Hwabao Trust Co., Ltd.

Hwabao Trust Co., Ltd. (hereinafter referred to as "Hwabao Trust") was established in 1998 and is a member of the financial sector under Baosteel Group Co., Ltd., with Baosteel Group holding 98% of shares and Zhejiang Province Zhoushan City Finance Bureau holding 2%. The registered capital of Hwabao Trust is RMB 3.744 billion (including US$15 million), and it holds a controlling stake in Hwabao兴业 Fund Management Co., Ltd. (a Sino-French joint venture).
Baosteel Group, the major shareholder of Hwabao Trust, enjoys an excellent reputation and strong financial strength. In 2014, it ranked 211th on the Fortune Global 500 list. Adhering to Baosteel Group's consistent style of rigor, stability, integrity, and compliance, Hwabao Trust always takes "maximizing beneficiary interests" as its business philosophy, takes specialized and differentiated development as its basic strategy, and takes asset management and trust services as its two main businesses. Based on the capital market, it continuously strengthens capacity building, channel building, and brand building. The company has a full range of business categories, clear professional division of labor, a well-organized team, strong active management and innovation capabilities, and sustained good performance. Currently, the company serves as a vice president unit of the third council of China Trust Industry Association.
Over the years, Hwabao Trust has maintained a spirit of innovation, and many business qualifications or initiatives have been in a leading position in the industry. In 2013, Hwabao Trust launched a public welfare trust - "Hwabao Love Trust", using its unique trust system advantages and professional management functions to contribute to public welfare, establishing the industry's first standardized trust service platform - Hwabao Circulation Platform, improving the liquidity of trust products and enhancing the company's service level to clients. In 2012, Hwabao Trust pioneered domestic trust product rating and applied for the first stock index futures hedging trading code and arbitrage trading code established in the name of a trust plan. In 2011, it became the first trust company to obtain qualification for stock index futures trading business. In 2007, it was the first to be approved to renew its financial license after the promulgation of the new "two regulations". In 2005, it was the first to obtain the annuity trustee and account manager qualification issued by the Ministry of Human Resources and Social Security, and the first to carry out structured securities trust business. In 2004, it was the first to introduce independent directors. In 2003, it was the first to conduct information disclosure in public media and the first in the industry to initiate the establishment of a joint venture fund company.
In addition, the company obtained the qualification for entrusted offshore wealth management business in 2012, qualified investor qualification for the block trading system in 2008, asset securitization business qualification in 2006, and was among the first batch to obtain the qualification as a price inquiry object for new share issuance in 2005, with comprehensive business qualifications.
Since 2006, Hwabao Trust has entered a stage of rapid development. From 2006 to 2013, it liquidated a total of 677 trust projects cumulatively, with a successful redemption rate of 100%. The company has created good returns for investors, achieving a cumulative return of RMB 44.9 billion for clients from 1998 to 2013. As of the end of 2013, the scale of trust assets managed by Hwabao Trust exceeded RMB 270 billion (including annuities), steadily ranking among the top in the industry. Hwabao Trust has also created good returns for shareholders, achieving profitability for 16 consecutive years since its establishment in 1998.
In recent years, Hwabao Trust has won multiple awards in various professional industry evaluations, including excellent company, well-known brand, best innovation, best manager, and best product awards. Among them, in 2013, the company won the Innovation Leading Award in the 7th "Integrity Trust" selection by Shanghai Securities News, the "China Excellent Trust Company" award, "Best Real Estate Trust Plan" award, and "Best Securities Investment Trust Plan" award in the 6th selection of China Excellent Trust Companies by Securities Times, and the "China Best Trust Wealth Management Institution" award in the 2013 China Best Wealth Management Institution selection.
Currently, Hwabao Trust's product line covers investment scope including securities, investment and financing, and industry-finance integration. Trust products use various structures and tools to cover the capital market, money market, and real economy. Meanwhile, in terms of risk control, Hwabao Trust has formed a three-level risk management organizational system directly led by the board of directors and management, relying on risk management departments, coordinated by relevant functional departments, and comprehensively connected with various business departments, with leading corporate governance structure and risk control level.
Looking ahead, Hwabao Trust's business will center on Shanghai and radiate to the Yangtze River Delta, Pearl River Delta, Beijing, Chengdu, and other regions. With high-end client needs as the core, the company focuses on professional fields such as securities, investment and financing, and industry-finance integration, providing alternative wealth management and comprehensive financial solutions, aspiring to become an excellent comprehensive financial service provider. We will further enrich the product line and enhance trust service capabilities, create better products for clients, provide better services, and enable more market entities to participate in trust and enjoy the advantages of the trust system.