Citic Securities Company Limited(600030)
About Shanghai Hongying Intelligent Technology Co., Ltd
Verification opinions on self-evaluation report of internal control in 2021
Citic Securities Company Limited(600030) (hereinafter referred to as ” Citic Securities Company Limited(600030) ” or “sponsor”) as a sponsor of Shanghai Hongying Intelligent Technology Co., Ltd. (hereinafter referred to as “Hongying intelligent” or “company”) for initial public offering, listing and continuous supervision, In accordance with the requirements of relevant laws and regulations such as the norms of internal control of enterprises – basic norms, the measures for the administration of securities issuance and listing recommendation business, the guidelines for self-discipline supervision of listed companies of Shenzhen Stock Exchange No. 13 – recommendation business, and the guidelines for self-discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, Checked the 2021 internal control self evaluation report of Shanghai Hongying Intelligent Technology Co., Ltd. (hereinafter referred to as “internal control evaluation report”), and issued the following verification opinions:
1、 Verification of recommendation institutions
Citic Securities Company Limited(600030) recommendation representatives shall consult the company’s internal control system related to financial reports and information disclosure, spot check the internal control process record documents, communicate with the company’s internal auditors and senior managers, and combine the daily continuous supervision work, based on the reasonable evaluation of the integrity, rationality and effectiveness of the company’s internal control, Checked the internal control evaluation report issued by the board of directors of the company.
2、 Hongying intelligent 2021 internal control evaluation report 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.
The company has no factors affecting the evaluation conclusion of internal control effectiveness from the benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report.
3、 Hongying intelligent 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.
The main units included in the evaluation scope include all departments of the headquarters, branches and subsidiaries.
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 businesses and matters included in the evaluation scope include: corporate governance, organizational structure, development strategy, human resources, corporate culture, social responsibility, research and development, safety and environmental protection, market development, customer service, operation project management, engineering project management, procurement management, fund management, financial management, comprehensive budget, investment management, asset management, external guarantee, legal affairs, contract management, capital operation Information management, internal control audit, financial report, control of holding subsidiaries, etc.
The high-risk areas of focus mainly include: market competition, price fluctuation of raw materials, customer dependence, materials and procurement, fund management, financial management, safety and environmental protection, related party transactions, information disclosure, 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 the company’s rules and regulations.
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
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The quantitative standard for determining the importance of misstatement (including omission) of the company’s consolidated financial statements based on the data of the consolidated financial statements. The quantitative standard is measured by sales revenue and total assets. If the loss that may be caused or caused by internal control defect is related to the income statement, it shall be measured by the sales revenue index; if the loss that may be caused or caused by internal control defect is related to asset management, it shall be measured by the total asset index. Qualitative criteria to control the likelihood that misstatements in accounts or statements cannot be prevented or detected and corrected.
General defects, important defects and major defects of the project
Potential misstatement of sales revenue total sales revenue misstatement of total sales revenue ≥ sales revenue
Report 0.3% ≤ false report 0.5% of total sales revenue
0.5% of the total
Potential misstatement of total assets 0.3% of total assets of total assets ≤ misstatement ≥ total assets
Report 0.3% report 0.5% of total assets and 0.5% of total assets
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defect: a defect in internal control, alone or in combination with other defects, has a reasonable possibility, which makes it impossible to prevent, detect and correct major misstatement in the financial report in time. For example:
(1) Fraudulent acts of directors, supervisors and senior managers of the company that have a significant impact on the financial report; (2) Ineffective control environment may cause the company to seriously deviate from control objectives;
(3) Correction of published financial reports;
(4) The major defects reported to the management and the board of directors have not been corrected after a reasonable time; (5) The supervision of the audit committee or internal audit institution over internal control is invalid.
Important defects: internal control defects, alone or in combination with other defects, have a reasonable possibility to prevent, detect and correct the misstatement in the financial report that should be paid attention to by the board of directors and management although it does not reach or exceed the importance level.
General defects: other internal control defects in financial reporting that do not constitute major defects and important defects.
2. 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:
General defects, important defects and major defects of the project
Potential misstatement of sales revenue 0.3% of total sales revenue ≤ misstatement ≥ sales revenue
Report 0.3% false report total sales revenue
0.5% 0.5%
Potential misstatement of total assets 0.3% of total assets of total assets ≤ misstatement ≥ assets
Report 0.3% 0.5% of total assets and 0.5% of total assets
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.
Major defects: 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;
Important defects: 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 significantly deviate from the expected goal;
General defects: 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.
(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 or 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 or 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
During the reporting period, the company has no other major matters related to internal control that need to be explained.
The board of directors of the company noted that the internal control should adapt to the company’s business scale, business scope, competition and risk level, and be adjusted in time as the situation changes. In the future, the company will continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, and promote the healthy and sustainable development of the company.
5、 Verification opinions of the recommendation institution
After verification, the sponsor believes that the current internal control system of Hongying intelligent meets the requirements of relevant laws, regulations and normative documents such as the norms of enterprise internal control – basic norms, supporting guidelines for enterprise internal control and so on. In 2021, the company’s internal control system was well implemented, and the 2021 internal control self-evaluation report of Shanghai Hongying Intelligent Technology Co., Ltd. issued by the board of directors of the company was in line with the actual situation of the company.
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(there is no text on this page, which is the signature page of Citic Securities Company Limited(600030) on the verification opinions on the 2021 internal control self-evaluation report of Shanghai Hongying Intelligent Technology Co., Ltd.) (sponsor representative:
Zhao Liang, Yang Jie
Citic Securities Company Limited(600030) mm / DD / yyyy
