Risk Continuous Assessment Report of Sinomach Finance Co., Ltd.
Sinomach Heavy Industry Group Co., Ltd. (hereinafter referred to as "the Company") has reviewed the "Business License" and "Financial License" of Sinomach Finance Co., Ltd. (hereinafter referred to as "Sinomach Finance"), its corporate information, and relevant financial information, in accordance with the "Notice on Regulating Listed Companies' Business Dealings with Enterprise Group Finance Companies" and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 5 - Transactions and Connected Transactions," among other requirements. A qualitative and quantitative assessment method was adopted to evaluate Sinomach Finance's business qualifications, operations, internal control status, and risk management. The specific situation is reported as follows:
I. Basic Information of Sinomach Finance
Sinomach Finance was established on January 25, 1989, originally as Hainan Jishi Trust Investment Company. In February 1996, it was renamed China CAMC Engineering Trust Investment Company. On August 19, 2003, in accordance with the spirit of the CPC Central Committee General Office and State Council General Office Document No. 1 [1999] and with the approval of the China Banking Regulatory Commission's Yin Jian Fu (2003) No. 23 Document, it was officially transferred to China National Machinery Industry Group Co., Ltd. (hereinafter referred to as "Sinomach Group") and reorganized into Sinomach Finance, a non-bank financial institution. On January 16, 2024, it obtained a renewed corporate legal person business license issued by the Haidian District Market Supervision Administration of Beijing. The Company's registered address is: Floors 519, 520, 521, 522, 523, 525, and 8, Tower A, 3 Danling Street, Haidian District, Beijing. Legal Representative: Zhao Jianguo. Financial License Institution Code: L0010H211000001. Unified Social Credit Code: 9111010810001934XA. Registered Capital: RMB 1,750,000,000.
Business Scope: Providing financial and financing advisory, credit endorsement, and related consulting and agency services to member units; assisting member units in collecting and paying transaction funds; providing guarantees to member units; handling entrusted loans and entrusted investments among member units; handling bill acceptance and discounting for member units; designing internal transfer settlement and corresponding settlement and clearing plans among member units; absorbing deposits from member units; providing loans and financial leasing to member units; engaging in interbank lending; underwriting corporate bonds of member units; issuing financial company bonds upon approval; investing in equity of financial institutions; investing in marketable securities; providing consumer credit, buyer credit, and financial leasing for products of member units; insurance agency business. (Market entities shall independently choose their business projects and conduct business activities; for projects subject to approval, business activities shall be carried out in accordance with the approved content after obtaining approval from relevant departments; business activities prohibited by national and local industrial policies shall not be engaged in.)
II. Basic Situation of Sinomach Finance's Internal Control
(I) Control Environment
1. Governance Structure
Sinomach Finance was established by Sinomach Group and its 25 member enterprises. It independently carries out various financial businesses stipulated by the China Banking and Insurance Regulatory Commission in accordance with relevant national laws and regulations. Its business purpose is to "rely on group resources and serve group development," aiming to strengthen centralized fund management of Sinomach Group and improve the efficiency of fund utilization, adhering to the operating principles of safety, efficiency, and liquidity.