Hangzhou Hikvision Digital Technology Co., Ltd.
Report on Risk Assessment of Conducting Financial Services Business with China Electronics Technology Financial Co., Ltd.
In accordance with the "Guidelines for Self-Regulation of Listed Companies No. 7 - Transactions and Connected Transactions" issued by the Shenzhen Stock Exchange, Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as "Hikvision" or "the Company") has inspected the "Financial License" and "Business License" and other documentary materials of China Electronics Technology Financial Co., Ltd. (hereinafter referred to as "Financial Company"), and reviewed the audited financial report of the Financial Company for the most recent year, including the balance sheet, income statement, and cash flow statement. An assessment of the Financial Company's operating qualifications, business, and risk status has been conducted, and the relevant risk assessment report is as follows:
I. Basic Information of the Financial Company
China Electronics Technology Financial Co., Ltd. is a non-bank financial institution approved by the China Banking and Insurance Regulatory Commission (now the China Financial Regulatory Administration) (Financial License Number: L0167H211000001) and registered with the Beijing Administration for Market Regulation (Unified Social Credit Code: 91110000717834993R). It is supervised by the China Financial Regulatory Administration in accordance with the law.
Date of Establishment: December 14, 2012 Legal Representative: Yang Zhijun Registered Address: Floors 1011, 3-8, Building 2, Yard 30, Jinfu Road, Shijingshan District, Beijing Registered Capital: RMB 5,800,000,000,000 Business Scope: Absorbing deposits from member units; handling loans for member units; handling bill discounting for member units; handling fund settlement and payment for member units; providing entrusted loans, bond underwriting, non-financing guarantees, financial advisory, credit verification, and agency services for member units; interbank lending; handling bill acceptance for member units; handling buyer's credit and consumer credit for member units' products; investing in fixed-income securities.
II. Basic Situation of Internal Control of the Financial Company
(I) Control Environment
In accordance with the requirements for corporate governance of modern financial enterprises, the Financial Company has established a Shareholders' Meeting and a Board of Directors. The Board of Directors has established a Strategy, Budget and Asset Management Committee, an Audit Committee, and an Internal Control and Risk Management Committee, as well as a Nomination Committee and a Remuneration and Compensation Committee. The management team is the executive body of the Financial Company, responsible for carrying out the daily operational management of the Financial Company, and is supervised by the Party organization and the Board of Directors. The Financial Company has established an organizational structure based on the principle of mutual checks and balances among the decision-making, execution, and supervision feedback systems. A total of 12 departments have been established, including the Treasury Department, Financial Services Center, Fund Management Department, Financial Markets Department, Fund Settlement Department, Risk Management Department, Integrated Management Department, Human Resources Department, Party and Mass Work Department, Finance Department, Information Technology Department, and Discipline Inspection and Audit Department, front, middle, and back office. The organizational structure is relatively complete.
(II) Risk Identification and Assessment