China Mobile Co., Ltd
Internal control evaluation report in 2021
All shareholders of China Mobile:
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 internal control system and evaluation methods of China Mobile Co., Ltd. (hereinafter referred to as the "company"), 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 directors, directors 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 China Mobile Co., Ltd. and all its subsidiaries. 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 The main operations and matters included in the scope of evaluation include:
Corporate Governance: improve the corporate governance mechanism; Cultivate integrity and moral values; Improve the power operation and supervision and management mechanism; Strengthen internal control and risk management.
Business process level: it covers procurement management, engineering project management, asset management, production operation and maintenance management, revenue billing, marketing management, budget management, accounting and financial reporting management, fund management, labor cost management, related party transaction management, tax management, compliance with laws and regulations and other special business processes of professional companies.
Overall control of information technology: formulation of information system strategy and policy; Procedure development and change management; Access to programs and data; System operation and safety management. 4. High risk areas of focus mainly include:
On the basis of comprehensive evaluation, the company focused on the key business control links affecting the authenticity of financial information, business efficiency and efficiency, the safety of capital assets, compliance with laws and regulations, and realized the comprehensive coverage of internal control evaluation and the key coverage of high-risk fields. 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 the company's internal control system and evaluation methods. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
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. 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
The total profit before tax is more than 5% and less than 3% (inclusive) - 5% (inclusive) and less than 3%
Reported amount
More than 3% and less than 1% (inclusive) - less than 3% (inclusive) of the total owner's equity
Description of misstated amount: 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, major fraud by directors and senior managers and causing important losses and adverse effects to the enterprise; There is a material misstatement in the financial report, and the corresponding control activities fail to identify the misstatement, or it is necessary to correct the published financial report; Lack of system control or systematic failure of important businesses related to financial reporting, which seriously affects the realization of the company's objectives; The board of directors, the audit and risk management committee and the internal audit department lack effective supervision over the internal control related to the company's financial reporting.
Significant defects: failure to select and apply accounting policies in accordance with GAAP; Insufficient anti fraud procedures and control measures, resulting in important fraud events in the company; Failure of compliance supervision function.
General defects: the existing control design of individual control points of individual units cannot or is insufficient to achieve the control purpose; The actual implementation of individual control points of individual units fails to achieve the control purpose; Individual internal control defects that have been communicated with the management of each unit have not been rectified after a reasonable time.
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
Total pre tax profit loss of more than 5% (including) - less than 5% (including) 3%
Description of loss 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, serious violations of national laws and regulations, and major legal sanctions; Lack of system control or systematic failure of important businesses related to non-financial reporting, which seriously affects the realization of the company's objectives; Major defects in internal control over non-financial reporting that have been reported to the management have not been rectified within a reasonable time.
There are obvious violations in the production and operation links with important defects, and there is a major risk of fraud; The decision-making procedure is flawed, causing the company
Significant losses; The important defects of internal control over non-financial reporting that have been reported to the management have not been rectified after a reasonable time.
General defects are other control defects except 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 any 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
According to the above identification standards of the company's internal control defects, there were no major defects and important defects in the company's internal control over financial reporting during the reporting period. The general defects of internal control over financial reporting belong to local problems of individual units. The business volume involved is small and the impact proportion is small. It has not had a significant impact on the company's production and operation, and has been or is in the process of rectification, which does not have a substantive impact on the realization of the company's internal control objectives. 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, does the company have 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
According to the above identification standards of the company's internal control defects, the company has no major defects and important defects in non-financial reporting internal control during the reporting period. The general defects of internal control over non-financial reporting are local problems of individual units, involving small business volume and small impact proportion. They have not had a significant impact on the company's production and operation, and have been or are in the process of rectification, which does not have a substantive impact on the realization of the company's internal control objectives.
2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in 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, does the company find any important defects in the internal control of non-financial reporting 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): Yang Jie, China Mobile Co., Ltd. March 22, 2022
