Shanghai Lily&Beauty Cosmetics Co.Ltd(605136)
Internal control evaluation report in 2021
Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) 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: Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) , Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) (Shanghai) e-commerce Co., Ltd., Shanghai Liren beauty e-commerce Co., Ltd., Chengdu Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) Cosmetics Co., Ltd., Shanghai Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) Network Technology Co., Ltd., Shanghai yikangli Advertising Co., Ltd., Shanghai Beidao e-commerce Co., Ltd Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) (Shanghai) Trading Co., Ltd., Shanghai Zhuangya Cosmetics Co., Ltd., Shanghai meimou Liupan e-commerce Co., Ltd., Shanghai clome Cosmetics Co., Ltd., Shanghai wanwei e-commerce Cable Co., Ltd., Shanghai fule Cosmetics Co., Ltd., Hainan Dongfan E-commerce Service Co., Ltd., Shanghai lirenlizhuang Enterprise Management Co., Ltd Lily & Beauty (Hong Kong) Limited, Shanghai meow Chejia Information Technology Co., Ltd., Shanghai Lizhi enterprise management partnership (limited partnership), Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) Japan Co., Ltd., Shanghai lifuyi Enterprise Management Co., Ltd., Shanghai lifutu Enterprise Management Co., Ltd., Shanghai lifuliu Enterprise Management Co., Ltd Shanghai Litao enterprise management partnership (limited partnership), Chengdu Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) Technology Service Co., Ltd., Lily & Beauty Investment Limited, Hainan Dongbai e-commerce Co., Ltd., Jarvis holding limited, Lily & Beauty global Pte.Ltd., Shanghai beiyingle mother and Baby Products Co., Ltd., Lily & Beauty Thailand Co., Ltd., etc.
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 is 100.00
The total operating income of the units included in the evaluation scope accounts for 100.00% of the total operating income in the company's consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
Enterprise level control, fund management, human resources and salary management, sales and accounts receivable management, procurement management, business outsourcing management, asset management, warehouse management, information system management, financial report management and tax management. 4. High risk areas of focus mainly include:
Operational risk, system and information security risk, compliance risk.
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. （2） 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 internal system and process specifications. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company, And consistent with 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, 2.5% of total profit ≤ misstatement ＜ 2.5% of total profit
5% of total profit
Misstatement ≥ 0.5% of total operating revenue ≤ misstatement 1% of total operating revenue misstatement 0.5% of total operating revenue
1%
Note: the company chooses the total profit and total operating income of the company as the measurement standard according to the territorial principle.
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
Including but not limited to:
1. Directors, supervisors and senior managers abuse their power and commit corrupt acts such as embezzlement, bribery and misappropriation of public funds; Major defects 2. The company corrects the reported or disclosed financial report due to major accounting errors in previous years;
3. The company's Audit Committee (or similar institutions) and internal audit institutions have no effect on the supervision of internal control;
4. The external auditor found that there was a material misstatement in the current financial report, and the internal control operation failed to find the misstatement.
Including but not limited to:
1. Failure to select and apply accounting policies in accordance with GAAP;
2. Failure to establish anti fraud procedures and control measures;
Important defect 3. No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions
Corresponding compensatory control;
4. There are one or more defects in the control of the financial reporting process at the end of the period and the preparation of financial statements cannot be reasonably guaranteed
Affairs
The report achieves the goal of authenticity and accuracy.
General defects are internal control defects related to financial reporting, except for major defects and important defects.
Description: 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
The influence amount of total profit ≥ 5% of total profit ≤ 2.5% of total profit ≤ influence amount 5% of total profit 2.5% of total profit
Affected amount ≥ 0.5% of total operating revenue ≤ affected amount 1% of total operating revenue; affected amount 1% of total operating revenue
1% of
Note: the company chooses the total profit and total operating income of the company as the measurement standard according to the territorial principle.
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
Including but not limited to:
1. The formulation and implementation of the company's strategy have a significant impact on the company's operation, and fail to achieve important operating objectives or key performance indicators with major defects;
2. Inadequate decision-making leads to major mistakes;
3. Violating national laws and regulations and being severely punished;
4. The loss of middle and senior managers and senior technicians is serious.
Including but not limited to:
1. Moderate impact on the formulation and implementation of the company's strategy, moderate impact on the company's operation, and partial negative impact on the achievement of operational objectives or key industry performance indicators;
2. Inadequate decision-making procedures lead to important mistakes;
3. Violating the internal rules and regulations of the enterprise, resulting in large amount of losses;
4. The loss of business personnel in key positions is serious.
Including but not limited to:
1. It has a slight impact on the formulation and implementation of the company's strategy, has a slight impact on the company's operation and slows down the operation, but has only a slight impact on the general defects to achieve the operation objectives;
2. The efficiency of decision-making procedure is not high;
3. Violation of internal regulations without loss;
4. The loss of business personnel in general posts is serious.
Description: none. （3） 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 any 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
The company found some general defects in the self-evaluation this year, but it did not have a significant impact on the realization of the internal control objectives of financial reporting. For the internal control defects found during the reporting period, the company has formulated the rectification plan in combination with the actual situation and actively implemented the rectification task. 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, does the company have any internal control over financial reporting that has not been rectified
