Weifang Yaxing Chemical Co.Ltd(600319)
Internal control evaluation report in 2021
Weifang Yaxing Chemical Co.Ltd(600319) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company’s internal control on December 31, 2021 (the benchmark date of the internal control evaluation report). I Important statement
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise’s internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the enterprise’s internal control. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint legal liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company’s internal control is to reasonably ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the realization of development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the realization of the above objectives. In addition, as changes in circumstances may lead to inappropriate internal control or reduced compliance with control policies and procedures, there is a certain risk to speculate the effectiveness of internal control in the future according to the internal control evaluation results. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
According to the identification of major defects in the company’s internal control over financial reporting, there are no major defects in the internal control over financial reporting on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the enterprise’s internal control standard system and relevant regulations. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
According to the identification of major defects in the company’s internal control over non-financial reports, the company found no major defects in the company’s internal control over non-financial reports on the benchmark date of the internal control evaluation report.
4. Factors affecting the evaluation conclusion of internal control effectiveness from the benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report. 5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company’s internal control evaluation report √ yes □ no III Internal control evaluation (I) Scope of internal control evaluation
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. 1. The main units included in the evaluation scope include Weifang Yaxing Chemical Co.Ltd(600319) , Weifang Yaxing New Material Co., Ltd. 2 Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company’s consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Internal environment, organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, financial report, comprehensive budget, contract management, internal information transmission and information system. 4. High risk areas of focus mainly include:
Capital shortage risk, safety accident risk, project construction risk, macroeconomic and policy risk, environmental protection risk, overseas economic risk, strategy implementation risk, product quality risk, core talent drain risk, technological progress risk, competition risk and other important risk areas. 5. The above units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the company’s operation and management. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
nothing
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and Yaxing chemical internal control evaluation manual. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company’s scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company, And consistent with previous years. 2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Total income 0.25% of total potential false income ≤ 0.25% of total false income 5% ≤ false income report of total income 0.25% of total income 0.25% 5%
Description: None
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Fraud of directors, supervisors and senior managers of the company with major defects; The company corrects the published financial report (correcting the material misstatement caused by fraud or error); Material misstatement in the current financial report found by the certified public accountant but not identified by the company’s internal control; The supervision of the audit committee and the internal control audit department on the company’s external financial report and internal control over financial report is invalid.
Major defects: failure to select and apply accounting policies in accordance with generally accepted accounting standards, and failure to establish anti fraud procedures and control measures; No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control; There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the true and complete goal.
General defects refer to other control defects other than the above major defects and important defects.
Note: none 3 Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Direct property loss of more than 4 million yuan (including) and less than 40 million yuan (including) – 4 million yuan and less than 400 thousand yuan
Description: None
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
The company with major defects violates national laws and regulations and is severely punished; Lack of institutional control or systematic failure of the company’s important business; Major defects or major defects in the company’s internal control have not been rectified; The company is subject to administrative punishment by the CSRC or public condemnation by the stock exchange; The company lacks democratic decision-making procedures; Improper decision-making procedures of the company lead to major mistakes; The loss of senior managers and senior technicians of the company is serious.
The company with major defects violates national laws and regulations and is severely punished; There are defects in the company’s important business system or system; common
Major defects in the company’s internal control have not been rectified in time; The company has been criticized by the stock exchange; The company’s democratic decision-making procedure exists but is not perfect; General mistakes caused by improper decision-making procedures of the company; The loss of business personnel in key positions of the company is serious.
General defects refer to other control defects other than the above major defects and important defects.
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
None 1.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any important defects in the internal control of financial reporting that have not been rectified □ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period
√ yes □ no
According to the above identification standards of internal control defects in non-financial reporting, the company found one important defect in internal control of non-financial reporting during the reporting period.
Internal defects in non-financial reports describe the rectification of defects in business areas / as of the base date of the report as of the date of issuance of the report, control whether the rectification plan for important defects is completed or not
Waste gas project in 2021 due to powder grinding. 1. It is more important to filter bags
1. The crushing and dust removal system of particulate matter is replaced and tested by a third party
Discharge in excess of the specified discharge standard after the filter bag is broken.
2. Relevant standards of workshop organization
Conduct comprehensive emission training for personnel in the particulate pollution area.
The standard exceeds the standard. 3. According to the requirements of the workshop
(DB37 / 23762019) filter bag of filter separator
）The particulate matter weight specified in the shall be checked in time and
Record the emission concentration in the control area.
After receiving the decision of administrative punishment from relevant environmental protection departments, the amount of fine is 550000 yuan. 2.3. General defects through self-evaluation, the company’s internal control process still has general defects, but it does not affect the realization of the company’s non-financial reporting internal control objectives. The company has instructed relevant departments and principals to rectify and implement the internal control defects found. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
During the reporting period, the company maintained effective internal control in all major aspects of financial reports and non-financial reports, and the operation of internal control was generally good. In 2022, the company will continue to improve the internal control system, optimize the internal control environment, improve various internal control systems, standardize the implementation of internal control systems, strengthen the supervision and inspection of internal control, improve the quality and value of internal control audit, effectively prevent all kinds of risks and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Han Haibin Weifang Yaxing Chemical Co.Ltd(600319)
