Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707)
Risk assessment report on related financial companies
According to the requirements of self regulatory guidelines for listed companies No. 7 - transactions and related party transactions, the company has checked whether it has a valid financial license and business license of enterprise legal person; Obtain and review the regular financial reports of 2021, including balance sheet, income statement and cash flow statement, and evaluate the business qualification, business and financial risks of the company's related party - Hubei Yihua Chemical Industry Co.Ltd(000422) Group Finance Co., Ltd. as follows:
1、 Basic information of finance company
The finance company is approved by Bank Of China Limited(601988) industry supervision and Administration Commission (financial license institution code 00433406) and invested by Hubei Yihua Chemical Industry Co.Ltd(000422) Group Co., Ltd. (80%) and Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) (10%) in Yichang Administration for Industry and Commerce (Unified Social Credit Code: 91420500582496287t) Guizhou Yihua Chemical Co., Ltd. (10%) is a non bank financial institution jointly invested and established in 2011, with a registered capital of 500 million yuan.
The financial company has established a perfect corporate governance structure in accordance with the requirements of modern enterprise system and financial supervision department. The highest authority of the finance company is the board of shareholders, which consists of the board of directors, the board of supervisors and the risk management committee responsible for the board of directors. The finance company implements the general manager responsibility system under the leadership of the board of directors. According to the requirements of business development and supervision and restraint, it has six departments: settlement business department, credit management department, risk management department, audit department, planning and finance department and comprehensive management department.
With the approval of Bank Of China Limited(601988) Industry Regulatory Commission, the company operates the following domestic and foreign currency businesses: (1) handle financial and financing consulting, credit assurance and relevant consulting and agency businesses 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 bill acceptance and discount for member companies; (6) Handle entrusted loans between member units; (7) Handle the internal transfer settlement between member units and the corresponding settlement and clearing scheme design; (8) Absorbing deposits from member units; (9) Engage in inter-bank borrowing and loans to member units.
2、 Basic information of internal control of finance company
(I) control environment
The highest authority of the company is the board of shareholders, which consists of the board of directors and the board of supervisors. The company implements the general manager responsibility system under the leadership of the board of directors, and has six departments: settlement business department, credit management department, risk management department, audit department, planning and finance department and comprehensive management department.
The finance company will put strengthening the construction of internal control mechanism, standardizing operation, preventing and resolving financial risks in the first place of all work. Based on cultivating employees with good professional ethics and professional quality and improving employees' risk prevention awareness, the company will comprehensively improve the internal control system of the company by strengthening or improving various systems such as internal audit, training education, assessment and incentive mechanism.
(II) risk identification and assessment
The finance company has developed a sound internal control management system. The implementation of the internal control system is organized by the company's management. Each business department formulates its own standardized operation processes, operation standards and risk prevention measures according to the different characteristics of each business. The audit department supervises and evaluates the implementation of internal control. Each department shall separate responsibilities and supervise each other, and predict, evaluate and control various risks in self operation.
(III) important control activities
1. Fund management business control
According to the rules and regulations of Bank Of China Limited(601988) industry supervision and Administration Commission, the finance company has formulated various business management methods and business operation processes such as fund management and settlement management, so as to effectively control business risks. (1) In terms of the deposit business of member units, strictly follow the principles of equality, voluntariness, fairness and good faith, operate strictly within the normative authority issued by the CBRC, ensure the safety of the funds of member units and safeguard the legitimate rights and interests of all parties.
(2) In terms of centralized fund management and internal transfer settlement business, the financial company mainly relies on the business management information system for system control. Member units open settlement accounts in the financial company, and realize fund settlement by logging in to the business management information system of the financial company, submitting instructions online and submitting written instructions, so as to strictly ensure the safety, quickness and smoothness of settlement, and have high data security at the same time. The financial company sets up a strict and perfect reconciliation system with online reconciliation function; Seals, seals and other important blank vouchers shall be kept by personnel in different posts and shall not be taken out of the unit for use.
(3) In terms of fund approval and joint signing, the finance company has formulated the fund payment joint signing approval system, which clearly stipulates the internal and external fund approval management of the finance company, forming a set of strict and standard unified system to effectively prevent the risk of fund payment.
2. Credit business control
(1) Implementation evaluation of internal control system construction
In accordance with the general principles of loans, the measures for the administration of financial companies of enterprise groups and the relevant provisions of the Bank Of China Limited(601988) industry supervision and Administration Commission and the people's Bank of China, the finance company has formulated the measures for the administration of credit as a programmatic document and more than 12 specific operating procedures formulated accordingly, forming a comprehensive and highly operational business system, It fully covers the credit business carried out by the finance company. At the same time, the finance company revised and improved the relevant internal control system according to the requirements of the policy and specification documents issued by the regulatory authorities in recent years, so as to make the business more standardized.
(2) Post loan inspection
The finance company has formulated the operating procedures for post loan inspection and the management measures for credit asset quality monitoring, and the credit department has conducted post loan inspection on units with stock loans on a quarterly basis. At the same time, the risk management personnel shall monitor the quality of credit assets and the implementation of post loan inspection.
3. Capital business control
The finance company has formulated a number of internal control systems, including the administrative measures for the transfer of credit assets and the administrative measures for the transfer of bills to discounting. At present, the transfer of bills to discounting business has been carried out in strict accordance with the internal management system and operation process. The basic information of counterparties is complete, the economic regulation review procedures of the transfer agreement, and the fund transfer and accounting treatment are accurate.
4. Internal audit control
The finance company implements the internal audit supervision system, establishes the internal audit department - Audit Department, which is responsible for the management, and establishes relatively complete internal audit management methods and operating procedures, including the management measures for audit work, to conduct internal audit and supervision on various operation and management activities. The audit department is responsible for internal audit. Supervise and inspect the implementation of internal control, the legality, compliance, safety, accuracy and effectiveness of business and financial activities, and put forward valuable improvement opinions and suggestions to the management.
5. Information system control
The current information system identity authentication of the financial company adopts two forms of user password and USBKEY digital certificate for hierarchical management, with reasonable and safe control.
The system business function module includes 11 modules, including user and business management, customer management, account management, fund plan, settlement management, bank enterprise direct connection, credit management, special business processing, report management, end of day business processing, risk monitoring and early warning, and realizes settlement management, credit management, fund plan, report management, user management and authority allocation Approval process management and other related business processing functions. The system supports fund collection and allocation, online payment and real-time reconciliation, realizes the linkage between bank enterprise interconnection, internal and external accounts, fund plans, credit contracts and other related business data, and realizes the business process control between cross modules.
3、 Operation management and risk management of finance company
(I) operation
According to the audit of Lixin certified public accountants, by the end of December 2021, the total assets of the financial company were 3447.6567 million yuan, liabilities were 2804.7618 million yuan, net assets were 642.8949 million yuan, operating income was 16.8813 million yuan and net profit was 1.5855 million yuan.
(II) management
Since its establishment, the finance company has always adhered to the principle of steady operation and in strict accordance with the people's Republic of China
Company law of the people's Republic of China, law of the people's Republic of China on banking supervision and administration, accounting standards for business enterprises
Measures for the administration of financial companies of enterprise groups, relevant national financial regulations, rules and company rules
Standardize business behavior and strengthen internal management.
(III) regulatory indicators
Standard value of index actual value in current period
1. Capital adequacy ratio ≥ 10% 22.1%
2. Proportion of borrowed funds ≤ 100% 0
3. Proportion of short-term securities investment ≤ 40% 0
4. Proportion of guarantee balance ≤ 100% 60.66%
5. Long term investment ratio ≤ 30% 0
6. Proportion of self owned fixed assets ≤ 20% 0.07%
(IV) deposits and loans of shareholders
As of December 31, 2021, relevant indicators are as follows:
Monetary unit: 10000 yuan
Shareholder name investment amount deposit loan
Hubei Yihua Chemical Industry Co.Ltd(000422) Group Co., Ltd. 40000 26966.87 60000
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) 5000 28832.39 10028 (bill discount)
Guizhou Yihua Chemical Co., Ltd
4、 Conclusion
Based on the above analysis and judgment, the company believes that the financial company has a legal and effective financial license
It has established a relatively complete and reasonable internal control system, which can
To better control risks, the company strictly follows the measures for the administration of financial companies of enterprise groups (China Banking Regulatory Commission)
CBRC order [2006] No. 8) stipulates that all regulatory indicators comply with Article 34 of the measures
Specified requirements. According to the company's review and evaluation of risk management, no risk of the financial company was found
There are major defects in the management, and there are no risk problems in the related deposit and loan and other financial businesses between the company and the financial company.
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) board of directors
January 26, 2022
