Internal control assurance report
Runze Technology Development Co., Ltd
Rongcheng zhuanzi [2021] No. 230z2967
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
catalogue
Serial number content page number
1 internal control assurance report 1-2
2 self evaluation report on enterprise internal control 3-9
Internal control assurance report
Rongcheng zhuanzi [2021] No. 230z2967 all shareholders of Runze Technology Development Co., Ltd.:
We have verified the attached evaluation report on the effectiveness of internal control related to the financial report prepared by the board of directors of Runze Technology Development Co., Ltd. (hereinafter referred to as "Runze technology") on October 31, 2021.
1、 Restrictions on the users and purposes of the report
This assurance report is only used for the purpose of Shanghai Precise Packaging Co.Ltd(300442) major asset replacement, issuing shares to purchase assets, raising supporting funds and related party transactions, and shall not be used for any other purpose. We agree to submit this assurance report as a necessary document for Shanghai Precise Packaging Co.Ltd(300442) major asset replacement, issuing shares to purchase assets, raising supporting funds and related party transactions together with other application materials. 2、 Corporate responsibility for internal control
It is the responsibility of the board of directors of Runze technology to establish, improve and effectively implement internal control and evaluate its effectiveness in accordance with the requirements of the basic norms of enterprise internal control issued by the Ministry of Finance and relevant regulations.
3、 Responsibilities of Certified Public Accountants
Our responsibility is to independently put forward assurance conclusions on the effectiveness of Runze technology's internal control over financial reporting based on the implementation of assurance work.
4、 Job overview
We have carried out the assurance business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 - assurance business other than audit or review of historical financial information. The standards require us to plan and implement assurance work to obtain reasonable assurance about whether the enterprise has maintained effective internal control related to financial reporting in all material aspects. In the assurance process, we have implemented such procedures as understanding the internal control related to financial reporting, assessing the risks of major defects, testing and evaluating the effectiveness of the design and operation of internal control according to the assessed risks, and other procedures we deem necessary. We believe that our assurance work provides a reasonable basis for expressing opinions.
5、 Inherent limitations of internal control
Internal control has inherent limitations, and there is the possibility that misstatements can not be prevented and found. 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 assurance results.
6、 Assurance conclusion
We believe that Runze technology has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations on October 31, 2021.
(this page is the signature and seal page of Runze technology Rongcheng zhuanzi [2021] No. 230z2967 internal control assurance report.
Rongcheng certified public accountants, Chinese Certified Public Accountants:
(special general partnership)
Chinese certified public accountant:
Beijing, China Certified Public Accountant:
December 24, 2021
Runze Technology Development Co., Ltd
Internal control evaluation report
All shareholders of Runze Technology Development Co., Ltd.:
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the enterprise internal control normative system), we conducted a self-evaluation on the effectiveness of the internal control of the company (hereinafter referred to as the "company") on October 31, 2021.
1、 Board statement
The board of directors and all directors 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 liabilities for the authenticity, accuracy and completeness of the contents of the report. It is the responsibility of the board of directors to establish, improve and effectively implement internal control; 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 company's internal control.
The objective of the company's internal control is to reasonably ensure the legal compliance of operation, 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 to achieve the above objectives.
2、 Internal control evaluation 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.
There are no factors affecting the conclusion of internal control effectiveness evaluation from the base date of internal control evaluation report to the date of issuance of internal control evaluation report.
3、 Basis of internal control evaluation
This evaluation report is based on the basic norms of enterprise internal control (hereinafter referred to as the basic norms) and the guidelines for enterprise internal control evaluation jointly issued by the Ministry of Finance and other five ministries and commissions of the people's Republic of China (hereinafter referred to as the evaluation guidelines), combined with the enterprise's internal control system and evaluation methods, and on the basis of daily and special supervision of internal control, evaluate the effectiveness of the design and operation of the company's internal control as of October 31, 2021.
4、 Scope of internal control evaluation
The scope of internal control evaluation covers relevant businesses and matters of the company and its affiliated units, focusing on the following risk areas:
1. The risk that the customer cannot renew the contract or reduce the contract scale after the expiration of the contract
Although the company has a good business cooperation relationship with its main customers and has signed long-term contracts, if the following circumstances occur, the main customers will not renew or reduce the contract scale with the company after the expiration of the contract, which will have an adverse impact on the profitability of the company:
① Changes in business strategies and operating conditions of major customers or terminal service users in the future;
② The company's reputation has been damaged due to many serious operation accidents during its operation;
③ A large number of high-quality data centers have been added in the region where the company's data center is located, resulting in excess supply of resources in the region;
④ The data center cost of competitors has been greatly reduced, resulting in insufficient service competitiveness of the company, lower service charges and lower gross profit margin.
2. Technology renewal risk
The technology evolution of the data center service industry in which the company is located is mainly characterized by giving priority to safe and reliable stable operation service capabilities. It usually takes a long maturity period for the application of new technologies to become the mainstream. When the company renews the contract or signs a new customer after the expiration of the contract, it may be limited by the physical characteristics of the original data center building, the change of energy supply mode or the technical trend of the main data center subsystem, resulting in the risk of cost, reliability and efficiency when the company adopts new technology, which may have an adverse impact on the profitability of the company.
With the continuous updating of Internet application technology, the emergence of new concepts such as customized data center and cloud computing, and the continuous improvement of data center operation and management requirements, data center service providers should have a high foresight of the global data center technology development trend and the ability to continuously develop and reserve new technologies, so as to continuously meet the needs of the market Reduce technical risks throughout the life cycle of the data center. Although the company has been closely following the development trend of industry technology and customer demand, with the rapid development of industry technology and the continuous improvement of customer requirements, it is not ruled out that the company can not meet the customer's technical requirements in time due to insufficient investment, lack of technology of R & D personnel, wrong technical judgment and other factors, which will have an adverse impact on the company's competitiveness.
3. Risk of core technology disclosure and brain drain
Data center planning and design, system integration and operation management have high technical requirements, and new technologies and standards are constantly updated. Therefore, data center has high technical barriers. The operation management service of the data center requires technicians to have a comprehensive knowledge system of computers, communications, software and networks, as well as specific on-site implementation and management experience, as well as rich data center technology R & D experience, so as to meet the complex requirements of the construction and management of the data center and the planning and development of network resource integration.
The company has taken various preventive measures to deal with the risk of core technology disclosure, and there has been no core technology disclosure since its establishment. The company has signed agreements on confidentiality, intellectual property transfer and prohibition of unfair competition with senior managers and key technical personnel to ensure that they perform their confidentiality obligations and non competition responsibilities on duty and after leaving their posts. Nevertheless, in the future, the company may still have the risk of core technology disclosure and professional brain drain of data center, which will weaken the company's competitive advantage and adversely affect the company's production and operation. 4. High customer concentration risk
The company's business is mainly wholesale data center services. The company mainly provides data center services through cooperation with basic telecom operators, and basic telecom operators directly provide one-stop services of data center and network to end users. As China Telecom Corporation Limited(601728) is one of the three major basic telecom operators in China, the company takes China Telecom Corporation Limited(601728) as a key partner, resulting in relatively high customer concentration. The main end users of the above wholesale data centers are Internet companies.
In the future, if the end user transfers or reduces orders after the expiration of the contract due to several serious operation accidents during the validity of the contract, and the end user's business situation changes significantly, resulting in the termination of the contract with the corresponding basic telecom operator, and the basic telecom operator is unable to sign other users to continue to perform the service contract with the company Or major adverse changes in the operating conditions of basic telecom operators will directly affect the production and operation of the company, thus adversely affecting the profitability of the company.
5. Risk that the value-added telecom business license will not be granted after expiration
China implements a market access system for value-added telecommunications services, and enterprises engaged in value-added telecommunications services need to obtain a value-added telecommunications business license issued by the local communications administration; To engage in value-added telecommunications services nationwide, a cross regional value-added telecommunications business license issued by the Ministry of industry and information technology must be obtained.
The company holds the national value-added telecom business license No. A2 B1. B2-20160109, valid until December 24, 2025. If the above value-added telecommunications business license expires, the Ministry of industry and information technology will no longer grant the company value-added telecommunications business license, resulting in the company's inability to carry out value-added telecommunications related businesses, and the company's production and business activities and business performance will be adversely affected.
6. Risk of catastrophic events and prolonged power interruption
At present, the company's main business is data center services. For the data center service industry, stable power is an important prerequisite for data center operation. If a catastrophic event occurs in the future, resulting in fatal damage to the data center and cabinet, or long-term power supply interruption, it will have a certain adverse impact on the company's main business.
The units included in the evaluation scope include the company's headquarters and all holding 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 operations and matters included in the scope of the evaluation include:
（1） Control environment
The company's control environment reflects the attitude, understanding and action of the management and the board of directors on the company's internal control and its importance. The quality of the control environment directly determines whether other controls of the company can be effectively implemented. The company has always been in line with the basic concept of steady, law-abiding and compliant operation, and actively created a good control environment, which is mainly reflected in the following aspects:
(1) Governance structure setting
The company has been in strict accordance with the company law of the people's Republic of China (hereinafter referred to as the company law), the articles of association and other relevant laws and regulations, while improving the operation mechanism and strengthening the operation and management, have gradually established and improved the governance structure suitable for the nature and scale of the business. The board of shareholders, the board of directors, the board of supervisors and the management have clear rights and responsibilities, mutual checks and balances and good operation, forming a set of streamlined and efficient operation and management The management framework has laid a solid foundation for the standardized operation and long-term healthy development of the company.
(2) Organization setting and distribution of rights and responsibilities
In accordance with the requirements of the company law and other relevant laws and regulations and in combination with the actual situation of the company, the company has clarified the institutional settings, responsibilities and authorities, staffing, working procedures and relevant system requirements of the board of shareholders, the board of directors, the board of supervisors, the management and all levels within the enterprise, established a sound corporate governance structure and internal institutional settings, and realized the cooperation with the controlling shareholders in personnel, finance Independence of assets, institutions, businesses, etc. All functional departments and subsidiaries of the company can operate under the leadership of the management according to the management system formulated by the company. The company has formed an effective operation mode suitable for the actual situation, each link of operation and management is standardized and orderly, the division of labor of organizational structure and management structure is clear, and the functions are sound and clear.
The board of directors is responsible for the establishment, improvement and effective implementation of internal control, the board of supervisors supervises the establishment and implementation of internal control by the board of directors, and the management is responsible for organizing and leading the daily operation of internal control of the enterprise.
(3) Development strategy
The board of directors is responsible for formulating the company's operation and management objectives and long-term development strategy, and supervising and inspecting the implementation of the annual business plan and investment plan; Formulate strategies, policies and objectives for the protection of customers' rights and interests, incorporate the protection of customers' rights and interests into the important contents of the company's business development strategy, and carry out effective supervision and evaluation.
(4) Social responsibility
The company adheres to the principle of scientific development, harmony and win-win
