Core Viewpoint - The report evaluates the operational qualifications, internal controls, business, and risk status of China Huaneng Group Hong Kong Treasury Management Co., Ltd. (referred to as "Hong Kong Treasury") as part of a continuous risk assessment process mandated by regulatory guidelines [1][2]. Group 1: Basic Information of Hong Kong Treasury - Hong Kong Treasury was established in February 2018 with a registered capital of HKD 390 million, and is wholly owned by China Huaneng Group [1]. - The company operates in overseas treasury management and investment, focusing on centralized management of cross-border financing under the guidance of Huaneng Group [1]. Group 2: Internal Control Overview - Hong Kong Treasury prioritizes internal control mechanisms to prevent and mitigate financial risks, establishing a comprehensive internal control system [2]. - The company has implemented a risk management framework that includes identifying and assessing risks, enhancing asset allocation, and managing interest rate and exchange rate risks [2][6]. Group 3: Control Activities - The company adheres to strict funding management regulations, ensuring the safety, liquidity, and profitability of its funds through detailed funding plans [3]. - Hong Kong Treasury has established a rigorous loan management system, including pre-loan investigations, in-process reviews, and post-loan monitoring to ensure the security and recoverability of loans [4][5]. Group 4: Investment Management - Hong Kong Treasury is authorized to conduct fixed-income investments in overseas markets, focusing on bonds and preferred stocks issued by state-owned enterprises and large financial institutions [5]. - The company has developed management systems for investment activities to mitigate investment risks and conducts ongoing monitoring of the performance of its fixed-income investments [5][6]. Group 5: Overall Evaluation of Internal Control - The internal control system of Hong Kong Treasury is deemed complete and effective, with no significant deficiencies identified as of June 30, 2025, ensuring reasonable risk control across its financial operations [7].

Company Overview - Rongshi International Financial Management Co., Ltd. was established on November 20, 2018, in Hong Kong and is a wholly-owned subsidiary of Rongshi International, controlled by the National Development Investment Corporation [1] - The registered capital of Rongshi Financial is 50 million USD, and its business scope includes financial and tax consulting, internal transfer settlement, deposit acceptance, and loan services [1] Internal Control - Rongshi Financial has established a sound corporate governance system, with the board of directors responsible for internal control implementation and daily operations [1] - The company emphasizes risk prevention and control, improving internal control processes, and clarifying responsibilities [2] Internal Control Activities - The company manages funds through a structured plan to ensure safety, liquidity, and profitability [2] - Internal accounts are used for fund settlement, ensuring the safety of transactions and protecting the rights of depositors [2] - Regular reconciliations with clients are conducted to maintain the safety of funds [2] - Rongshi Financial maintains sufficient liquidity and follows strict management protocols for loan assessments and post-loan monitoring [2] Financial Performance - As of December 31, 2024, Rongshi Financial's unaudited financial data shows total assets of 871,760.45 million CNY, net assets of 46,842.23 million CNY, and a net profit of 1,253.10 million CNY [3] Risk Management - Since its inception, Rongshi Financial has adhered to prudent management principles and has not identified significant deficiencies in its risk control systems related to finance, credit, investment, or information management [3] Company Deposits and Loans - As of December 31, 2024, the company and its subsidiaries had a deposit balance of 200,000 USD with Rongshi Financial, while the loan balance was 0 USD [4] Ongoing Risk Assessment - The company will review Rongshi Financial's financial reports biannually to assess its operational qualifications and risk status, issuing risk assessment reports in conjunction with its semi-annual and annual reports [4] Risk Assessment Opinion - Based on the analysis, the company believes that Rongshi Financial possesses valid registration documents and effectively manages financial risks, with no significant deficiencies identified in its risk management practices [4]