CMST(SH:600787) Zheng Quan Zhi Xing·2025-08-29 11:22Core Viewpoint - The report evaluates the operational qualifications, business, and risk status of China Logistics Group Finance Co., Ltd. (Logistics Finance Company), which is fully controlled by China Logistics Group Co., Ltd. The assessment indicates that the company has established a comprehensive internal control system and effective risk management practices, ensuring compliance with regulatory requirements and maintaining financial stability [1][7][9]. Group 1: Basic Information - Logistics Finance Company obtained its financial license on March 25, 2024, and its business license on March 27, 2024, with a registered capital of RMB 3 billion [1]. - The company is wholly owned by China Logistics Group Co., Ltd., with a shareholding structure indicating 100% ownership [1]. - The main business activities include accepting deposits, providing loans, bill discounting, and offering financial advisory services to member units [1]. Group 2: Risk Management - The company has established a governance structure that includes a board of directors, supervisory board, and senior management, supported by specialized committees for strategic, audit, and risk management [2]. - A clear organizational structure with defined roles and responsibilities enhances the effectiveness of risk management, ensuring checks and balances within the decision-making process [2]. - Risk identification and assessment processes are in place, with departments responsible for developing risk control measures based on their evaluations [3]. Group 3: Internal Control and Compliance - Logistics Finance Company has developed various management methods and operational procedures to control business risks, including specific guidelines for settlement accounts and deposit management [3]. - A credit review committee and an independent credit department manage unified credit operations, ensuring compliance with lending regulations and risk assessment [3][4]. - The company has established a robust internal audit system to monitor compliance with laws and regulations, enhancing the overall effectiveness of internal controls [5][6]. Group 4: Financial Performance - As of June 30, 2025, the total assets of Logistics Finance Company amounted to RMB 11.13 billion, with loans and advances totaling RMB 6.87 billion [7]. - The total liabilities were RMB 8.15 billion, with deposits from members reaching RMB 8.10 billion, and the owner's equity stood at RMB 2.98 billion [7]. - The company reported a revenue of RMB 61 million for the first half of 2025, with a net loss of RMB 33 million attributed to loan provisioning [7]. Group 5: Regulatory Compliance - All regulatory indicators as of June 30, 2025, were within acceptable limits, indicating no significant risks [8]. - The company has not encountered any major defects in its risk control systems related to financial reporting, credit, or information management [7][9]. - The assessment concludes that the financial activities between the company and Logistics Finance Company are currently manageable in terms of risk [9].