NJTC(SH:601975) Zheng Quan Zhi Xing·2025-08-24 16:16Core Viewpoint - The report evaluates the operational and risk management status of China Merchants Group Financial Co., Ltd., highlighting its compliance with regulatory requirements and effective internal controls [2][12]. Group 1: Company Overview - China Merchants Group Financial Co., Ltd. was established on May 17, 2011, with a registered capital of RMB 5 billion, where China Merchants Group Co., Ltd. contributed RMB 2.55 billion (51%) and China Foreign Transport Long Shipping Group Co., Ltd. contributed RMB 2.45 billion (49%) [2]. - The company operates as a non-bank financial institution with a range of services including deposit acceptance, loan processing, and financial consulting [2]. Group 2: Internal Control and Risk Management - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board, with clear responsibilities for risk management [3]. - A comprehensive risk management framework is in place, including a risk management department and internal audit functions to oversee business activities [3][12]. - The company has implemented a series of internal control systems and operational procedures to manage risks effectively [3][5]. Group 3: Financial Performance - As of June 30, 2025, the company reported total assets of RMB 47.784 billion and total equity of RMB 6.592 billion, with member unit deposits amounting to RMB 41.086 billion [12]. - The company has maintained a profit margin, adhering to a principle of prudent management since its inception [12]. Group 4: Regulatory Compliance - The company meets various regulatory requirements, including a capital adequacy ratio of 19.12%, significantly above the required minimum of 10.5% [12]. - Other compliance metrics include a liquidity ratio of 52.97% and a loan ratio of 56.52%, both within acceptable limits [12]. Group 5: Shareholder and Related Transactions - The company has engaged in transactions with its shareholders, with deposits totaling RMB 289 million, representing 5.94% of total deposits, and loans of RMB 673 million, accounting for 82% of total loans [13]. - The report indicates that the company has not faced any liquidity issues with its financial transactions [13].