China United Network Communications Limited(600050)
Internal control evaluation report in 2021
China United Network Communications Limited(600050) 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. 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. 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 31 provincial branches and important subsidiaries. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The proportion of total assets included in the company’s financial statements accounted for 87.8%
The total operating income of the units included in the evaluation scope accounts for 90.5% 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:
Corporate Governance: the effectiveness of the company’s internal control environment; Decision making system and authorization and approval system for major economic matters; Separation of incompatible positions and responsibilities; Compliance of leading cadres and employees with the code of professional ethics; Effectiveness of anti fraud procedures and approaches; Standardization of financial report disclosure procedures, etc.
Business process level: covering revenue, costs, funds, assets, capital expenditure, financial information disclosure and other major business cycles. 4. High risk areas of focus mainly include:
Affect the authenticity of financial information, business efficiency and efficiency, security of capital assets, compliance with laws and regulations and other key business control links. 5. 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 in accordance with the enterprise internal control standard system, the guidelines for comprehensive risk management of central enterprises and other systems, and the China United Network Communications Limited(600050) internal control standard and other relevant documents. 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
Misstatement of operating income of more than 1% (inclusive) and less than 0.5% (inclusive) to less than 1% and 0.5%
forehead
Misstatement of total assets of more than 1% (inclusive) and less than 0.5% (inclusive) to less than 1% (inclusive)
forehead
Gross profit misstatement of more than 5% (inclusive) and less than 3% (inclusive) to less than 5% (inclusive)
Amount 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 defects cause losses or harm to the company due to intentional fraud, violation of national laws and regulations or company regulations; Imperfect anti fraud policies and procedures, resulting in the possibility of fraud risk; The control of related party transactions, major investment and financing and other very complicated items is not perfect, and there are loopholes or weak links; Internal control defects such as the failure of the board of directors or the audit committee to effectively perform the supervision function, no matter whether it has actually caused losses to the company, as long as it constitutes a reasonable possibility of misstatement of the financial report, it will be directly judged as important defects or major defects according to the degree of impact.
Major defects: fraud due to intentional acts, violation of national laws and regulations or company regulations, resulting in losses or harm to the company; Imperfect anti fraud policies and procedures, resulting in the possibility of fraud risk; The control of related party transactions, major investment and financing and other very complicated items is not perfect, and there are loopholes or weak links; The board of directors or the audit committee fails to effectively perform the supervision function and other internal control defects, no matter whether they have actually caused losses to the company, as long as they constitute an error in the financial report
Reasonable possibility, it is directly judged as important defect or major defect according to the degree of influence.
General defects are other defects 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
More than 1% (inclusive) and less than 0.5% (inclusive) of the business that may be affected
Revenue amount
Assets that may be affected from more than 1% (inclusive) to less than 0.5% (inclusive)
Total amount
The profit that may be affected is more than 5% (inclusive) and less than 3% (inclusive) to less than 5% (inclusive)
Description of total amount: None
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 are in violation of national laws and regulations or normative documents, major decision-making procedures are not standardized, the lack of system may lead to systematic failure, major or important defects cannot be rectified, and other situations with significant negative impact on the company are judged as major, important or general defects according to the degree of impact.
Major defects are in violation of national laws and regulations or normative documents, major decision-making procedures are not standardized, the lack of system may lead to systematic failure, major or important defects cannot be rectified, and other situations with significant negative impact on the company are judged as major, important or general defects according to the degree of impact.
General defects are in violation of national laws and regulations or normative documents, major decision-making procedures are not standardized, the lack of system may lead to systematic failure, major or important defects cannot be rectified, and other situations with significant negative impact on the company are judged as major, important or general defects according to the degree of impact.
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 any significant defects in internal control over financial reporting during the reporting period □ yes √ no
1.3. General defect
The general internal control defects have been reported to the board of directors and the management. The company attaches great importance to them, and the violations involving discipline and law are transferred to the discipline inspection department for investigation and punishment. Other problems require relevant units and responsible persons to rectify and implement within a time limit, and ensure the effectiveness of rectification through continuous tracking; Report the common internal control defects, and require all units to draw inferences from one instance, conduct self inspection and self correction, and prevent and control the occurrence of risks. After rectification, the internal control defects found by the company have been improved and perfected. 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
The general internal control defects have been reported to the board of directors and the management. The company attaches great importance to them, and the violations involving discipline and law are transferred to the discipline inspection department for investigation and punishment. Other problems require relevant units and responsible persons to rectify and implement within a time limit, and ensure the effectiveness of rectification through continuous tracking; Report the common internal control defects, and require all units to draw inferences from one instance, conduct self inspection and self correction, and prevent and control the occurrence of risks. After rectification, the internal control defects found by the company have been improved and perfected. 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
3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Liu Liehong China United Network Communications Limited(600050) March 11, 2022
