2020 Enterprise Risk Assessment Report

In order to further understand and grasp the development status of the enterprise and strengthen enterprise risk management, find out the weak links in the enterprise’s operation management, and increase the company’s To improve the level of risk control, the Board of Directors Office and the Legal Department jointly established a corporate risk assessment team to evaluate the various risks faced by 00 Degree Enterprises and formulate corresponding risk response strategies to achieve effective risk control. 1. Basic information of the enterprise

1. Company name: XXXX

2. Company address: XXXX

3. Business scope of the enterprise: XXXX.

4. The company’s equity structure:

5. Risk management organizational structure:

The company’s risk management team is jointly established by the heads of each department. The Office of the Board of Directors and the Audit Department *** are both responsible for daily work. The team leader XXX and the deputy team leader XXX work under the leadership of the Audit Committee. They are specifically responsible for identifying, analyzing and formulating countermeasures for internal and external risks of the group company, and continuously promote the company Risk management level. The risk management organizational structure is as follows: 2. Enterprise risk assessment

1. Organizational structure

The company has established a corporate governance structure and organizational structure, and clarified the board of directors, supervisory board, management and The human resources department clearly stipulates the staffing, responsibilities and authority of each organization within the enterprise at all levels, and standardizes work procedures and related requirements through business processes and rules and regulations.

The company’s decision-making process runs well, and the organizational structure and functional division of labor are clear. Major matters, major decisions, important personnel appointments and removals are collectively decided by the shareholders' meeting and the managers' office meeting. In particular, the development plans and personnel appointments and removals of subsidiaries are all discussed and decided by the managers' office meeting. There are no major risks in the organizational structure.

2. Development Strategy

The company passed the resolution of the 21st meeting of the 3rd Board of Directors and voted to establish the Strategy Committee, and reviewed and approved the working rules of the War Readiness Committee, which is mainly responsible for the company's Conduct research on long-term development strategies and major investment decisions.

3. Human Resources

The company has formulated detailed human resources management processes and internal control systems, covering aspects such as talent recruitment, employee training, employee resignation, salary and assessment, labor insurance, etc. On the other hand, we have established detailed internal control processes and systems, and promptly signed commercial confidentiality agreements with personnel in key positions and those who have resigned from important positions.

With the changes in the domestic human resources market, affected by external environmental factors, enterprises also have the risk of insufficient human resources. The company has adopted various methods such as campus recruitment, talent market, internal employee promotion, and school-enterprise alliances. , constantly expanding the human resources introduction strategy and ensuring the company's human resource needs in a timely manner.

4. Social Responsibility

Through the quality, environment and safety management system, the company continuously improves the management level of product quality, production safety and environmental protection, and formulates a detailed quality management system. In addition to the safety production management system, environmental protection and energy conservation and consumption reduction are deeply integrated into the corporate management philosophy.

The company regularly organizes employee representative conferences and established a mutual aid fund management system for employees in difficulty, which not only protects employees’ labor rights and interests, but also enables all employees to feel the warmth of the corporate family.

Risks for enterprises in terms of product quality and production safety are inevitable, but the enterprise has successfully passed the three-system quality certification of product quality, employee health and safety, and environmental management by the classification society, and further standardized the management system. In terms of quality management, no major customer quality claims occurred, and no major safety production accidents and environmental pollution accidents occurred in the production environment, effectively reducing quality, environmental and safety production risks.

5. Corporate Culture

The company has always attached great importance to the construction of corporate culture over the years, has a unique corporate culture, and established Industry? Corporate purpose. We have formulated a corporate culture assessment method to evaluate the achievements and shortcomings in corporate culture construction, accelerate the construction of corporate culture, give full play to the important role of corporate culture in corporate development, and effectively avoid corporate culture risks.

6. Funding activities

The company has strict control over fund management through an effective financial management system. While standardizing the approval process and payment control, it also intensifies inspections to ensure that Improved capital security and improved capital efficiency. The company has formulated a standardized decision-making system for financing and investment, and uniformly controls the financial activities of subsidiaries.

The company has strictly controlled the financing channels and methods, carried out a step-by-step decision-making system according to the financing amount, tightened the decision-making authority of the manager’s office meeting, the board of directors and the general meeting of shareholders, and standardized borrowings, principal and interest payments, etc. Fund collection and payment process.

The company scientifically determines investment projects through collective decision-making, establishes and improves investment management ledgers, always pays attention to the operating conditions of the investees, and regularly evaluates investments.

The company regularly formulates capital operation plans, standardizes the management of capital revenue and expenditure, and strictly controls the approval of operating capital payment authority, ensuring the safety and efficiency of operating capital.

After inspection and evaluation, no major risks were found in the company's financial activities.

7. Procurement business

The company has passed the "Material Procurement Management System" and "Fixed "Asset Management System", "Tendering Management System", "Payment Methods and Process Management Measures" and other systems standardize the company's procurement and payment management. Through the material procurement plan approval process, purchase price approval process, purchase settlement approval process and payment approval process , carried out effective control over the procurement business, avoided risks in procurement planning, supplier selection, procurement acceptance and other links, and found no major procurement business risks.

8. Asset Management

In terms of asset management, the company has adopted the "Inventory Management System", "Fixed Asset Management System", "Low Value Consumables Management System", "Item Various management systems such as the "Release Management System" have continuously strengthened the level of asset management and effectively controlled various asset management risks.

In terms of inventory management, the company makes full use of the ERP enterprise resource management system to standardize the entry and exit procedures and inventory inspection process control. The financial management department regularly inspects and inventories the group company's inventory, and conducts a comprehensive inventory at the end of each year. During the inventory, no significant risks of inventory loss, inventory loss or damage were found.

In terms of fixed asset management, the business processes such as subscription, procurement, acceptance, allocation, repair, and scrapping are standardized through the system, and assets are regularly inspected and inventoried, which effectively avoids fixed asset management risks and realizes the group's The management objectives of maintaining and increasing the value of the company’s fixed assets.

The company defines items with a unit price of less than 30 yuan and more than 30 yuan, and that are not part of the main production equipment and can maintain their original physical form for a long time as low-value consumables for management, which is effective Improved asset utilization. And by strengthening the management and control of item release, the safety of the company's property is ensured and the risk of asset loss is effectively avoided.

The company applied for patents on scientific and technological achievements in a timely manner, and regularly registered and extended the use period of trademarks and brands, which improved the effective use of the company's intangible assets. The company attaches great importance to and strengthens brand building. The company's brand has been continuously recognized by domestic and foreign customers and has achieved good social benefits.

9. Sales business

Through the "Sales Contract Production Organization Management Measures" and the "Customer Credit Management System", the group company strengthens the management of the sales order production process to ensure that the sales contract is on schedule While delivering goods and improving production management levels, we conduct credit evaluations for each customer and further adopt different sales strategies based on the evaluation results to ensure the recovery rate of corporate accounts receivable. By strengthening the management of issued goods and accounts receivable, the Financial Management Department will promptly issue settlement or collection reminders for goods or accounts receivable that have reached the warning period to avoid the occurrence of bad debts.

Through the collective review of sales prices, the rationality of sales prices is ensured, various risks in the sales and collection links are avoided, and the smooth and effective implementation of the company's domestic and foreign sales business is ensured. Through the production-to-order method, the risk of enterprise product backlog is effectively reduced.

10. Research and development

The group company controls scientific research projects after project approval, incorporates them into the technology center work plan and assessment system, strictly controls research and development funds in accordance with the approval, and scientific research results The evaluation was carried out in a timely manner and a patent was applied for, ensuring the effectiveness of the company's scientific and technological achievements and safeguarding the interests of the company.

11. Engineering Projects

The company has formulated the "Engineering Project Management Regulations", which regulates all aspects of budgeting, project establishment, bidding, construction and acceptance of all engineering projects within the group company. Standardization has been carried out, and the company's major engineering projects have project establishment reports that have been reviewed and approved by meetings, bidding records for infrastructure projects and equipment, construction records and acceptance reports.

After an internal control inspection, it was found that due to the lack of professional budgeters in the implementation of the system, the group company's major infrastructure projects only have rough budget reports and lack detailed budgets and audit records. The company has timely implementation of the project bidding and pricing process. Control measures were taken. While referring to the budget reports submitted by each contractor, through multi-party comparative analysis, an effective bidding negotiation strategy was adopted to reasonably prevent the risk of incomplete project budgets.

As the company develops, the company will promptly deploy professional budgeters to promptly implement budget and review processes in accordance with system requirements and avoid project risks in a timely manner.

12. Guarantee business

After the resolution of the shareholders’ meeting, the company will assume a certain limit for its holding subsidiaries Shouguang Baolong Petroleum Equipment Co., Ltd. and Weihai Baolong Petroleum Special Materials Co., Ltd. Apart from the capital guarantee, there is no external guarantee business, and there is no risk in the guarantee business.

13. Business Outsourcing

The company has set up an outsourcing department in the logistics center to be responsible for the management of business outsourcing. For larger business outsourcing, the contracting unit is selected through bidding. Through the "Regulations on Quality Control of Outsourced and Outsourced Products" and the "Company Product Process Inspection, Supervision and Management System", the quality of business outsourcing is strictly controlled, and separate materials and product accounts are set up for outsourced processing products for special management, and any problems that arise Immediate compensation was sought for irregularities in product quality, material distribution and recycling, and no business risks were found.

14. Financial Report

The enterprise has formulated a unified accounting system for the group company within the requirements of the Ministry of Finance's "Accounting Standards for Business Enterprises" and "Guidelines for the Application of Accounting Standards for Business Enterprises", and strictly enforces accounting standards. Statement preparation and review process, regularly issue accounting statements and financial analysis reports, submit them to the board of directors and management to provide reference for later business decisions. Each quarterly financial report is audited by the company's audit department and submitted to the board of directors. The annual financial report and the audit report issued by the certified public accountant of an external accounting firm are submitted to the board of directors and reported to investors.

After inspection, there is no violation of accounting laws and regulations and the unified national accounting standards system. The financial reports provided to the outside world are rigorously reviewed and audited, and there is no risk of false reporting or major omissions.

15. Comprehensive budget

The Financial Management Department is fully responsible for the preparation and analysis of the group company's comprehensive budget. According to the group company's development strategy and annual production and operation plan, through the "Comprehensive Budget Management System" According to the regulatory requirements, annual comprehensive budgets are prepared on a regular basis. At the end of each year, a comprehensive analysis of the implementation of the annual budget is conducted and submitted to the board of directors and management for review on time. The Human Resources Department promptly assesses the managers of each department based on the budget implementation status and fully implements the budget assessment work.

There is a phenomenon that the enterprise's annual budget analysis report is not submitted on time. It is recommended that the general manager's office meeting should continuously strengthen the organization and leadership of the comprehensive budget work, strengthen the implementation and assessment of budget management, and promote the enterprise's annual comprehensive budget management Further standardize and give full play to the management role of comprehensive budgets.

16. Contract Management

After formulating the "Contract Management System", the group company uses the internal auxiliary management system to carry out the contract establishment and performance, contract changes and disputes and other processes. In accordance with the regulations, the Legal Affairs Department is responsible for the management of contracts, formulating contract templates for major categories, conducting detailed reviews of contracts that cannot be signed using the company's contract templates, and registering the performance of the contracts in detail.

The audit department regularly evaluates the performance of the group company's contracts, and promptly investigates responsibilities for problems found in not signing contracts on time and in contract performance, effectively avoiding contract management risks.

17. Internal Information Transmission

The company has formulated the "Management System for Sending and Receiving Documents", "Internal Reporting System for Major Information", "Registration and Reporting System for Insiders of Insider Information" and " "Memo Management System", with the help of the company's internal office network system, internal information is transmitted well according to the system requirements, according to the confidentiality level of the information, and by level, ensuring the smooth and timely transmission of internal information and the confidentiality of business information.

18. Information system

Based on the overall plan for information system construction, the group company formulates and develops an enterprise information system plan. Through the "Computer Management Regulations", "Computer Room Management System" and "Network Management System", and continuously strengthened the management of information system operation and maintenance. After user application and permission approval control, regular information backup and permission checks were carried out, regular software updates and virus prevention were carried out, and no internal management and control risks were found in the group company's information system.

19. Internal Supervision

Under the leadership of the Group Company Audit Committee, the "Internal Audit System" is strictly implemented. According to the audit work plan, the audit department regularly completes internal control audits. , Complete the management departure audit on time. In response to the problems and loopholes discovered during the audit process, we promptly put forward rectification opinions and supervise the rectifications, and promptly conduct accountability for major liability issues discovered during the audit.

In terms of anti-fraud mechanism, the company has formulated the "Anti-Fraud Management Regulations" and called on employees to participate in supervision. When problems are discovered and timely conduct special audits, the audit department participates in the bidding of group company projects on time and supervises the bidding process. Suppliers are ordered to sign a "Commitment to Not Pay Bribery" to prevent business risks. 3. Risk Assessment Opinions

The company has established a scientific and complete risk management and internal control system. Although the company has certain management risks in the budget of engineering projects, the company has taken timely and effective measures to prevent risks. measures to better control management risks. The assessment concluded that the company does not have major operational risks and management risks.

Due to the limitations of corporate risk assessment, it is impossible to identify and analyze all risks caused by changes in national policies, changes in international and domestic markets, natural disasters and other uncertain factors. This evaluation opinion is limited to the assessment of the group company's internal control risk management.