Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048)
Self evaluation report on internal control in 2021
Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) all shareholders:
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the “enterprise internal control normative system”), in combination with Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) (hereinafter referred to as the “company”) internal control system and evaluation methods, and 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).
1、 Important statement
The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company have not found any 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.
It is the responsibility of the board of directors of the company to establish, improve and 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 company’s internal control.
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, there is the possibility that misstatement can not be prevented and found, so 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.
2、 Internal control evaluation conclusion
According to the identification of major defects in the internal control of the company’s financial report, there are no major defects in the internal control of financial report and non-financial report on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control in all major aspects in accordance with the requirements of the enterprise’s internal control standard system and relevant regulations.
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The total assets of the units included in the evaluation scope account for more than 90% of the total assets in the company’s consolidated financial statements, and the total operating revenue accounts for more than 90% of the total operating revenue in the company’s consolidated financial statements; It basically covers the company’s existing business segments such as modern agriculture and real estate development. In the internal audit, the company also included the establishment, improvement and implementation of the internal control of the audited entity into the audit scope, covering the organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, project, guarantee business, financial report, contract management, related party transactions, information and communication Information system, internal supervision and other main business processes.
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, and there are no major omissions. The details are as follows:
1. Organizational structure
In accordance with the company law and the requirements of the regulatory authorities, the company has set up internal institutions in combination with its own business characteristics and internal control requirements, established an internal control organizational structure composed of the general meeting of shareholders, the board of directors, the board of supervisors, the management, each holding subsidiary and its functional departments, and formed a relatively effective division of responsibilities and cooperation mechanism. The general meeting of shareholders is the highest authority of the company and performs its duties in strict accordance with the provisions of the articles of association, rules of procedure of the general meeting of shareholders and other systems; The board of directors is the decision-making body of the company and is responsible for the general meeting of shareholders. The board of directors has four special committees: Strategy Committee, audit committee, nomination committee and salary and assessment committee; The board of supervisors is the supervisory body of the company, which supervises and inspects the behavior of the directors and senior managers of the company and the financial situation of the company.
Following the principles of science and efficiency, the company adheres to the implementation of vertical organizational structure. In 2021, according to the needs of business development and management, the company will implement four levels of management as a whole: the first level is the headquarters, that is, the joint-stock company, which has specifically set up six departments: strategic operation center, cost management center, financial management center, audit and supervision center, securities legal center and President’s office; The second level includes real estate business department, Guangdong Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. and Technology Research Institute; The third level is each project company; The fourth level is each farm. At the first level, the strategic operation center is responsible for the company’s strategic research, investment development and operation management, providing professional guidance and suggestions on strategic planning for the company’s operation management, grasping the investment development direction of each project, realizing good investment income, and monitoring, supervising and guiding the implementation process of enterprise business activities to ensure the achievement of business objectives; The cost management center is the management center of the company’s bidding, procurement and cost control affairs. It has a cost department and a procurement department, which are responsible for the company’s contract, bidding, procurement and cost control; The financial management center is the financial management, fund management and budget management department of the company. It is responsible for establishing and improving the basic accounting norms of the company, formulating unified accounting policies, and providing financial supervision and guidance to all member units to ensure the authenticity, accuracy, legality and compliance of accounting information; As the audit platform of the company, the audit and supervision center is responsible for the internal audit and risk control of the company, promoting the operation of companies at all levels according to law, improving the internal control system, preventing internal control risks and safeguarding the legitimate rights and interests of the company; The securities legal affairs center is the company’s securities and legal affairs management center. It is responsible for standardizing the company’s operation, implementing the resolutions and decisions of the general meeting of shareholders, the board of directors and the company’s management, doing a good job in information disclosure, maintaining investor relations, and managing the company’s legal affairs in accordance with the legal norms and corporate governance requirements of listed companies, Establish and improve the legal risk prevention mechanism of enterprises and standardize the management of legal affairs of the company; The president’s office is the company’s human resources management and comprehensive affairs management department, creating a good mechanism, atmosphere and office environment within the company, and cultivating and cultivating a talent team to promote the realization of the company’s strategic objectives. At the second level, the real estate business department is responsible for the management of real estate development, sales, existing property leasing and related matters; Guangdong Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. is specially responsible for the overall management of various businesses in the agricultural sector, including front-end development and expansion, engineering construction, feed supporting construction and other related businesses, as well as back-end production and operation management and information management, and provides professional guidance and management to pig breeding project companies in various regions; The technology research institute is mainly responsible for the R & D and technical guidance of livestock and poultry disease prevention and control technology, veterinary technology, animal nutrition and waste harmless treatment.
At present, the company’s organizational structure operates well, the division of responsibilities of each organization / department is clear, the communication between Cross organizations / departments is smooth, and they cooperate with each other, which better ensures the strategic development of the company.
2. Development strategy
2021 is a key year for the company’s strategic transformation. Since the company determined the development strategy of “deepening the development of the main agricultural industry, relying on the help of real estate and steadily promoting public utilities” in 2018, the company has always adhered to the development of modern agricultural core business and successively expanded pig breeding projects in Xuwen, Zhanjiang, Guangdong, Gaozhou, Maoming, Guangdong, Hezhou, Guangxi and Wenchang, Hainan, Gradually build standardized large-scale livestock and poultry breeding and processing bases in Guangdong and surrounding areas, and do a good job in ensuring the supply of pigs and people’s livelihood in the Great Bay area of Guangdong, Hong Kong and Macao.
During the reporting period, the company’s strategic transformation task has made breakthroughs. The introduction and operation of Xuwen project (phase I, phase II and phase III), Gaozhou project, Hezhou phase I project and Wenchang project have been completed, and Hezhou phase II project is under vigorous construction. By the end of December 2021, the company had a total stock of 89500 sows, including 66800 basic sows and 22700 reserve sows. In addition, the company attaches great importance to the construction of modern agricultural team. During the reporting period, the company continued to increase the introduction of professionals. At present, an agricultural professional team with more than 2000 people has been formed, which has laid a solid foundation for the company to optimize operation and management and improve business performance.
In 2022, the company will continue to adhere to the development strategy of deepening the development of main agricultural industry, and vigorously promote the implementation of modern agricultural development strategy while ensuring the steady development of real estate. In the face of the complex external environment such as low pig prices, rising raw materials and normalized epidemic control, the company will focus on “continuous cost reduction, full production and full load, improving management and establishing culture”, drive the improvement and optimization of management with the cost oriented concept, accelerate the full production of the project, and strive to achieve the target cost of pig breeding of 16.3 yuan / kg in 2022.
3. Human resources
The company’s implementation of self breeding and self supporting information system management mode determines the company’s large demand for high-quality management talents and high-tech talents. In order to improve the core competitiveness of the enterprise, the company always takes the concept of “human resources are the most competitive core resources of the enterprise” as the guideline, builds a professional team and provides talent support for the strategic development of the company.
In 2021, some projects of the company changed from the construction period to the operation period, and some projects were constructed and operated at the same time. In terms of talent introduction, the company also gradually increased its focus from the number of talents to the quality of talents, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) recruitment went hand in hand, and social recruitment and campus recruitment started at the same time. In 2021, the net number of social recruitment increased by more than 1000, In terms of campus recruitment, two school enterprise cooperation order classes and three listed colleges and universities were exported. More than 500 college students were recruited during the year to effectively reserve new forces. In terms of employee incentive, the company has formulated more than ten systems, such as monthly production performance assessment scheme, remuneration scheme, production and operation evaluation system and special incentive for biosafety prevention and control, to objectively evaluate the comprehensive performance of employees, provide clear career promotion path, improve the matching degree of employee ability, performance and post requirements, and promote the common development of employees and enterprises.
In 2021, with the overall goal of empowering employees to help business development, the training work will jointly promote the construction of learning organization from five dimensions: the improvement of training system, the development of learning resources and learning channels, the normal operation of training projects, the empowerment of training team and the development and construction of College students’ reserve talents. In 2021, the company’s training system was continuously improved. On the basis of the original six core project operation systems, the company continuously updated the project configuration, opened special projects such as Beijing coach training camp, and gradually established a normalized operation management system, which provided full assistance for the construction of the company’s talent development path; Actively tap the potential resources of internal trainers and add more than 20 internal trainers who are proficient in business and empowered by coaches Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) online learning platform was released, which expanded from the single channel of traditional offline training to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-channel combination boxing, and greatly improved the learning efficiency of all employees of the company through fragmented learning; Strengthen the linkage with each project company, unify the standards and project implementation process of the headquarters, enable each project company to carry out project implementation independently, quickly train talents and provide talent support for the rapid development of business; Design Beijing power · college student training project and build a 180 day training plan for college students, so that college students can be competent quickly, master work skills efficiently and gradually become the backbone of the team through two stages of 180 day training and assessment.
4. Social responsibility
The company’s industrial sector involves the people’s livelihood. While seeking business development, the company also deeply realizes that it is incumbent on the company to fulfill its social responsibility. During the reporting period, the company attached importance to communication with shareholders, employees, suppliers, customers, consumers and other relevant stakeholders, protected the legitimate rights and interests of stakeholders, actively assumed social responsibilities and achieved win-win development with stakeholders.
In order to ensure the quality of suppliers’ products and services, the company has established a qualified supplier resource base to realize the whole process management of suppliers through strict supplier access, investigation, evaluation and incentive system; And continuously strengthen communication with suppliers to jointly establish a sustainable supply chain system. Through reasonable division of labor, supervision and tracking, and strengthening the control of internal risk points, the procurement department of the company will eliminate commercial bribery, dereliction of duty and other phenomena from the source, strengthen the sense of responsibility of procurement personnel, increase the transparency of procurement work, eliminate all bad behaviors, effectively protect the legitimate rights and interests of the company and suppliers, and maintain a good trading environment.
The company attaches importance to cooperation with customers, strictly controls the production process, and ensures the health of pigs and timely supplies to the market through accurate control of the quality of pigs. During the reporting period, as the supplier of “vegetable basket” products and “Shenzhen products” in Shenzhen, the company has stably supplied live pigs to the Shenzhen market.
The company adheres to the quality policy of “customer first, integrity-based, quality assurance and pursuit of excellence”. The company’s management team makes orderly deployment and pays attention to the quality and food safety control of the whole process to ensure food safety and controllable quality. During the reporting period, the company actively responded to the call of Shenzhen municipal government to build a “Zhenpin” brand with high quality and high standard, and provided Shenzhen food standards. The headquarters and pig breeding project company successively certified ISO9001 quality management, good agricultural practice (GAP) and other system norms, It has won the honorary titles of “top 100 Shenzhen brand enterprises”, “Shenzhen famous brand” and “Shenzhen time-honored brand”. At the same time, relying on its advantages in the whole industrial chain in the field of agriculture, promote the construction of food traceability system and platform, ensure food quality from the source to the end market, and help Shenzhen further build a leading and world-class food safety city in China.
The company attaches importance to the combination of breeding environment and sustainable development. In response to the national comprehensive utilization policy, the company has invested heavily in the construction of environmental protection facilities. The projects are equipped with international advanced environmental protection treatment process and equipment to ferment the fecal sewage generated by the pig house and produce organic fertilizer. Among them, the Xuwen project of the company will give the organic fertilizer produced to the surrounding villagers for agricultural planting, promote the resource utilization of livestock and poultry breeding waste, and promote the development of rural economy. At the same time, the company also innovates the planting and breeding circular agriculture mode in combination with the characteristic agricultural planting in the project location, uses its own brands and channels to improve the brand value of characteristic planting products such as Xuwen pineapple, Gaozhou litchi and Chuliang longan, and guides local farmers to explore e-commerce channels, enhance the stability of planting cash crops and develop green agriculture with high quality.
While striving to pursue corporate profits and create shareholder wealth, the company actively undertakes social responsibility and creates social wealth, and contributes to the revitalization of the local economy with its own development. At the same time, pay attention to the needs of the society, carefully feed the society, and advocate the underground affiliated companies of various projects to actively carry out social public welfare activities such as helping the needy, building road facilities, student donation, caring for the elderly and children. From the second half of 2020 to 2021, the company and its subsidiaries donated a total of nearly 3 million yuan of funds and materials through activities such as poverty alleviation day donations, student scholarships, festival condolences to poor households / low-income families, and festival condolences to the orphaned and widowed elderly. Especially during the holidays, they send rice, flour, grain, oil and other living materials to the left behind elderly, so as to let the elderly and children in towns and townships
