Company code: Shanghai Fudan Microelectronics Group Co.Ltd(688385) company abbreviation: Shanghai Fudan Microelectronics Group Co.Ltd(688385)
Shanghai Fudan Microelectronics Group Co.Ltd(688385)
Internal control evaluation report in 2021
Shanghai Fudan Microelectronics Group Co.Ltd(688385) 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 the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, and 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 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 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 Shanghai Fudan Microelectronics Group Co.Ltd(688385) , Shanghai Hualing integrated circuit technology Co., Ltd. 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 is 97.34
The total operating income of the units included in the evaluation scope accounted for 96.78% 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:
Organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system. 4. High risk areas of focus mainly include:
Organizational structure, capital activities, financial reporting, sales business, procurement business, business outsourcing. 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 based on the company’s internal control system in accordance with the provisions of the enterprise’s internal control standard system and internal control supporting guidelines and other internal control supervision requirements.
1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
The board of directors identified major defects in the company’s internal control system in accordance with the characteristics of the company’s internal control system and the company’s internal control system. The board of directors identified major defects in the company’s internal control system in accordance with the requirements of the company’s internal control system and the company’s internal control system, and maintained consistency with the company’s internal control system. 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 assets misstatement amount ＞ 1% 1 ≥ misstatement amount ＞ 0.5% misstatement amount ≤ 0.5%
Total profit misstatement amount ＞ 5% 5 ≥ misstatement amount ＞ 2.5% misstatement amount ≤ 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
Major defects 1. Fraud of directors, supervisors and senior managers;
2. The certified public accountant finds that there are significant misstatements in the current financial report and the company’s internal control is not identified;
3. The supervision of the company’s audit committee and internal audit institutions on internal control is invalid;
4. Invalid control environment.
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;
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 are other control defects other than the above 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
Direct property loss accounts for 1% of the proportion of direct property loss total assets, direct property loss ≤ total assets, direct property loss ≤ total assets, and 0.5% of total assets
0.5%
Direct property loss accounts for 5% of the proportion of direct property loss total profit, direct property loss ≤ total profit, direct property loss ≤ total profit, and 2.5% of total profit
2.5% of
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
Major defects 1. Fraud of directors, supervisors and senior managers;
2. The company’s business activities seriously violate national laws and regulations and are subject to major criminal penalties;
3. The internal control evaluation results have major defects and have not been rectified.
Important defects 1. The company’s decision-making mistakes have a great impact on the operation;
2. Major defects in major business systems;
3. The internal control evaluation results have important defects and have not been rectified.
General defects are other control defects other than the above 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
The general defects in the internal control of financial reporting found in the internal control evaluation of the company have been rectified within the reporting period, and the defects will not affect the realization of the internal control objectives of the company’s financial reporting. 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 defects of internal control over non-financial reporting found in the internal control evaluation of the company have been rectified within the reporting period, and the defects do not affect the company’s performance 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
In 2021, the company’s internal control system operated well. By identifying the defects in internal control and implementing rectification, we continued to promote the optimization of internal control system, so as to reasonably ensure the legal compliance of the company’s operation and management, asset safety, the authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the enterprise to realize its development strategy. 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. The general defects of internal control found in the process of internal control evaluation have been rectified within the reporting period, and the defects will not affect the realization of the company’s internal control objectives of financial reporting.
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, effectively prevent various risks and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Jiang Guoxing Shanghai Fudan Microelectronics Group Co.Ltd(688385) March 18, 2022
