SINOCHEM INTERNATIONAL(SH:600500) Zheng Quan Zhi Xing·2025-08-27 11:24Core Viewpoint - The report evaluates the financial risk assessment of Sinochem International (Holding) Co., Ltd. regarding its subsidiary, Sinochem Group Finance Co., Ltd., highlighting its financial stability and compliance with regulatory requirements [1][17]. Group 1: Company Overview - Sinochem Group Finance Co., Ltd. was established in June 2008 and is approved by the China Banking Regulatory Commission, with a registered capital of 600 million yuan [1][2]. - The company is wholly owned by Sinochem Holdings Corporation, with a shareholding structure comprising Sinochem Holdings (37%), Sinochem Co., Ltd. (35%), and Sinochem Capital Co., Ltd. (28%) [2]. Group 2: Financial Performance - As of June 30, 2025, the total assets of Sinochem Finance were 706.04 billion yuan, with total equity of 130.69 billion yuan [16]. - The company reported deposits from member units amounting to 571.68 billion yuan and issued loans totaling 472.47 billion yuan during the same period [16]. - For the first half of 2025, the company achieved interest income of 6.35 billion yuan and a net profit of 0.93 billion yuan [16]. Group 3: Risk Management and Internal Control - Sinochem Finance has established a comprehensive internal control system, including a risk management department and various operational procedures to mitigate risks associated with its financial activities [3][4]. - The company adheres to strict funding management principles, prioritizing safety, liquidity, and profitability in its operations [5][6]. - The internal control evaluation indicates that the company effectively manages risks related to fund circulation and credit operations, maintaining a reasonable level of overall risk [15]. Group 4: Regulatory Compliance - As of June 30, 2025, Sinochem Finance met all regulatory requirements, including a capital adequacy ratio of 12.33% and a liquidity ratio of 61.45%, both exceeding the minimum standards [16]. - The company has not faced any significant operational risks or regulatory penalties, demonstrating its compliance with the relevant financial regulations [17].