1.1 board and directors to ensure that the information contained in this report does not contain any false, misleading statements or material omissions, and the authenticity of the content, accuracy and completeness of the individual and joint responsibility. Annual report summary is taken from the annual report, customers and stakeholders wishes for more content, should read the annual report.
1.2 Independent Directors Li Shuying, Zhou Shuli, Zhang Li that the company's annual report is true, accurate and complete.
1.3 after the company's annual financial report of the Bandung Asia Certified Public Accountants audit and issued a standard unqualified audit report.
1.4 Dongyong Cheng, chairman, president and yellow duo in charge of accounting work and accounting agency Chief Financial Officer Wang Weiting charge Li Yueying statement: to ensure that the financial report of the annual report is true and complete.
2, Company Overview
2.1 COMPANY
2.2 person in charge of information disclosure and contact
2 .3 Organizational Structure
3, Corporate Governance
3.1 Shareholders
reporting period the total number of 19 shareholders. Holding more than 15% shareholders
Table 3.1-1
largest shareholder (Dalian Investment Limited) is the major shareholder
< p> Table 3.1-2
3.2 Director
Table 3.2-1
independent directors
Table 3 .2-2
3.3 Supervisors
Table 3.3
3.4 Senior Management
Table 3.4
3.5 employees (118)
Table 3.5
4, business management
4.1 business objectives , principles, strategic planning
business objectives: the scientific development concept,mac makeup wholesale, the implementation of regulatory requirements, and actively develop new markets, strengthen risk control, and ultimately develop into the core of the company a clear competitive advantage, sustainable development ability, the industry's leading specialized financial institutions.
operating principle: abide by integrity, innovation, sound management, efforts to achieve long-term stable and healthy development.
strategic planning: business innovation as the guide to personnel training and information technology as the basis to enhance asset management and risk control as the core, and continuously improve the company's brand and market development capability, enhance the harmony and win-win level of customer relationship management, leading the company into the industry, with the core competitiveness of financial firms, with the outstanding financial products and services to customers, shareholders, employees and the community to create maximum value.
4.2's operations in the main content
business into the trust business, established businesses.
trust business: including trust funds, other property or property trust.
established businesses: includes financial enterprises equity investment, financial products, investments, loans, financial advisory services.
4.2.1 The combination of assets and distribution of self-table
Table 4.2.1 (Unit: million ;%)
4. 2.2 The use and distribution of trust assets table
Table 4.2.2 (Unit: million ;%)
4.3 Market Analysis
4 .3.1 favorable factors for development of the company
2008, in the international financial crisis adversely affected, the national economy still maintained rapid development. Dalian has entered a new phase of the revitalization of the first comprehensive, international shipping center, the construction of new industrial base a major breakthrough. Institutions, increasing personal disposable wealth, investment and financial awareness has increased. Trust companies and banks, private equity investment trusts and other business regulatory documents were introduced, as a trust to provide the policy support innovation and development.
4.3.2 development of the company's unfavorable factors
2008, the sustained and rapid economic growth, the resistance increases, capital markets, real estate market is volatile. Trust industry to be further improved the institutional environment, trust property registration, trust and tax related supporting institutions are not introduced.
4.4 internal control
4.4.1 internal control environment and internal control culture
company has always been committed to building and improving internal control system, established a general meeting of shareholders, the Board and its subordinate professional committees, supervisors, management and other corporate governance as the main organizational structure, developed a comprehensive rules of procedure and decision-making process. Governance of the main responsibilities of the various regulations and in accordance with standard procedure for performing the relevant duties, to achieve a clear division of labor, mutual checks and balances, reports a clear line of management requirements and continuous improvement.
company constantly improve the internal control management structure, the establishment of Risk Control Department of the main risks of various departments to conduct an independent point of daily monitoring and management;
under the laws, regulations and regulatory requirements, the company built a comprehensive business and management covers the activities of the company's internal control system, from corporate governance, business operations, financial management, risk control and compliance management, auditing and human resources management and other services to regulate other aspects of management, internal control system is more comprehensive, reasonable and effective. The company has a sound internal control system and correction mechanism, in accordance with regulatory policy, changes in the external business environment and risk control of the system need to be revised and improved.
adhering to the and earnestly fulfill fiduciary duties, promote compliance management, to achieve maximum benefit beneficiaries.
4.4.2 Internal control measures
continue to improve corporate governance, and play the board of supervisors, independent directors of the oversight functions, strengthen the role of external oversight; a reasonable management authority, effective accountability, internal reporting and reward system to encourage employees to report illegal, illegal, in violation of the principles of professional conduct and integrity of the act; continue to improve risk control and compliance management, through process reengineering and improving risk control techniques to strengthen risk management, improved risk analysis and evaluation mechanisms, through compliance checks, compliance, performance evaluation, put forward proposals in the form of compliance to strengthen compliance and continuously improve the efforts to strengthen the internal audit, periodically, from time to time to carry out a variety of routine and special audits, complete audit follow-up and rectification of error correction mechanism so that problems can be corrected in time, effectively promote the construction of the internal control and management levels.
company has established a natural business and trust business from each other's business management system; the business are sound decision-making institutions and decision-making process, before, during and background independent; the business has the corresponding management practices and operational requirements, and based on business practice and regulatory compliance requirements, and continuously updated; company strictly enforce the implementation of important positions and job rotation system off, and continuously strengthening internal management, internal controls to ensure full and effective implementation.
4.4.3 Information exchange and feedback
company set up and improved information exchange and feedback system, while continuing to improve the level of information technology, the smooth functioning of the mechanism to provide effective technical support. Formulated the feedback in a timely manner. Effective operation of management information systems, the board of supervisors and management to keep abreast of the company's operations and risk profile, each of timely information is passed to the relevant staff, all departments and employees are able to smooth the feedback information.
4.4.4 Evaluation and monitoring corrective
company has established a business unit (post) self-examination, the business sector (post) and check each other internal staff report, check the compliance department , combination of Internal Audit Department audit mechanism. Business (jobs) regularly carry out self-examination and correction activities, internal control problems found in time to correct; for business, the relevant departments, mutual supervision between posts, checks and balances; all employees actively participate in company management, timely monitoring and reporting of internal operations defects or irregularities; compliance and risk control of the Corporate Compliance Department of the daily management and risk control, audit the compliance of business operations, through periodic inspection, evaluation and other means to promote the effective implementation of the internal control system; audit within the Department of Assessment the effectiveness of control of the business, departments,mac makeup, and positions the overall supervision of the implementation, inspection, and to the Audit Committee, management reporting, internal control management in accordance with the inspection and evaluation results, rectification and corrective measures, and urged the strict implementation of the various departments.
4.5 Risk Management
4.5.1 Risk Management Overview
(1) company operations in the main risk include: compliance risk , credit risk, market risk, operational risk and other risks.
(2) the basic principles of corporate risk management and policy
follow a comprehensive corporate risk management, independence, timeliness, effectiveness, prudence, the principle of continuity of established the vertical, control environment, risk identification and assessment, control activities and measures, communication and feedback, monitoring and evaluation elements. Establishment of the company - the business sector - three levels of overall project risk assessment system, improve credit risk assessment and measurement model, the establishment of a stress test system, continuously improve the risk control measures, and effective risk.
(3) corporate risk management organization structure and division of responsibilities
company has established three levels of vertical risk management system, the continuity of the business activities of risk management and oversight:
Board of Directors and under the Risk Control Committee. Board of Directors is the highest risk management, decision-making body, assumes the ultimate responsibility for risk management controls, risk management institutions of its standing committee for the risk control, corporate self-employed, business trust funds, are required to pass the risk review of risk control committee, the main responsibilities: in accordance with laws,vibram 5 fingers, regulations and policies called for improving the company's risk management and control systems, operational procedures and compliance management; of Trust Investment Committee and Investment Committee to draw its own approval of the project risk review; assessment variety of new business risks and the risk of the use of funds operating mode; business risk management system established to identify and prevent business risks; considered for approval five classes of risky assets and bad assets disposal program; organize the work to identify responsibility for non-performing assets.
management and affiliated organizations. Room for risk management, president of the implementing agency, under its own Trust Investment Committee and Investment Committee, respectively, of self and trust funds under the project and asset management programs to review decisions. Compliance and Risk Control Department is a permanent establishment under the President's Office, is the company's risk management activities, the implementation of the center responsible for the risk the company may implement a comprehensive, ongoing supervision and management, the main responsibilities include: to develop in accordance with relevant laws and regulations and compliance policies system, review the business activities of the company's legal compliance; based on risk control requirements and authorized the Commission to develop corporate risk control system, the whole process of business activities to fulfill the company's risk management; asset risk classification management, asset liability risks identified, asset preservation Qing collection assessment and monitoring; legal document drafting, revision, review, litigation and regulatory policies for research,mac brushes, consulting. Audit is the audit committee under the permanent establishment to the internal audit to the Board, Audit Committee, and informed President room, while the work of the board of supervisors to accept the guidance, responsible for risk management and internal control system to make monitoring and evaluation of the effectiveness of and oversee all risk management activities implementation in practice.
operational level. Set in the business risk control post, risk control post risk management reports submitted on time and found that the risk changes in time to compliance and risk control department reflected. Main duties include: handling business risks of the sector information extraction, assessment and risk review to identify risk points list; of real-time monitoring of the risk control measures; on the effectiveness of credit risk control system to do follow-up examination; of this sector credit risk control the adequacy and effectiveness of timely evaluation and suggest improvements, the formation of risk management reports on a regular basis.
4.5.2 Risk profile and risk management
(1) compliance risk profile and management
compliance risk is due to violation of laws and regulations, regulatory policies and internal management systems and business risks. Corporate Compliance and Risk Control Department under the relevant laws and regulations and changes in regulatory requirements, timely amendments to improve the articles of association and rules and regulations, internal rules and regulations and prevent the emergence of national laws and regulatory requirements related to conflict situations. Continue to strengthen compliance awareness of employees, for each position to develop During the reporting period no illegal incidents.
(2) credit risk profile and management
Credit risk is the counterparty default or credit rating fell, causing the possible loss of the company. Mainly in the use of funds can not timely and accurate disclosure of information without permission to change the use of funds, or debt service and other assets can not be due security. The company's business, including credit risk involved in the loan business, guarantee business, assets, credit resale business. The end of 2008 under the company's own credit risk assets total 67,308 million, all of the normal class of assets. The end of 2008 the company under the Trust assets, 2,828,127 yuan of credit risk, no counterparty default occurs, all of the normal asset class.
main measures of credit risk management are: development of practical credit policies, credit management to the stock of each case according to the company and the Research and Development Center conducted research on the credit policy adjustments, including volume control, running progress, customer choice and structural adjustment, trade orientation, etc., policy factors are the main reference for judging the economic situation this year, the state credit and industrial policy adjustments, the orientation period and the economic situation of the industry, the company business objectives and financial situation.
operate strictly in accordance with business rules and processes, each of the double use of funds and subject to investigation department head review, customer credit rating, underwriting and collateral assessment, compliance and risk control of the Ministry of legal compliance of review, decision-making Committee for approval of funds, risk control committee for approval, and other links, each link and different from the control points at different levels of risk control.
keep track of the situation assessment of repayment ability and security, the company will focus on the implementation of post-loan management as a business person responsible for the credit system for continuing the loan, the difference of the on-site and off-site monitoring of key customers for the Group monitoring. Company has established a risk warning mechanism, provides a detailed warning signal and the corresponding measures, early warning signals that require staff time to the department of business risk management posts, compliance management and risk control department until the report of an impact on borrowers ability to repay matter, to take timely measures to prevent and resolve risks.
through the implementation of the accountability system and other means to strengthen the management responsibility at all levels of due diligence, the company developed a review and approval by the responsible officers by withholding wages, transferred from their posts, dismissed, labor contracts, dismissal and other penalties until the transfer of the judiciary, through the binding mechanism to safeguard and promote due diligence related to personnel management.
(3) market risk and management
market risk mainly refers to the market exchange rates, interest rates or other price risks arising from changes in factors. U.S. dollar assets held by the Company, self-loan business, trust loans, self, and securities investment securities investment trust business and other business classes of funds are likely to face market risks.
of market risk management: the company through a comprehensive and objective analysis of the economic situation, and strive to accurately determine market trends; careful selection of projects, the investment activities have to undergo a full investigation of all possible market risks assessment of the factors measured by the business sector, investment decision-making Committee, the Risk Control Committee to make investment decisions over approval procedures; to optimize business structure, early preventive measures, the use of financial tools to guard against risks. In the process of securities investment, strictly follow the portfolio investment, the principle of risk diversification, the proportion of pre-investment and investment strategy development, operations adhere to the implementation of the MtM, dynamic monitoring, the implementation of effective risk control measures, the net portfolio, position and investment concentration and other indicators of pre-set warning line and the stop line, arriving early warning line to alert in time to reach the level immediately stop line positions.
(4) operational risk profile and management
operational risk is due to internal processes, people, system flaws and mistakes, or the risk of loss caused by external events. Did not occur during the report period due to losses caused by operational risk.
company's operational risk management, mainly through strict operating system, specify the business processes, operation and approval authority to achieve, and through forced leave and job rotation policy further strengthened, the main measures include the following areas: the business units to develop detailed operational systems, processes, clear lines of responsibility and authority; strict front, middle and back office responsibilities and spatial separation system, implementation, supervision and control back to the front; establish a clear business mandate and approval system, optimize business processes, operations staff strictly enforce the operating system, due diligence management; establish a sound information system, real, complete and timely records every business, properly accounting and business accounting; build a complete accounting, statistics and a variety of business data and save the file to ensure that the original records, contracts deeds, true and complete all information and data information.
(5) other risks
other risk mainly refers to the business carried out in the policy risk, legal risk and moral risks. Did not occur during the report period due to the damage caused by other risks.
5, the reporting period and the end of the previous year's comparative financial statements
5.1 self-assets
5.1.1 CPA firm view full text
audit report
million industry in Asia will not even words (2009) No. 58
Dalian Huaxin Trust Co. shareholders:
We have audited the accompanying Dalian Huaxin Trust Co., Ltd. (hereinafter referred to as Huaxin Trust Company) financial statements, including the December 31, 2008 the company balance sheet, income statement for the year 2008 the company, shareholders Changes in Equity and Notes to Financial Statements.
one, the management responsibilities of the financial statements
in accordance with the Accounting Standards and the This responsibility includes: (1) design, implementation and maintenance of related financial statements and internal control, so that financial statements do not exist as a result of fraud or error free of material misstatement; (2) selecting and applying appropriate accounting policies; (3) make a reasonable accounting estimates.
II, CPA's responsibility
Our responsibility is to audit the financial statements on the basis of audit opinion. We are certified public accountants in accordance with auditing standards in China the provisions of the audit work. Chinese Certified Public Accountants Auditing Standards require that we comply with ethical requirements and plan and perform the audit to the financial statements are free of material misstatement to obtain reasonable assurance.
audit involves performing audit procedures to obtain the amounts and disclosures in the financial statements of the audit evidence. Audit procedures selected depend on the auditor's judgments, including fraud or error due to the financial statements of the assessment of risk of material misstatement. In making those risk assessments, we consider relevant to the preparation of financial statements of internal control in order to design appropriate audit procedures, but not for the purpose of the effectiveness of internal control opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Third, the audit opinion
We believe that Watson Trust financial statements comply with the requirements of Accounting Standards, in all material respects, the fair reflects the trust Watson 12, 2008 31 March 2008 the financial condition and results of operations.
Bandung Asia Co., Ltd. Dalian Branch of China Certified Public Accountants CPA: Tao Yi
Dalian, China, Chinese Certified Public Accountant: Lei Yajie
II OO nine March 26
5.1.2 Balance Sheet
balance sheet
Prepared by: Dalian Huaxin Trust Co., Ltd. December 31, 2008 Unit: ten thousand yuan
Legal representative: Dong Yongcheng Chief Financial Officer: Wang Weiting accounting department: Li Yueying
5.1.3 Profit Table
income statement
Prepared by: Dalian Huaxin Trust Co., Ltd. 2008 Unit: ten thousand yuan
Legal representative: Dong Yongcheng charge of accounting work Person in charge: Wang Weiting accounting department: Li Yueying
5.1.4 owner changes in equity
owner's equity (equity) changes
Prepared by: Dalian Huaxin Trust Co., Ltd in 2008 Unit: ten thousand yuan
Legal representative: Dong Yongcheng Chief Financial Officer: Wang Weiting accounting department: Li Yueying
5.2 Trust Assets
5.2.1 Trust project balance summary
Trust project balance summary table
Prepared by: Dalian Huaxin Trust Co., Ltd. December 31, 2008 Unit: ten thousand yuan
Legal representative: Dong Yongcheng Chief Financial Officer: Choi Sang-Bin accounting department: Zhang Yu Lin
5.2 .2 profits and profit sharing trust project summary table
profits and profit sharing trust project summary table
Prepared by: Dalian Huaxin Trust Co., Ltd. 2008 Unit: ten thousand yuan
Legal representative: Dong Yongcheng Chief Financial Officer: Choi Sang-Bin accounting department: Zhang Yu Lin
6, Financial Statements
6.1 preparation of financial statements baseline does not meet the description of the basic premise of accounting
6.1.1 financial statements do not meet the basic premise of accounting matters
no such situation during the reporting period.
6.1.2 the preparation of consolidated financial statements of the company situation
not included in the reporting period, the company consolidated financial statements.
6.2 of significant accounting policies and accounting estimates that
6.2.1 Fiscal Year: The calendar year, from January of each year until December day is a fiscal year.
6.2.2 Functional currency: RMB.
6.2.3 measurement attribute changes in the current reporting period used in the project and its measurement attributes
company accounting to accrual basis of accounting recognition , measurement and reporting.
measurement of accounting elements, generally measured using the historical cost, while ensuring the amount of accounting elements identified can be obtained and reliably measured, can be replacement cost, net realizable value, present value, fair value measurement basis; trading financial assets and financial liabilities, available-for-sale financial assets are measured at fair value.
6.2.4 Foreign currency business accounting methods
firm in economic activities of non-functional currency of the transaction date basis the People's Bank of China exchange rate of currencies are recorded period, the foreign currency monetary items in the balance sheet date and the spot exchange rate; measured at historical cost on foreign currency non-monetary items, are still the spot transaction date exchange rate. The resulting translation differences are associated with the acquisition of fixed assets and in the state before it reaches the expected amount included in the cost of the fixed assets, has nothing to do with the acquisition of fixed assets during the production operation the amount included in the current financial expenses.
6.2.5 conversion method of foreign currency financial statements
balance sheet all assets and liability items of the balance sheet date are translated into RMB benchmark price; shareholders equity items, except the the difference as a Beginning of the year after conversion in accordance with the previous year the amount of the balance sheet presented.
6.2.6 financial assets and financial liabilities, the recognition and measurement of
(1) financial assets and financial liabilities classified
including the trading of financial assets Financial assets designated at fair value through profit or loss of its financial assets held to maturity investments, loans, receivables and financial assets available for sale. Financial liabilities include trade and financial liabilities designated at fair value through profit or loss of financial liabilities.
(2) Recognition of financial instruments
financial assets and financial liabilities are recognized based on financial instruments for the company has become a party to the contract.
(3) measurement of financial instruments
① measured at fair value through profit or loss and its financial assets, including trading financial assets and direct designated as at fair value through profit or loss and its financial assets.
company purchases of stocks, bonds, funds, etc., to determine fair value through profit or loss and its financial assets at fair value in accordance with the time of acquisition is recognized as the initial amount of the transaction costs associated In the event of profit or loss.
included in the price paid but not yet declared cash dividends or bond interest is recognized as a separate receivables.
company to hold such assets acquired during the financial interest or cash dividends recognized in investment income when received.
the balance sheet date, the company that other financial assets at fair value through profit or loss.
dispose of the financial assets, these financial assets are initially recorded at fair value and the difference between the amount recognized as investment income, and adjust changes in fair value.
② held to maturity
held to maturity investments, is the due date fixed or determinable payments and fixed, and the company has the positive intention and ability to hold to maturity of non-derivative financial assets.
Company purchased fixed-rate bonds, floating rate corporate bonds held to maturity investments, at fair value when acquired and related transaction expenses recognized as the initial amount. Included in the price paid to the interest already received but not yet the bond of interest, separately recognized as receivables.
held to maturity investments at amortized cost during the holding period and the actual interest rate of interest income, included in investment income. Real interest rates made investment determined to hold to maturity, remain unchanged in the subsequent period. Real interest rate and nominal interest rate difference is very small, the nominal interest rate can also be of interest income, included in investment income.
disposal of investments held to maturity, it will be made by the investment price and the difference between the book value is recognized as investment income.
If the intention of holding company or the ability to change, so that an investment is no longer suitable as held to maturity investments, then it is re-classified as available for sale financial assets at fair value and subsequent measurement. Reclassification date, the carrying amount of investments and recognized the difference between the fair value of equity in the available for sale financial asset is impaired or derecognised transferred into the income statement.
③ receivables
company receivables (including accounts receivable and other receivables) according to the contract or agreement is recorded as the initial amount.
④ available for sale financial assets
available for sale financial assets, is the initial recognition are designated as available for sale of non-derivative financial assets, and subject to the following categories assets other than financial assets: at fair value through profit or loss and its financial assets; held to maturity investments; loans and receivables, financial assets.
company available for sale financial assets are stated at fair value and transaction expenses related to the initial recognition amount.
have been included in the price paid to the interest of bond interest but not yet received or have been declared but not paid cash dividends recognized as a separate accounts receivable.
available for sale financial assets held by companies acquired during the interest or cash dividends recognized in investment income when received.
the balance sheet date, available for sale financial assets are measured at fair value, fair value through capital reserves - other capital reserves.
disposal of available-for-sale financial assets, the proceeds received and the book value of financial assets, the difference between the investment income, while the previously recognized directly in changes in the fair value of equity corresponding part of the total amount of the amount transferred into investment income.
⑤ at fair value through profit or loss and its financial liabilities, including trade and direct financial liabilities designated at fair value through profit or loss of its financial liabilities.
held by such financial liabilities at fair value pricing is not charged in the future settlement of financial liabilities that may occur when transaction costs. If not measured at fair value, the company changed the type of financial liabilities measured at amortized cost.
⑥ other financial liabilities. The company has other not measured at fair value through profit or loss and its financial liabilities financial guarantee contracts, at fair value and transaction cost and recognized as the initial amount. After the initial measurement press the
(4) financial assets, financial liabilities at fair value determined
there is an active market for a financial asset or financial liability, to an active market quotations to determine fair value, an active market Price includes easy-to regularly exchange, brokers, industry associations, such as pricing services to obtain prices, and represents a fair deal in the amount of actual market transaction prices; there is no active market for a financial asset or financial liability, the use of valuation techniques to determine its fair value. Valuation techniques include reference to the transaction between knowledgeable, willing parties to recent market prices used in transactions, reference to the same other financial assets or financial liabilities of the current fair value, discounted cash flow analysis and option pricing models.
(5) Impairment of financial assets
company at the balance sheet date on trading financial assets other than the book value of financial assets should be examined to determine whether there is evidence that financial assets as one or more events and impaired.
