Guangzhou Development Group Incorporated(600098) about deposit business in Guangzhou Development Group Finance Co., Ltd
Risk disposal plan
In order to effectively prevent, timely control and resolve the capital risks of Guangzhou Development Group Incorporated(600098) (hereinafter referred to as “the company”) in the deposit business of Guangzhou Development Group Incorporated(600098) Group Finance Co., Ltd. (hereinafter referred to as “the finance company”) and ensure the safety of funds, this risk disposal plan is hereby formulated.
Chapter I risk disposal organization and principles
Article 1 the company’s deposit risk disposal plan shall be implemented by the company’s finance department under the organization of the company’s chief financial officer, and the company’s audit department and investor relations department shall cooperate in relevant work. The Finance Department of the company is responsible for the daily supervision and management of the finance company and strictly control the financial service risks of the finance company.
Article 2 the disposal of deposit risks shall follow the following principles:
(I) the financial department of the company actively implements various measures to prevent and resolve risks.
(II) the Finance Department of the company shall strengthen the risk monitoring, urge the finance company to establish and improve the internal risk control system, and provide relevant information regularly. System first and prevent capital risks.
(III) pay attention to the operation of the financial company, strengthen risk monitoring, and timely obtain information from the company’s member units or regulatory authorities, so as to ensure that the information monitoring is in place and the risk prevention is effective. Once problems are found, submit a joint early warning report to the company’s chief financial officer in time, and take decisive measures to prevent the spread and spread of risks.
Article 3 the financial department of the company, as the specific implementation Department of the risk disposal plan, shall pay close attention to the daily operation of the financial company. Once any sign of risk is found, it shall immediately carry out risk prevention and control.
Chapter II information report and disclosure
Article 4 we should fully understand the relevant information of the financial company, check whether the relevant certificates of the financial company are legal and effective, such as the financial license and the business license of enterprise legal person, pay full attention to the relevant information such as the institutional setting, system construction and operation status of the financial company, and strengthen the risk assessment management. Obtain and review the annual report audited by an accounting firm for the most recent fiscal year before depositing the funds in the finance company; During the period of deposit business, including but not limited to regularly obtaining and reviewing the monthly report and audited annual report of the financial company, including the balance sheet, income statement, cash flow statement and other financial information, and paying attention to the implementation of the financial company’s measures for the administration of enterprise group financial companies issued by the China Banking and Insurance Regulatory Commission.
Article 5 a deposit risk reporting system shall be established to report to the board of directors in time after the occurrence of deposit risk. The report is drafted by the Finance Department of the company according to the information provided by the finance company, including the reasons for the change of deposits in the finance company, the assets, liabilities and positions of the finance company, the measures taken and proposed to be taken, etc., which shall be reported to the board of directors after being reviewed by the chief financial officer of the company, and the decision-making procedures and information disclosure obligations shall be performed in strict accordance with the requirements of relevant laws and regulations.
Article 6 No unit or individual may conceal, delay or make a false report on the risk of deposits, or instruct others to conceal, delay or make a false report.
Chapter III risk disposal procedures
Article 7 during the deposit period of the company in the finance company, in case of any of the following circumstances, the company shall immediately start the disposal procedures. The staff of the Finance Department of the company shall immediately report to the chief financial officer of the company, timely understand the information, analyze and sort out the situation, form a written report and report to the board of directors of the company, and urge the finance company to report relevant risk matters to the company immediately, Meanwhile, the company shall timely perform the corresponding temporary information disclosure obligations:
(I) the financial company violates Articles 31 and 32 of the measures for the administration of enterprise group financial companies;
(II) any financial index of the finance company does not meet the requirements of 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 disciplinary violations and criminal cases involving directors or senior managers in the finance company; (IV) major institutional changes, equity transactions or business risks that may affect the normal operation of the financial company;
(V) the liabilities of the shareholders of the finance company to the finance company are overdue for more than one year;
(VI) the financial company has a serious payment crisis;
(VII) the loss of the finance company in the current year exceeds 30% of the registered capital or the loss for three consecutive years exceeds 10% of the registered capital;
(VIII) the financial company is subject to administrative punishment by regulatory authorities such as Bank Of China Limited(601988) Industry Regulatory Commission due to violation of laws and regulations;
(IX) the finance company was ordered to rectify by the Bank Of China Limited(601988) Industry Regulatory Commission;
(x) other matters that may bring potential safety hazards to the company’s deposited funds. Article 8 after the risk disposal plan procedure is launched, the chief financial officer of the company shall organize the staff of the company’s finance department to urge the finance company to provide detailed information and understand the situation through multiple channels. When necessary, he can enter the site to investigate the causes of deposit risk and analyze the dynamics of risk. At the same time, he shall implement various risk resolution measures and responsibilities specified in the risk resolution plan according to the risk causes and risk conditions.
Article 9 for the risks, the chief financial officer of the company shall hold a joint meeting with the finance company, which shall be attended by the chief financial officer of the company, the Finance Department of the company and the relevant principals of the finance company. The finance company is required to take positive measures to save the risk by increasing the proportion of excess reserves, adjusting the asset liability structure, increasing external financing, realizing assets and other measures to avoid risk diffusion and spread, including but not limited to:
(I) redeem securities investment funds when liquidity payment or credit business funds are needed;
(II) early settlement of undue interbank time deposits;
(III) on the premise of new bill business, handle rediscount with external banks and sell some discounted acceptance bills to supplement liquidity;
(IV) ease liquidity pressure through short-term borrowing funds;
(V) negotiate with member units to recover part of the loan in advance to deal with liquidity emergencies;
(VI) suspend or stop issuing new loans, organize fund recovery and other measures to ensure that the safety and liquidity of the company’s funds are not affected.
Chapter IV handling of follow-up matters
Article 10 after the deposit risk is resolved, the company shall strengthen the supervision of the financial company and require the financial company to enhance its capital strength and anti risk ability.
Article 11 in view of the causes of the deposit risk of the financial company, the chief financial officer of the company shall organize relevant departments to urge the financial company to carefully analyze and summarize, learn experience and lessons, and do a better job in the prevention and disposal of deposit risk more effectively.
