Citic Securities Company Limited(600030) Central China Securities Co.Ltd(601375)
Verification opinions on self evaluation report on internal control in City Development Environment Co.Ltd(000885) 2021
Citic Securities Company Limited(600030) , Central China Securities Co.Ltd(601375) (hereinafter referred to as " Citic Securities Company Limited(600030) ", " Central China Securities Co.Ltd(601375) " and "co sponsor") act as the continuous supervision organization for the allotment and public offering of shares of City Development Environment Co.Ltd(000885) (hereinafter referred to as " City Development Environment Co.Ltd(000885) ", "listed company" or "company"). According to the administrative measures for securities issuance and listing recommendation business The self-evaluation report on internal control in City Development Environment Co.Ltd(000885) 2021 was verified in accordance with the relevant provisions of the Listing Rules of Shenzhen Stock Exchange and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 13 - recommendation business, and the following verification opinions were issued:
1、 Verification work carried out by the recommendation institution
During the period of continuous supervision in 2021, the co sponsor mainly consulted the company's business, management system and internal control system; Consult the meeting materials and information disclosure documents of the third meeting of the company; Check the performance of directors, supervisors and senior managers of the company; Check the internal audit of the company; And communicate with the company's directors, supervisors, senior managers and intermediaries, and check on the basis of reasonable evaluation of the integrity, rationality and effectiveness of the company's internal control.
Meanwhile, the co sponsor verified the City Development Environment Co.Ltd(000885) internal control audit report (dxsz [2022] No. 1 Guangzhou Baiyun International Airport Company Limited(600004) ) issued by Daxin Certified Public Accountants (special general partnership). Daxin certified public accountants believes that City Development Environment Co.Ltd(000885) has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations on December 31, 2021.
2、 City Development Environment Co.Ltd(000885) 's 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.
1. The units included in the evaluation scope include the company and its wholly-owned subsidiaries and holding subsidiaries. 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, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
2. Main operations and matters included in the scope of evaluation
The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system, etc.
3. Focus on high-risk areas
The high-risk areas of focus mainly include monetary fund management, procurement business, financial reporting, comprehensive budget, contract management, foreign investment and other matters.
4. 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.
(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.
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. The identification standards of internal control defects determined by the company are as follows: 1. Identification standards of internal control defects in financial reports
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Major defects
Potential misstatement of operating income: 0.5% of total operating income ≤ misstatement
Potential misstatement of total profit: 5% of total profit ≤ misstatement
Potential misstatement of total assets: 0.5% of total assets ≤ misstatement
Potential misstatement of owner's equity: 0.5% of total owner's equity ≤ misstatement
(2) Important defects
0.2% of total operating revenue ≤ misstatement ＜ 0.5% of total operating revenue
2% of total profit ≤ misstatement ＜ 5% of total profit
0.2% of total assets ≤ misstatement ＜ 0.5% of total assets
0.2% of total owner's equity ≤ misstatement ＜ 0.5% of total owner's equity
(3) General defect
Misstatement ＜ 0.2% of total operating revenue
Misstatement ＜ 2% of total profit
Misstatement ＜ 0.2% of total assets
Misstatement ＜ 0.2% of total owner's equity
When applying the above indicators, the principle of whichever is lower shall be adopted.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Major defects
The material misstatement in the financial report cannot be prevented, discovered and corrected in time due to individual defects or other defects. In case of the following circumstances, it shall be deemed as a major defect:
① Invalid control environment;
② Fraud of directors, supervisors and senior managers;
③ The external audit found that there were significant misstatements in the current financial report, and the company failed to find such misstatements in the process of operation;
④ Major defects that have been found and reported to the management have not been corrected within a reasonable time;
⑤ The supervision of the company's audit committee and audit department on internal control is invalid;
⑥ Other defects that may affect the correct judgment of report users.
(2) Important defects
The misstatement in the financial report that cannot be prevented, found and corrected in time due to individual defects or together with other defects, although the materiality level is not reached or exceeded, which should still attract the attention of the management.
(3) General defect
Other internal control defects that do not constitute major defects or important defects.
2. 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:
The amount of direct property loss identified by defects is significant and has a negative impact.
Major defects: the direct property loss is more than 10 million yuan, which has a great negative impact on the company and is disclosed in the form of announcement.
Important defects: direct property loss of 1 million yuan to 10 million yuan (including 10 million yuan) or punishment by national government departments, but no negative impact on the company.
General defects: direct property loss of less than 1 million yuan (including 1 million yuan) or punishment by government departments below the provincial level (including provincial level), but no negative impact on the company.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The following situations are identified as major defects, and other situations are identified as major defects or general defects according to the degree of impact:
① Violation of national laws, regulations or normative documents;
② Major decision-making procedures are unscientific;
③ Lack of system may lead to systematic failure;
④ Major or important defects cannot be rectified;
⑤ Other circumstances that have a significant impact on the company.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
There are no major defects in the company's internal control during the financial reporting period according to the above standards.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
(IV) description of other major matters related to internal control
During the reporting period, the company has no other internal control information that may have a significant impact on investors' understanding of the internal control evaluation report, evaluation of internal control or investment decisions.
(V) internal control evaluation conclusion
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. 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. 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.
3、 Verification opinions of the recommendation institution
After verification, the co sponsor believes that: City Development Environment Co.Ltd(000885) the existing internal control system complies with the actual operation status of the company and the requirements of relevant laws and regulations and securities regulatory authorities, can ensure the normal production and operation of the company and the safety and integrity of the company's assets, and maintains effective internal control related to the company's business and management in all major aspects.
The self evaluation report on internal control in City Development Environment Co.Ltd(000885) 2021 fairly reflects the construction and implementation of the company's internal control system.
(there is no text on this page, which is the signature page of Citic Securities Company Limited(600030) , Central China Securities Co.Ltd(601375) verification opinions on City Development Environment Co.Ltd(000885) 2021 annual self evaluation report on internal control) sponsor representative:
Wang Hanbing, Zhang Xin
Citic Securities Company Limited(600030) mm / DD / yyyy (there is no text on this page, which is the signature page of Citic Securities Company Limited(600030) , Central China Securities Co.Ltd(601375) verification opinions on City Development Environment Co.Ltd(000885) 2021 annual self evaluation report on internal control) sponsor representative:
Geng zhixia, Wu peizeng
Central China Securities Co.Ltd(601375) mm / DD / yyyy
