Company code: Cosco Shipping Holdings Co.Ltd(601919) company abbreviation: Cosco Shipping Holdings Co.Ltd(601919)
Cosco Shipping Holdings Co.Ltd(601919)
Internal control evaluation report in 2021
Cosco Shipping Holdings Co.Ltd(601919) 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. Internal control report conclusion
√ 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: Cosco Shipping Holdings Co.Ltd(601919) , COSCO Shipping Container Transportation Co., Ltd., COSCO Shipping Port Co., Ltd., Orient Overseas (International) Co., Ltd., Xiamen hiseas Container Terminal Co., Ltd., Quanzhou The Pacific Securities Co.Ltd(601099) Container Terminal Co., Ltd., Wuhan COSCO Shipping Port Terminal Co., Ltd., Dalian COSCO Shipping Container Transportation Co., Ltd Tianjin COSCO Shipping Container Transportation Co., Ltd., Qingdao COSCO Shipping Container Transportation Co., Ltd., Shanghai COSCO Shipping Container Transportation Co., Ltd., Wuhan COSCO Shipping Container Transportation Co., Ltd., Ningbo COSCO Shipping Container Transportation Co., Ltd., Xiamen COSCO Shipping Container Transportation Co., Ltd., Hainan COSCO Shipping Container Transportation Co., Ltd., South China COSCO Shipping Container Transportation Co., Ltd Shanghai Pan Asia Shipping Co., Ltd., Shanghai Ocean Shipping Co., Ltd., Shanghai COSCO Shipping Container Transportation Information Service Co., Ltd., Shanghai COSCO Shipping Information Technology Co., Ltd., xinsanli Container Service Co., Ltd., COSCO Shipping International Freight Co., Ltd., Haimao Jilian International Freight Forwarding Co., Ltd., Haihong International Freight Forwarding Co., Ltd., Hubei COSCO storage and Transportation Co., Ltd Jiangsu COSCO Container Transportation Co., Ltd., COSCO Container Transportation Co., Ltd., COSCO Shipping Co., Ltd., COSCO Shipping Co., Ltd., COSCO Container Transportation Co., Ltd., COSCO Shipping Co., Ltd. in Shanghai Qinhuangdao COSCO Shipping Container Shipping Agency Co., Ltd., Tangshan COSCO Shipping Container Shipping Agency Co., Ltd., Chongqing COSCO Shipping Container Transportation Co., Ltd., Sichuan COSCO Shipping Container Transportation Co., Ltd., Jiangxi COSCO Shipping Container Transportation Co., Ltd., Hunan COSCO Shipping Container Transportation Co., Ltd. and Yangpu COSCO Shipping Container Shipping Agency Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope accounted for 68.85% of the total assets in the company’s consolidated financial statements
The total operating income of the units included in the evaluation scope accounted for 83.73% of the total operating income in the company’s consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
Governance structure, organizational structure, development strategy, internal audit, internal supervision, corporate culture, social responsibility, risk management, information and communication, asset management, investment management, fund management, procurement management, related party transactions, freight forwarding business management (including foreign trade and domestic trade), shipping agency business management, container management, marketing management, legal affairs management, production and operation management, contract management, comprehensive budget management Financial report management, human resource management, information system management, internal system management, etc. 4. High risk areas of focus mainly include:
Fund management, financial reporting, investment management, corporate governance, related party transactions, production and operation management, procurement management, sales management, comprehensive budget management, contract management, internal supervision, internal audit and other businesses.
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
The company has completed the annual internal control self-evaluation by combining the sampling evaluation of the headquarters with the self-evaluation of each unit. The above-mentioned units included in the evaluation belong to the sampling evaluation of the headquarters, and all other units have completed the self-evaluation according to the requirements of the headquarters.
Therefore, generally speaking, the evaluation scope covers most units within the scope of listed entities. （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 internal control related system documents. 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
If a single defect or impact level reaches or exceeds the assessment impact level and is lower than the assessment year, it does not belong to major defects and important. If the same important accounting price year Cosco Shipping Holdings Co.Ltd(601919) consolidated report Cosco Shipping Holdings Co.Ltd(601919) consolidated statement of pre tax defects, it is recognized as 2.5% of the pre tax profit of the general lack of subjects or disclosure statement, and 0.25% of the recognized profit, but it reaches the standard.
Multiple defects of are summarized as major defects; If the total shadow exceeds 0.025%, it shall be deemed as heavy
The total sound level reaches or exceeds the defect to be evaluated; Impact water after summary
The annual Cosco Shipping Holdings Co.Ltd(601919) consolidated statement is lower than that of COSCO in the evaluation year
The profit before tax is 2.5%, which is recognized as the profit before tax of re controlling the consolidated statements
Big defect. 0.25%, but reaching or exceeding
0.025%, identified as important deficiency
Sink.
In case of loss: if the influence level reaches or exceeds the evaluation and the influence level is lower than the evaluation year, it does not belong to major defects and important single defects, or the influence price year Cosco Shipping Holdings Co.Ltd(601919) consolidated report Cosco Shipping Holdings Co.Ltd(601919) consolidated statement of business defects, it is recognized that it generally lacks 0.25% of the business income and 0.25% of the recognized income of the same important accounting statement, but reaches the target.
The subject or disclosed matter is determined as a major defect; The sum of or more than 0.025% is recognized as heavy
The impact level of multiple defects reaches or exceeds the evaluated defects; Impact water after summary
The annual Cosco Shipping Holdings Co.Ltd(601919) consolidated average of the total price is lower than that of COSCO in the evaluation year
0.25% of the operating income in the consolidated statement, and the operating income in the consolidated statement is recognized and controlled
Identified as major defects. 0.25%, but reaching or exceeding
0.025%, identified as important deficiency
Sink.
explain:
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
Material defect if a control defect or a combination of control defects will cause prudent managers to fail to reasonably ensure that transactions are recorded in accordance with the applicable preparation basis of financial reports when performing their work, which will have a significant impact on the accuracy of financial reports, this control defect or a combination of control defects shall be regarded as a material defect.
Material defect if one control defect or a combination of multiple control defects will cause prudent managers to fail to reasonably ensure that transactions are recorded according to the applicable preparation basis of financial reports when performing their work, which will have a significant impact on the accuracy of financial reports, this control defect or a combination of multiple control defects shall be regarded as having a material defect.
If a general defect does not belong to a major defect or an important defect, it shall be recognized as a general defect.
Note: the following signs indicate that there may be significant defects in the internal control of financial reporting: 1 Any degree of fraud by directors, supervisors and senior managers of the enterprise; 2. The enterprise restates the previously published financial statements to correct the material misstatement caused by fraud or error; 3. There is a material misstatement in the current financial statements of the enterprise, and the enterprise’s internal control fails to find the misstatement in the process of operation; 4. The supervision of the enterprise audit committee and internal audit institutions on internal control is invalid; 5. The internal control environment of the enterprise is invalid; 6. Major deviation from the budget; 7. Being punished by the regulatory authority has a great negative impact; 8. Major losses of the enterprise; 9. The total amount of connected transactions exceeds the upper limit of connected transactions approved by the general meeting of shareholders; 10. Defects affecting the income trend, such as affecting the profit and loss results; And other defects that may affect the correct judgment of report users. 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
If the impact level of the company’s internal control reaches or exceeds the evaluation impact level and is lower than the evaluation year, it does not belong to major defects and important problems: if the single price shortage year Cosco Shipping Holdings Co.Ltd(601919) consolidated report Cosco Shipping Holdings Co.Ltd(601919) consolidated statement of business defects, it is recognized as a general defect, or affects 0.25% of the operating revenue of the same statement and 0.25% of the recognized revenue, but reaches the standard.
Major accounting items or major defects; After summary, the shadow or more than 0.025% is recognized as heavy
Multiple response levels of the disclosed matters meet or exceed the evaluation defects; Impact water after summary
The annual Cosco Shipping Holdings Co.Ltd(601919) consolidated statement of defect summary is lower than that of COSCO in the evaluation year
0.25% of the operating income, which is recognized as controlling the operating income in the consolidated statements
It is a major defect. 0.25%, but reaching or exceeding
