Shenzhen Huaqiang Industry Co.Ltd(000062)
Internal control evaluation report in 2021
Shenzhen Huaqiang Industry Co.Ltd(000062) 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 Shenzhen Huaqiang Industry Co.Ltd(000062) (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 on December 31, 2021.
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. 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.
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 is no impact between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The main units included in the evaluation scope include: Shenzhen Huaqiang Industry Co.Ltd(000062) headquarters, Shenzhen Huaqiang Industry Co.Ltd(000062) electronic world Management Co., Ltd., Shenzhen Huaqiang Industry Co.Ltd(000062) Plaza Holding Co., Ltd., Shenzhen Huaqiang Industry Co.Ltd(000062) electronic network Group Co., Ltd., Shenzhen Huaqiang Industry Co.Ltd(000062) headquarters of Semiconductor Group Co., Ltd., Huaqiang Semiconductor Co., Ltd., Shenzhen Xianghai Electronics Co., Ltd., Shenzhen PENGYUAN Electronics Co., Ltd Shenzhen Qinuo Technology Co., Ltd. and Shenzhen Xinfei Electronics Co., Ltd., the total assets of the units included in the evaluation scope account for 90.69% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 90.46% of the total operating revenue in the company's consolidated financial statements. The main businesses and matters included in the evaluation scope include: organizational structure, investment project approval, human resources, capital activities, procurement business, asset management, sales business, project management, financial report, comprehensive budget, contract management, information system, etc.
The high-risk areas of focus mainly include:
Sales pricing, customer development, procurement business management, inventory management and accounts receivable management of authorized distribution business of electronic components.
Pricing and daily management of rental of shop resources and advertising space resources in the physical trading market of electronic components and electronic terminal products, material management, procurement management, and collection and revenue recognition business.
Information system data security management, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) sales pricing, customer development, inventory management, procurement business management, settlement and revenue recognition, and collection of accounts receivable of Internet business in electronic component industry. Sales management of supporting properties (such as commercial and office buildings) in electronic professional market.
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, and there are no major omissions.
（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.
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. The identification standards of internal control defects determined by the company are as follows:
1. Identification criteria for defects in internal control over financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defects: the amount of potential misstatement in the income statement is greater than 8% of the net profit in the consolidated statements of the previous year; The amount of potential misstatement in the balance sheet is greater than 3% of the total assets in the consolidated statements of the previous year.
Important defects: the amount of potential misstatement in the income statement is greater than 4% and less than 8% of the net profit in the consolidated statements of the previous year; The amount of potential misstatement in the balance sheet is greater than 1% and less than 3% of the total assets in the consolidated statements of the previous year.
General defects: control defects other than major defects and important defects.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defect: for the major defect determined according to the quantitative standard, after considering the following qualitative factors, if the management of the company believes that the control defect will cause major misstatement in the financial report, it can be adjusted to major defect:
(1) The nature of accounting subjects, disclosure items and relevant recognition;
(2) The extent to which the relevant assets or liabilities are damaged or affected by fraud;
(3) Determine the subjectivity and complexity or degree of judgment required for the amount involved;
(4) Causes and frequency of exceptions;
(5) Interaction with other controls;
(6) Possible future consequences of defects;
(7) The risk of growth trend indicated by historical misstatement;
(8) Comparison between the adjusted impact level and the overall importance level.
Important defect: for the general defect determined according to the quantitative standard, after considering the above qualitative factors, if the influence of the control defect on the misstatement of the financial report has attracted the attention of the board of directors and managers of the enterprise, it can be adjusted as an important defect.
General defects: control defects other than major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
Non financial reporting internal control refers to the internal control to achieve other objectives other than financial reporting objectives, such as strategic objectives, business objectives, compliance objectives, etc.
According to the deviation degree of different objectives caused by one or more combinations of internal control defects, it is divided into major, important and general control defects.
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Defect type direct property loss amount safety production accident
General defect: the property loss caused by this defect is less than 0.5% of the total assets in the consolidated financial statements affecting the health of personnel except for major and important defects. Or direct property loss of less than 1 million yuan.
The defect causes property loss, which is 1-2 deaths, or 1-10 serious injuries caused by combined accidents in that year, or 0.5% (inclusive) of the total assets in the financial statements of important defects, resulting in direct property loss of 1 million yuan (inclusive) - 10 million yuan - 1%. Lost.
Major defect: this defect causes property loss, which is more than 3 deaths or more than 10 serious injuries caused by combined accidents in this year, and more than 1% (inclusive) of the total assets in the financial statements. Or cause direct property losses of more than 10 million yuan (inclusive).
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Significant defect: for the significant defect determined according to the quantitative standard, after considering the following qualitative factors, if the management of the company believes that the control defect has a significant negative impact on other objectives other than the financial reporting objectives, it can be adjusted as a significant defect:
(1) The nature of the disclosed matters and relevant determinations;
(2) The influence degree of fraud;
(3) Determine the subjectivity and complexity or degree of judgment required for the amount involved;
(4) Causes and frequency of exceptions;
(5) Interaction with other controls;
(6) Possible future consequences of defects;
(7) The risk of growth trend suggested by the problems existing in history;
(8) Comparison between the adjusted impact level and the overall importance level;
(9) The degree of negative impact caused by special investigation by the government or regulatory agencies or public media reports.
Important defect: for the general defect determined according to the quantitative standard, after considering the above qualitative factors, if the impact of the control defect on other objectives other than the financial reporting objectives has attracted the attention of the board of directors and managers of the enterprise, it can be adjusted as an important defect.
General defects: control defects other than major defects and important defects.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
Shenzhen Huaqiang Industry Co.Ltd(000062)
March 9, 2022
