Company code: 688200 company abbreviation: Beijing Huafeng Test & Control Technology Co.Ltd(688200)
Beijing Huafeng Test & Control Technology Co.Ltd(688200)
Internal control evaluation report in 2021
Beijing Huafeng Test & Control Technology Co.Ltd(688200) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) 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 (the benchmark date of the internal control evaluation report). I 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. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
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. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
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. 4. 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 □ applicable √ not applicable
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. 5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company’s internal control evaluation report √ yes □ no III Internal control evaluation (I) Scope of internal control evaluation
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. 1. The main units included in the evaluation scope include: Beijing Huafeng Test & Control Technology Co.Ltd(688200) and its wholly-owned and holding subsidiaries. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company’s consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Strategic development, organizational structure, corporate culture, social responsibility, financial management, human resource management, internal audit and supervision, risk assessment, procurement management, sales management, warehouse management, R & D project management and intellectual property management. 4. High risk areas of focus mainly include:
Procurement management, human resource management, sales management, financial management, R & D project management and intellectual property management. 5. 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. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
None (II) Basis of internal control evaluation and identification standard of internal control defects
The company organizes the internal control evaluation according to the enterprise internal control standard system and the Beijing Huafeng Test & Control Technology Co.Ltd(688200) internal control process manual. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
Model, industry characteristics, risk preference, risk tolerance and other factors, distinguish between internal control over financial reporting and internal control over non-financial reporting, study and determine the specific identification standards of internal control defects applicable to the company, which are consistent with those in previous years. 2. 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:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Total profit misstatement ≥ 5% of total profit, 2% of total profit ≤ misstatement < misstatement < 2% of total profit, 5% of total profit
Description: None
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects (1) fraud of directors, supervisors and senior managers of the company;
(2) Make misstatement correction for major errors in the announced financial report;
(3) Material misstatement in the current financial report found by the certified public accountant but not identified by the company’s internal control; (4) The supervision of the audit committee and the internal audit department on the company’s external financial report and internal control of financial report is invalid.
Significant defects (1) failure to select and apply accounting policies in accordance with generally accepted accounting standards;
(2) Fraud of personnel in key positions;
(3) Major defects are not corrected within a reasonable time.
General defects are other control defects except major defects and important defects.
Note: none 3 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:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Direct property loss ≥ 0.3% of total assets ≤ direct property loss < 0.5% of total assets direct property loss < 0.3% of total assets
0.5%
Description: None
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects (1) the company violates national laws and regulations, resulting in being investigated by relevant departments and being ordered to withdraw from the industry, or having its business license revoked or being severely punished;
(2) Serious loss of senior managers and core technicians of the company;
(3) Major defects found in internal control evaluation have not been rectified;
(4) The company is punished by the CSRC or warned by the stock exchange;
(5) Other situations that have a significant negative impact on the company.
Important defects (1) problems in decision-making procedures of key businesses;
(2) Serious loss of business personnel in key positions of the company;
(3) There are defects in the company’s important business system or system;
(4) Major defects in the company’s internal control have not been rectified;
(5) Other situations that have a great negative impact on the company.
General defects are other control defects except major and important defects.
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
None 1.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any important defects in the internal control of financial reporting that have not been rectified □ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
None 2.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in non-financial reporting internal control that have not been rectified □ yes √ no
2.5. After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
In 2021, the company’s internal control was implemented effectively, and no major and important defects were found in financial reports and non-financial reports. In 2022, the company will continue to evaluate and improve internal control in strict accordance with the internal control process manual and supporting documents and in combination with the actual production and operation of the company, strengthen internal control publicity and training, further implement fine control and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Sun Yu Beijing Huafeng Test & Control Technology Co.Ltd(688200) February 25, 2022
