Zhongtianyun Certified Public Accountants (special general partnership) jonten CPAs Wuxi Dk Electronic Materials Co.Ltd(300842) internal control assurance report
ZTY [2022] He Zi No. 90043
Zhongtianyun accounting firm (special general partnership) jonten certified public accountants LLP zhongtianyun accounting firm (special general partnership) jonten CPAs
catalogue
1. Internal control assurance report 12. Self assessment report on internal control related to financial statements as of December 31, 2021 three
3. Copy of the business license of the firm 124. Copy of practice certificate of the firm 135. Copy of certified public accountant’s qualification certificate signed 14 zhongtianyun Certified Public Accountants (special general partnership) jonten CPAs
Internal control assurance report
ZTY [2022] Hz No. 90043 Wuxi Dk Electronic Materials Co.Ltd(300842) all shareholders:
We have accepted the entrustment to verify the confirmation made by the management of Wuxi Dk Electronic Materials Co.Ltd(300842) (hereinafter referred to as “your company”) on the effectiveness of internal control related to the financial statements on December 31, 2021 in accordance with the basic norms of enterprise internal control and relevant regulations.
1、 Responsibilities of management
The responsibility of the management of your company is to establish and improve the internal control and maintain its effectiveness. At the same time, in accordance with the basic norms of enterprise internal control and relevant regulations, it is responsible for the effectiveness of internal control related to the financial statements as of December 31, 2021.
2、 Responsibilities of Certified Public Accountants
Our responsibility is to express assurance opinions on the effectiveness of internal control based on the implementation of assurance work. We have carried out the assurance work 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 above provisions require us to plan and implement the assurance work to obtain reasonable assurance on whether the information of the assurance object is free from material misstatement. In the process of assurance, we have implemented other procedures including understanding, testing and evaluating the rationality of internal control design and the effectiveness of implementation, as well as other procedures we think necessary.
We believe that our assurance work provides a reasonable basis for expressing opinions.
3、 Description of significant inherent limitations
Internal control has inherent limitations, and there is the possibility of undetected misstatement due to error or fraud. In addition, due to the change of circumstances, the internal control may become inappropriate, or the degree of compliance with control policies and procedures may be reduced. According to the internal control evaluation results, it is speculated that the effectiveness of internal control in the future has a certain risk.
4、 Assurance opinion
We believe that your company has maintained effective internal control related to financial statements in all major aspects on December 31, 2021 in accordance with the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements. This conclusion is formed under the inherent limitations pointed out in the assurance report.
5、 Restrictions on the users and purposes of the report
This assurance report is only for your company to submit your annual report to the China Securities Regulatory Commission and the stock exchange, and shall not be used for other purposes. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the business.
Zhongtianyun Certified Public Accountants (special general partnership) jonten CPAs (there is no text on this page, which is the signature page of Wuxi Dk Electronic Materials Co.Ltd(300842) internal control assurance report (zhongtianyun [2022] nuclear Zi No. 90043))
Zhongtianyun Certified Public Accountants (special general partnership) Chinese certified public accountant:
Beijing, China Certified Public Accountant:
March 2, 2008
Wuxi Dk Electronic Materials Co.Ltd(300842)
Self evaluation report on internal control in 2021
Wuxi Dk Electronic Materials Co.Ltd(300842) all shareholders:
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”), combined with Wuxi Dk Electronic Materials Co.Ltd(300842) (hereinafter referred to as the “company”) 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 in 2021 (the benchmark date of the internal control evaluation report).
1、 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.
2、 Internal control evaluation conclusion
According to the identification of major defects in the company’s internal control over financial reporting, the company has 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.
The company has no internal impact from the benchmark date of the internal control evaluation report to the date of issuance of the internal control evaluation report
3、 Internal control evaluation
(I) overall situation of internal control evaluation
On the basis of establishing a relatively sound internal control system, in order to further strengthen the internal control mechanism, improve the level of risk management, enhance the authenticity, integrity and timeliness of business, financial and management information, and promote the company to strictly comply with national laws and regulations, the board of directors of the company authorizes the audit department to comply with the requirements of the enterprise’s internal control standard system, Combined with the actual situation of the company, the self-evaluation of the internal control involved in various business matters of the company and its affiliated companies is carried out comprehensively from the three aspects of soundness, rationality and effectiveness, covering all activities within the scope of the company’s internal control system, including control environment, risk identification and evaluation, control activities, information and communication and supervision.
(II) evaluation scope of internal control
According to the risk oriented principle, the company has determined the main units, businesses and matters included in the evaluation scope and high-risk areas.
The specific units included in the internal evaluation of Shanghai Baike Electronic Materials Co., Ltd. and Changdi Electronic Materials Co., Ltd. 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 businesses and matters included in the evaluation scope include the company’s organizational structure, human resource management, internal audit, risk identification and evaluation, procurement management, production management, sales management, R & D management, payment and inventory control, monetary capital control, fixed assets control, cost and expense management, use and management of raised funds, related party transactions, information and communication Supervision and other contents.
The internal control of the above businesses and matters covers the main aspects of the company’s operation and management, and there is no major omission. The main businesses and matters included in the scope of evaluation include:
1. Control environment
(1) Organizational structure
In accordance with the basic norms of enterprise internal control, the company law, the securities law and other relevant laws and regulations, the company has established a standardized corporate governance structure and rules of procedure, clarified the responsibilities and authorities in decision-making, implementation and supervision, and formed a scientific and effective division of responsibilities and check and balance mechanism. The general meeting of shareholders, the board of directors and the board of supervisors exercise decision-making power, executive power and supervision power respectively according to their duties.
(2) Human resource management
The company has established a complete human resource management system, covering employee recruitment, employment, training, salary, assessment and employee relationship management, providing a sound system guarantee for the company to establish a high-quality team. The company provides employees with various labor and social security measures according to law, takes professional ethics and professional competence as important standards for selecting and employing employees, practically strengthens employee training and continuing education, and continuously improves the quality of employees.
(3) Internal audit
The company sets up an audit committee under the board of directors to be responsible for the communication, supervision and verification of internal and external audit of the company, and sets up an internal audit department for organizational guarantee to inspect and supervise the authenticity and integrity of the company’s financial information and the establishment and implementation of internal control system. The internal audit department is responsible to the audit committee and reports to the audit committee. Independent of the management, the internal audit department of the company conducts internal audit on the operation and management, financial status and internal control implementation of the company and its subsidiaries, makes reasonable evaluation on the authenticity, rationality and legitimacy of its economic benefits, carries out internal audit on the key businesses of the company’s headquarters and subsidiaries, finds problems and puts forward management suggestions, Submit to the management for rectification.
2. Risk identification and assessment
Combined with the characteristics of the industry, the company has gradually established a risk assessment system covering the whole business chain according to the strategic objectives and development plans. By setting up strategic committee, salary and assessment committee, audit committee, nomination committee and internal audit department and making them play their role effectively, the board of directors can timely identify and respond to the risk factors that the company may encounter, including industry risk, policy risk, business risk, financial risk, management risk and so on, And enable the company to timely give early warning, analyze and formulate different measures in daily business activities, so as to control the risk within the minimum acceptable range as far as possible.
3. Control activities
The company has necessary control policies and procedures for procurement, production, sales, R & D, payment and inventory, monetary funds, fixed assets, costs and expenses, use and management of raised funds, related party transactions and other business and financial management activities, as follows:
(1) Procurement management
The company has formulated rules and regulations related to procurement and supplier management, and established a stable supply guarantee system for main raw materials. In addition to maintaining a stable cooperative relationship with main suppliers throughout the year, the company develops and reserves new suppliers every year, from requisition demand, requisition approval, supplier selection, inquiry and price comparison, procurement execution, financial payment, post arrival acceptance, warehousing Distribution and requisition, clear responsibilities, form a closed-loop whole process control, and be able to take effective control measures to ensure that material procurement meets the production and operation needs of the company.
(2) Production management
The company has formulated and effectively implemented detailed regulations on production plan management, production preparation, production organization management, production statistics management, production process control and management, product identification, etc., so as to ensure that all production links and aspects coordinate with each other, make effective use of the enterprise’s manufacturing resources and complete the production plan, Continuously improve the economic benefits and competitiveness of enterprises.
(3) Sales management
The company’s product sales are divided into China sales and export sales, which are composed of marketing department, sales department and marketing operation Department. They are respectively responsible for market research, market forecast, development and maintenance of sales customers, formulation of sales strategies, order maintenance, account collection, etc. The contract review system is implemented for the sales contracts signed by the company. At the same time, the company has formulated a detailed sales delivery, revenue and payment collection process and sales business assessment system to ensure the effective implementation of sales internal control management.
(4) R & D management
The company attaches great importance to R & D work. In combination with industrial technology development and the company’s future development plan, relevant departments put forward project initiation suggestions, scientifically formulate annual project R & D plan through feasibility demonstration and meeting decision-making, continue to carry out market-oriented development of new products and technologies, strengthen the whole process management of R & D and standardize R & D behavior, Continuously review and monitor the progress of R & D projects.
(5) Payment and inventory control
Raw materials, equipment, administrative department items and other materials required by the company form a closed-loop whole process control within the company from material demand, purchase requisition approval, supplier selection, inquiry and price comparison, purchase execution, financial payment, post arrival acceptance, warehousing, distribution and requisition, etc. For the purchased and arrived materials, the company shall set up a receiving post to verify the arrived goods with the contents of the purchase order, which shall be inspected by the quality department. After passing the inspection, the storage department shall be notified to receive the goods, and the audit shall be carried out in strict accordance with the quality standards to avoid the purchase quality affecting the needs of R & D and production. In addition, the material requisition shall be subject to the material requisition instruction, which shall be approved by the department head according to the demand and project progress.
(6) Monetary capital control
The company has set up an accounting organization according to law, equipped with accounting practitioners, established a post responsibility system for accounting work, and carried out scientific and reasonable division of labor for accountants. The finance department is in charge of money and accounts and seals. The cashier, voucher preparation, review and archives are set up respectively, and a special person is responsible and managed according to the division of labor. At the same time, the company has formulated a strict payment authorization approval system, defined the fund approval authority and the collection and payment business process, ensured the safety of monetary funds and improved the use efficiency and effect of monetary funds.
(7) Fixed assets control
In order to reasonably allocate and effectively use fixed assets, implement management responsibilities, ensure the safety and integrity of fixed assets and prevent
