DONGFENG GROUP(HK:00489)2023-07-14 09:45Loan Assets and Customer Base - As of December 31, 2022, Dongfeng Finance's loan assets amounted to approximately RMB 77.9 billion, with 84.87% attributed to receivables from end customers[3] - The number of end customers served by Dongfeng Finance is 1,144,331, while the number of dealers is 267[3] - 82.15% of Dongfeng Finance's financing balance comes from individual borrowers, while 17.85% comes from corporate borrowers[3] - The loan to the top five borrowers, all of which are group member companies, accounted for 6.45% of total loans[3] Loan Impairment and Overdue Loans - The loan impairment provision for the fiscal year ending December 31, 2022, was approximately RMB 3.43 billion, an increase from RMB 2.74 billion as of December 31, 2021[4] - The overdue loan balance exceeding 60 days was RMB 519 million, representing 12.49% of the total balance[4] Loan Maturity and Structure - The loan assets maturing within one year amounted to RMB 33.04 billion, while those maturing between one and three years totaled RMB 31.99 billion[3] Credit Risk Management - Dongfeng Finance's credit risk management includes requiring vehicles as collateral for end customers and dealers[3] - The company has established a model for calculating expected credit losses based on macroeconomic factors such as GDP growth and consumer price index[2] - The company has established a comprehensive risk management system to assess and manage credit risk, which is regularly reviewed by the Board and the Audit and Compliance Committee[6] - A risk and compliance management committee has been formed to review credit policies and operational guidelines across business lines[5] - The company employs an intelligent approval model for individual customers based on credit data provided by the People's Bank of China and independent third parties[6] - Regular quality checks are conducted to ensure the effective execution of risk assessment procedures[6] - The company continuously monitors loan recoverability through various platforms, including post-loan management and operational efficiency monitoring[6] - The annual comprehensive risk management plan includes a risk preference matrix covering seven major risk categories[7] Operational Management and Oversight - The Board is responsible for formulating and amending the management methods for loan services[8] - The company has established a Financial Industry Management Committee to oversee financial service business decisions and complex loan project reviews[8] - The company has implemented a detailed overdue loan collection operation manual, supported by a dedicated team and resources for debt recovery[6] - The company ensures that the use of funds aligns with the interests of the company and its shareholders through fair and reasonable terms in lending transactions[8] Financial Services Offered - Dongfeng Finance's financial services cover the automotive supply chain, including supply chain finance, group member financing, dealer financing, and end customer financing[1]