Project background:

The coking industry is an important upstream industry in the steel, chemical and other industries, and it is also one of the key industries regulated by the state. In recent years, with the tightening of environmental protection policies, the fluctuation of coal prices, the decline of steel demand and other factors, the coking industry is facing greater operational pressure and risk challenges. How to improve the credit level of coking enterprises, reduce the financing cost, optimize the asset structure and enhance the market competitiveness has become the key issue of the development of the industry.

Customer pain points:

A large coking group is one of the leading coking enterprises in China, with a number of branches and subsidiaries, involving coke, coal, chemical industry, electric power and other fields. The group has carried out a number of technological transformations and capacity expansion in recent years, resulting in an increase in the scale of debt and increased financial pressure. At the same time, due to the lack of a unified credit management system and risk control mechanism, credit information communication between molecular companies is not smooth, credit rating standards are not unified, and credit risk identification and prevention capabilities are insufficient. The group hopes to establish a sound credit rating and risk management system by introducing professional consulting services, so as to improve the credit level and risk resistance ability of the group and its subsidiaries.

Project purpose:

20239In January, the Group commissioned a credit rating and risk management project with the following main objectives:

-To provide a basis for the Group to formulate reasonable financing strategies and asset allocation plans through a comprehensive, objective and fair assessment of the creditworthiness of the Group and its subsidiaries;

-Through the establishment of unified credit rating standards and methods, the credit information sharing and collaborative management among the subsidiaries within the group can be realized, and the overall credit management efficiency and level of the group can be improved;

-Effectively prevent and control the market risk, credit risk, legal risk and other risks faced by the Group and its subsidiaries through the establishment of sound risk identification, assessment, monitoring, early warning and disposal mechanisms;

-By improving the credit level and credibility of the Group and its subsidiaries, enhancing the trust and willingness to cooperate with external partners such as banks, suppliers and customers, reducing financing and operating costs and improving market competitiveness.

Research object:

The research objects of the project mainly include the following categories:

-Financial department, credit management department, risk management department and other relevant departments of the group headquarters and each molecular company;

-The main contacts of the Group and its subsidiaries in external partners such as banks, suppliers and customers;

-Relevant third-party institutions or persons such as industry associations, regulatory agencies, experts and scholars.

Project Content:

The project mainly includes the following aspects:

-By collecting and researching the financial statements, operating data, market information and other relevant information of the Group and its subsidiaries, it conducts a comprehensive evaluation and determines its credit rating and credit score;

-By comparing and investigating the credit rating standards and methods of the coking industry at home and abroad, and taking into account the actual situation of the Group, formulate a credit rating system and process suitable for the Group, including rating principles, rating indicators, rating methods, rating procedures, etc;

-Determine the risk level and risk score by combing and investigating the market risk, credit risk, legal risk and other risks faced by the Group and its subsidiaries;

-By comparing and investigating the risk management models and cases of the coking industry at home and abroad, and combining with the actual situation of the Group, formulate a risk management system and process suitable for the Group, including risk identification, risk assessment, risk monitoring, risk early warning, risk disposal, etc;

-Through the establishment of the group credit and risk management information platform, the credit information sharing and collaborative management between the group and its subsidiaries are realized, and the overall credit and risk management efficiency and level of the group are improved;

-Clarify the responsibilities, authorities, processes and assessments of the Group and its subsidiaries in terms of credit and risk management through the formulation of the Group's credit and risk management norms and systems, and standardize the credit and risk management behaviors of the Group and its subsidiaries;

-Improve the credit and risk management awareness and ability of the Group and its subsidiaries by conducting credit and risk management training and consulting for the Group and its subsidiaries.

Project Value:

The project provides value to the Group and its subsidiaries in the following areas:

-It provides a scientific basis for the group to formulate reasonable financing strategies and asset allocation plans, and helps the group to optimize the capital structure, improve the efficiency of capital utilization, and reduce financing costs;

-It provides an effective way for the group to improve its own credit level and reputation, and helps the group to enhance the trust and willingness to cooperate with external partners such as banks, suppliers and customers, expand market channels and increase market share;

-It provides effective means for the Group to prevent and control all kinds of risks, helps the Group to detect and respond to potential threats such as market risks, credit risks and legal risks in a timely manner, reduces operating losses and ensures operational stability;

-It provides strong support for the group to improve the level of green and low-carbon development, and helps the group meet the environmental protection requirements of the country and industry, improve resource utilization efficiency, reduce environmental pollution, and fulfill social responsibilities.