Company Overview - Jingneng Financial, formerly known as Northeast Pharmaceutical Group Financial Company, was established on March 7, 2006, and obtained its financial license on May 16, 2006, with a registered capital of RMB 5 billion [1] - The ownership structure includes Beijing Energy Group Co., Ltd. (60%), Beijing Jingneng Clean Energy Power Co., Ltd. (20%), and Beijing Jingneng Power Co., Ltd. (20%) [1] Internal Control and Risk Management - Jingneng Financial has a robust governance structure with a clear division of responsibilities among the shareholders' meeting, board of directors, supervisory board, and senior management, enhancing its internal control system [2] - The company has established a comprehensive risk management system covering liquidity, credit, market, compliance, and operational risks, with a three-line defense mechanism for risk management [2][3] - As of June 30, 2025, Jingneng Financial reported no significant risk events and maintained good operational performance [3] Financial Performance - As of June 30, 2025, Jingneng Financial's total assets amounted to RMB 50.08 billion, with cash and cash equivalents at RMB 14.54 billion, loans and advances at RMB 42.86 billion, and shareholders' equity at RMB 7.15 billion [6] - The company reported total revenue of RMB 520.17 million and a net profit of RMB 307.03 million for the same period [6] Regulatory Compliance - Jingneng Financial meets all regulatory requirements as per the Enterprise Group Financial Company Management Measures, with no significant deficiencies identified in its financial reporting or risk control systems [7] - The company adheres to the limits set in its financial service agreements with related parties, ensuring compliance in its financial transactions [7]

Core Viewpoint - Yunnan Coal Industry Energy Co., Ltd. conducted a risk assessment report on Yunnan Kunsteel Group Financial Co., Ltd., evaluating its financial status and operational risks as of June 30, 2025 [1][10]. Group 1: Company Overview - Yunnan Kunsteel Group Financial Co., Ltd. was established on April 15, 2015, and commenced operations on October 28, 2015, with a registered capital of 1 billion yuan after a capital increase [1]. - The company is located in Kunming, Yunnan Province, and its business scope includes accepting deposits, providing loans, and offering financial advisory services [1]. Group 2: Shareholding Structure - The controlling shareholder of Kunsteel Financial is Kunming Iron and Steel Holding Co., Ltd., with the actual controller being the Yunnan Provincial State-owned Assets Supervision and Administration Commission [2]. Group 3: Internal Control and Governance - Kunsteel Financial has established a governance structure comprising a shareholders' meeting, board of directors, and supervisory board, ensuring checks and balances within its operations [3][4]. - The company has a comprehensive internal control system involving various committees and departments to manage risks and ensure compliance with regulations [4][5]. Group 4: Risk Management - A risk management committee is in place to oversee risk management activities, with a three-line defense system established to identify and mitigate risks [5][6]. - The company has implemented various management measures and operational procedures to control risks associated with its financial activities [6][7]. Group 5: Financial Performance - As of June 30, 2025, Kunsteel Financial reported total assets of 3.762 billion yuan, with total revenue of 37 million yuan and a net profit of 15 million yuan for the first half of the year [8]. - The company has maintained a strong capital adequacy ratio of 30.15% and a non-performing asset ratio of 0% [9]. Group 6: Service and Loan Situation - As of June 30, 2025, the company and its subsidiaries had deposits of 80 million yuan in Kunsteel Financial, accounting for 41.35% of its total deposits [9]. - The company utilizes Kunsteel Financial's services to enhance resource allocation and improve capital efficiency [9]. Group 7: Risk Assessment Conclusion - Kunsteel Financial holds valid financial licenses and has established a robust risk management framework, ensuring effective identification and control of operational risks [10].