Company Overview - China Communications Finance Co., Ltd. (referred to as "the finance company") was established in July 2013 as a non-bank financial institution approved by the China Banking and Insurance Regulatory Commission [2] - The finance company was jointly funded by China Communications Construction Group Co., Ltd. and China Communications Construction Company Limited, with an initial registered capital of 3.5 billion RMB, which was increased to 7 billion RMB in October 2021 [2][3] - The finance company is authorized to conduct various financial services, including accepting deposits, providing loans, and engaging in financial consulting and investment activities [2][3][4] Internal Control Structure - The finance company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and management team, adhering to principles of separation of powers and effective checks and balances [3][4] - Specialized committees such as the Audit Committee, Risk Management Committee, and Strategic Committee are in place to oversee various aspects of the company's operations and risk management [4][5] - The management team is responsible for daily operations, with clear reporting relationships and responsibilities across different departments [5][6] Operational Performance - As of June 30, 2025, the finance company reported total assets of 95.113 billion RMB, operating income of 1.083 billion RMB, total profit of 550 million RMB, and net profit of 406 million RMB, indicating sound operational performance [9] - The company maintains a zero non-performing loan rate and has not faced any regulatory penalties, reflecting stable and controllable overall risk [9][10] - The finance company has a significant role in managing group funds, with a deposit balance of 1.481 billion RMB and a loan balance of 81 million RMB as of June 30, 2025 [9] Risk Management - The finance company operates under a valid financial license and adheres to regulatory requirements set by national financial supervisory authorities [10] - The company has established comprehensive risk control measures and has been compliant with the "Enterprise Group Financial Company Management Measures" since its inception, with no significant deficiencies in risk management identified [10]

Company Overview - China National Heavy Duty Truck Group Jinan Truck Co., Ltd. operates a financial subsidiary, China National Heavy Duty Truck Finance Co., Ltd., established in October 1987, making it one of the earliest corporate finance companies approved by the People's Bank of China [2] - The registered capital of the finance company is 305 million RMB, with thirteen shareholders, and the largest shareholder is China National Heavy Duty Truck (Hong Kong) Co., Ltd. [3] Risk Management Structure - The finance company has established a comprehensive risk management framework, including a board of directors, supervisory board, and risk management committee, ensuring clear responsibilities and effective governance [5][6] - The risk management committee assists the board in formulating risk strategies and policies, while the risk management department oversees daily risk management activities [6][7] Risk Identification and Control - The finance company has implemented a tiered authorization management system, allowing for clear division of responsibilities and effective risk control mechanisms [7] - A credit rating model and risk warning system have been developed to enhance risk identification and monitoring efficiency [7][10] Financial Performance - As of December 31, 2024, the finance company reported total assets of 32.45 billion RMB and total deposits of 32.44 billion RMB [13] - The company maintains a capital adequacy ratio of 21.08%, indicating strong capital strength and risk resistance capabilities [13] Operational Management - The finance company adheres to prudent management principles and complies with relevant financial regulations, ensuring stable operations and effective internal management [13] - The company has not encountered significant risks related to its financial statements, credit, or information management as of the latest evaluation [13]