Part 2 Finance Companies

At the end of 2017, the legal entity within finance company industry amounted to 247, increased by 11 compared to the previous year, and the number of institutions kept rising. Total asset registered RMB 8.69 trillion and kept rising rapidly, increasing by 15.91% year on year. No non-performing assets were found among 217 finance companies, and the industrial annual NPA ratio was only 0.03%, which manifested that the industrial risks were properly controlled. Total profit of the industry was 97.504 billion yuan, an increase of 21.51% over the same period of last year, and the operating efficiency was greatly increased. The average concentration of funds was 47.91%, an increase of 2.33 percentage points year on year, and the concentration of funds continued to increase. The scale of industrial settlement business was 351.55 trillion yuan, an increase of 31.70% year-on-year. At the end of the year, the industry owned 2.52 trillion yuan as the loan balance, an increase of 21.17% year-on-year, and the group's service function continued to strengthen. The downstream business volume of the industrial chain was 313.953 billion yuan, the upstream business volume was 70.459 billion yuan, and the industrial chain finance business kept expanding. As of the end of 2017, finance company industry have covered 17 sectors including electricity, petrochemicals, steel, machinery manufacturing, consumer welfare, etc. A total of 73 central state-owned enterprises nationwide have established finance companies, and 129 local state-owned enterprises have set up finance companies. Of the 236 finance companies operating in 2016, 101 were rated with A level, representing 43% of the total.

In 2017, the finance company industry increased its efforts in building an information technology system based on the relevant guidance from the CBRC. The industry has made great progress in internal IT policies, IT system construction, IT team building, and investment scale. Information technology has become an important support for the development and promotion of fi nance companies' new businesses. The IT system has effectively supported the management of fund concentration. Direct connection between fi nance companies and corporate groups has improved information processing. The bill system has helped corporate groups with capital transfer and operation. The pricing system has provided support for the industry in the interest rate marketization, and the EAST system has improved data reporting.

In 2017, the number of employees in the finance company industry reached 12369, an increase of 7% year-on-year, and the scale of the industry's talent team further expanded. The industry has met with the requirements of studies on the theoretical and practical issues of party building. The industry has a total of 6046 CCP members, providing a strong political guarantee for the industry's steady and compliant operations. In 2017, the finance company industry optimized human resources allocation through strengthening top-level design. By improving training design, employee's quality and expertise were greatly enhanced. Remuneration structured was modified, thus vitalizing people's enthusiasm. The talent team kept improving through exploring new career development paths and innovating performance assessment methods.