Shanghai Huitong Energy Co.Ltd(600605)
Internal control evaluation report in 2021
Shanghai Huitong Energy Co.Ltd(600605) 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: Shanghai Shanghai Huitong Energy Co.Ltd(600605) Co., Ltd., Shanghai Changyuan Investment Development Co., Ltd., Shanghai hangzhan Investment Development Co., Ltd., Shanghai Defa Property Management Co., Ltd., Shanghai Huitong Chuangxing Property Management Co., Ltd., Shanghai light machinery Yixia Property Management Co., Ltd., Shanghai Kangxin Technology Investment Co., Ltd., Shanghai Zhutong Investment Development Co., Ltd., Shanghai light machinery investment management Co., Ltd Shanghai Lvtai Real Estate Co., Ltd., Shanghai lvheng Real Estate Co., Ltd., Zhengzhou Lvdu Business Management Co., Ltd., Nanchang Jindu Real Estate Co., Ltd., Nanchang Lvyi Real Estate Development Co., Ltd. and Henan Maodu Decoration Engineering 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 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:
The company level includes organizational structure, development strategy, human resources, social responsibility and corporate culture. The business level includes fund management, procurement business, asset management, production management, engineering management, sales business, foreign investment and administrative management. The management process includes financial report, budget management, contract management, information system, audit supervision, etc. 4. High risk areas of focus mainly include:
It mainly includes strategic management risk, safety production risk, fund management risk, asset management risk, market competition risk, human resources risk, legal compliance risk, etc. 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
None. （2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation on the basis of daily and special supervision of internal control in accordance with the standard system of enterprise internal control, the company's internal control manual, department management manual and other internal control systems and evaluation methods.
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
When one or a group of internal control is deficient, when one or a group of internal control is deficient, when one or a group of internal control defects exist, there is a reasonable possibility of depression, and there is a reasonable possibility of depression, There is a reasonable possibility that it cannot be prevented in time, or that it cannot be prevented in time, or that the total net assets are found to be greater than 0.3% of the company's net assets in the financial report, but less than 0.1% of the company's net assets in the financial report.
0.1% of the company's net assets is wrong.
Yes.
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
Directors, supervisors and senior managers abuse their power and commit corrupt acts such as embezzlement, bribery and misappropriation of public funds; Major defects in internal control over financial reporting that have been found and reported to the management have not been corrected after a reasonable time; The company corrects the reported or disclosed financial report due to major accounting errors in previous years; The company's internal control environment is invalid; The certified public accountant found that there was a material misstatement in the current financial report, and the internal control operation failed to find the misstatement.
Failure to select and apply accounting policies in accordance with GAAP; There are no important defects in the accounting treatment of unconventional or special transactions, establish or implement corresponding control mechanisms, 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 goal of authenticity and accuracy.
General defects other internal control defects of financial reporting except major defects and important defects.
Description: 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
When one or a group of internal control is deficient, when one or a group of internal control is deficient, when one or a group of internal control defects exist, there is a reasonable possibility of depression, and there is a reasonable possibility of depression, It is reasonably possible that the total amount of net assets leads to the direct property of the company, which leads to the direct property loss of the company, which is greater than the loss of the company's net assets and less than 0.3% of the company's net assets. 0.3%, but greater than 0.1% of the company's net assets.
0.1% of.
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
Lack of democratic decision-making procedures for major issues or major mistakes in decision-making procedures; Violating national laws and regulations, being punished by government departments, and having been officially disclosed to the public, which has a significant negative impact on the disclosure of the company's periodic reports; Serious loss of senior major defect managers and senior technicians; The frequent occurrence of negative news in the media is true, causing significant social impact; Lack of system control or systematic failure of important business, resulting in major losses identified according to the above quantitative standards; Major defects in internal control have not been rectified; Major production safety accidents occur.
General decision-making procedure is not perfect or the decision-making procedure is not perfect; Violating national laws and regulations and being punished by government departments for important defects, but not having a negative impact on the disclosure of the company's periodic reports; Serious loss of business personnel in key positions; Negative news in the media, affecting local areas; Major defects in important business systems or implementation; Important defects in internal control have not been rectified.
General defects other internal control defects of non-financial reporting except major defects and important defects.
Description: none. （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 any major defects in internal control over financial reporting during the reporting period
□ yes √ no 1.2 Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no 1.3 General defect
During the reporting period, the company had general defects in the internal control of individual financial reports. The company has taken corresponding rectification measures and completed the rectification work during the reporting period. 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
During the reporting period, the company had some general defects in the internal control of non-financial reporting. The company has taken corresponding rectification measures and completed the rectification work during the reporting period. 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
In 2022, the company will continue to further promote the integration of the requirements of the basic norms and guidelines of internal control with the company's daily operation systems and processes, strengthen the sense of responsibility of internal responsible subjects, ensure the implementation of various requirements, effectively protect the rights and interests of shareholders and ensure the sustainable and healthy development of the company. 3. Description of other major events
□ applicable
