Metallurgical of China : Guo Wenqing Presides over the 22nd General Manager Meeting in 2020

Facilitate continuous well-performed financial management work to ensure the stable, healthy and sustainable development of China Minmetals

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　　On July 9, Guo Wenqing, General Manager and Deputy Secretary of the Party Group of China Minmetals, and concurrently Chairman of MCC, presided over the 22nd General Manager Meeting in 2020 of China Minmetals.

　　A report on the inspection of the financial risks of China Minmetals was made by the Finance and Treasury Division on the meeting. Capital is the blood of an enterprise. Financial statements are barometers indicating the status of enterprise development. Financial management should be the core in enterprise management. These ideas were recognized on the meeting. The sudden pandemic outbreak in the first half of the year had a serious impact on the production and operation of China Minmetals. China Minmetals attached great importance to the issues of capital risk and capital safety, and repeatedly put forward clear requirements for strengthening fund management. On April 20, China Minmetals made arrangements for the special inspection of financial funds at the special meeting on financial risks supervision. The Finance and Treasury Division made immediate and well-organized actions to conduct an all-round investigation on financial fund management on all aspects and at all levels. Ten teams meticulously and conscientiously performed their duties, reflecting their profound professionalism. Their work has improved the level of fine financial management and contributed to the supervision of various financial risks, which should be highly acclaimed. Facts speak louder than words. It has been proved that it is very necessary, timely and correct to carry out a thorough inspection of financial risks and to implement special supervision of financial risks on individual subsidiaries under China Minmetals. At present, the pandemic is still intensifying and spreading worldwide. Trade frictions between China and the USA are becoming increasingly fierce. Capital risks and safety are still the largest challenges faced by China Minmetals. Well performance should continue to be made in financial management to ensure the stable, healthy and sustainable development of China Minmetals.

　　Four requirements on relevant work were made on the meeting.

　　First, it is necessary to firmly hold the bottom line of capital risks management and implement tougher measures according to a clearer list of risks. According to financial risks inspection, the list of enterprises subject to special supervision of financial risks should be further determined, with emphasis on those enterprises with more problems, high risks and hidden dangers in financial management. Relevant organizations should arrange a deputy leader to manage the special supervision work and formulate tough measures for enterprises included in the scope of special supervision. Discipline inspection and supervision departments should work diligently and meticulously and take preemptive measures to solve the potential problems.

　　Second, it is necessary to clarify the leadership's responsibility and require the leadership to take personal charge of operations on solving issues on the list. In view of various kinds of problems found in the inspection, the management staff of relevant organizations should both be the commander and the warrior, with clear responsibilities defined and corrections made upon discovery of mistakes, so as to ensure that solutions to every problem found can truly be in place. For the rectification of sensitive and important issues, China Minmetals should provide clear guidance. Rectification should be reported to the General Manager Meeting.

　　Third, it is necessary to strengthen the centralized management of funds and improve the efficiency of fund use. China Minmetals should play an active role in balancing and dispatching resources, maintain a reasonable 'capacity' of the internal 'capital pool' and make good use of the resources to improve the efficiency of fund use. Close attention should be paid to the study of the collection of restricted funds and the settlement of the problems of large stock and large numbers of accounts. Efforts should be made to strengthen the management of relevant organizations, give full play to the loan functions within these organizations, and promote a positive circulation of funds within the internal capital system.

　　Fourth, it is necessary to further optimize and adjust the financing structure and reduce the financing cost. It is important to seize the current opportunity period of low-cost financing, strengthen the 'headquarters-to-headquarters' cooperation between the bank headquarters and the headquarters of China Minmetals to offer better secured support for the subsidiaries of China Minmetals, increase the proportion of short-term financing or ultra-short-term financing, optimize the medium and long-term financing structure, and further reduce the scale of guarantee provided at the headquarters level and China Minmetals as a whole.

　　Fifth, it is necessary to improve the internal financial control system. Measures should be taken to improve the management of financial personnel, strengthen standardized operation and seriously implement financial discipline. Those incompetent ones should be resolutely removed from their posts. Such moves aim to ensure that the financial work is implemented by financial personnel with reliable political standing and outstanding expertise.

　　Other work matters were also considered on the meeting.

　　In view of the next step of work, it is stressed on the meeting that it is necessary to deeply understand the spirit of the CPC Central Committee, thoroughly advance with the times, resolutely implement and closely follow the decisions and deployment of the CPC Central Committee step by step, so as to ensure implementation of measures in an all-round way. Efforts should also be made to strictly curb formalism and bureaucracy and resolutely forbid irresponsibility, inaction and casual attitude. Our management staff should never be overcautious 'slippery officials' playing the fox, but should be 'persons of action' who are realistic, pragmatic and hardheaded in the new era. It is necessary to strengthen close tracking, analysis and judgment of overseas risks, reposition the development direction of overseas trade enterprises, maintain and reduce the current asset size and personnel scale and ensure stable operation.

　　Leaders of China Minmetals, including Liu Caiming, Jiao Jian, Lu Weidong, and Ren Zhufeng, attended the meeting. Executives of China Minmetals not among members of the leadership team, and principal leaders of discipline inspection and supervision team, headquarters departments and directly affiliated institutions attended the meeting.

　　Scene of the Meeting