Company code: China Shenhua Energy Company Limited(601088) company abbreviation: China Shenhua Energy Company Limited(601088) China Shenhua Energy Company Limited(601088)
Internal control evaluation report in 2021
China Shenhua Energy Company Limited(601088) 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), combined with the company’s (hereinafter referred to as the company’s) 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 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: all departments of the headquarters and their subordinate subsidiaries and branches at or below the second level of the seven business segments of coal, electric power, railway, port, coal chemical industry, shipping and comprehensive. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope account for 100% of the total assets in the company’s consolidated financial statements
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:
Production and management of fixed assets, production and management of fixed assets, financial management, capital management, production and management, transportation, capital management, capital management, capital management, production and management of fixed assets Human resources, safety and health, informatization, overseas investment management, scientific and technological innovation, environmental protection, internal control and audit, discipline inspection and supervision, news publicity and other businesses and matters. 4. High risk areas of focus mainly include:
Production safety risk, environmental protection risk, policy risk, international operation risk, market competition risk, project management risk, macroeconomic fluctuation risk, integrated operation risk and legal risk. 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
None (II) 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 China Shenhua Energy Company Limited(601088) internal control evaluation measures. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
The board of directors of the company distinguished the internal control of financial report from the internal control of non-financial report according to the identification requirements for major defects, important defects and general defects of the enterprise internal control standard system, combined with the factors such as the company’s size, industry characteristics, risk preference and risk tolerance, and studied and determined the specific identification standards of internal control defects applicable to the company, which are consistent with the 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
The annual financial statements always consider compensatory measures, which leads to the consideration of compensatory measures and the consideration of compensatory measures, The internal control that leads to the misstatement amount of weight importance level is greater than or equal to the annual financial misstatement amount is less than the importance level, the misstatement amount is less than the importance level, the overall importance level of financial statements is 100%, and the internal control level that is greater than or equal to 20% of the importance level is 100% of the misstatement level, and the internal control defect that is 20% of the misstatement level is a general defect
Defects are major defects, and manufacturing defects are important defects
Note: no special instructions are required.
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
Major defect the combination of one or more control defects may cause the evaluated subject to seriously deviate from the control objectives
Important defect is a combination of one or more control defects, whose severity and economic consequences are lower than those of major defects, but it may still cause the evaluated subject to deviate from the control objectives
General defects other than major defects and important defects
explain:
For some internal control defects, even if the amount of misstatement caused by them is less than 20% of the overall importance level, the identification results of the defects should also be raised, including but not limited to: (1) it is found that the directors, supervisors and senior managers commit fraud or employees collude in fraud and cause important losses and adverse effects to the company; (2) Restate previously published financial statements to correct material misstatement due to fraud or error; (3) It is found that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process; (4) The supervision of the audit committee of the board of directors and the internal audit department on internal control is invalid; (5) Major violations of laws and regulations and liability accidents in financial accounting, asset management, capital operation, information disclosure, product quality, safe production, environmental protection, etc., causing major losses and adverse effects to the company, or suffering major penalties from the regulatory authorities; (6) Subsequent events that have a significant negative impact on internal control after the reporting date; (7) The financial statements have been or are likely to be given a negative opinion or refused to express an opinion by the certified public accountant; (8) Other circumstances determined by the board of directors or similar authority.
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
The annual financial statements always consider compensatory measures, which leads to the consideration of compensatory measures and the consideration of compensatory measures, The internal control that leads to the misstatement amount of weight importance level is greater than or equal to the annual financial misstatement amount is less than the importance level, the misstatement amount is less than the importance level, the overall importance level of financial statements is 100%, and the internal control level that is greater than or equal to 20% of the importance level is 100% of the misstatement level, and the internal control defect that is 20% of the misstatement level is a general defect
Defects are major defects, and manufacturing defects are important defects
Note: no special instructions are required.
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
Major defect the combination of one or more control defects may cause the evaluated subject to seriously deviate from the control objectives
Important defect is a combination of one or more control defects, whose severity and economic consequences are lower than those of major defects, but it may still cause the evaluated subject to deviate from the control objectives
General defects other than major defects and important defects
explain:
The defects of the company’s internal control over non-financial reports do not directly affect the authenticity, reliability and integrity of financial reports, but have an adverse impact on the realization of the strategic objectives of enterprise operation and management, legal compliance, asset safety, operation efficiency and effect and other control objectives. The company reasonably determines the internal control defect of non-financial report by referring to the identification standard of internal control defect of financial report. The identification of non-financial report defect of the company is mainly based on the severity of the business nature involved, the nature of direct or potential negative impact, the scope of impact and other factors. At the same time, the impact degree is adjusted considering the opinions of the management to determine the importance of internal control defect of non-financial report. （3） 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
For the general defects of internal control over financial reporting found during the reporting period, the company has taken corresponding rectification measures or formulated corresponding rectification plans. 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, does the company have 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 2.3 General defect
For the general defects of internal control over non-financial reporting found during the reporting period, the company has taken corresponding rectification measures or formulated corresponding rectification plans. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in 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, does the company find any important defects in the internal control of non-financial reporting 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
The company’s internal control shall be adapted to the company’s strategy, business scale, business scope, competition and risk level, and shall be adjusted in time with the changes of internal and external environment. The company will continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, and realize the controllable control of major risks. The company will focus on the strategic goal of striving to build a world-class Energy listed company with global competitiveness, establish and improve the long-term mechanism of internal control and risk management, and realize the substantive transformation of internal control from form to content, from participating in business to integrating into business, and from reflection after engagement to prior control. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Wang Xiangxi China Shenhua Energy Company Limited(601088)
