We conduct our trust business primarily through Huarong Trust. Our trust business primarily involves: (i) acting as a trustee to manage, operate and dispose of trust assets and receiving trust business income; and (ii) providing financial advisory and other consulting services and receiving commission and fee income. Huarong Trust continuously improves its professional capabilities in product design and provides its clients with a diversified range of customized trust products. Huarong Trust was among the first batch of trust companies in the PRC trust industry to introduce collective trusts for small and medium enterprises, and to offer general purpose trusts and other innovative trust products. It has also developed a series of financial services solutions for high-net-worth individual and institutional clients, which enable it to provide comprehensive trust services covering the whole process of investment and financing. Huarong Trust has implemented a comprehensive system of risk management and internal controls. It conducts whole-process risk management for trust projects through industry-leading business and risk management systems, comprehensively covering compliance risk, credit risk, market risk and operational risk in the trust business.
Our private fund management business covers equity investment, equity investment management, fixed income investment and investment advisory services. We actively seek investment opportunities arising from the reform, reorganization and listing of quality state-owned enterprises in accordance with PRC industrial policies and the directions of PRC economic development and industrial restructuring. We also focus on investment opportunities arising from enterprise restructure, pillar industries’ development, industry integration, economic structure adjustments and industry upgrades. Meanwhile, we explore investment opportunities of high-growth private enterprises and focus on top enterprises at a mature stage, leading enterprises at a growing stage, industrial cluster enterprises with growth potential and quality supporting enterprises for industrial clusters. We conduct private fund management business mainly through Huarong Yufu.