Risk assessment report on deposit and loan and other financial business related to Xinxing Jihua Group Corporation Limited(601718) Finance Co., Ltd
1、 Basic information of finance company
Xinxing Jihua Group Corporation Limited(601718) Finance Co., Ltd. (hereinafter referred to as "finance company") was established on January 29, 2021. It is a non bank financial institution with the status of enterprise legal person, which was approved by Bank Of China Limited(601988) insurance supervision and Administration Commission and registered with Beijing Chaoyang District market supervision and Administration Bureau.
Registered address: 201, floor 2, building 1, yard 28, Xiangjun Beili, Chaoyang District, Beijing
Legal representative: Zuo Yatao
Unified social credit Code: 91110105ma02075p47
Registered capital: 1 billion yuan, contributed by the single shareholder Xinxing Jihua Group Corporation Limited(601718) Co., Ltd.
Business scope: (1) handle financial and financing consulting, credit assurance and related consulting and agency business for member units; （2） Assist member units to realize the receipt and payment of transaction funds; （3） Approved insurance agency business; （4） Provide guarantee to member units; （5） Handle entrusted loans between member units; （6） Handle bill acceptance and discount for member companies; （7） Handle the internal transfer settlement between member units and the corresponding settlement and clearing scheme design; （8） Absorbing deposits from member units; （9） Handle loans and financial leases for member units; （10） Engage in interbank lending. (market entities shall independently choose business projects and carry out business activities according to law; projects that must be approved according to law shall carry out business activities according to the approved contents after being approved by relevant departments; they shall not engage in business activities of projects prohibited and restricted by national and municipal industrial policies.)
2、 Basic information of internal control of finance company
(I) control environment
In accordance with the requirements of the company law, the guidelines on corporate governance of commercial banks and other laws and regulations, the finance company has established a corporate governance system with shareholders, the board of directors, the board of supervisors and senior management as the main body, and established a good corporate governance and an organizational structure with reasonable division of labor, clear responsibilities and clear reporting relationship in accordance with the principle of mutual checks and balances among decision-making system, supervision feedback system and implementation system, Clarify the rules of procedure of each governance subject, and fully realize the mutual independence and effective checks and balances of each governance subject. The board of Directors consists of three professional committees: risk management committee, audit committee and nomination, remuneration and assessment committee. The senior management has a credit approval committee.
The financial company shall formulate incentive and restraint mechanism and do a good job in personnel management. Establish a democratic management system in the form of employee (representative) meeting to protect the rights and interests of employees, and strengthen the management of senior managers and employees of the company based on the management system of key personnel and personnel in important positions, accountability management system, salary system and fair and just assessment system.
The organizational structure of the finance company is as follows:
shareholder
Board of directors and board of supervisors of the Party committee
Nomination, remuneration and assessment committee
Risk management committee
audit committee
Management
Credit approval committee
（ （
Trust, comprehensive financial resources and Party Building
Trade discipline review
Interest alloy loan group insurance inspection
Technical management, accounting, personnel management, supervision and audit
Technical planning and affairs supervision
Department Department Department Department Department Department
） ）
(II) risk identification and assessment
The financial company shall establish a risk management system of "one foundation, three risk lines of defense" with mutual connection, effective checks and balances and clear reporting relationship. "One foundation" means that the financial company establishes a relatively complete governance structure. The three risk lines of defense respectively refer to: the first line of defense is the line of defense of the business department, which identifies, evaluates, responds, monitors and reports risks at the front end of the business; The second line of defense is the risk management department, which takes the lead in the daily management of comprehensive risks; The third line of defense is the independent vertical management audit department, which supervises and evaluates the risk management process established by the financial company and the control procedures and activities of various risks. The financial company constructs an internal control system guided by risk management, and ensures the effective identification and evaluation of the company's risks through the effective operation of the internal control mechanism, so as to achieve the overall controllability of the risks.
(III) control activities
1. Internal control management
The finance company has formulated the system management measures of Xinxing Jihua Group Corporation Limited(601718) Finance Co., Ltd., which carries out hierarchical management of the company's system and stipulates the formulation authority and procedures of rules and regulations.
The systems established by the finance company include 146 systems in 12 categories, including corporate governance, internal control, settlement management, credit management, financial management, fund management, interbank business, risk management, information technology and comprehensive management. The internal control systems of the finance company are detailed and clear, in line with the actual situation and development needs of the company, and have adaptability and operability.
2. Settlement business control
(1) Establish internal control system for settlement business
In accordance with national laws and regulations and relevant regulations of regulatory authorities, the finance company has formulated complete rules and regulations and operation rules for settlement business, defined the operation specifications and control standards of various settlement and deposit businesses, and effectively controlled business risks.
(2) Carry out centralized fund management and internal transfer settlement business
Member units open internal settlement accounts in financial companies, submit written instructions through online or counter channels to achieve capital settlement, strictly ensure the safety, quickness and smoothness of settlement, and have a high degree of data security. The settlement business department shall establish double posts, double duties and double responsibilities to ensure timely and accurate accounting and timely feedback in case of problems. The financial company will hand over important blank vouchers and financial seals to different personnel to effectively prevent operational risks and avoid moral hazard.
3. Credit business control
(1) Build internal control system for credit business
The finance company has formulated various credit business management measures, formulated corresponding operation procedures for the existing credit business and strictly implemented them.
(2) We will strictly implement the mechanism of separating examination and loan approval and hierarchical examination and approval
The finance company implements the separation of loan review and hierarchical approval, determines the credit policy according to the loan scale, type, term, guarantee and other conditions of the credit business, and reviews and approves the credit business in strict accordance with the procedures and authorities. The finance company has established and improved the work responsibilities of credit business departments and credit posts. The post setting of credit business departments should be double posts, double duties and double responsibilities, with reasonable division of labor and clear responsibilities. The credit business department is responsible for loan investigation and evaluation; The examination and approval authority is responsible for credit decision-making; The credit business department shall ensure that the approval requirements of the loan review committee are implemented before the credit business is carried out; The risk management department is responsible for pre loan compliance risk review.
(3) Post loan inspection
The credit business department of the finance company is responsible for mastering the use and recovery of loan funds at any time and carrying out post loan inspection regularly according to the requirements of post loan management. The risk management department shall regularly inspect the post loan management of the credit business department.
4. Risk control
Compliance risk management: the finance company has established a monitoring and analysis mechanism for key risk compliance indicators, focusing on monitoring from risk points such as non-performing loan ratio, capital adequacy ratio and liquidity ratio, analyzing risk changes, providing detailed data support for the company's effective decision-making in business operation, and implementing various risk prevention measures. At the same time, the company regularly organizes all staff to study and implement various risk compliance policy documents, carries out internal and external risk compliance culture training activities, strengthens the daily behavior control of employees, establishes the risk compliance awareness of business personnel, and actively promotes the construction of risk compliance culture.
Liquidity risk management: the finance company has formulated the liquidity risk management measures to clarify the organizational structure and responsibilities of various actors in liquidity risk management, and clarify the indicators of the company's liquidity risk monitoring and early warning. The capital planning department of the company regularly carries out liquidity stress test, makes capital plans on a rolling basis, and formulates emergency response plans for potential liquidity risk events. At the same time, the risk management department conducts random inspection and early warning prompt regularly and irregularly, so as to effectively identify, measure, monitor and control liquidity risk and eliminate potential liquidity risk.
In terms of credit risk management: first, the finance company formulates credit policies and carries out white list management on customers according to customer classification standards, credit strategy, credit management and guarantee methods; Second, the company has developed a credit rating model for credit customers and interbank customers combining qualitative analysis and quantitative analysis, and the rating results are used as the basis for credit arrangement; Third, improve the company's credit business process management, and formulate a series of systems such as credit approval, comprehensive credit, credit business process and management measures, asset classification and provision for impairment; Fourth, strengthen pre loan, in loan and post loan management, strictly review credit risks, and increase customer field investigation in combination with the actual situation of the epidemic; Fifth, strictly manage the use of credit funds and monitor the flow of funds after loans; Sixth, carry out post loan inspection every quarter, investigate the operation of customers, and implement the resolution requirements of the loan review committee; Seventh, evaluate the quality of credit assets every quarter, withdraw loan provisions and enhance the company's risk offset ability.
Operational risk management: the company completed the formulation of main business operation manuals, involving 39 business flow charts, including settlement business, fund management, credit business, audit and expense, to guide the compliance work of business departments. Business processes are embedded in the information system, adhere to the principle of separation of incompatible posts, strengthen the authority management of the information system and strictly control operational risks. The company brings operational risk into the performance appraisal index system, covering settlement business, capital business, credit business, information system, data submission and other aspects, and checks it after the quarter. Anti money laundering and anti terrorist financing risk management: Aiming at the anti money laundering and anti terrorist financing risk, the finance company has established a multi-dimensional evaluation of money laundering risk rating system based on customer characteristics, region, business and industry, carried out identification of customers, and evaluated the money laundering risk of customers opening accounts. Establish a suspicious transaction system, formulate a suspicious transaction screening model according to the relevant systems of the people's Bank of China, establish a blacklist management mechanism for money laundering risk personnel and regions, and issue manual research and judgment opinions on the suspicious transaction screening results by the settlement business department, which shall be submitted to the anti money laundering leading group for approval. 5. Audit supervision
The finance company implements the internal audit system, and the audit department is directly responsible to the board of directors. The audit department shall carry out routine audit and special audit around the company's business activities, and supervise and inspect the construction and implementation of the internal control of the financial company, the legitimacy, compliance, risk, accuracy and effectiveness of business operation and financial activities. The audit department will put forward effective improvement opinions and suggestions to the management and urge the responsible department to make rectification in place in view of the internal control weaknesses, management imperfections and various potential risks found in the audit.
6. Information system control
The financial company information system mainly provides financial services for member units, such as fund collection, fund settlement, fund monitoring, credit management, interbank business and accounting. The information system of the finance company takes Inspur Software Co.Ltd(600756) operation management system software as its core system, the data server is independently operated and managed by the finance company, the key business system and network equipment are dual active, the core database storage realizes real-time disaster recovery backup, regular backup of key businesses and long-term data storage. Up to now, the information system of the financial company has operated stably and normally. In order to further strengthen the management, the finance company from demand management, information system access control, production data borrowing, information system production change, business system account authority change, third-party information security, information system data backup management, information technology outsourcing management, information system delivery test, acceptance, online, implementation management, computer security inspection management A relatively complete business process and guarantee system have been established in terms of computer software product management and special network management of Beijing Financial metropolitan area network. Improve employees' awareness of information security risk prevention, standardize the operation of relevant businesses, and meet and standardize the needs of their own business development.
7. Overall evaluation of internal control and risk management
The finance company adheres to prudent operation and compliance operation, the internal control mechanism is scientific and effective, the implementation of rules and regulations is in place, and the risk management system is perfect. Internal control system of financial company
