CSCEC(SH:601668) Zheng Quan Zhi Xing·2025-08-29 17:02Core Viewpoint - China Construction Co., Ltd. has conducted a risk assessment of its subsidiary, China Construction Finance Co., Ltd., as required by regulatory guidelines, and the assessment indicates that the financial company is operating within regulatory requirements and has effective risk management practices in place [1][10]. Group 1: Basic Information and Operations - China Construction Finance Co., Ltd. was established with a registered capital of 15 billion yuan, with China Construction Group holding 20% and China Construction Co. holding 80% [1]. - The company’s business scope includes accepting deposits, providing loans, bill discounting, and financial consulting services among others [1]. - The organizational structure includes a board of directors, supervisory board, and management team, with 15 functional departments [1]. Group 2: Financial and Regulatory Indicators - As of June 30, 2025, the total assets of China Construction Finance Co. amounted to 93.704 billion yuan, with total liabilities of 74.119 billion yuan and total equity of 19.585 billion yuan, resulting in a net profit of 414 million yuan [1]. - Key regulatory indicators as of June 30, 2025, include a capital adequacy ratio of 20.29%, liquidity ratio of 47.27%, and non-performing asset and loan ratios of 0% [2][3]. Group 3: Risk Management Framework - The risk management framework is established in accordance with relevant laws and regulations, ensuring a robust governance structure [4]. - The company has a comprehensive risk management system that includes a risk management committee and various specialized committees to oversee risk-related activities [4][5]. - Risk management policies and procedures are in place to address various types of risks, including credit, operational, and compliance risks [6][10]. Group 4: Risk Assessment and Control - The company has implemented measures to manage liquidity risk, ensuring that liquidity indicators remain stable and compliant with regulatory requirements [8]. - Credit risk management is prioritized, with a focus on monitoring the financial health of clients, resulting in zero non-performing assets as of June 30, 2025 [8]. - Compliance risk management includes a well-defined governance structure and regular training to enhance compliance awareness among employees [8][10]. Group 5: Related Party Transactions - As of June 30, 2025, the maximum daily deposit balance from China Construction Group and its subsidiaries in China Construction Finance Co. was 2.8 billion yuan, while the maximum daily loan balance was 2 billion yuan, all in compliance with the financial service framework agreement [10]. Group 6: Conclusion - Overall, the assessment concludes that China Construction Finance Co. operates legally and compliantly, with all regulatory indicators meeting requirements and no significant deficiencies in risk management [10].