On June 30, the Group held the annual conference of financial managers and the conference of CFO’s of business units for the second quarter in Shenzhen, centering on the theme of “Practically Implementing the System for Compliant Financial Operations”. Over 200 financial managers and representatives from relevant divisions and offices of the Group attended the conference, along with Chairman Fu Yuning, General Qiao Shibo, Ji Yongru, Deputy Director of the Board of Supervisors of the SASAC, and Xu Hui Director of a committee of the SASAC.

Chairman Fu commented positively on the development of financial regulations and the development and application of management tools within the Group and required that the Group should continue to carry forward the sound management philosophy and culture and build a corporate culture respecting regulations and practically implement various regulations in the actual management and business operations. Chairman Fu pointed out that the financial management is the last line of defense of the compliance and integrity of the enterprise. He called on all financial managers to overcome their various difficulties and brave pressure under the current situation, reflect critically on their work and promote the effectiveness of the management through enhancing the development and implementation of various financial regulations. He finally proposed guidance and requirements for the financial work of the Group on the next stage from the perspectives of the implementation of regulations, the development of double-line reporting system for financial directors, the promotion of financial management level of first-line business units and the enhancement of the financial risk management and control.

General Manager Qiao pointed out that integrity and compliance are the premise and foundation for the financial work and the guidelines for the reflection on the financial work and the rectification of defects in the financial management. He was positive about the reflections the financial managers made on the development and implementation of the financial regulations and called on the financial managers to work out countermeasures on the defects of the financial work of the Group so that CR will develop in a better and healthier manner. Qiao also stressed the importance of the urgency of the IT-based financial management and hoped that the financial sector will play a leading role in the IT development of the Group.

The participants analyzed the current implementation and practice of the financial regulations of the Group and reviewed and reflected on the financial work of the Group from the perspectives of incomplete regulations, inadequate implementation, incomplete assessment and responsibility systems, etc. Initiatives for the future financial work were explored in terms of the completion of the financial functions of the business units, development of detailed regulations and individualized management tools, the promotion of the involvement of financial divisions in making major decisions on business transactions and the establishment of the comprehensive financial evaluation systems. It is stressed at the conference that the financial sector of the Group should attack problems and reflect on the work in a more active manner with the view of continue promoting the level of financial management of the whole Group.

Representatives from the Audit Division of the Group were invited to share typical problems found in their audit work in recent years in the form of case study and make proposals for the further development of the compliant financial operations. The Financial Division also presented their work in the evaluation of assets of acquired businesses between 2011 and 2013, the analysis of and proposed countermeasures for exchange rate risks and the challenges of IT-based financial work and countermeasures.

Participants thoroughly explored and made many proposals on tasks of urging business units at all levels to formulate detailed regulations, establishing assessment and responsibility systems, further optimizing the financial functions and promoting the consistence of the financial management work of the whole Group.