Bloomage Biotechnology Corporation Limited(688363)
Internal control evaluation report in 2021
Bloomage Biotechnology Corporation Limited(688363) 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. Establish and implement the internal control of the board of supervisors. 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 Bloomage Biotechnology Corporation Limited(688363) and all 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 The main operations and matters included in the scope of evaluation include:
4. Control environment, risk assessment, information and communication, inspection and supervision, key business control activities The high-risk areas of focus mainly include:
Sales and collection management, production and storage management, procurement and payment management, product R & D and achievement transformation, raised funds management, identification and disclosure of related party transactions, major investment management, etc 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
nothing
（2） 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 Bloomage Biotechnology Corporation Limited(688363) internal management system. 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
The impact of pre tax misstatement in this year ≥ 5% of pre tax profit, 2% of pre tax profit ≤ misstatement tax misstatement 2% of pre tax profit
Proportion of profit: 5% of the previous 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 defect, which involves fraud of directors, supervisors and senior managers;
Correction of published financial statements;
The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process;
The supervision of the enterprise audit committee and internal audit institutions on internal control is invalid.
Important defects: the certified public accountant found that there was a general misstatement in the current financial report, but the internal control failed to find the misstatement in the operation process; There are important defects in the supervision of internal control by enterprise audit committee and internal audit institutions.
General defects: the CPA found that there was a small amount of misstatement in the current financial report, but the internal control failed to find the misstatement in the operation process; There are general defects in the supervision of internal control by the company’s audit committee and internal audit institutions.
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 loss amount affecting total assets 0.2% of total assets direct loss amount ≤ 0.5% of total assets; loss amount ≤ 0.2% of total assets
0.5%
Note: take a certain proportion of the total assets of the current year as the judgment standard of the importance level. For the internal control defects related to non-financial reports, it is judged by the degree of economic losses such as the company’s assets, income and profits, or the degree of deviation (negative deviation, i.e. failure to achieve) business objectives.
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: the company’s business activities seriously violate national laws and regulations;
The frequent exposure of negative media news has caused significant damage to the company’s reputation;
Serious loss of middle and senior managers and senior technicians;
Lack of institutional control or systematic failure of important business;
The results of internal control evaluation, especially major defects or important defects, have not been rectified.
The company with major defects is subject to minor punishment in violation of national laws and regulations; Serious loss of business personnel in key positions; Negative news in the media, affecting local areas; Defects in important business system or control system; Important defects in internal control have not been rectified.
General defects violate the internal rules and regulations of the enterprise, but do not form losses; Serious loss of business personnel in general posts; Negative news appears in the media, but the impact is small; Defects in general business system or system; General defects in internal control have not been rectified.
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
There was no general defect in internal control over financial reporting during the reporting period. 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
During the reporting period, the company redesigned the business management system and process with general defects and has completed the rectification. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the 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
The effective implementation of the company’s internal control in 2021 can provide reasonable guarantee for the preparation of true and fair financial statements and meet the objectives of internal control. In 2022, the company will continue to improve the internal control system, optimize the internal control process, strengthen the supervision and implementation of internal control, improve the internal control management level and effectively prevent various risks. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Zhao Yan Bloomage Biotechnology Corporation Limited(688363) March 10, 2022
