Shanghai Lisheng Racing Co.Ltd(002858)
Self evaluation report on internal control in 2021
Shanghai Lisheng Racing Co.Ltd(002858) all shareholders:
According to 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 standard system), combined with the internal control system of Shanghai Lisheng Racing Co.Ltd(002858) (hereinafter referred to as the "company"), 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).
1、 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.
2、 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、 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 units included in the evaluation scope include: Shanghai Lisheng Racing Co.Ltd(002858) and Shanghai Saisai Racing Club Co., Ltd., Shanghai Lisheng Sports Culture Communication Co., Ltd., Shanghai Tianma Sports Development Co., Ltd. (formerly Shanghai Tianma sports planning Co., Ltd.), Guangdong Saili automobile marketing planning Co., Ltd., Beijing China Automobile Federation racing culture Co., Ltd., Shanghai Youma Haosheng Automobile Culture Communication Co., Ltd., Shanghai Shengguan Automobile Technology Co., Ltd Beijing Shenghao marketing planning Co., Ltd. (cancelled on September 6, 2021), Guangzhou shengjiuruibang marketing planning Co., Ltd., Wuhan shengbozhi marketing planning Co., Ltd., Zhejiang Jinhua Shengtang Sports Development Co., Ltd., Jiangxi Saiqi sports equipment manufacturing Co., Ltd., Zhuzhou Lisheng international racetrack Management Co., Ltd., top speed (Shanghai) limited, Shanghai Qingsu event planning Co., Ltd Wuhan Lisheng Weijiu Sports Culture Co., Ltd., Wenzhou Saika sports planning Co., Ltd. (cancelled on May 18, 2021), Wuxi Lisheng Huasai Sports Culture Co., Ltd., Shanghai Yaosu sports event planning Co., Ltd., Xiamen Saika Youpao Sports Culture Co., Ltd., ningboseka Sports Culture Co., Ltd A total of 23 subsidiaries of Shanghai yundongjia Sports Technology Co., Ltd. are included in the evaluation scope. The total assets of the unit 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.
The main items included in the evaluation scope include: organizational structure, development strategy, corporate culture, social responsibility, sales and collection, procurement and payment, fixed assets management, inventory management, fund management (including investment and financing management), financial report, information disclosure, human resources management, information system management, internal supervision, etc. The high-risk areas of focus mainly include the fluctuation of business performance with downstream industries, the intensification of market competition and product quality.
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.
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the factors such as the company's scale, industry characteristics, risk preference and risk tolerance, the board of directors of the company distinguished the internal control of financial reports from the internal control of non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company. The identification standards of internal control defects determined by the company are as follows:
1. Identification standard of internal control defects in financial reporting
The evaluation criteria for internal control defects in financial reporting determined by the company are as follows:
General defects, important defects and major defects of the project
0.5% of total assets ≥ 0.5% of total assets and 1% of total assets ≥ 1% of total assets
Quantitative standard
1% of operating revenue ≥ 1% of operating revenue and 2% of operating revenue ≥ 2% of operating revenue
If one of the following conditions is met, it can be recognized as a major defect:
If one of the following conditions is met, it can be recognized that ① the directors, supervisors and senior management of the company are important defects: personnel fraud;
There are no major defects or deficiencies ① the company has not established an anti fraud mechanism; ② The ineffective control environment may lead to the public qualitative standard falling into other financial reports of the standard ② the company's key control activities lack of control, and the company seriously deviates from the control objectives;
Control defects of the Department.
Procedures; ③ The certified public accountant has not established a risk management system for the company's financial report ③; ④ there are three important opinions in the company's accounting information system except for the unqualified opinions issued in the form;
Defects. ④ The supervision of the audit committee and the audit department on the company's external financial report and internal control over financial report is invalid.
When a potential misstatement caused by an internal control defect affects multiple indicators, the nature of the defect shall be determined according to the lower principle.
2. Identification standard of internal control defects in non-financial reporting
The evaluation criteria for internal control defects in non-financial reporting determined by the company are as follows:
General defects, important defects and major defects of the project
0.5% of total assets ≥ 0.5% of total assets and 1% of total assets ≥ 1% of total assets
Quantitative standard
1% of operating revenue ≥ 1% of operating revenue and 2% of operating revenue ≥ 2% of operating revenue
If one of the following conditions is met, it can be recognized as a major defect if one of the following conditions is met:
Identified as important defects: ① lack of decision-making procedures;
① ② the company's major decision-making procedures are violated or the company's major leaders are lost
Punishment; Error;
② Violation of internal control system, resulting in ③ serious violation of the company or main leaders, which does not constitute major defects, major deficiencies and major losses; (3) the loss of business personnel in key positions within the non-financial reporting department who have been severely punished for violation of law and discipline or who have accepted the qualitative standards; and (3) the loss of business personnel in key positions shall be strictly subject to criminal responsibility;
Control defects. Heavy; ④ Serious loss of senior managers and senior technicians ④ important internal control systems or system technicians;
There are defects, resulting in local management ⑤ lack and failure of important business control system; Or system failure, which has a significant impact on ⑤ important or general defects in internal control and production and operation of the company; Not rectified. ⑥ Major defects in internal control have not been rectified.
When a potential misstatement caused by an internal control defect affects multiple indicators, the nature of the defect shall be determined according to the lower principle.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company did not have major defects and important defects in internal control of financial reporting during the reporting period.
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 reporting, the company found no major defects and important defects in internal control of non-financial reporting during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company did not explain other major matters related to internal control.
Shanghai Lisheng Racing Co.Ltd(002858) Chairman: Xia Qing
April 6, 2002
