Verification opinions on self-evaluation report of internal control in 2021
In accordance with the measures for the administration of securities issuance and listing recommendation business, the Listing Rules of Shenzhen Stock Exchange on the gem (revised in December 2020), the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 - standardized operation of listed companies on the gem and other relevant provisions, As a continuous supervision sponsor of Hynar Water Group Co.Ltd(300961) (hereinafter referred to as " Hynar Water Group Co.Ltd(300961) " or "the company") for the initial public offering of shares and listing on the gem, Anxin Securities Co., Ltd. (hereinafter referred to as "Anxin securities" and "sponsor") has verified the self-evaluation report on internal control of Hynar Water Group Co.Ltd(300961) 2021. The verification results are as follows:
1、 Hynar Water Group Co.Ltd(300961) self evaluation of the effectiveness of the implementation of the company's internal control system
According to the identification of major defects in the company's 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, and no major defects and major defects in the internal control over financial reporting have been found. According to the identification of major defects in the company's internal control over non-financial reports, the company found no major defects and important defects in the internal control over non-financial reports on the benchmark date of the internal control evaluation report.
From the benchmark date of the internal control evaluation report to the issuing date of the internal control evaluation report, the company has no factors affecting the evaluation conclusion of the effectiveness of internal control.
2、 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 scope of evaluation include:
The headquarters of the company and its wholly-owned subsidiaries and holding subsidiaries are included in the evaluation scope. The total assets of the unit account for 100% of the total assets in the company's financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company's financial statements.
2. The main operations and matters included in the scope of evaluation include:
Corporate governance structure, organizational structure, development strategy, social responsibility, human resources, corporate culture, financial report, capital activities, procurement management, asset management, sales management, engineering management, contract management, budget management, information system management, information disclosure, investment management, external guarantee management, etc.
3. The high-risk areas of focus mainly include:
Financial report, capital activities, procurement management, asset management, sales management, engineering management, contract management, investment management, external guarantee management, etc.
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 and relevant internal rules and regulations of the company.
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 standard of internal control defects in financial reporting
According to the importance of financial report misstatement that may be caused by defects, the company uses a combination of qualitative and quantitative methods to classify defects into major defects, important defects and general defects.
(1) 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
Misstatement of business income ≥ 1% of business income, 0.5% of business income ≤ misstatement business misstatement 0.5% of business income 1%
Misstatement of total profit ≥ 5% of total profit 2% ≤ misstatement ＜ misstatement ＜ 2% of total profit
Total 5%
Misstatement of total assets: misstatement ≥ 1% of total assets, 0.5% of total assets ≤ misstatement asset misstatement 0.5% of total assets, 1% of total assets
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name: qualitative standard for major defects
1) The directors, supervisors and senior managers of the company abuse their power, commit embezzlement, bribery, misappropriation of funds and other fraudulent acts, and cause heavy losses and adverse effects to the enterprise;
2) Make corrections to the published financial reports;
Major defects 3) the certified public accountant finds that there is a major misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process;
4) The internal control supervision of the board of directors or relevant committees and internal audit institutions of the company is invalid;
5) Other defects whose specific impact amount cannot be determined but whose importance is similar.
Index name: qualitative standard for major defects
1) Fraud of personnel in key positions;
2) Failure to select and apply accounting policies in accordance with GAAP;
Important defects 3) 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;
4) Other defects whose specific impact amount cannot be determined but whose importance is similar.
General defects are other control defects other than the above major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
Quantitative and qualitative criteria for defect identification
Level regulations and systems / rectification of safety reputation defects of decision-makers
Serious violation of important business, such as the possibility of a negative news to be rectified without obtaining the "three important and one big" middle and senior level of national laws or regulations, and caused by the lack of internal control of employees above the business manager in all parts of the country, until it is controlled by the national government or the death of the controller and senior staff or citizens, Major defects, major defects, economic losses, and the systematic loss of grade technology of government departments, Or three persons who have publicly denounced or unscientificly injured the enterprise's reputation of not losing more than 5% of the total amount of rectification due to the continuous failure of the enterprise's profits, political punishment or effectiveness, or the reputation of employees above the number of major decisions
responsibility
Violation of the national laws and regulations on the total amount of profits not obtained, the important business system, the long-term impact of negative news to the rectification may be less than 2%, and may be subject to the internal control of several employees of provincial-level important companies in a certain area, or have led to political defects at or above the level or the spread of important key positions or citizens' health, For important defects, the decision-making procedures directly conducted by the government department are not healthy, Or three employees whose corporate reputation or sustained economic losses are less than political punishment or democratic or non staff loss, resulting in large rectification profits, serious securities trading or serious damage to citizens, generally less than 5% of the reported injuries
review
Long term impact
There may be or has been a direct minor violation caused by an employee's negative news. In addition to the above, the general defects rectified by the company's personnel or citizen health, followed by economic losses and the resignation of other controllers who have been rectified, or similar reports, The loss of external and internal control is less than 2% of the total amount of general defects, and the reputation of posts with high profit defect rate is not frequently affected
Industrial accident
(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 has no 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 reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
3、 Verification opinions of the recommendation institution
The recommendation institution mainly refers to the materials of Hynar Water Group Co.Ltd(300961) three sessions; Consult and analyze Hynar Water Group Co.Ltd(300961) internal control system arrangement, and investigate the establishment, implementation and supervision of various systems; Communicate with Hynar Water Group Co.Ltd(300961) directors, supervisors, senior managers and internal auditors; Check the operation and implementation of internal control on site, and check the compliance and effectiveness of Hynar Water Group Co.Ltd(300961) 's internal control from the aspects of internal control environment, establishment and implementation of internal control system and supervision of internal control.
After verification, Anxin Securities believes that: Hynar Water Group Co.Ltd(300961) has a relatively sound corporate governance structure, and the existing internal control system and implementation meet the requirements of relevant laws and regulations and securities regulatory authorities; The self evaluation report on internal control in Hynar Water Group Co.Ltd(300961) 2021 basically reflects the construction and operation of its internal control system; Anxin securities has no objection to the self evaluation report on internal control in Hynar Water Group Co.Ltd(300961) 2021.
(there is no text on this page, which is the signature and seal page of the verification opinions of Anxin Securities Co., Ltd. on the self evaluation report of Hynar Water Group Co.Ltd(300961) 2021 internal control) sponsor representative (signature):
Fan Changjiang Yangfu
Anxin Securities Co., Ltd
