Company code: Apt Medical Inc(688617) company abbreviation: Apt Medical Inc(688617) Apt Medical Inc(688617)
Internal control evaluation report in 2021
Apt Medical Inc(688617) 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 base date of internal control evaluation report to the date of issuance of internal control evaluation report
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 Apt Medical Inc(688617) and its 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:
4.1 external financing and management, external financing and project management, human resources management, external financing and financial management, external financing and project management, audit and fund management, external financing and project management The high-risk areas of focus mainly include:
Sales and collection management, procurement and payment management, R & D management, capital activities, asset management, financial report 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
None (II) 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 control defect identification standard.
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, 3% of total profit ≤ misstatement profit misstatement 3% of total profit
5% of total profit
Misstatement of total assets ≥ 1% of total assets ≤ 0.5% of total assets misstatement 0.5% of total assets 1% of total assets
Misstatement of total operating income ≥ 1% of total operating income ≤ 0.5% of total operating income misstatement 1% of total operating income 0.5% of total operating income
Owner's equity misstatement ≥ 1% of total owner's equity ≤ misstatement misstatement 2% of total owner's equity 2% of total owner's equity 1%
Note: the financial index values referred to in the quantitative standard are the audited consolidated statement data of the company in the previous year.
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 the company's directors, supervisors and senior managers, causing important losses and adverse effects to the company; 2. Major defects in internal control over financial reporting that have been found and reported to the management have not been rectified within a reasonable time; 3. If major accounting errors are found in previous years, the disclosed financial reports shall be corrected; 4. The company's internal control environment is invalid; 5. The certified public accountant found that there was a material misstatement in the current financial report, but the misstatement was not found in the operation of the company's internal control; 6. The supervision of internal control by the audit committee and internal audit institutions is invalid.
Significant defects 1. Failure to select and apply accounting policies in accordance with generally accepted accounting standards; 2. Failure to establish anti fraud procedures and control measures or invalid; 3. No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no 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 it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects other internal control defects of financial reporting 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
Total profits direct property loss amount ≥ 3% of total profits ≤ direct property direct property loss amount 5% of total profits loss amount 5% of total profits 3% of total profits
Note: the financial index values referred to in the quantitative standard are the audited consolidated statement data of the company in the previous year.
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. Major matters violate decision-making procedures and make major mistakes; 2. Violate national laws and regulations, be punished by government departments, and have a significant negative impact on the disclosure of the company's periodic reports; 3. Serious loss of senior managers and senior technicians; 4. The frequent occurrence of negative news in the media is true, causing significant social impact; 5. Lack of system control or systematic failure of important business, resulting in significant losses identified according to quantitative standards; 6. Major defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time; 7. Major safety production, environmental protection, product quality or service accidents occur.
Important defects 1. The democratic decision-making procedure exists but is not perfect or the decision-making procedure is wrong; 2. Violation of national laws and regulations and punishment by government departments, but did not have a negative impact on the disclosure of the company's periodic reports; 3. There are major defects in the implementation of important business systems; 4. Serious loss of business personnel in key positions; 5. Negative news in the media, affecting local areas; 6. Significant defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time.
General defects 1. The efficiency of the company's decision-making procedure is not high, which affects the company's production and operation; 2. Employees of the company violate internal rules and regulations, causing general losses to the company; 3. Negative news appears in the media, but the impact is small; 4. Defects in the company's general business system or system; 5. General defects of the company 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
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 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 company's internal control system operated well in 2021. During the reporting period, no major or important control defects were found in the company's internal control system, and the company maintained effective internal control in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations. In 2022, the company will continue to deepen the construction of internal control system, optimize the internal control environment, improve various internal control systems, standardize the implementation of internal control system, strengthen the supervision and inspection of internal control, improve the level of internal control management, strengthen internal control management through the pre, in-process and post control of various risks, effectively prevent various risks, and promote the efficiency, health and Sustainable development. 3. Description of other major events
□ applicable
