Caissa Tosun Development Co.Ltd(000796)
Report of the board of supervisors on 2021 and the first quarter of 2022
Opinions on relevant matters
In accordance with the standards for the governance of listed companies issued by China Securities Regulatory Commission, the guidelines for the standardized operation of listed companies and other laws, regulations and normative documents of Shenzhen Stock Exchange, the articles of association of Caissa Tosun Development Co.Ltd(000796) (hereinafter referred to as the “company”) and the rules of procedure of the board of supervisors, the board of supervisors of the company issued the following opinions on the matters related to the 2021 annual report and the first quarter report of 2022 of the company:
1. Review opinions on the full text and summary of the 2021 Annual Report
After examination, the board of supervisors believes that the procedures for the board of directors to prepare and review the company’s 2021 annual report comply with relevant laws and regulations and the provisions of the China Securities Regulatory Commission. The contents of the report truly, accurately and completely reflect the actual situation of the listed company, and there are no false records, misleading statements or major omissions.
2. Opinions on 2021 profit distribution plan
The board of supervisors believes that the company’s intention not to make profit distribution in 2021 is based on the needs of the company’s operation and development, starting from the long-term interests of the company, conducive to safeguarding the rights and interests of shareholders, in line with the cash dividend policy in the articles of association, with legitimacy, compliance and rationality, conducive to the healthy and stable development of the company, and there is no damage to the interests of shareholders of the company.
3. Comments on internal control evaluation report in 2021
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) audited the effectiveness of the company’s internal control over the 2021 financial report and issued the internal control audit report, which issued a negative opinion on the effectiveness of the company’s internal control. The board of directors of the company has issued a special statement on the matters involved in the above internal control audit report. The board of supervisors of the company now gives the following special opinions on the special statement issued by the board of directors: the board of supervisors agrees with the special statement of the board of directors of the company on issuing a negative opinion on the internal control audit report to the accounting firm. The board of supervisors will earnestly perform its duties, urge the board of directors and management to continuously improve the standard operation level, continue to pay attention to the effect of the company’s internal control, and earnestly safeguard the interests of the company and all shareholders.
4. Opinions on the special report on the annual deposit and actual use of raised funds in 2021
The board of supervisors believes that the special report on the annual storage and actual use of raised funds in 2021 can truly, accurately and completely reflect the storage and use of the company’s raised funds in 2021. The storage and use of the company’s raised funds comply with the relevant provisions of China Securities Regulatory Commission and Shenzhen Stock exchange on the storage and use of raised funds of listed companies, and there are no violations in the storage and use of raised funds.
5. Opinions on the provision for asset impairment and the recognition of changes in the fair value of other equity instrument investments in 2021
In order to truly reflect the company’s financial situation and operating results, according to the relevant provisions of the accounting standards for business enterprises, the company has comprehensively checked and analyzed the signs of impairment of the value of relevant assets in the consolidated statements as of December 31, 2021, and tested them by asset category. According to the test results, the impairment of goodwill within the scope of the company’s consolidated statements in 2021 is 432999 million yuan. The change in the fair value of other equity instrument investment is included in other comprehensive income, which reduces the company’s other comprehensive income by 1135547 million yuan in 2021 and the owner’s equity by 1568546 million yuan at the end of 2021. The board of supervisors believes that the company’s recognition of changes in the fair value of other equity instrument investments is based on sufficient basis, in line with the provisions of the accounting standards for business enterprises and the company’s accounting policies, and in line with the actual situation of the company. The decision-making process complies with the relevant requirements of laws and regulations, and there is no situation that damages the interests of the company and all shareholders, especially minority shareholders.
6. Opinions on changes in accounting policies of the company
This change of accounting policy is made in accordance with the requirements of relevant documents of the Ministry of finance, in line with the relevant provisions of the accounting standards for business enterprises and the requirements of the relevant provisions of Shenzhen Stock Exchange. This change will not have a significant impact on the company’s financial statements and will not damage the interests of the company and minority shareholders.
7. Review comments on the report of the first quarter of 2022
After examination, the board of supervisors believes that the procedures for the preparation and deliberation of the company’s first quarter report of 2022 by the board of directors comply with relevant laws and regulations and the provisions of the China Securities Regulatory Commission. The contents of the report truly, accurately and completely reflect the actual situation of the listed company, and there are no false records, misleading statements or major omissions.
Board of supervisors: Ren Jun, Guan Wei, Li Feng April 30, 2022
