3Peak Incorporated(688536) microelectronics technology (Suzhou) Co., Ltd
Internal control evaluation report in 2021
All shareholders of 3Peak Incorporated(688536) microelectronics technology (Suzhou) Co., Ltd.:
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: the company and all subsidiaries included in the consolidation scope 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 business scope of evaluation includes:
Corporate governance, human resources and salary management, capital and expense management, investment management, financing management, procurement and accounts payable management, asset management, inventory management, sales and accounts receivable management, research and development management, financial report and disclosure management, contract management, tax management, government subsidy management and general control of information system. 4. High risk areas of focus mainly include:
Sales and accounts receivable management, procurement and accounts payable management, financial reporting and disclosure management. 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 according to the enterprise internal control standard system and various management systems of the company. 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 of annual consolidated statements amount of misstatement in financial statements total annual profit amount of misstatement in financial statements ≥ 5% of the year amount of misstatement in financial statements ≥ 2.5% total profit of consolidated statements 5% total profit of annual consolidated statements
2.5%
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
(1) Fraud by directors, supervisors and senior managers of the company;
(2) The company shall correct the material misstatement in the published financial report of the company;
Major defects (3) the company has major misstatement in the current financial statements, and the internal control fails to find the misstatement in the operation process;
(4) The supervision of the company’s audit committee and internal audit institutions on internal control is invalid.
(1) The company fails to select and apply accounting policies in accordance with generally accepted accounting standards;
(2) Failure to establish anti fraud mechanism and control measures;
Important defect (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 report at the end of the period, which can not reasonably ensure that the prepared financial statements achieve the objectives of authenticity, accuracy, integrity and fairness.
General defects are internal control defects other than 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
Loss amount ≥ total profit of annual consolidated statement loss amount total profit of annual consolidated statement 5% loss amount ≥ total profit of annual consolidated statement 2.5%
Total statement profit 2.5%
Description: 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
(1) If the company violates the national laws, regulations and rules, and is subject to criminal punishment or restrictions on production and business activities, ordered to stop production and business, ordered to close down, restricted employment and other administrative major defects that make the company unable to operate continuously;
(2) The company lacks decision-making procedures or the decision-making procedures are not standardized, resulting in major decision-making mistakes;
(3) The company’s important business lacks institutional control, or the system fails systematically;
(4) Major defects in the company’s internal control have not been rectified.
(1) In violation of national laws, regulations and rules, the company is subject to administrative penalties that have a serious adverse impact on the company’s operation, except for restricting production and business activities, stopping production and business due to major defects, ordering closure and restricting employment;
(2) There are design defects in the company’s decision-making procedures, and there is no corresponding compensatory control;
(3) There are design defects in the company’s important business systems or systems, and there is no corresponding compensatory control;
(4) Important defects in the company’s internal control have not been rectified.
General defects are internal control defects other than major defects and important defects.
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 √ major defects not found in the company’s internal control report on the benchmark date of rectification √ 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
During the reporting period, the company’s businesses and matters included in the evaluation scope have established and effectively implemented the internal control system, which has provided guarantee for the legal compliance of the company’s operation and management and asset safety, effectively promoted the steady implementation of the company’s strategy and achieved the goal of the company’s internal control. In 2022, according to the company’s strategy and business development, the company will continue to strengthen the construction of internal control system, optimize internal control process, standardize the implementation of internal control system, strengthen internal control supervision and inspection, improve the level of internal control management, help the company effectively prevent all kinds of risks and escort the sustainable and healthy development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Zhixu Zhou 3Peak Incorporated(688536) microelectronics technology (Suzhou) Co., Ltd. March 11, 2022
