Datang Huayin Electric Power Co.Ltd(600744) : emergency response plan for deposit risk in China Datang Group Finance Co., Ltd

Datang Huayin Electric Power Co.Ltd(600744) deposit risk emergency response plan in China Datang Group Finance Co., Ltd. this risk response plan is formulated to effectively prevent, timely control and resolve the capital risk of Datang Huayin Electric Power Co.Ltd(600744) (hereinafter referred to as " Datang Huayin Electric Power Co.Ltd(600744) " or "the company") deposit in China Datang Group Finance Co., Ltd. (hereinafter referred to as "the finance company") and maintain the safety of funds.

Chapter I organization and responsibilities

Article 1 Datang Huayin Electric Power Co.Ltd(600744) establishes a working group for the prevention and disposal of deposit risks, which is responsible for organizing the prevention and disposal of deposit risks. No unit or individual may conceal, delay or make a false report on deposit risks, or instruct others to conceal, delay or make a false report.

Article 2 the emergency disposal of deposit risk shall follow the following principles: (I) unified leadership and hierarchical responsibility. The emergency disposal of deposit risk is under the unified leadership of the working group, responsible to the board of directors and fully responsible for the prevention and disposal of deposit risk.

(II) perform their respective duties and coordinate and cooperate. According to the division of responsibilities, actively plan and implement various measures to prevent and resolve risks, coordinate with each other, and jointly control and resolve risks.

(III) collect information and focus on prevention. The Finance Department of the company shall urge the finance company to provide relevant information in time, pay attention to the operation of the finance company, test the capital liquidity of the finance company, and timely understand the information from the group, group member units or regulatory authorities, so as to ensure that the information monitoring is in place and the risk prevention is effective.

(IV) timely warning and disposal. Strengthen the monitoring of risks, timely report to the working group if problems are found, and take decisive measures to prevent the spread and spread of risks and minimize the risk of deposits.

Chapter II information report and disclosure

Article 3 a deposit risk reporting system shall be established to report to the board of directors on a regular or temporary basis. Regularly obtain and review the regular financial reports of the financial company, including balance sheet, income statement and cash flow statement, and evaluate the business and financial risks of the financial company. Before depositing the funds in the finance company, obtain and review the financial report of the finance company audited by an accounting firm with securities and futures related business qualifications in the latest fiscal year. During the deposit business, regularly obtain and review the financial statements and audit reports of the financial company, and evaluate the business and financial risks of the financial company.

Article 4 the capital transactions between the company and the finance company shall strictly comply with the requirements of relevant laws and regulations on connected transactions and perform the decision-making procedures and information disclosure obligations.

Chapter III Risk Emergency Disposal

Article 5 when any of the following situations occurs to the financial company, the working group shall immediately start the emergency disposal procedure:

(I) any asset liability ratio of the finance company does not meet the requirements of Article 34 of the measures for the administration of enterprise group finance companies;

(II) 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 of the finance company; (III) the enterprise group and its member units have major institutional changes, equity transactions or business risks that may affect the normal operation of the financial company; (IV) the balance of loans granted by the finance company to a single shareholder exceeds 50% of the balance of deposits absorbed by the finance company;

(V) the company's balance of deposits in the finance company accounts for more than 50% of the balance of deposits absorbed by the finance company;

(VI) the liabilities of the shareholders of the finance company to the finance company are overdue for more than one year;

(VII) the finance company is subject to administrative punishment by the Bank Of China Limited(601988) Industry Regulatory Commission and other regulatory authorities for violation of laws and regulations;

(VIII) the finance company is ordered to rectify by the Bank Of China Limited(601988) Industry Regulatory Commission;

(IX) other matters that may bring potential safety hazards to Datang Huayin Electric Power Co.Ltd(600744) .

Article 6 after the disposal plan procedure is started, the working group shall organize personnel to urge the financial company to provide detailed information and understand the situation through multiple channels. If 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 a risk emergency treatment plan. The emergency response 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) establish an emergency response team;

(II) division of responsibilities, measures to be taken, tasks to be completed and objectives to be achieved of all departments and units;

(III) organization and implementation of various risk mitigation measures;

(IV) supervision and guidance on the implementation of risk mitigation measures.

Article 7 in view of the emerging risks, the risk disposal emergency response team shall hold a joint meeting with the finance company to require the finance company to take positive measures to carry out risk self rescue and avoid risk diffusion and spread, including realizing excess money market assets, suspending or stopping the issuance of new loans, selling originally held securities, selling long-term assets and fixed assets, applying to the people's Bank of China for the use of deposit reserves and re lending, Borrowing from other financial institutions 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 8 after the sudden deposit risk subsides, the working group shall strengthen the supervision of the financial company, require the financial company to enhance its capital strength, improve its anti risk ability, re evaluate the deposit risk of the financial company and adjust the deposit proportion. The working group, together with the finance company, carefully analyzes and summarizes the causes and consequences of the sudden deposit risk, draws lessons from experience, and does 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 V supplementary provisions

Article 9 this plan shall be implemented from the date of promulgation.

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