Opinions of the board of supervisors on internal control evaluation report in 2021
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) (hereinafter referred to as "the company") the board of supervisors inspected all aspects of the company in 2021 and issued the following opinions according to the inspection results:
1. Opinions of the board of supervisors on the internal control evaluation report in 2021:
In accordance with relevant national laws and regulations and relevant laws and regulations of Shenzhen Stock Exchange, the board of supervisors of the company checked the implementation of the company's internal control system, reviewed the self-evaluation report of the company's internal control system, and expressed the following opinions:
The company has conscientiously implemented the provisions of the basic norms of enterprise internal control, the supporting guidelines for enterprise internal control and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, and established an internal control system covering all links of the company. The internal control system has been further improved and improved, which can meet the requirements of company management and development needs; The company deepened internal risk assessment, promoted process control, strengthened supervision and inspection and other work to improve internal control, further implemented the company's risk assessment and risk control, and further improved the operation quality and management efficiency. The company attaches importance to social responsibility, establishes a perfect environmental management system, and is equipped with technologically advanced environmental protection facilities. There are no major environmental protection or other major social security problems. The company's internal control is effective, so as to ensure the normal operation of the company's production and operation. The self-evaluation report of the company's internal control truly reflects the actual situation of the company's internal control. To sum up, the board of supervisors has no objection to the company's self-evaluation report.
2. Legal operation of the company:
In accordance with the company law, securities law and other relevant laws and regulations and the responsibilities entrusted by the articles of association, the board of supervisors reviewed the legal operation of the company. After review, the company and its board members can consciously implement relevant national laws and regulations, continuously improve the law-abiding awareness and business level of directors, supervisors and senior staff, establish and gradually improve the company's internal control system, and promote the standardized operation of the company. The company has established and improved various internal control and management systems and made great efforts in the implementation and assessment, which has continuously standardized the management of the company and safeguarded the interests of minority shareholders. The corporate governance structure is becoming more and more perfect, and the convening and decision-making procedures of the general meeting of shareholders and the board of directors are legal and effective. Related parties can actively avoid the approval of related party transactions. The price of related party transactions is based on the market price or evaluation data, and the transaction price is fair and reasonable. The capital transactions between the company and related parties strictly comply with the provisions of relevant national laws and regulations, and there is no non operational occupation of the funds of the listed company by major shareholders and related parties. The directors and senior managers are diligent and law-abiding, and do not violate laws, regulations, articles of association or damage the interests of shareholders and the company.
3. Annual report:
The board of supervisors inspected the company's financial status and operating results, communicated with the company's independent directors, the board of directors, relevant senior executives and accounting firms, and Daxin certified public accountants audited the company's 2021 financial report and issued an unqualified audit report and a special audit report on capital occupation. The board of supervisors believes that:
The full text and summary of the company's 2021 annual report shall be prepared by the board of directors, and the annual financial report shall be audited by Daxin certified public accountants. The annual report shall be considered and voted by the board of directors and the board of supervisors of the company, and will be submitted to the general meeting of shareholders of the company for deliberation. The review procedures comply with relevant national laws, regulations, articles of association and various provisions of the company's internal management system.
The content and format of the company's 2021 annual report comply with the requirements of relevant laws and regulations and the provisions of Shenzhen Stock Exchange, and the information contained can truly, accurately and completely reflect the company's business management and financial status in the current year in all aspects; Daxin Certified Public Accountants issued a standard unqualified audit report on the company's annual financial report. The company and relevant personnel strictly abide by the provisions on confidentiality in the stock listing rules and the information disclosure management system. Those who have access to sensitive data such as the production of annual reports have registered and reported to the exchange for the record. During the audit and preparation of the company's 2021 annual report, we did not find that the relevant personnel involved in the preparation and deliberation of the annual report violated the confidentiality provisions. We have also not found that the personnel involved in the preparation and deliberation of the company's 2021 annual report and the company's directors, supervisors and senior officers have violated the company's shares and other confidentiality provisions.
To sum up, we believe that the 2021 annual report of the company truly, objectively and accurately reflects the financial situation and production and operation results of the company in 2021, and the preparation and approval procedures are legal and compliant. We have no objection and agree to submit it to the general meeting of shareholders of the company for deliberation.
4. Related party transactions and daily related party transactions:
The related party transactions and daily related party transactions of the company in 2021 shall be implemented in accordance with relevant national laws and regulations. The procedures of related party transactions are legal and compliant, and the transaction price is fair and reasonable. Independent directors have expressed independent opinions on related party transactions and daily related party transactions occurred during the year. In the voting of the relevant board of directors and general meeting of shareholders, the related directors and related shareholders have taken measures to avoid voting, and it is not found that the related persons in the related transactions have harmed the interests of the company and other shareholders.
5. Description of changes in accounting policies:
The change of accounting policy is an adjustment made according to the change of national policy, which is in line with the relevant provisions and requirements of the accounting standards for business enterprises. The procedure of the board of directors to review the change of accounting policy is in line with the provisions of relevant national laws, regulations and the articles of association, and there is no damage to the interests of the company and all shareholders. The board of supervisors agreed to implement the accounting policy change.
6. Notes on the appointment of Daxin Certified Public Accountants (special general partnership):
Daxin Certified Public Accountants (special general partnership) has the qualification to engage in securities business. During his tenure as the company's audit institution, he followed the independent audit standards for Chinese certified public accountants, diligently and dutifully, and fairly and reasonably expressed independent audit opinions. The board of supervisors agreed to appoint Daxin certified public accountants as the company's financial audit institution and internal control audit institution in 2022.
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) board of supervisors March 10, 2022
