Guoyuan Securities Company Limited(000728)
About Sinomag Technology Co.Ltd(300835)
Verification opinions of internal control self-evaluation report
Guoyuan Securities Company Limited(000728) (hereinafter referred to as " Guoyuan Securities Company Limited(000728) " or "recommendation institution") as a continuous supervision recommendation institution of Sinomag Technology Co.Ltd(300835) (hereinafter referred to as "company" or "Anhui Longci") for initial public offering of shares and listing on GEM, in accordance with the measures for the administration of securities Issuance and listing recommendation business and the guidelines for the recommendation of listed companies of Shenzhen Stock Exchange The provisions of relevant laws, regulations and normative documents such as the Listing Rules of Shenzhen Stock Exchange gem, the guidelines for the standardized operation of companies listed on Shenzhen Stock Exchange gem, the guidelines for the supervision of listed companies No. 2 - regulatory requirements for the management and use of raised funds by listed companies, The self-evaluation report on internal control of Anhui Longci in 2021 was checked. The details are as follows: I. Basic information of internal control
(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 the company and its subsidiaries. The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
The main operations and matters included in the scope of evaluation include:
(1) Corporate governance, development strategy, organizational structure, human resources, corporate culture, professional ethics and professional competence, information and communication, internal supervision and other processes involved in company level control in the company's internal control management manual and relevant implementation rules;
(2) Purchase management, sales management, financial management, related party transactions, external guarantee, raised funds, external investment, information disclosure and other processes involved in business level control. The high-risk areas of focus mainly include: procurement management, sales management, financial management, related party transactions, fund-raising, information disclosure, etc.
The above 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
With the gradual deepening and improvement of national laws and regulations and the needs of the company's continuous development, the company organizes and carries out internal control evaluation according to the requirements of the enterprise's 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 studied and determined the specific identification standards of internal control defects applicable to the company for internal control over financial reports and internal control over non-financial reports.
(1) Identification standard of internal control defects in financial reporting
Identification standard
Defect grade
Quantitative and qualitative criteria
1. Fraud by directors, supervisors and senior managers;
2. Errors due to major errors in the announced financial report 1. The amount of misstatement in the balance sheet ≥ assets
corrections;
5% of the total output;
Major defects 3. There are major errors in the current financial report, while the internal control operation process 2. The amount of misstatement in the income statement ≥ the total income
The error is not found in the;
6% of the amount.
4. The audit committee and Audit Department of the company have ineffective supervision on the internal control of financial reports.
1. Failure to establish anti fraud procedures and control measures;
1. 2% of total assets ≤ assets and liabilities
2. For the accounting treatment of unconventional or special transactions, no corresponding control table is established, and the amount of misstatement is less than 5% of the total assets;
Important defect mechanism;
2. 3% of total income ≤ income statement error
3. For one or more defects in the preparation of the financial report, the amount that cannot be reported is less than 6% of the total revenue.
Ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
1. Balance sheet misstatement amount ＜ assets
2% of the total output;
General defects refer to other control defects except major defects and important defects.
2. Amount of misstatement in income statement ＜ total income
3% of the amount.
(2) Identification standard of internal control defects in non-financial reporting
Identification standard
Defect grade
Quantitative and qualitative criteria
1. The company's business activities violate national laws and regulations;
2. The negative news of the media is frequently exposed, which has a significant impact on the company's reputation, and the amount of direct or indirect asset loss is 300;
Major defects
More than 10000 yuan.
3. Serious loss of senior managers and core technicians;
4. Lack of institutional control or systematic failure of important business;
5. Major defects in internal control have not been rectified.
1. The company's activities in violation of national laws and regulations are subject to minor punishment;
The amount of direct or indirect asset loss is 100 - 2. Negative news in the media has an impact on the company's reputation;
Important defects
3 million yuan (including 3 million yuan). 3. Serious loss of personnel in key positions;
4. Important defects in internal control have not been rectified.
The amount of direct or indirect asset loss is less than
General defects refer to other control defects except major defects and important defects.
1 million yuan (including 1 million yuan).
(III) identification and rectification of internal control defects
(1) Identification and rectification of defects in financial report
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 or important defects in the company's internal control over non-financial reports were found during the reporting period.
(IV) description of other major matters related to internal control
During the reporting period, the company's current internal control system covered all aspects of the company's production and operation activities and had no major defects in integrity, rationality and effectiveness.
At the same time, the company will continue to strengthen the construction of internal control, improve the internal control system suitable for the company's business scale, business scope, competition and risk level, timely adjust and standardize with the changes of business conditions, strengthen the supervision and inspection of internal control, and promote the healthy and sustainable development of the company. 3、 Verification opinions of the recommendation institution
The recommendation institution communicates with relevant directors, supervisors, senior managers and relevant personnel of the company; Communicate with relevant personnel of accounting firms and other intermediaries appointed by the company; Consult the meeting materials of the board of directors, the board of supervisors, the general meeting of shareholders, the annual internal control evaluation report, various business and management rules and regulations and other relevant documents; Consult relevant information disclosure documents; Check the production and operation site and other measures, and check the compliance and effectiveness of the company's internal control system from the aspects of the company's internal control environment, the establishment of internal control system and the implementation of internal control.
Upon verification, Guoyuan Securities Company Limited(000728) it is believed that the corporate governance structure of the company is relatively sound as of December 31, 2021, the existing internal control system meets the relevant requirements of relevant laws, regulations and normative documents, and effective internal control related to enterprise business and management has been maintained in all major aspects as of December 31, 2021; The self evaluation report on internal control in 2021 fairly reflects the construction and operation of the company's internal control system in 2021.
(there is no text on this page, which is the signature page of Guoyuan Securities Company Limited(000728) verification opinions on Sinomag Technology Co.Ltd(300835) internal control self evaluation report) sponsor representative:
Tao chuanbiao, Liu Yunxiao
Guoyuan Securities Company Limited(000728) mm / DD / yyyy
