Risk disposal plan for financial business between Jihua Group Corporation Limited(601718) and Xinxing Jihua Group Corporation Limited(601718) Finance Co., Ltd
Chapter I General Provisions
Article 1 in order to effectively prevent, timely control and resolve the risks in the financial business of Jihua Group Corporation Limited(601718) (hereinafter referred to as the "company") and Xinxing Jihua Group Corporation Limited(601718) Finance Co., Ltd. (hereinafter referred to as the "finance company") controlled by Xinxing Jihua Group Corporation Limited(601718) Co., Ltd. (hereinafter referred to as the "group company") and ensure the safety of funds, in accordance with the provisions of the guidelines for self discipline supervision of listed companies on Shanghai Stock Exchange No. 5 - transactions and related party transactions, This risk disposal plan is hereby formulated.
Chapter II Risk Disposal organization and responsibilities
Article 2 the company establishes a risk prevention and disposal leading group (hereinafter referred to as the "leading group"), with the chairman of the company as the group leader and the first person responsible for risk prevention and disposal. The general manager and the financial leader in charge of the company also serve as the Deputy Group Leader. The members of the leading group include the heads of the asset finance department, the office of the board of directors, the legal affairs department and other relevant departments.
The leading group is responsible for organizing the prevention and disposal of financial business risks. The leading group sets up a working group under the asset finance department, which is coordinated and cooperated by the asset finance department. The working group is specifically responsible for the daily supervision and management of the financial company, and reflects the situation to the leading group in time, so that the leading group can prevent and dispose of risks according to this plan. Article 3 responsibilities of risk disposal organization
(I) the leading group shall uniformly lead the emergency disposal of financial business risks, be fully responsible for the prevention and disposal of financial business risks in the financial company, and be responsible to the board of directors.
(II) the assets and finance department and other relevant departments of the company actively plan and implement various risk prevention measures according to the division of responsibilities, coordinate with each other, and jointly control and resolve risks.
(III) the working group shall urge the financial company to provide relevant information in time, pay attention to the operation of the financial company, regularly test the capital liquidity of the financial company, and timely understand the information from the controlling shareholders and their member units or regulatory authorities, so as to ensure that the information monitoring is in place and the risk prevention is effective.
(IV) strengthen the monitoring of risks, timely report to the leading group if problems are found, and take decisive measures to prevent the spread and spread of risks.
Chapter III information report and disclosure
Article 4 the company shall establish a financial business risk reporting system and report to the board of directors in the form of regular or interim reports. The leading group is responsible for organizing the drafting of deposit and loan risk assessment reports, assessing the business qualification, business and risk status of the financial company, reporting to the board of directors of the company, and performing decision-making procedures and information disclosure obligations in strict accordance with the requirements of relevant laws and regulations on connected transactions.
Article 5 the capital transactions between the company and the finance company shall perform the decision-making procedures and information disclosure obligations in strict accordance with the requirements of relevant laws and regulations on connected transactions.
Chapter IV risk emergency response procedures and measures
Article 6 in case of any of the following circumstances, the financial company shall immediately start the prevention and disposal mechanism:
(I) the financial company violates Article 31, 32 or 33 of the measures for the administration of enterprise group financial companies;
(II) any financial index of the finance company does not meet the requirements specified in Article 34 of the measures for the administration of enterprise group finance companies;
(III) the finance company has run on deposits, failed 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;
(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 funds deposited by the listed company.
Article 7 after the occurrence of financial business risks, relevant staff shall immediately report to the leading group,
The leading group shall timely understand the information, sort out and analyze it and report it to the board of directors of the company. No unit or individual may conceal, postpone or instruct others to conceal, postpone or falsely report the deposit risk.
Article 8 when starting the prevention and disposal procedures, the leading group shall urge the financial company to provide detailed information, understand the situation through multiple channels, analyze the dynamics of risks, implement various risk mitigation measures and responsibilities specified in the risk plan according to the risk causes and risk conditions, and formulate the risk emergency treatment plan. The plan shall be revised and supplemented in time according to the changes of financial business risk and the problems found in the implementation. The risk emergency treatment plan mainly includes the following contents:
(I) division of responsibilities, measures to be taken, tasks to be completed and objectives to be achieved of all departments and units.
(II) organization and implementation of various risk mitigation measures.
(III) supervision and guidance on the implementation of risk mitigation measures.
Article 9 in view of the emerging risks, the leading group 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 the spread and spread of risks. If necessary, the finance company shall be required to suspend or stop issuing new loans as appropriate and organize the recovery of funds; Sell the securities held immediately; Recover the interbank funds offered by banks to avoid corresponding risks and ensure that the safety and liquidity of the company's funds are not affected.
Chapter V disposal of follow-up matters
Article 10 after the sudden deposit risk subsides, the leading 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 appropriately adjust the deposit proportion.
Article 11 the leading group and the finance company shall carefully analyze and summarize the causes and consequences of sudden deposit risks, draw lessons from experience, and do a better job in the prevention and disposal of deposit risks more effectively.
Chapter VI supplementary provisions
Article 12 the board of directors of the company reserves the right to interpret this plan.
Article 13 the plan shall be implemented from the date of deliberation and approval by the board of directors of the company.
Jihua Group Corporation Limited(601718) April 27, 2002
