Haima Automobile Co.Ltd(000572)
Internal control evaluation report in 2021
Haima Automobile Co.Ltd(000572) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, 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 the 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 company’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
1. Does the company have any major defects in internal control over financial reporting on the benchmark date of internal control evaluation report
□ 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
□ 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
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.
1. The main units included in the evaluation scope include the company headquarters, Haima Automobile Co.Ltd(000572) Co., Ltd., Haima New Energy Vehicle Co., Ltd., Hainan Haima Automobile Co.Ltd(000572) Co., Ltd., Haima Finance Co., Ltd., etc.
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:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission, information system, risk assessment, internal supervision and other key business processes.
4. High risk areas of focus include:
Purchase business, asset management, sales business, 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
(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 procedures specified in the enterprise internal control standard system and the company’s internal control evaluation management measures.
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:
Quantitative standard for major defects
Misrepresentation index
(misstatement index = total amount of misstatement / current misstatement index of the company ＞ 3% 1% ＜ misstatement index ≤ 3% misstatement index ≤ 1%)
Consolidated main business income in the current period × 100%）
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
Ineffective control environment, serious defects in corporate governance structure, non-existent function of power check and balance mechanism, and ineffective implementation of control measures;
Major defects: there is no formal supervision and inspection mechanism and lack of understanding of internal control, resulting in the overall lack of internal control measures, the lack of information communication system, the lack of control measures for important businesses or systematic failure of measures;
Major misstatements found in external audit are not first discovered by the company.
The effective implementation of management and control measures has caused serious obstacles, the supervision and inspection mechanism can not play a role, and the important defects can not be improved for a long time;
Serious lack of understanding of internal control, resulting in imperfect internal control methods and information communication system; There are defects in the corporate governance structure, and the power check and balance mechanism has been seriously negatively affected.
General defects and other internal control defects that do not constitute major defects or important defects.
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
＞ consolidated main business of the company in the current period
Unauthorized, fraudulent, etc. 1 ‰ of the company’s consolidated main business income in the current period ≤ 5 ‰ of the company’s consolidated main business income in the current period ≤ 1 ‰ of the company’s consolidated main business income in the current period
5 ‰ of business income
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
Those who violate national laws and regulations and are severely punished;
Those who cause serious obstacles to the realization of the company’s strategic objectives, so that the strategic planning indicators can hardly be completed;
The frequent occurrence of negative news in the media has a significant negative impact on the company’s production and operation, and leads to the company’s inability to continue major defective operation;
Improper prosecution or response to major litigation (Arbitration) cases has seriously affected the economic interests of the company and made the company unable to continue its business;
The total amount of related party transactions affected exceeds the amount of related party transactions approved by the general meeting of shareholders of the company.
Those who violate laws, regulations and rules and are punished severely;
Causing serious obstacles to the realization of the company’s strategic objectives, making it difficult to complete the key indicators of strategic planning;
It has caused great obstacles to the promotion of strategy implementation and greatly damaged the strategy implementation and evaluation mechanism; Negative media news has a great negative impact on the company’s production and operation, and has a serious negative impact on the company’s sustainable operation;
Improper prosecution or response to major litigation (Arbitration) cases, resulting in serious impact on the company’s economic interests, major defects and serious negative impact on the company’s sustainable operation;
Cooperation among departments is greatly hindered, and synergy is difficult to play; There is a large degree of obstruction in cross departmental information exchange and intelligence transmission;
Leading to serious financial losses that cannot be recovered for a long time, and significant financial losses have a serious negative impact on the normal operation of the company;
Those who seriously deviated from the government’s policy objectives and had a bad impact on social stability;
Those who have a bad impact on the environment, are strongly protested by surrounding residents or punished by regulatory units, and must implement complex, difficult and costly remedial measures.
General defects and other internal control defects that do not constitute major defects or important defects. (III) identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects during the reporting period, whether the company found major defects in the internal control of financial reporting □ yes √ no 1.2 Significant defects during the reporting period, whether the company found significant defects in internal control over financial reporting □ yes √ no 1.3 On the benchmark date of the internal control evaluation report, whether the company has major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.4 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 Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Whether the company has found any significant defects in internal control over non-financial reporting during the reporting period
□ yes √ no 2.3 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 2.4 On the benchmark date of the internal control evaluation report, whether the company finds 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 3 Description of other major events □ applicable √ not applicable
chairman:
Haima Automobile Co.Ltd(000572) board of directors date 2022
