Lingnan Eco&Culture-Tourism Co.Ltd(002717)
Self evaluation report on internal control in 2021
Lingnan Eco&Culture-Tourism Co.Ltd(002717) 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 Lingnan Eco&Culture-Tourism Co.Ltd(002717) (hereinafter referred to as the company) 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.
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.
(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 main units included in the evaluation scope include: Lingnan Eco&Culture-Tourism Co.Ltd(002717) , Lingnan Design Group Co., Ltd., Dongguan Lingnan nursery stock Co., Ltd., Dongguan Xinyang Electronic Technology Co., Ltd., Meishan Lingnan Mindong Ecological Environment Engineering Co., Ltd., Lingnan Xiangshi Construction Project Management Co., Ltd., Rushan Lingnan Ecological Culture Tourism Co., Ltd., Shanghai Hengrun Digital Technology Group Co., Ltd Shanghai Hengrun Shenqi multimedia Co., Ltd., Shanghai Hengrun culture and Entertainment Development Co., Ltd., Shanghai runling culture Investment Management Co., Ltd., Hong Kong Hengrun culture and entertainment Co., Ltd., Shanghai hanpi culture Investment Co., Ltd., Huai'an Hengrun Technology Co., Ltd., Shanghai Hengrun culture and Technology Co., Ltd., Shanghai Hengrun culture and Tourism Development Co., Ltd., sungwolholdings Co, Ltd, Lingnan Xinke Ecological Technology Research Institute (Beijing) Co., Ltd., demaji International Exhibition Co., Ltd., demaji Hong Kong Exhibition Co., Ltd., Lingnan Water Group Co., Ltd., Linshui Lingnan Ecological Engineering Co., Ltd., Alashankou Saishang oasis investment and Construction Co., Ltd., Zhuhai Lingnan financial holding Investment Co., Ltd., Jieshou Lingnan Garden Culture Tourism Operation Co., Ltd Quanyu Zongheng Cultural Tourism Investment Co., Ltd., Guangxi Lingyu CHUANGHE Cultural Tourism Investment Co., Ltd., Xinjiang Lumei Nanjiang Ecological Agriculture Development Co., Ltd., Xinjiang Aishang Xiyu Cultural Tourism Investment Co., Ltd., Lingnan Garden Construction and Development Co., Ltd., Lingnan (Dongguan) Ecological Cultural Tourism Supply Chain Management Co., Ltd., Lingnan International Development Co., Ltd., demaji international cultural creativity (Shenzhen) Co., Ltd Xi'an demaji cultural and creative Co., Ltd., Suqian Zehui water Co., Ltd., Haikou xinzhongyuan cultural and Tourism Investment Co., Ltd., Lingnan (Shenzhen) Supply Chain Management Co., Ltd., demaji international cultural and Creative Industry Co., Ltd., demaji cultural and creative industry (Wuhan) Co., Ltd., Beijing Shengyuan Zhongqing Engineering Technology Co., Ltd., Lingnan ecological restoration Co., Ltd., Shenzhen Lingnan cultural and tourism planning and Design Co., Ltd Suqian haogang water Co., Ltd., Beijing haoze Tongda Technology Co., Ltd., Dongguan Xingang Deheng Water Engineering Co., Ltd., Shenzhen Lingnan Design Consulting Management Co., Ltd., Shenzhen Lingnan landscape planning and Design Co., Ltd., Shenzhen Lingnan ecological planning and Design Co., Ltd., Hengrun paile dimension (Rizhao) Tourism Development Co., Ltd., demaji culture and creativity (Chongqing) Co., Ltd., Guangxi Quanyu Business Management Co., Ltd Jiangmen Xinhui Nanling water Co., Ltd., Shanghai Lingnan planning and Architectural Design Co., Ltd., Shenzhen Xinyi investment partnership (limited partnership), Shenzhen Xintai Huajin investment partnership (limited partnership), Taishan Nanling Water Engineering Co., Ltd., Enping Nanling Water Engineering Co., Ltd., Kaiping Nanling Water Engineering Co., Ltd., Dongguan Lingnan environmental Protection Engineering Co., Ltd., Dongguan Lingsen nursery stock Co., Ltd Beijing Lingnan Runlu environmental governance Co., Ltd., Lingnan water (Malipo) Co., Ltd., Chongqing Guangwei Cultural Tourism Development Co., Ltd., Shenzhen Hongsheng Qiyuan No. 1 investment partnership (limited partnership), Lingyu cultural tourism development (Nanxiong) Co., Ltd., Lingnan Municipal Government Construction Engineering Co., Ltd., Shanghai Runyu cultural tourism development Co., Ltd., Nanxiong lingchuang Construction Engineering Co., Ltd Dongguan Lingcheng labor subcontracting Co., Ltd., Dongguan Lingnan First Construction Engineering Construction Co., Ltd., Hubei Jiangling Cultural Tourism Development Co., Ltd., Hengrun science fiction Valley (Rizhao) Cultural Tourism Development Co., Ltd., Shanghai demaji Exhibition Engineering Co., Ltd., demaji Exhibition (Shanghai) Co., Ltd., demaji exhibition service (Shanghai) Co., Ltd., Shanghai Xinyu Exhibition Co., Ltd Lingnan (Bole) Ecological Cultural Tourism Supply Chain Management Co., Ltd., Hezhou Accommodation Service Co., Ltd. and Zhuhai Hengqin Hengrun Creative Technology Co., Ltd. are 79 companies in total. The total assets of the units included in the evaluation scope 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 operations and matters included in the scope of evaluation include:
1. Internal control environment: development strategy, governance structure, social responsibility, organizational structure, corporate culture and human resources;
2. Control activities: business, supplier management, project quality management, investment and guarantee, related party transactions, raised funds management, asset management, financial management, information and communication, R & D and technology;
3. Risk assessment: strategic risk, financial risk, market risk, legal risk, business risk, environmental risk and foreign investment risk;
4. Internal supervision; Including internal audit, internal control self-evaluation and anti fraud system.
The high-risk areas of focus mainly include: fund-raising management; Foreign investment, securities investment and venture capital; External guarantee; Related party transactions and fund transactions with related parties; Provide external financial assistance; Purchase or sale of assets; Large capital transactions.
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 in accordance with the standard system of enterprise internal control, the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, the company's internal audit system and other relevant provisions.
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 criteria for defects in internal control over financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The quantitative standard takes the operating income and total assets as the measurement indicators.
If the loss that may be caused or caused by the defect of internal control is related to the income statement, it shall be measured by the operating revenue index. If the amount of misstatement in the financial report caused by the defect alone or in combination with other defects is less than 0.5% of the operating revenue, it is recognized as a general defect; If it exceeds 0.5% but less than 1% of the operating revenue, it is recognized as an important defect; If it exceeds 1% of the operating revenue, it is recognized as a major defect.
Losses that may be caused or caused by internal control defects related to asset management shall be measured by the total asset index. If the amount of financial report misstatement that may be caused by the defect alone or in combination with other defects is less than 0.5% of the total assets, it is recognized as a general defect; If it exceeds 0.5% but less than 1% of the total assets, it is recognized as an important defect; If it exceeds 1% of the total assets, it is recognized as a major defect.
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
1) Signs of significant deficiencies in financial reporting include:
① The company's control environment is invalid;
② The directors, supervisors and senior managers of the company commit serious fraud;
③ The certified public accountant found that there was a material misstatement in the current financial report, and the misstatement was not found during the operation of the company's internal control;
④ The company corrects the published financial report;
⑤ The audit committee and internal audit department of the company have no effect on the supervision of financial reporting and internal control.
2) Signs of significant deficiencies in financial reporting include:
① The company has not established an anti fraud mechanism;
② Lack of control procedures for key control activities of the company;
③ The company has not established a risk management system;
④ There are important defects in the company's accounting information system.
3) General defects: refer to other internal control defects other than major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The quantitative standard for the evaluation of internal control defects in non-financial reports shall be implemented with reference to the quantitative standard for the evaluation of internal control defects in financial reports.
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The identification of non-financial report defects is mainly based on the impact of defects on the effectiveness of business processes and the possibility of occurrence.
If the possibility of defects is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal, which is a general defect; If the possibility of defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal as an important defect; If the possibility of defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal, which is a major defect.
(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. 4、 Description of other major matters related to internal control
There are no other significant matters related to the company's internal control.
Lingnan Eco&Culture-Tourism Co.Ltd(002717) board of directors April 30, 2022
