Zhongshan Securities Co., Ltd
About Shenzhen Crastal Technology Co.Ltd(300824)
Verification opinions on self-evaluation report of internal control in 2021
Zhongshan Securities Co., Ltd. (hereinafter referred to as “Zhongshan securities” and “sponsor”) is the sponsor of Shenzhen Crastal Technology Co.Ltd(300824) (hereinafter referred to as ” Shenzhen Crastal Technology Co.Ltd(300824) ” or “company”) for initial public offering and listing on the gem of Shenzhen Stock Exchange, In accordance with the guidelines for self-regulation of listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on the gem and the Listing Rules of Shenzhen Stock Exchange on the gem, the self-evaluation report of the company’s internal control in 2021 was verified. The specific conditions are as follows: I. 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: the company and Bao’an branch; Wholly owned subsidiaries: Shenzhen beihanlin Technology Co., Ltd., Jinghui Trading Co., Ltd., Hong Kong Dingbei Trading Co., Ltd., Shenzhen Beiding Jinghui Technology Co., Ltd. and Shenzhen Beiding Technology Co., Ltd; Wholly owned subsidiaries: Shenzhen Qianhai Beiding hand Technology Co., Ltd., Shenzhen Qianhai Beichen Baking Technology Co., Ltd., Beiding Technology (Shandong) Co., Ltd., Shanghai Dingbei Technology Co., Ltd., Sichuan Dingbei Technology Co., Ltd., Dingbei (Beijing) Technology Co., Ltd., deembuy Trading Limited and buydeem Trading Limited. Wholly owned subsidiaries: Shenzhen Beiding Technology Co., Ltd. Baoan yifangcheng experience store, Shenzhen Beiding Technology Co., Ltd. Shenzhen tanglangcheng store, Shenzhen Beiding Technology Co., Ltd. Nanshan Coast City store, Shenzhen Beiding Technology Co., Ltd. Shekou Garden City branch, Shenzhen Beiding Technology Co., Ltd. Haizhu branch, Shenzhen Beiding Technology Co., Ltd. Shantou branch Shenzhen Beiding Technology Co., Ltd. Vientiane Qianhai store, Shenzhen Beiding Technology Co., Ltd. Tianhe branch, Shenzhen Beiding Technology Co., Ltd. Shenzhen Nanshan coastal city self operated store, Shenzhen Beiding Technology Co., Ltd. China Resources Vientiane branch, Shenzhen Beiding Technology Co., Ltd. Futian Yinli Center store, Shenzhen Beiding Technology Co., Ltd. Shenzhen Nanshan Vientiane Tiandi branch Longhua yifangtiandi self operated store of Shenzhen Beiding Technology Co., Ltd., Nanshan Yujing Oriental branch of Shenzhen Beiding Technology Co., Ltd., Futian zhuoyuhui branch of Shenzhen Beiding Technology Co., Ltd., Beijing International Trade Branch of Shenzhen Beiding Technology Co., Ltd., Shenzhen Futian Xinghe Cocopark branch of Shenzhen Beiding Technology Co., Ltd., Shenzhen Futian Central City branch of Shenzhen Beiding Technology Co., Ltd; Wholly owned subsidiaries: the first branch of Dingbei (Beijing) Technology Co., Ltd. and the second branch of Dingbei (Beijing) Technology Co., Ltd; Chengdu Branch of Sichuan Dingbei science and Technology Co., Ltd., a wholly-owned subsidiary, is included in the evaluation scope. The total assets of the unit account for 100% of the total assets in the company’s consolidated financial statements, and the total operating income accounts for 100% of the total operating income in the company’s consolidated financial statements.
The main businesses and matters included in the evaluation scope include: control environment (including organizational structure, development strategy, human resources, social responsibility and corporate culture), risk assessment, control activities (including fund management, investment and financing management, research and development, production, supply and marketing business management, asset management, guarantee business, financial report management, related party transaction management, subsidiary management, comprehensive budget and information system management) Information transmission and communication (including information disclosure, internal information transmission), continuous supervision, etc.
The high-risk areas of focus mainly include the challenges brought by the economic downturn, the increasing demands of consumers on innovation, the intensification of market competition, product quality and food safety, the impact of the Internet on traditional channels, the amplification of all kinds of information by instant messaging and social media, the challenges brought by the increasing application of the system to their own management, the fluctuation of commodity prices, the rise of labor costs, production safety and tax reform.
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 in accordance with the enterprise internal control standard system and the requirements of relevant laws, regulations, rules and regulations such as the guidelines for internal control of listed companies of Shenzhen Stock Exchange.
The board of directors of the company distinguished the internal control of financial report from the internal control of non-financial report according to the identification requirements for major defects, important defects and general defects of the enterprise internal control standard system, combined with the factors such as the company’s size, industry characteristics, risk preference and risk tolerance, and studied and determined the specific identification standards of internal control defects applicable to the company, which are consistent with the previous years. The identification standards of internal control defects determined by the company are as follows: 1. Identification standards of internal control defects in financial reports
(1) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The quantitative standard takes the operating income and total assets as the measurement indicators.
If the loss that may be caused or caused by the defect of internal control is related to the income statement, it shall be measured by the operating revenue index. If the amount of the general operating defect together with other defects is less than 1%, it may be regarded as a separate misstatement of the financial report; If it exceeds 1% but less than 2% of the operating revenue, it is an important defect; If it exceeds 2% of the operating revenue, it is recognized as a major defect.
Losses that may be caused or caused by internal control defects related to asset management shall be measured by the total asset index. If the amount of financial report misstatement that may be caused by such defect alone or in combination with other defects is less than 1% of the total assets, it shall be recognized as a general defect; If it exceeds 1% but less than 2% of the total assets, it is recognized as an important defect; If it exceeds 2% of the total assets, it is recognized as a major defect.
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Signs of significant defects in internal control over financial reporting include: ineffective control environment; The company’s directors, supervisors and senior managers commit fraud and cause important losses and adverse effects to the enterprise; The major misstatement found in the external audit was not first discovered by the company; The internal control supervision of the company by the board of directors or its authorized institution and the internal audit department is invalid.
Signs of significant defects in internal control over financial reporting include: failure to select and apply accounting policies in accordance with generally accepted accounting standards; Failure to establish anti fraud procedures and control measures; 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; 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.
Signs of general defects in internal control over financial reporting include other internal control defects that do not constitute major defects and important defect standards.
2. Identification standard of internal control defects in non-financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The quantitative standard takes the operating income and total assets as the measurement indicators.
If the loss that may be caused or caused by the defect of internal control is related to the income statement, it shall be measured by the operating revenue index. If the amount of the general operating defect together with other defects is less than 1%, it may be regarded as a separate misstatement of the financial report; If it exceeds 1% but less than 2% of the operating revenue, it is recognized as an important defect; If it exceeds 2% of the operating revenue, it is recognized as a major defect.
Losses that may be caused or caused by internal control defects related to asset management shall be measured by the total asset index. If the amount of financial report misstatement that may be caused by such defect alone or in combination with other defects is less than 1% of the total assets, it shall be recognized as a general defect; If it exceeds 1% but less than 2% of the total assets, it is recognized as an important defect; If it exceeds 2% of the total assets, it is recognized as a major defect.
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Signs of significant defects in the internal control of non-financial reporting include: major mistakes caused by decision-making procedures; Lack of institutional control or systematic failure of important business, and lack of effective compensatory control; Serious loss of middle and senior managers and senior technicians; The results of internal control evaluation, especially major defects, have not been rectified; Other situations that have a significant negative impact on the company.
Signs of significant defects in the internal control of non-financial reporting include: general errors caused by decision-making procedures; Defects in important business systems or systems; Serious loss of business personnel in key positions; The results of internal control evaluation, especially the important defects, have not been rectified; Other situations that have a great negative impact on the company.
Signs of general defects in internal control over non-financial reporting include: inefficient decision-making procedures; Defects in general business system or system; Serious loss of business personnel in general posts; General defects have not been rectified. (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.
2、 Description of other major matters related to internal control
The company has no explanation on other major matters related to internal control.
3、 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 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.
4、 Verification procedures and opinions of the recommendation institution
The annual meeting of the board of directors and the report of the board of supervisors, as well as the records of the annual meeting of the board of directors and the report of the management of the company’s sponsors were reviewed; Interviewed relevant personnel of the company; The integrity, rationality and effectiveness of the company’s internal control system are verified from the company’s internal control environment, the construction and implementation of the internal control system, etc.
After verification, the recommendation institution believes that Shenzhen Crastal Technology Co.Ltd(300824) has established corresponding internal control system and system, which complies with the relevant provisions of the basic norms of enterprise internal control and its supporting guidelines; The company has maintained effective internal control related to business operation and management in major aspects; The self-evaluation report on internal control in 2021 issued by the board of directors of the company basically reflects the construction and operation of its internal control system.
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(there is no text on this page, which is the signature page of the verification opinions of Zhongshan Securities Co., Ltd. on the self-evaluation report of Shenzhen Crastal Technology Co.Ltd(300824) 2021 annual internal control)
Sponsor representative:
Chen Xiande Wan Yunfeng
Zhongshan Securities Co., Ltd. March 23, 2022
