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Risk Report of ChemChina Finance Co., Ltd. for FY2019



03/20/2020 | 11:34am EDT

Risk Assessment Report of Chemchina

Finance Co., Ltd.

as of December 31, 2019

TZYZ [2020] No. 11883

Table of Contents

Risk Assessment Report————1

Risk Assessment Notes ————2

Risk Assessment Report of Chemchina Finance Co., Ltd.

as of December 31, 2019

TZYZ [2020] No. 11883

Chemchina Finance Co., Ltd.,

We accepted your entrustment and reviewed the management’s evaluation and identification to the rationality of, and the effectiveness of execution, the risk management design associated with the financial statements of Chemchina Finance Co., Ltd. (hereinafter referred to as “Chemchina Finance”) as of December 31, 2019. The responsibility of Chemchina Finance’s management authority is to establish, improve and rationally design the risk management and keep its effectiveness, and the authenticity and integrity of risk management policies and procedures. We are responsible for commenting on the implementation of risk management relating to the accounting statements of Chemchina Finance.

During the review, we understood, tested and commented on the rationality and implementation of the risk management design by Chemchina Finance in respect of the preparation of accounting statements, and performed other procedures that we considered necessary. We believe that our audit provides a reasonable basis for our opinion.

Due to the inherent limitations of risk management, misstatements may occur and remain undiscovered due to errors or fraud. In addition, risk management may become inappropriate or the degree of conformity to control and risk management policies and procedures may decline due to changes in circumstances. Predicting the future effectiveness of risk management according to the risk assessment results is risky in some way. According to our understanding of and comments on the risk management, we did not find any significant defects in the risk management relating to the preparation of accounting statements of Chemchina Finance as of December 31, 2019.

This Report is used for Chemchina Finance to be reviewed by regulators only when conducting financial business. It shall not be used for any other purposes without written permission.

Beijing, China

Chinese Certified

March 1, 2020

Public Accountant:


Chinese Certified

Public Accountant:

Risk Assessment Notes of Chemchina Finance Co., Ltd.

I. The Company’s Basic Situation

Chemchina Finance Co., Ltd. (hereinafter referred to as the “Company”) is a non-banking financial institution approved by China Banking Regulatory Commission (financial license code: L0100H211000001) and registered in the State Administration for Industry and Commerce of the People’s Republic of China (ID: L087H101110108001). The registered capital was CNY 632.50 million at the time of establishment. The registered place of business is No. 62 West Road, North 4th Ring Road, Haidian District, Beijing, China. The opening time was July 2, 2009. On October 12, 2016, as approved by Beijing Regulatory Authority of the CBRC, the Company’s capital was increased to CNY 841.225 million. The shareholders and their equity ratios were: China National Chemical Corporation (holding, 49.41%), China National Bluestar (Group) Co., Ltd. (26.88%), China Haohua Chemical Group Co., Ltd. (15.81%) and China National Agrochemical Co., Ltd. (7.9%).

As of now, the Company’s scope of business approved by China Banking Regulatory Commission covers financial and financing advisory services, credit verification and related consulting, agency business to member units; provision of security to member units; helping member units with the receipt and payment of transaction proceeds; the approved insurance agency business; the entrusted loans and investments among the member units; bill acceptance and discount to the member units; internal transfer and settlement and the design of appropriate settlement & liquidation programs among member units; taking the deposits of member units; loans and finance leases to member units; interbank lending; underwriting the corporate bonds of member units; fixed income portfolio investment. The business of spot foreign exchange settlement and sales has been approved by the Beijing Foreign Exchange Administrative Department of the State Administration of Foreign Exchange. Filed with the Cross-Border Office of Operations Office of the People’s Bank of China for record, the Company has the qualification to conduct two-waycross-border RMB capital pool

business etc.

  1. II. The Company’s Internal Control

  2. Control environment

The Company has a sound structure of corporate governance with the establishment of a governance structure consisting mainly of the “three boards (the Board of Shareholders, the Board of Directors, and the Board of Supervisors) and one management”. Each governing body has formulated complete rules of procedure and job responsibilities and held meetings as required. The management and operation are carried out in a scientific and normalized way, providing the necessary preconditions for the effectiveness of risk management. On the principle of ensuring checks and balances among the decision-making system, executive system and supervisory & feedback system, the Company has set up an organizational structure with reasonable division of labor, definite responsibilities and clear reporting relationships. The decision-making system includes the Board of Shareholders, the Board of Directors and their subordinate Risk Control Committee and Audit Committee. The executive system includes senior management and its subordinate Credit Review Committee, Assets and Liabilities Management Committee, Investment Decision-Making Committee and business functions. The supervisory & feedback system includes the Board of Supervisors and the Risk Control Department and Audit Department directly responsible to the Board of Directors, constructing the three working procedures and the risk control system of separated front, middle and back grounds.

The Company’s organization chart is as follows:

Board of


Board of


Risk Control Committee

Audit Committee



Credit Review Committee

Assets and Liabilities

Management Committee

Investment Decision-Making


Department Customer VIP

Department Management Fund

Department Development Business

Department Business Settlement




















Board of Directors: responsible for reviewing and approving the Company’s overall business strategy and major policies, determining the acceptable risk level of the Company, approving the policies, systems and procedures relating to each business, appointing the management, supervising the effectiveness of internal control, regularly discussing with the management about the


effectiveness of internal control, regularly reviewing the internal control assessment reports provided by the management, audit authority and supervision department, and urging the management to implement the rectification measures.

Board of Supervisors: responsible for supervising the Board of Directors and senior management to improve the internal control system, supervising the Board of Directors and directors, senior management and senior executives to perform the internal control duties, asking the directors, Chairman of the Board and senior executives to correct their actions against the interests of the Company and supervising the implementation. Each year, the Board of Supervisors will assess the performance of duties of directors and senior executives and report to the Board of Shareholders.

Risk Control Committee: responsible to the Board of Directors, as the supreme decision-making body for enterprises-wide risk management, for reviewing the Company’s risk management framework, developing risk strategies and basic risk management policies, supervising and inspecting the execution, supervising the senior management’s risk control in the Company, reviewing the judgment criteria or mechanism of the Company’s major decisions, major risks, major events and important business processes, examining and approving the identification of liability for non-performing assets and the disposal and verification plans of non-performing assets etc. The Risk Control Committee consists of 3 members including at least 2 directors.

Audit Committee: responsible to the Board of Directors for ceaselessly supervising the internal control system of the Company, reviewing the management rules and regulations of the Company and their implementation, checking and assessing the compliance and effectiveness of the Company’s major business activities, reviewing the Company’s financial information and its disclosure, and inspecting, supervising and evaluating the Company’s internal audit etc. The Committee consists of at least three members, of whom two are directors.

Senior management: responsible for the execution of the Board decisions, the development of internal control policies, monitoring and evaluation of the adequacy and effectiveness of the internal control system, the establishment and implementation of sound and effective internal control, and taking measures to rectify internal control problems. Further, they are responsible for the establishment of procedures and measures for identifying, measuring, monitoring and controlling risks, the establishment of an internal organizational structure characterized by definite authorization and responsibilities and clear reporting relationship, to ensure that the responsibilities of internal control are to be effectively fulfilled;

Credit Review Committee: responsible to the General Manager for reviewing and approving the relevant working systems and work procedures relating to credit business, and making examination

and approval decisions on the credit business and other businesses declared by the VIP Customer Department.

Assets and Liabilities Management Committee: responsible to the General Manager for monitoring the risk indicators in the Company’s on- and off-balance-sheet assets, implementing measures to prevent and resolve asset risks, examining the Company’s interest rates, rates and other price policies, and timely working out countermeasures and formulating adjustment plans according to the Company’s assets and liabilities and existing problems.

Investment Decision-Making Committee: responsible to the General Manager for reviewing the annual investment strategy and annual investment plans, formulating risk management policies and strategies for portfolio investment, examining and approving the portfolio investment business within the authority of the Board of Directors.

Business Departments: the Company’s credit, fund, settlement, financial, information and other departments involve most of the Company’s assets and businesses and directly face various risks in daily work, constituting the frontline of the Company’s risk management. Each business department undertakes the following risk management responsibilities:

  1. Fully understanding and analyzing various risks in their department(s) to ensure that all businesses are conducted in accordance with the established procedures and that all internal control measures are effectively implemented;
  2. Recording and archiving the results of risk assessment and the implementation of internal control measures, accurately and promptly reporting the daily risk monitoring reports required by the Risk Control Department;
  3. Ceaselessly testing and assessing the effectiveness of internal control measures, and proposing improvement suggestions on operational procedures and internal control measures to the Risk Control Department; and
  4. Identifying and reporting any possible categories of risks in a timely manner and offering risk management suggestions.

Risk Control Department: As the specific implementation department for the decisions of the Risk Control Committee, responsible for leading and coordinating the risk management of the Company’s departments, with main responsibilities of formulating the Company’s risk management policies and systems, supervising and warning the risks of various business activities of the Company; organizing and implementing early warning, monitoring, analysis and implementation of internal control systems for all kinds of risks, and writing risk assessment reports, organizing the

research and audit of the Company’s rules and regulations, operational procedures, and reviewing customer credit rating evaluation methods and standards, organizing the implementation of asset risk classification and verification and authenticity inspection, and organizing the management and disposal of non-performing assets transferred, managing the Company’s general legal affairs, and conducting compliance review of the Company’s policies, procedures and systems.

Audit Department: independent from the business and management layers, responsible for evaluating the Company’s internal control, with primary responsibilities of conducting comprehensive audits and supervision of various departments, positions and operations, reporting regularly to the Board of Directors or its subordinate Audit Committee, and tracking the proposed rectification.

(II) Risk identification and assessment

The implementation of the internal control of the Company is organized by the Risk Control Department and supervised and evaluated by the Audit Department. All departments and agencies formulate their own different risk control systems, standardized operational procedures, operating standards and risk (including credit risk, operational risk, liquidity risk and compliance risk) prevention measures within the scope of their responsibilities according to different characteristics of each business. The departments have separated responsibilities and are mutually supervised. Various risks in the proprietary operation are predicted, evaluated and controlled.

(III) Control activities

1. Fund management

Based upon all rules and regulations of the China Banking Regulatory Commission, the Company has formulated the Fund Management Measures of Chemchina Finance Co., Ltd., Measures for the Management of Deposit Business of Chemchina Finance Co., Ltd., Measures for the Management of RMB Settlement Account of Chemchina Finance Co., Ltd., Measures for the Management of Foreign Exchange Accounts of Chemchina Finance Co., Ltd., Settlement Business Management Measures of Chemchina Finance Co., Ltd., Internal Risk Control System for Settlement Business of Chemchina Finance Co., Ltd., Measures for the Management of Use of Online Banking System of Chemchina Finance Co., Ltd., Measures for the Management of Bank Accounts of Chemchina Finance Co., Ltd., Measures for the Management of Fund Liquidity Risk of Chemchina Finance Co., Ltd., Measures for the Management of Interest Rate Risks in Bank Accounts of Chemchina Finance Co., Ltd., Measures for Assets and Liabilities Management of Chemchina Finance Co., Ltd., Measures for the Management of Pricing of Deposit and Loan Interest Rates of

Chemchina Finance Co., Ltd. and other business management measures and operation procedures, so that the business risks are first controlled by the rules of practice and control standards set forth in the procedures and processes.

  1. In terms of fund plan management, the Company’s business operations are strictly following the asset and liability management rules set forth in the Management Approach for Finance Companies of Enterprise Groups to ensure the safety, profitability and liquidity of the Company’s funds by formulating and implementing the fund plan management.
  2. In terms of deposit business for member units, the Company strictly follows the principles of equality, voluntariness, fairness and good faith to protect the funds of member units and safeguard the legitimate rights and interests of all parties concerned.
  3. In terms of transfer and settlement business, member units open settlement accounts in the Company and submit instructions for funds settlement online through the Company’s settlement platform to ensure safe, fast and smooth settlement of accounts with high data security.
  4. In terms of bank financing, the Company has established the Measures for the Management of Discount by Transfer and Operation Procedures of Chemchina Finance Co., Ltd. and Measures for the Inter-bankLending Management of Chemchina Finance Co., Ltd., and strictly followed the limits on business scope and scale stipulated by the CBRC and the PBC in practice.

2. Accounting business control

In accordance with the requirements of the accounting system, the Company has established and implemented the standardized accounting procedures. The Company has established an independent financial accounting department so that the accounting department and accounting personnel can independently handle the accounting business in accordance with the unified national accounting system. The Company has clearly defined the privileges of the accounting department and accounting personnel. The accounting personnel shall handle the relevant business within their respective powers. Any business beyond such powers must be subject to further authorization. The principle of separation of duties and mutual restraint is practiced for the Company’s settlement and accounting positions. One person is strictly prohibited from serving on incompatible positions or completing the entire process of settlement and accounting operations alone. The Company will reconcile the accounting books with the physical objects, funds and related materials on a regular basis to ensure that the relevant contents between the records and the physical objects, notes, payments, documents, accounts and statements are consistent.

In accordance with the principle of concierge management, mutual restraint, proper review and

approval and strict registration, the Company strengthens the management of contracts, notes, seals and keys, and separated custody of seals and bills. For important contracts and notes, serial number control, obsolescence control, blank voucher control, recipient registration control and other special measures are implemented. In case of any changes in accounting personnel, handover procedures are conducted with the receivers as strictly supervised by the supervisor.

3. Credit business control

The receivers of the Company’s loans are limited to the member units of China National Chemical Corporation. According to the different characteristics of various businesses, the Company has formulated the Management of Comprehensive Credit Granting in Credit Business of Chemchina Finance Co., Ltd., Measures for Loan Management of Chemchina Finance Co., Ltd., Operation Procedure for Loan Business of Chemchina Finance Co., Ltd., Measures for the Management of Customer Credit Rating of Chemchina Finance Co., Ltd., Measures for the Management of Post-loanInspection of Chemchina Finance Co., Ltd. and Measures for the Management of Commercial Drafts Discount of Chemchina Finance Co., Ltd. etc. With constant revision and improvement, the Company has standardized the business operation processes and established the complete pre-loan,in-loan and post-loan credit management system.

  1. A system of separated credit review and approval has been established with definite responsibilities and mutual restraints.

The Company determines the review procedures and approval authority according to the scales, types, terms and guarantee conditions of the loans, then reviews and approves the loans in strict accordance with the procedures and authorities.

The Company has established and improved the responsibility system of the credit department and credit posts, which are of well-defined functions and clear-cut responsibilities. Loan investigation and appraisal personnel take charge of credit investigation and appraisal and are liable for investigation errors and inaccurate appraisal; the loan reviewers take charge of the review of credit risks, and are liable for the review errors; the loan originators take charge of the check and collection of loans, and are liable for check errors and poor collection.

The Company has established an effective mechanism for loan decision making. The Credit Review Committee has been set up to review various types of credit businesses submitted for consideration by relevant departments. The Committee considers and votes on the principle of collective review, express opinions, and majority rule, and all the opinions are recorded. For the project approved by the Credit Review Committee, General Manager has a veto; for those not

approved by the Credit Review Committee, General Manager shall never give credit or issue loans.

  1. The post-loan management system is strictly implemented. The VIP Customer Department is responsible for monitoring and managing loan applications, interest receipts, overdue loans and rollover loans, and carries out post-loan inspection on the safety and recoverability of loans.

The Company has set up an asset risk classification system to normalize the standards and procedures for the identification of asset quality. The authenticity of the asset quality must be ensured and it is forbidden to cover up the real situation of non-performing assets.

  1. Customer management information files have been established to have a comprehensive and centralized grasp of customer information such as creditworthiness, financial status and solvency. Customers are subject to classified management so that those “blacklisted” borrowers of bad credit standing or involved in debt evasion and revoking are banned credit.

4. Investment business control

The Company obtained the qualification to conduct fixed income securities investment business on December 21, 2016. In 2018, the Company started its investment in the monetary fund and the bond investment business of the Group. In order to keep the risks in investing new businesses controllable, the Company has established the Investment Decision-Making Committee, developed investment strategies and plans, formulated and implemented the Working System of Investment Decision-MakingCommittee of Chemchina Finance Co., Ltd., Measures for the Management of Negotiable Securities Investment Business of Chemchina Finance Co., Ltd., Rules for the Management of Bond Investment Business of Chemchina Finance Co., Ltd., Rules for Operation of Monetary Fund of Chemchina Finance Co., Ltd., Rules for the Management of Securities Trading Accounts of Chemchina Finance Co., Ltd., Measures for the Management of Investment Business Risks of Chemchina Finance Co., Ltd. and other investment business management systems, identified and evaluated the investment business risks, and established a hierarchical authorization system of investment businesses.

In terms of risk management, the Company has established an organizational structure of investment business risks, in which the risk limits are set based on the target that regulatory indicators get full scores in rating to monitor the implementation of the quotas and the level of regulatory indicators.

In terms of system construction, in order to embed various regulatory provisions and internal control requirements into the information system, the Company initiated the development of the investment business system, and is currently in the selection development stage.

5. Internal audit control

The Company implements internal audit and supervision system. An internal audit department responsible for the Board of Directors – Audit Department has been set up. Internal audit management methods and operating procedures are established for the performance of internal audit and oversight of various economic activities of the Company.

The Audit Department is responsible for the Company’s internal audit, i.e. assessing the adequacy and effectiveness of the following controls over risks within the organization such as internal governance, operation and information systems: the reliability and integrity of financial and operational information; the efficiency and effectiveness of operations and procedures; the security of assets; compliance with laws, regulations, policies, procedures and contracts; and proposing valuable improvement opinions and suggestions to the management.

6. Information system control

The Company has established an overall control system of the computer information system, in an effort to strengthen the general control and application control to the computer information system. The Company has strictly divided the responsibilities of computer information system development, management and application departments, established and improved the risk prevention systems and measures of computer information system. The Company has developed the Measures for Emergency Management of Information System of Chemchina Finance Co., Ltd., Measures for the Management of Remote Disaster Recovery System of Chemchina Finance Co., Ltd., Information Security Management Measures of Chemchina Finance Co., Ltd., Outsourcing Management Measures of Chemchina Finance Co., Ltd. and other management systems, in line with the Information System Risk Management Guide for Banking Financial Institutions (YJH [2007] No. 63), Basic Requirements of Information System Security Grade Protection and other regulatory requirements.

The system is constructed according to the commercial bank information construction standards from the perspectives of physical security, network security, host security, application security, data security and backup and recovery, and technical means such as access control and intrusion prevention, CA certification encryption technology, dual-computermulti-levelthree-dimensional protection are utilized to ensure the security and stability of the system. The main features are dual Internet link, dual redundant hot standby technology, stable and reliable business platform; the data transmission encryption, RAID and data offline backup technology are employed to effectively ensure the data security; The core layer of the information system network environment is configured with two Cisco firewalls (transparent mode) and two TOPSEC firewalls (routing mode),

realizing the heterogeneity of network security equipment. Deployment of Internet behavior management system, monitoring platform, bastion host, virus server, leakage and anti-attack modules; in terms of host, storage and backup, the core of the Company’s information system adopts the security architecture of two locations and three centers, the production host adopts the double hot standby, and the two storages form the mirror mode; the adoption of personal CA certificate for authentication has effectively identified the user identity, and prevented impersonation, tampering and repudiation. The development, management and application of the information system are separated from each other. The information system is managed by specially assigned full-time persons from IT Department. The information system is subdivided into different business departments according to the business modules, and the operation authorities are granted by General Manager of the Company to the operators within their business scope. Specific operations are divided by the operators according to the Company’s business departments, with each performing his own functions.

(IV) Emergency preparation and response

In order to carry out the directive spirit of the CBRC and the Beijing Municipal Government that “Everything matters in financial industry and in Beijing”, the Company has paid persistent attention to risk management as its daily routine, formulated and submitted the Emergency Response Plans of Chemchina Finance Co., Ltd. on Contingencies and Measures for the Management of Fund Liquidity Risk of Chemchina Finance Co., Ltd., and designed the emergency response plans and procedures for the situations where financial safety of Chemchina Finance is affected by operations or other issues, in an effort to identify possible contingencies or emergencies (including computer systems), prevent or minimize the potential losses and ensure the continuous operation of the businesses. In addition, Article 80 of the Articles of Association states: “When China National Chemical Corporation increases its capital in accordance with the actual needs of solving the urgent payment difficulties of Chemchina Finance, it shall be immediately reported to the China Banking Regulatory Commission.”

(V) Overall evaluation of internal control

The Company has implemented the “abolishing, revising and formulating” systems. By systematically reviewing the existing rules and regulations and operational procedures in each business, revising the clauses that do not meet the internal control requirements of the regulatory authorities, and timely abolishing the rules and regulations that no longer apply, it has effectively improved the compliance of the existing rules and regulations, providing a strong support for compliant operations and management of all businesses. On the whole, the Company’s internal

control system is sound and the implementation is effective. In terms of capital management, the Company has better controlled the risks of fund flow; in terms of credit business, the Company has established the appropriate credit business risk control procedures, so that the overall risk control is in a reasonable level.

Effective information exchange and feedback mechanisms have been established to ensure that the Board of Directors, the Board of Supervisors and the management team keep abreast of the Company’s operation and risk situation, that every piece of information can be communicated to the relevant employees, and that all relevant departments and employees can provide feedback smoothly. The information exchange and feedback mechanisms for risk management mainly include the following aspects:

  1. The Risk Control Department reports regularly the risk management situation to the Board of Directors and the Board of Supervisors every year.
  2. Feedback is promptly delivered to the relevant departments and employees.
  3. The Company strengthens the internal training and learning of risk management to raise the risk management awareness of all employees.
  4. The Company has established the internal control report and information feedback systems. In case business departments, internal audit departments and other control personnel identify any hidden dangers and defects of internal control, they can timely report to the management or departments concerned.
  5. The Company’s Audit Department conducts periodic inspection and assessment to the construction and implementation of the internal control systems, puts forward suggestions for improvement and gives advice on punishing the entities and individuals in violation of the provisions.
  6. The Company has established a mechanism to rectify internal control issues and defects. The management puts forward rectification opinions and corrective actions based on the inspection and assessment results of internal control, and urges the business departments to implement them.
  1. The Company’s Business Management and Risk Management
  1. Business conditions

As of December 31, 2019, Chemchina Finance’s total assets are CNY 16.656 billion, including net loans of CNY 8.077 billion, total liabilities of CNY 15.248 billion, deposit taking of CNY 15.184

billion from member units, owners’ equity of CNY 1.408 billion, 2019 realized revenues of CNY 383 million, total profit of CNY 104 million and net profit of CNY 78 million.

2. Management

Since its establishment, the Company has always adhered to the principle of prudent operation, and strictly complied with the Company Law of the People’s Republic of China, Law of the People’s Republic of China on Regulation of and Supervision over the Banking Industry, Accounting Standards for Business Enterprises, Management Approach for Finance Companies of Enterprise Groups and the national financial regulations, rules and the Company’s articles of association to standardize the business practices and strengthen the internal management.

Based on the regulatory requirements of listed companies, the Company shall check the deposits of listed companies daily in order not to exceed the deposit limits disclosed; Meantime, according to the risk management requirements of some listed companies, daily monitoring and weekly feedback are given to the proportion of listed companies’ deposits in the total deposits of the Company.

3. Regulatory indicators

According to Article 34 of the Management Approach for Finance Companies of Enterprise Groups, as of December 31, 2019, Chemchina Finance’s regulatory indicators are in line with the requirements:

(1) The capital adequacy ratio shall not be less than 10%:

Capital adequacy ratio = Net capital / Risk-weighted assets = 14.40%

The Company’s capital adequacy ratio was 14.40%, in line with the regulatory requirements.

(2) The non-performing asset ratio shall not exceed 4%

Non-performing asset ratio = Bad credit risk assets / Credit risk assets = 0

The Company’s non-performing asset ratio was zero, in line with the regulatory requirements.

  1. The non-performing loan (NPL) ratio shall not exceed 5% NPL ratio = NPL / Loans = 0
    The Company’s NPL ratio was zero, in line with the regulatory requirements.
  2. The adequacy ratio of reserves for asset loss shall not be less than 100%

Adequacy ratio of reserves for asset loss = Actual reserves of credit risk assets / Required reserves of credit risk assets = 182,592.58%

The Company’s adequacy ratio of reserves for asset loss exceeded 100%, in line with the regulatory requirements.

(5) The adequacy ratio of reserves for loan loss shall not be less than 100%

Adequacy ratio of reserves for loan loss = Actual reserves for loan loss / Required reserves for loan loss = Infinite

The Company’s adequacy ratio of reserves for loan loss exceeded 100%, in line with the regulatory requirements.

  1. The balance of funds from other banks shall not be higher than the total capital: Fund borrowing ratio = Inter-bank borrowing / Total capital = 0

The Company’s fund borrowed from other banks was less than the capitalization, which is in line with the regulatory requirement.

  1. The ratio of investment to total capital shall not exceed 70% Investment ratio = Investment / Total capital = 6.53%
    The Company’s investment ratio was 6.53%, in line with the regulatory requirements.
  2. The guarantee ratio shall not exceed 100%:

Guarantee ratio = (Credit business equivalent to loans – Security deposit – Bank deposit receipts – National debts – Bank acceptance) / Total capital = 6.75%

The Company’s guarantee ratio was 6.75%, in line with the regulatory requirements.

  1. The ratio of owned fixed assets to total capital shall not exceed 20%: Ratio of owned fixed assets = Owned fixed assets / Total capital = 0.15%

The ratio of the Company’s own fixed assets to total capital was 0.15%, in line with the regulatory requirements.

  1. The liquidity ratio shall be no less than 25%: Liquidity ratio = Liquid assets / Liquid liabilities = 63.70%
    The Company’s liquidity ratio was 63.70%, in line with the regulatory requirements.

(11) Shareholders’ Deposits and Loans (Unit: CNY 10,000)

Name of shareholder

Investment amount















Co., Ltd.








Co., Ltd.


China National Agrochemical Co.,









According to Article 46 of the Management Approach for Finance Companies of Enterprise Groups, “If the balance of loans granted by the finance corporation to a single shareholder exceeds 50% of the registered capital of the finance corporation or the shareholder’s contribution to the finance corporation, it shall be promptly reported to the China Banking Regulatory Commission”. The Company reports quarterly to the Beijing Regulatory Authority of China Banking Regulatory Commission.

To sum up, the Company has legal and valid Financial License, Business License for Legal Person, has established a relatively complete and reasonable internal control system, and can better control the risks. The Company has never experienced a run of deposits, nonpayment of matured debts, large loans overdue or guaranteed advances, neither robbery nor fraud, directors or senior executives involved in severe disciplinary violations, criminal cases or other major matters; the Company has never suffered from any major organizational changes, equity transaction or operational risks that might affect its normal operation; the Company has never been punished or ordered to rectify by the China Banking Regulatory Commission or other regulators; there was no violation of the Management Approach for Finance Companies of Enterprise Groups promulgated by the China Banking Regulatory Commission, and all the regulatory indicators met the requirements of Article 34 of the Management Approach.

Chemchina Finance Co., Ltd.

March 1, 2020


Blue Star Adisseo Co. Ltd. published this content on 21 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2020 15:33:02 UTC

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Bad Credit

Inside the Highly Profitable and Secretive World of Payday Lenders



Illustration by Sarah Maxwell, Folio Art

When Bridget Davis got started in the family’s payday lending business in 1996, there was just one Check ’n Go store in Cincinnati. She says she did it all: customer service, banking duties, even painting walls.

The company had been established two years earlier by her husband, Jared Davis, and was growing rapidly. There were 100 Check ’n Go locations by 1997, when Jared and Bridget (née Byrne) married and traveled the country together looking for more locations to open storefront outlets. They launched another 400 stores in 1998, mostly in strip malls and abandoned gas stations in low-income minority neighborhoods where the payday lending target market abounds. Bridget drove the supply truck and helped select locations and design the store layouts.

But Jared soon fired his wife for committing what may be the ultimate sin in the payday lending business: She forgave a customer’s debt. “A young woman came to pay her $20 interest payment,” Bridget wrote in court documents last year during divorce proceedings from Jared. “I pulled her file, calculated that she had already paid $320 to date on a principle [sic] loan of $100. I told her she was paid in full. [Jared] fired me, stating, ‘We are here to make money, not help customers manage theirs. If you can’t do that, you can’t work here.’ ”

Photograph by Brittany Dexter

It’s a business philosophy that pays well, especially if you’re charging fees and interest rates of 400 percent that can more than triple the amount of the loan in just five months—the typical time most payday borrowers need to repay their debt, says the Pew Charitable Trusts, a nonprofit organization focused on public policy. Cincinnati-based Check ’n Go now operates more than 1,100 locations in 25 states as well as an internet lending service with 24/7 access from the comfort of your own home, according to its website. Since its founding, the company has conducted more than 50 million transactions.

What the website doesn’t say is that many, if not most, of those transactions were for small loans of $50 to $500 to working people trying to scrape by and pay their bills. In most states—including Ohio, until it reformed its payday lending laws in 2019—borrowers typically fork over more than one-third of their paycheck to meet the deadline for repayment, usually in two weeks. To help guarantee repayment, borrowers turn over access to their checking account or deposit a check with the lender. In states that don’t offer protection, customers go back again and again to borrow more money from the same payday lender, typically up to 10 times, driving themselves into a debt trap that can lead to bankruptcy.

Jared and Bridget Davis are embroiled in a nasty court battle related to his 2019 divorce filing in Hamilton County Domestic Relations Court. Thousands of pages of filings and 433 docket entries by April 26 offer the public a rare glimpse into the business operations of Check ’n Go, one of Cincinnati’s largest privately-owned companies, as well as personal lifestyles funded by payday lending.

The company cleared $77 million in profit in 2018, a figure that dipped the following year to $55 million, according to an audit by Deloitte. That drop in revenue may have something to do with the payday lending reform laws and interest rate caps passed recently in Ohio as well as a growing number of other states.

The day-to-day business transactions that provide such profit are a depressing window into how those who live on the edge of financial security are often stuck with few options for improving their situations. If a borrower doesn’t repay or refinance his or her original loan, a lender like Check ’n Go deposits the guarantee check and lets it bounce, causing the borrower to incur charges for the bounced check and eventually lose his or her checking account, says Nick DiNardo, an attorney for the Legal Aid Society of Greater Cincinnati. After two missed payments, payday lenders usually turn over the debt to a collection agency. If the collection agency fails to collect the full amount of the original loan as well as all fees and interest, it goes to court to garnish the borrower’s wages.

That devastating experience is all too familiar to Anthony Smith, a 60-year-old Wyoming resident who says he was laid off from several management positions over a 20-year period. He turned to payday lenders as his credit rating dropped and soon found himself caught in a debt trap that took him years to escape.

Two things happened in 2019, Smith says, that turned around his financial fortunes. First, he found a stable manufacturing job with the Formica Company locally, and then he took his mother’s advice and opened a credit union account. GE Credit Union not only gave him a reasonable loan to pay off his $2,500 debt but also issued him his first credit card in a decade. “I had been a member [of the credit union] for just two months, and I had a credit rating of 520. Can you imagine?” he says. Smith says he is now debt-free for the first time in 10 years.

Consumer advocates say Check ’n Go is one of the biggest payday lending operations in the nation. But knowing its exact ranking is difficult because most payday lending companies, including Check ’n Go and its parent company CNG Holdings, are privately held and reluctant to disclose their finances.

Brothers Jared and David Davis own the majority of the company’s privately held stock. David bought into the company in 1995, but CNG got its game-changing infusion of capital from the brothers’ father, Allen Davis, who retired as CEO of then-Provident Bank in 1998. Allen sold off $37 million in stock options and essentially became CNG’s bank and consultant.

By 2005, however, the sons were part of a public court battle against their father. Allen accused Jared and David of treating his millions in CNG stock as compensation instead of a transfer from his ex-wife (and the brothers’ mother), sticking him with a $13 million tax bill. In turn, the brothers accused Allen of putting his mistress and his yacht captain on the company payroll, taking $1.2 million in fees without board approval, and leading the company into ventures that lost Check ’n Go a lot of money. Several years of legal fighting later, the IRS was still demanding its $13 million. CNG officials did not respond to requests for comment for this story.

Jared and David split $22 million in profit from CNG in 2018 and, according to the Deloitte audit, CNG’s balance sheet showed another $42 million that could be split between the two brothers in 2019. Jared, however, elected not to receive his $21 million distribution “in order to create this artificial financial crisis and shelter millions of dollars from an equitable split between us,” according to Bridget’s divorce filing.

Worse, she claims, Jared said they would be responsible for paying taxes out of their personal accounts rather than from CNG’s company earnings, making her personally responsible for half of the $5.5 million in taxes for 2019. She believes it wasn’t happenstance that $5.5 million was wired to Jared’s private bank account in December of that same year. Bridget has refused to sign the joint tax return, and Jared filed a complaint with the court saying a late tax filing would cost them $1 million in penalties and missed tax opportunities.

“For the duration of our marriage and to the present, Jared has full and complete control of all money paid to us from various investments we have made in addition to our main source of income, CNG,” Bridget wrote in her motion. She suspects that Jared, without her knowledge or consent, plowed the money for their taxes and from other sources of income into Black Diamond Group, the fund that invests in the Agave & Rye restaurant chain. Beyond the original restaurant opened in Covington in 2018, “they have opened four other locations in one year,” she wrote, including Louisville and Lexington. (The ninth location opened in Hamilton this spring.) Agave & Rye’s website touts its Mexican fare as “a chef-inspired take on the standard taco, elevating this simple food into something epic!”

In his response, Jared wrote, “We have very limited regular sources of income.” He says he isn’t receiving any additional distributions from CNG, the couple’s primary source of income, “and this is not within my control. The company has declared that we would not make any further distributions in 2020 given economic circumstances. This decision is based on a formula and is not discretionary.” Agave & Rye helped produce $645,000 in income for Black Diamond in 2020 but has paid out $890,000 in loans, he says. Through August 31, 2020, he wrote, the couple’s “expenses have exceeded income from all sources.”

The divorce case filings start slinging mud when the couple accuses each other of breaking up their 22-year marriage and finding new partners. Jared claims Bridget began an affair during their marriage with Brian Duncan, a contractor she employed through her house flipping business. Bridget, he says, paid Duncan’s company $75,000 in 2018 as well as giving him a personal gift of $70,000 that same year. Jared says she also bought Duncan at least one car and purchased a house for him near hers on Shawnee Run Road for $289,000, then loaned money to Duncan. Jared says Duncan has been late in repaying the note.

While Bridget says Duncan has been drug-free for several years, he has a rap sheet with Hamilton County courts from 2000 to 2017 that runs five pages long. It lists a half-dozen counts of drug abuse and drug possession, including heroin and possession of illegal drug paraphernalia; assaulting a police officer; stealing a Taser from a police officer; criminal damaging while being treated at UC Health; more than a dozen speeding and traffic violations; a half-dozen counts of driving with a suspended license; receiving stolen property; twice fleeing and resisting arrest; three counts of theft; two counts of forgery; and one count for passing bad checks.

Bridget has fired back that Jared not only is hiding his money from her but spending it lavishly on vacations, resorts, and high-end restaurants with his new girlfriend, Susanne Warner. Bridget says Jared gifted Warner with $40,000 without Bridget’s knowledge, then declared it on their joint tax return as a “contribution.” Bridget’s court filings include photocopies of social media posts of Jared and Warner globetrotting from summer 2019 to summer 2020: vacation at Beaver Creek Village in Avon, Colorado; cocktails at High Cotton in Charleston, South Carolina, and dinner at Melvyn’s Restaurant and Lounge in Palm Springs, California; getaways at resorts in Nashville and at a lakefront rental on Norris Lake ($600 per night); in the Bahamas at a Musha Cay private residence ($57,000 per night), at South Beach in Miami, and at a private beach at Fisher Island; in Mexico at Cabo San Lucas; in the U.S. Virgin Islands at Magen’s Bay and on a private yacht ($4,500 per night); in California at Desert Hot Springs, the Ritz-Carlton in Rancho Mirage, and Montage at Laguna Beach; and in the Bahamas at South Cottage ($2,175 per night).

For her part, Bridget has gone through some of the top lawyers in town faster than President Trump during an impeachment—six in all, two of whom she’s sued for malpractice. She sent four binders of evidence to the Ohio Supreme Court, asking for the recusal of Hamilton County Judge Amy Searcy and claiming Searcy was biased because of campaign donations from Jared and his companies. Rather than deal with the list of questions sent to her by Chief Justice Maureen O’Connor, Searcy stepped down. Two other judges have since stepped into the fray, and in March Bridget filed for a change of venue outside of Hamilton County, arguing she can’t get a fair trial in her hometown. At press time, a trial date had been set for June 28 in Hamilton County.

The poor-mouthing in the divorce case has reached heights of comic absurdity. Jared claims he’s “illiquid” because he didn’t get his distribution from CNG in 2019. Bridget has received debt collection notices for the nearly $21,000 owed on her American Express card and a $735 bill from Jewish Hospital. There’s no sign yet that anyone is coming to repossess her Porsche, which according to her filings has a $5,000 monthly payment. Each party has received $25,000 a month in living expenses, an amount later reduced to $15,000 under a temporary legal agreement while the divorce case is being sorted out. Court filings show that Jared’s net worth is almost $206 million and Bridget’s is $22.5 million.

In the early 1990s, Allen Davis was raising eyebrows at Provident Bank (later bought by National City), and not only because of his very unbanker-like look of beard, ponytail, and casual golf wear. He was leading the company into questionable subprime home loans for people with bad credit and a frequent-shopper program for merchants, though the bank’s charter barred him from getting involved in full-blown predatory lending practices. With guidance and funding from his father, Jared, at age 26, launched Check ’n Go in 1994 and became a pioneer in the payday lending industry. Jared and his family saw there were millions of Americans who didn’t have checking or savings accounts (“unbanked”) or an adequate credit rating (“underbanked”) but still needed loans to meet their everyday expenses. What those potential customers did have was a steady paycheck.

Conventional banks share a big part of the blame for the nation’s army of unbanked borrowers by imposing checking account fees and onerous penalties for bounced checks. In 2019, the Federal Deposit Insurance Corporation estimated there were 7.1 million U.S. households without a checking or savings account.

The Davises launched Check ’n Go on the pretext that it would “fill the gap” for people who occasionally needed to borrow money in a hurry—a service for those who couldn’t get a loan any other way. But consumer advocates say the real business model for payday lending isn’t a service at all. The majority of the industry’s revenue comes from repeat business by customers trapped in debt, not from borrowers looking for a quick, one-time fix for their financial troubles.

Ohio’s payday lending lobbyists got a strong hold on the state legislature in the late 1990s, and by 2018 Democratic gubernatorial candidate Richard Cordray could rightfully claim in a campaign ad that “Ohio’s [payday lending] laws are now the worst in the nation. Things have gotten so bad that it is legal to charge 594 percent interest on loans.” His statement was based on a 2014 study by the Pew Charitable Trusts.

The frustration for consumer advocates was that Ohioans had been trying to reform those laws since 2008, when voters overwhelmingly approved a ballot initiative placing a 28 percent cap on the interest of payday loans. But—surprise!—lenders simply registered as mortgage brokers, which enabled them to charge unlimited fees.

The Davis family and five other payday lending companies controlled 90 percent of the market back then, an express gravy train ripping through the poorest communities in Ohio. The predatory feeding frenzy, especially in Ohio’s hard-hit Rust Belt communities, prompted a 2017 column at The Daily Beast titled, “America’s Worst Subprime Lender: Jared Davis vs. Allan Jones?” (Jones is founder and CEO of Tennessee-based Check Into Cash.) In 2016 and 2017, consumer advocates mustered their forces again, and this time they weren’t allowing for loopholes. The Pew Charitable Trusts joined efforts with bipartisan lawmakers and Ohioans for Payday Loan Reform, a statewide coalition of faith, business, local government, and nonprofit organizations. Consumer advocates found a legislative champion in State Rep. Kyle Koehler, a Republican from Springfield.

It no doubt helped reform efforts that former Ohio Speaker of the House Cliff Rosenberger resigned in spring 2018 amid an FBI investigation into his cozy relationship with payday lenders. Rosenberger had taken frequent overseas trips—to destinations including France, Italy, Israel, and China—in the company of payday lending lobbyists. In April 2019, Ohio’s new lending law took effect and, since then, has been called a national model for payday lending reform that balances protections for borrowers, profits for lenders, and access to credit for the poor, according to the Pew Charitable Trusts. New prices in Ohio are three to four times lower for payday loans than before the law. Borrowers now have up to three months to repay their loans with no more than 6 percent of their paycheck. Pew estimates that the cost of borrowing $400 for three months dropped from $450 to $109, saving Ohioans at least $75 million a year. And despite claims that the reforms would eliminate access to credit, lenders currently operate in communities across the state and online. “The bipartisan success shows that if you set fair rules and enforce them, lenders play by them and there’s widespread access to credit,” says Gabe Kravitz, a consumer finance officer at the Pew Charitable Trusts.

Other states like Virginia, Kansas, and Michigan are following Ohio’s lead, Kravitz says. Some states, such as Nebraska, have even capped annual interest on payday loans. As a result, Pew researchers have seen a reduction in the number of storefront lending op­erations across the country. Even better, Kravitz says, there’s no evidence that borrowers are turning instead to online payday lending operations.

Cincinnati is one of five cities chosen for a grant to replicate the success of Boston Builds Credit, an ambitious effort that city launched in 2017 to provide credit counseling in poor and minority communities by training specialists at existing social service agencies. The program also encourages consumer partnerships with credit unions, banks, and insurance companies to offer small, manageable loans that can help the unbanked and underbanked improve their credit ratings. “Right now, local organizations are all kind of working in silos on the problem in Cincinnati,” says Todd Moore of the nonprofit credit counseling agency Trinity Debt Relief. Moore, who applied for the Boston grant, says he’s looking for an agency like United Way or Strive Cincinnati to lead the effort here.

Anthony Smith is thankful that he’s escaped the downward spiral of his payday loans, especially during the pandemic’s economic turmoil. “I’m blessed for every day I can get paid and have a job during these difficult times, just to be able to pay my bills and meet my responsibilities,” he says. “I’ve always kept a job, but until now I’ve had crappy credit. That doesn’t mean I’m a bad guy.”

Can others worth millions of dollars say the same?

Inside the Highly Profitable and Secretive World of Payday Lenders Source link Inside the Highly Profitable and Secretive World of Payday Lenders

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What’s Questionable Credit and Can I Get a Car Loan With It?



Questionable’s definition means that something’s quality is up for debate. If a lender says that your credit score is questionable, it’s likely that they mean it’s poor, or at the very least, they’re hesitant to approve you for vehicle financing. Here’s what most lenders consider questionable credit, and what auto loan options you may have.

Questionable Credit and Auto Lenders

Many auto lenders may consider questionable credit as a borrower with a credit score below 660. The credit score tiers as sorted by Experian the national credit bureau, are:

  • Super prime: 850 to 781
  • Prime: 780 to 661
  • Nonprime: 660 to 601
  • Subprime: 600 to 501
  • Deep subprime: 500 to 300

The nonprime credit tiers and below is when you start to get into bad credit territory and may struggle to meet the credit score requirements of traditional auto lenders.

This is because lenders are looking at your creditworthiness – your perceived ability to repay loans based on the information in your credit reports. Besides your actual credit score, there may be situations where the items in your credit reports are what’s making a lender question whether you’re a good candidate for an auto loan. These can include:

  • A past or active bankruptcy
  • A past or recent vehicle repossession
  • Recent missed/late payments
  • High credit card balances
  • No credit history

There are ways to get into an auto loan with questionable credit. Your options can change depending on what’s making your credit history questionable, though.

Questionable Credit Auto Loans

If your credit score is less than stellar, it may be time to look at these two lending options:

  • What Is Questionable Credit and Can I Get a Car Loan With It?Subprime financing – Done through special finance dealerships by third-party subprime lenders. These lenders can often assist with many unique credit situations, provided you can meet their requirements. A great option for new borrowers with thin files, situational bad credit, or consumers with older negative marks.
  • In-house financing – May not require a credit check, and is done through buy here pay here (BHPH) dealers. Typically, your income and down payment amount are the most important parts of eligibility. Auto loans without a credit check may not allow for credit repair and may come with a higher-than-average interest rate.

Both of these car loan options are typically available to borrowers with credit challenges. However, if you have more recent, serious delinquencies on your credit reports, a BHPH dealer may be for you. Most traditional and subprime lenders typically don’t approve financing for borrowers with a dismissed bankruptcy, a repossession less than a year old, or borrowers with multiple, recent missed/late payments.

Requirements of Bad Credit Car Loans

In many cases, your income and down payment size are the biggest factors in your overall eligibility for bad credit auto loans. Expect to need:

  • 30 days of recent computer-generated check stubs to prove you have around $1,500 to $2,500 of monthly gross income. Borrowers without W-2 income may need two to three years of professionally prepared tax returns.
  • A down payment of at least $1,000 or 10% of the vehicle’s selling price. BHPH dealers may require up to 20% of the car’s selling price.
  • Proof of residency in the form of a recent utility bill in your name.
  • Proof of a working phone (no prepaid phones), proven with a recent phone bill in your name.
  • A list of five to eight personal references with name, phone number, and address.
  • Valid driver’s license with the correct address, can’t be revoked, expired, or suspended.

Depending on your individual situation, you may need fewer or more items to apply for a bad credit auto loan. However, preparing these documents before you head to a dealership can speed up the process!

Ready to Get on the Road?

With questionable credit, finding a dealership that’s able to assist you with an auto loan is easier said than done. Here at Auto Credit Express, we want to get that done for you with our coast-to-coast network of special finance dealerships.

Complete our free auto loan request form and we’ll get right to work looking for a dealer in your local area that can assist with many tough credit situations.

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Bad Credit

Entrepreneur Tae Lee Finds Her Fortune



By Jasmine Shaw
For The Birmingham Times

Birmingham native Tae Lee had plans last year to visit the continent of Africa, the South American country of Columbia, and the U.S. state of Texas.

“I was going to stay in each place for like four to six weeks, and then COVID-19 happened,” she said. “So, I just was like, ‘You know what, I’m just gonna go to Mexico and stay for six months.’”

Once home from Playa Del Carmen, located on Mexico’s Yucatán Peninsula, the 33-year-old entrepreneur put the final touches on “Game of Fortune: Win in Wealth or Lose in Debt,” a financial literacy card game for ages 10 and up.

“We created ‘Game of Fortune’ because we realized there was a gap in learning the fundamentals of money,” said Lee. “We go through life not knowing anything about money and then—‘Bam!’—real life hits. Credit, debt, and bills come at us quick!”

Lee believes the game “gives players a glimpse of real life” by using everyday scenarios to teach them how to make wiser financial decisions without having to waste their own money.

“I feel like [financial literacy] can be learned in ways other than somebody standing up and preaching it to you over and over again,” she said. “You can learn it in ways that are considered fun, as well.”

Which is why “we want the schools to buy it, so we can give students a fun way to learn about financial literacy,” she added.

Lee, also called the “Money Maximizer,” is an international best-selling financial author, speaker, coach, and trainer who is known for her financial literacy books, including “Never Go Broke (NGB): An Entrepreneur’s Guide to Money and Freedom” and the “NGB Money Success Planner High School Edition.” The Birmingham-based financial guru focuses on creating diverse streams of income in the tax, real estate, insurance, and finance industries.

For Lee, it’s about building generational wealth, not debt.

Indispensable Lessons

Lee got her first glance at entrepreneurial life as a child watching her mother, Valeria Robinson, run her commercial cleaning company, V’s Cleaning. Robinson retired in 2019.

“My grandmother had a cleaning service, too,” said Lee. “So, even though I didn’t start out as an entrepreneur, watching my mom and grandma do it taught me a lot.”

Lee grew up in Birmingham and attended Riley Elementary School, Midfield Middle School, and Huffman High School. She then went on to Jacksonville State University, in Jacksonville, Alabama, where she earned bachelor’s degree in physical education. She struggled to find a career in her field and became overwhelmed by student loans.

“My credit and stuff didn’t get bad until after college,” she said. “I was going through school and taking money, but nobody told me, ‘Oh, you’re gonna have to pay all of this back.’”

Before embarking on her extensive career in money management, Lee had not learned the indispensable lessons that she now shares with clients.

“‘Don’t have bad credit.’ That’s all I learned,” she remembers. “Financial literacy just wasn’t taught much. I learned the majority of my lessons as I aged.”

In an effort to ward off collection calls and raise her credit score, Lee researched tactics to strategically eliminate her debt.

“I knew I had to pay bills on time, and I couldn’t be late with payments,” she said.

Lee eventually began helping friends revamp their finances and opened NGB Inc. in 2017 to share fun, educational methods to help her clients build solid financial foundations.

“People were always coming to me like, ‘How do I invest in this?’ and ‘How do I do that?’ So, I said to myself, ‘You know what, people should be paying to pick your brain.’”

Legacy Building

While Lee enjoyed watching her clients reach milestones, like buying a new car with cash or making their first stock market investment, she was also designing “Game of Fortune” to teach the value of legacy building.

“The game gives players the knowledge to build generational wealth, not generational debt,” she said. “It gives you a glimpse of life, money, and what can truly happen if you mismanage your coins.”

Using index cards to create her first “Game of Fortune” sample deck, Lee filled each card with pertinent terms related to debt elimination and credit and wealth building. She then called on a few friends to help her work through the kinks.

Three of her good friends—Barbara Bratton, Daña Brown, and Sha Cannon—were just a few of the people that gave feedback on the sample deck.

“From there I met with Brandon Brooks, [owner of the Birmingham-based Brooks Realty Investments LLC], and four other financial advisors to fine-tune the definitions and game logistics,” Lee said.

Though Lee was unable to land a job in physical education after graduating from college, she now sees her career with NGB Inc. as life’s unexpected opportunity to teach on her own terms.

“Bartending and waitressing taught me that working for someone else was not for me,” she replied. “In order to get the life I always wanted, I had to create my own business.”

In her entrepreneurial pursuits, Lee strives to be an open-minded leader who embraces the need for flexibility.

“COVID-19 has shown me that in entrepreneurship you have to maneuver,” she said. “When life changes, sometimes your business will, too. You may have to change the path, but your ending goal can be the same.”

“Game of Fortune: Win in Wealth or Lose in Debt” is available and sold only on the “Game of Fortune” website: To learn more about Tae Lee and Never Go Broke Inc., visit and or email; you also can follow her on Facebook ( and Instagram (@nevergobrokeinc).

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