Report on the Continuous Risk Assessment of China Southern Power Grid Finance Co., Ltd.
Pursuant to the "Notice on Regulating Business Interactions Between Listed Companies and Enterprise Group Finance Companies" and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 7 – Transactions and Connected Transactions," China Southern Power Grid Comprehensive Energy Co., Ltd. (hereinafter referred to as "the Company") has reviewed the financial reports of China Southern Power Grid Finance Co., Ltd. (hereinafter referred to as "CSGPFC"), examined its "Financial Permit," "Enterprise Legal Person Business License," and other supporting documents, and obtained risk indicators and other necessary information to assess CSGPFC's operating qualifications, business, and risk status as of December 31, 2025. The Company's risk assessment report on CSGPFC is as follows:
I. Basic Information of CSGPFC
CSGPFC is a wholly-owned subsidiary of China Southern Power Grid Co., Ltd. and is a non-bank financial institution approved by the former China Banking Regulatory Commission. Its basic information is as follows:
Date of Establishment: November 23, 1992 (Renamed China Southern Power Grid Finance Co., Ltd. on December 29, 2004) Legal Representative: Wu Pusong Registered Address: Floors 17, 18, 19, and Rooms 808-811, 1210-1211, Tower 6, Huasui Road, Tianhe District, Guangzhou City, Guangdong Province Enterprise Type: Limited Liability Company (Wholly owned by a legal person without investment or control by natural persons) Financial Permit Institution Code: L0060H244010001 Unified Social Credit Code: 91440000190478709T Registered Capital: RMB 7 billion
CSGPFC's business scope includes the following domestic and foreign currency businesses: (I) Accepting deposits from member units; (II) Handling loans for member units; (III) Handling bill discounts for member units; (IV) Handling fund settlement and payment for member units; (V) Providing entrusted loans, bond underwriting, non-financing guarantees, financial advisory, credit certification, and agency services for member units; (VI) Engaging in interbank lending; (VII) Handling bill acceptances for member units; (VIII) Handling buyer credit and consumer credit for member units; (IX) Investing in fixed-income securities; (X) Investing in equity of financial institutions; (XI) Other businesses approved by regulatory authorities.
II. Basic Situation of CSGPFC's Internal Control
(I) Control Environment
1. Governance Structure
CSGPFC has established a Party Committee, Board of Directors, and Management Layer in accordance with the "Company Law of the People's Republic of China" and the "Guidelines for Corporate Governance of Banking and Insurance Institutions." CSGPFC headquarters has 12 departments: Office (Party Committee Office, Board of Directors Office, General Manager's Office), Human Resources Department, Planning and Finance Department (Financial Shared Services Center), Treasury Operations Department (Fund Monitoring Center), Business Management Department (Customer Service Center), Financial Investment Department, International Business Department, Enterprise Architecture and Digitalization Department, Risk Control and Legal Department, Audit Department, Party Building Work Department (Corporate Culture Department, Labor Union Office), and Supervision Department (Disciplinary Inspection Commission Office, Party Committee Inspection Work Leading Group Office). CSGPFC has 5 directly affiliated institutions: Direct Business Department, Guangxi Branch, Yunnan Branch, Guizhou Branch, and Hainan Branch.