market risk was relatively acceptable
Control. During the reporting period, the application, holding and redemption of the fund investment business of the finance company strictly followed the approval process. The above investment business complies with the approved business scope. Investment decision-making, business operation and post investment tracking all strictly follow the provisions of the company’s internal control system, and the risk of investment business is controllable.
3. Risk control of settlement business
The finance company has formulated various business management methods and operation processes for settlement business management, and now has formed a total of 6 settlement business systems to effectively control the operational risk of settlement business.
4. Risk review and monitoring control
The finance company has formulated 16 risk management systems and norms. The risk control department of the finance company strictly conducts in-process review on asset businesses such as credit and capital, and effectively prevents and controls credit and market risks through the meeting review mechanism; The finance company has established a risk monitoring and reporting mechanism to determine the main risk supervision indicators according to the supervision policies. The risk control department and the business department monitor them at the same time and report to the chairman, the chairman of the board of supervisors and the management of the finance company on a regular basis.
5. Internal audit control
The finance company has established a special internal audit department (audit department), established scientific, feasible and comprehensive internal audit management methods and operating procedures, conducted continuous internal audit and supervision on various business activities of the finance company, and regularly supervised and inspected the implementation of the internal control system and the compliance of business activities of the finance company.
5. Information system control
The finance company fully implemented the requirements of the guidelines for information technology risk management of commercial banks, and clarified the classification of information technology in terms of system construction
Management requirements for backup, transfer, storage, emergency plan, etc. During the reporting period, the company completed many works such as plugging the loopholes in the information system, upgrading the security equipment, dual virtual machine active and standby, and patrol inspection emergency mechanism. Through the secondary evaluation of equal security by the public security department, it took effective control measures and technical means to improve the operation security performance of the fund information system of the financial company and ensure the safe and stable operation of the information system. Continue to develop and maintain the information technology system, continuously improve the operation stability, friendly interface, logical science and information security of the information technology system, and give full play to the risk isolation function and statistical analysis function of the information technology system. During the reporting period, the information technology system of the finance company operated well, and there were no major network failures and information technology risk cases.
3、 Operation management and risk management of finance company
(I) operation
As of December 31, 2021 (audited), the total assets of the finance company are 7.404 billion yuan and the total liabilities are 6.196 billion yuan; The balance of deposits received was 6.135 billion yuan; The balance of loans was 2.9 billion yuan. In 2021, the total operating revenue of the finance company was 111 million yuan; The net profit was 73 million yuan.
(II) management
The finance company adheres to the principle of sound operation, standardizes its business behavior and strengthens 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 accounting standards for business enterprises, the measures for the administration of financial companies of enterprise groups, relevant national financial laws, regulations and the articles of association.
(III) regulatory indicators
According to the measures for the administration of financial companies of enterprise groups and relevant regulations, as of
As of December 31, 2021, the indicators of the finance company are shown in the table below:
Standard value of S / N indicator actual value in current period
1. Capital adequacy ratio ≥ 10% 27.22%
2. Liquidity ratio ≥ 25% 77.67%
3. Proportion of borrowed funds ≤ 100% 0.00%
4. Ratio of investment to total capital ≤ 70% 60.97%
5. Proportion of guarantee balance ≤ 100% 0.00%
6. Proportion of self owned fixed assets ≤ 20% 0.24%
(IV) deposits and loans of shareholders
Deposits and loans of shareholders as of December 31, 2021
Amount: 10000 yuan
Shareholder name investment amount deposit loan
Guangzhou Development Group Incorporated(600098) Group Co., Ltd. (parent company) 70 China High-Speed Railway Technology Co.Ltd(000008) 465100 0.00
Guangzhou Development Group Incorporated(600098) Power Group Co., Ltd. 10 China Vanke Co.Ltd(000002) 538654 0.00
Guangzhou Gas Group Co., Ltd. 10 China Vanke Co.Ltd(000002) 3221299050000
Guangzhou Development Group Incorporated(600098) Energy Logistics Group Co., Ltd. 10 China Baoan Group Co.Ltd(000009) 739021184748
The balance of deposits of the company (parent company) in the finance company is 847 million yuan, accounting for 13.80% of the balance of deposits absorbed by the finance company of 6.135 billion yuan. The balance of loans granted by the finance company to shareholders was 1.023 billion yuan, of which 905 million yuan was granted by the finance company to the shareholder Guangzhou Gas Group Co., Ltd., which exceeded the shareholder’s interest in finance
Capital contribution of the company; The finance company granted a loan of 118 million yuan to the shareholder Guangzhou Development Group Incorporated(600098) Energy Logistics Group Co., Ltd., which exceeded the shareholder’s contribution to the finance company. The finance company has reported the above loan issuance to the Guangdong regulatory bureau of the CBRC in accordance with Article 46 of the measures for the administration of enterprise group finance companies. The security and liquidity of the company’s deposits in the finance company are good, and there has never been any delay in payment due to insufficient positions of the finance company. In accordance with Article 12 of Chapter II of the guidelines for self discipline supervision of listed companies of Shanghai Stock Exchange No. 5 – transactions and related party transactions, the company has formulated a risk disposal plan for deposit business in financial companies, so as to ensure the safety of deposit funds in financial companies, effectively prevent, timely control and resolve deposit risks.
To sum up, during the reporting period, the finance company operated in strict accordance with the provisions of the measures for the administration of financial companies of enterprise groups (CBRC order [2004] No. 5) and the decision on Amending the measures for the administration of financial companies of enterprise groups (CBRC Order 2006 No. 8)
