Zhongtian Guofu Securities Co., Ltd
About Huasu Holdings Co.Ltd(000509)
Verification opinions on self-evaluation report of internal control in 2021
Zhongtian Guofu Securities Co., Ltd. (hereinafter referred to as "Zhongtian Guofu securities" or "sponsor") as the sponsor of Huasu Holdings Co.Ltd(000509) (hereinafter referred to as "HuaSu holding", "listed company" or "company") non-public offering of shares in 2020, according to the administrative measures for securities issuance and listing sponsor business In accordance with the requirements of relevant laws and regulations such as the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 13 - recommendation business and the guidelines for standardized operation of listed companies of Shenzhen Stock Exchange, the self-evaluation report on internal control of HuaSu holdings in 2021 has been carefully verified. The details are as follows:
1、 Internal control evaluation of HuaSu Holdings
(I) evaluation scope of internal control
The listed company shall determine the main units, businesses and matters included in the evaluation scope and high-risk areas in accordance with the risk oriented principle. The main units included in the evaluation scope include: Huasu Holdings Co.Ltd(000509) headquarters, Beijing Bowei Yilong Culture Communication Co., Ltd., Chengdu Kangda Credit Suisse Enterprise Management Co., Ltd. (including Tianji Zhigu (Hubei) Information Technology Co., Ltd.) and Shanghai Yinghua Hospital Management Co., Ltd. the total assets of the units included in the evaluation scope account for 90.21% of the total assets in the company's consolidated financial statements, The total operating revenue accounts for 97.96% of the total operating revenue in the company's consolidated financial statements; The main businesses and matters included in the evaluation scope include: organizational structure, human resources, capital activities, procurement business, asset management, sales business, engineering projects, guarantee business, related party transactions, financial reports, contract management, internal information transmission and information system, etc; The high-risk areas of focus mainly include: capital activities, procurement business, sales business, guarantee business, financial reporting and contract management.
The above units, businesses, matters and high-risk areas included in the evaluation scope cover the main aspects of the company's operation and management, and there are no major omissions.
(II) internal control evaluation basis and internal control defect identification standard
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system.
According to the identification requirements, combined with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, distinguish between internal control over financial reports and internal control over non-financial reports, study and determine the specific identification standards for internal control defects applicable to the company, which are consistent with those in previous years. The identification standards of internal control defects determined by the company are as follows: 1. Identification standards of internal control defects in financial reports
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Project business type major defect important defect general defect
0.1% of electronic device manufacturing and operating revenue ≤
The amount of misrepresentation of medical and stage lighting revenue ≥ the amount of misrepresentation of business revenue ＜ the amount of misrepresentation of business revenue ＜ 0.2% of the potential misrepresentation of design and other business revenue and 0.1% of the revenue
Affairs
1.5% of net profit of electronic device manufacturing
Net profit medical and stage lighting misstatement amount ≥ net profit misstatement amount ＜ net profit misstatement amount ＜ 1.5% of 3% of potential net profit misstatement of design and other industries
Affairs
0.5% of total electronic device manufacturing and assets ≤
Total assets medical and stage lighting misstatement amount ≥ total assets misstatement amount ＜ assets misstatement amount ＜ 1% of the total potential misstatement design and other business volume of assets, 1% of the total and 0.5% of the total
Affairs
Of electronic device manufacturing and owner's equity
Owner's equity medical and stage lighting misstatement amount ≥ 0.5% of owner's equity ≤ misstatement amount ＜ misstatement amount ＜ 1% of all potential misstatements of design and other business equity 1% of owner's equity 0.5% of owner's equity
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Defects or situations with the following characteristics shall generally be recognized as major defects
a. The internal control environment of financial reporting is invalid;
b. Found fraud by directors, supervisors and senior managers of the company;
c. The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process;
d. The company corrects the published financial report;
e. Major internal control deficiencies that have been found and reported to the management have not been corrected within a reasonable time;
f. The supervision of internal control by the audit committee and internal audit institutions is invalid.
(2) Defects or situations with the following characteristics shall generally be recognized as important defects:
a. The certified public accountant finds that there is an important misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process;
b. Significant internal control deficiencies that have been found and reported to the management have not been corrected within a reasonable time;
c. There are important defects in the supervision of internal control by the audit committee and internal audit institutions.
(3) Internal control defects in financial reporting that do not constitute major defects and important defects are recognized as general 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:
Amount of direct property loss caused by defect identification
Major defects of RMB 10 million (inclusive) and above
Major defects: 3 million yuan (including) - 10 million yuan
General defects less than 3 million yuan
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
(1) The following situations shall be generally recognized as major defects:
a. Serious violation of national laws, administrative regulations and normative documents;
b. Major issues have not gone through collective decision-making procedures, or the decision-making procedures are unscientific;
c. Major accidents in product and service quality;
d. The important business involving the company's production and operation lacks system control or the system fails;
e. The result of internal control evaluation is a major defect, but it has not been rectified.
(2) The following situations shall be generally recognized as important defects:
a. There are major defects in the important business system related to the company's production and operation;
b. The result of internal control evaluation is an important defect, but it has not been rectified.
(3) Defects in internal control over non-financial reporting that do not constitute major defects and important defects are recognized as general defects.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reports: according to the above identification standards of internal control defects in financial reports, the company did not have major and important defects in internal control over financial reports during the reporting period. 2. Identification and rectification of internal control defects in non-financial reports: according to the above identification standards for 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.
2、 Self evaluation conclusion of the board of directors on internal control
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.
3、 Verification work carried out by the recommendation institution
By communicating with the directors, supervisors, senior managers, internal auditors of HuaSu holdings and the accountants hired by the company, and consulting the meeting materials of the general meeting of shareholders, the board of directors and the board of supervisors, as well as various business and management rules and regulations, the recommendation institution The integrity, rationality and effectiveness of its internal control were verified in terms of the implementation of internal control.
4、 Verification opinions of the recommendation institution on the self-evaluation report of the company's internal control
After verification, the sponsor believes that the existing internal control system and implementation of HuaSu holdings comply with the relevant requirements of relevant Chinese laws, regulations and normative documents, and can effectively prevent and control the internal business risks of the company. The self evaluation report on internal control in Huasu Holdings Co.Ltd(000509) 2021 issued by HuaSu holdings basically truly and objectively reflects the construction and operation of its internal control system.
(no text below)
(there is no text on this page, which is the signature page of the verification opinions of Zhongtian Guofu Securities Co., Ltd. on Huasu Holdings Co.Ltd(000509) 2021 annual internal control self-evaluation report) the sponsor representative:
Qian Liang, Chen Jie
Zhongtian Guofu Securities Co., Ltd. January 17, 2022
