Company code: Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) company abbreviation: Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565)
Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565)
Internal control evaluation report in 2021
Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) 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 base date of internal control evaluation report to the date of issuance of 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. 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 Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) , Tangshan Liquan Environmental Protection Technology Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
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:
Internal control environment such as governance organization and organizational structure, internal audit, human resources policy and corporate culture construction; Assessment of technology, operation, market, policy, finance and other risks; And the main internal control measures and internal control activities. 4. High risk areas of focus mainly include:
Monetary capital, fixed assets, financing, foreign investment, procurement and payment, sales and collection, costs, external guarantees, related party transactions, research and development, human resource management, information disclosure, information and communication, internal supervision, 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
nothing
（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, relevant laws and regulations and internal control management system. 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 impact of internal control defects is greater than the total operating revenue in the consolidated statements, greater than 1% of the total operating revenue in the consolidated statements, less than 3% of the total operating revenue in the consolidated statements, and less than 1% (inclusive) of 3% (inclusive)
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
Major defects are recognized as major defects under any of the following circumstances:
a) The company’s directors, supervisors and senior managers commit fraud and cause heavy losses and adverse effects to the enterprise;
b) There is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process;
c) Major defects that have been found and reported to the management have not been corrected within a reasonable time;
d) The supervision of the board of directors on internal control is invalid.
An important defect shall be recognized as an important defect under any of the following circumstances:
a) Failure to select and apply accounting policies in accordance with GAAP;
b) Failure to establish anti fraud procedures and control measures;
c) No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control;
d) There are single or multiple defects in the final financial report process. Although it does not meet the identification standard of major defects, it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects are internal control defects other than the above major defects and important defects.
Note: 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
The direct property loss is greater than the total operating income in the consolidated statements, greater than 1% of the total operating income in the consolidated statements, less than 3% of the total operating income in the consolidated statements, and less than 1% (inclusive) of the total operating income in the consolidated statements
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
Major defects are recognized as major defects in the following circumstances:
a) Violation of national laws, regulations or normative documents;
b) Unscientific decision-making procedure leads to major decision-making mistakes;
c) Institutional deficiency or systematic failure of important business;
d) Major or important defects cannot be effectively rectified;
e) Major negative impact of safety and environmental protection accidents on the company;
f) Other situations that have a significant negative impact on the company.
An important defect is recognized as an important defect if:
a) Defects in important business systems or systems;
b) Important defects found in internal control and internal supervision are not rectified in time;
c) Other situations that have a great negative impact on the company.
A general defect is recognized as a general defect under the following circumstances:
a) Defects in general business system or system;
b) General defects found in internal control and internal supervision were not rectified in time.
Note: none (III) 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
None 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, whether the company has 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
□ yes √ no 2.3 General defect
None 2.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the 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, whether the company finds any important defects in non-financial reporting internal control 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 2021, through the inspection and evaluation of the company’s internal control system, the company has established a relatively sound and perfect internal control system and standardized business processes, which have been effectively implemented, comply with relevant Chinese laws and regulations and the provisions and requirements of the securities regulatory department, adapt to the company’s management requirements and development needs, and provide a reasonable guarantee for the realization of the company’s internal control objectives, It has played a positive role in promoting the standardized operation of the company and preventing risks. In 2022, while expanding its business and business scale, the company will also timely modify and improve the relevant internal control, further improve the internal control awareness of all employees and promote their implementation in business management and daily work; Further establish and strengthen the internal control concept of institutionalized management, institutionalized process and process informatization, embed the concept and requirements of internal control into the business process, promote the company to carry out various business activities in accordance with the law, form a comprehensive, full staff, whole process and whole system risk prevention and control mechanism, and effectively and comprehensively improve the effectiveness of the company’s internal control system. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Shen Wanzhong Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) April 20, 2022
