Yunding Technology Co.Ltd(000409)
Internal control evaluation report in 2021
Yunding Technology Co.Ltd(000409) 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 ("enterprise internal control normative system"), combined with Yunding Technology Co.Ltd(000409) ("company") internal control system and evaluation methods, and on the basis of daily and special supervision of internal control, we conducted a self-evaluation on the effectiveness of the company's internal control on December 31, 2021 (benchmark date of internal control evaluation report).
1、 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 audit committee and the audit risk department under its leadership are responsible for reviewing the company's internal control, supervising the effective implementation of internal control, conducting internal control self-evaluation, and coordinating internal control audit and other related matters. 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 goal of the company's internal control is to establish and improve the internal governance and organizational structure in line with the requirements of modern company management, form a scientific decision-making mechanism, implementation mechanism and supervision mechanism, and ensure the realization of the company's production and operation strategy; Establish an effective risk control system, strengthen the risk management mechanism, and improve the efficiency and effect of the company's normal operation; Standardize the accounting behavior of the company and ensure the authenticity, reliability and integrity of accounting materials, financial reports and management information of the company; Establish a good internal control environment, prevent and timely detect and correct errors and fraud, and ensure the safety and integrity of the company's assets; Strictly abide by national laws and regulations, abide by laws in production and operation and meet relevant regulatory requirements. 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.
2、 Internal control evaluation conclusion
According to the identification standard 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 standard of major defects in the company's internal control over non-financial reports, the company found no major defects in the 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.
3、 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: Yunding Technology Co.Ltd(000409) , Shandong Yankuang guotuo Technology Engineering Co., Ltd., Shandong energy Digital Technology Co., Ltd., Beidou Tiandi Co., Ltd. and Qingdao Beidou Tiandi Science & Technology Co.Ltd(600582) Co., Ltd. The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated statements.
The businesses and matters included in the evaluation scope of the company include:
Corporate Governance: organizational structure, development strategy, human resources, corporate culture and social responsibility.
Business process level: capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, financial report, comprehensive budget, contract management, internal information transmission and information system.
The high-risk areas that the company focuses on mainly include: strategic management risk, human management risk, safety and environmental protection risk, production management risk, investment risk, inventory risk, cash flow risk, sales risk, guarantee risk, information disclosure risk and major decision-making legal risk.
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） Procedures and methods of internal control evaluation
The internal control evaluation of the company is carried out in the form of project team in strict accordance with the basic norms of enterprise internal control, supporting guidelines for enterprise internal control and other relevant laws and regulations, combined with the actual situation of the company and according to different industries and work contents. In the process of evaluation, the evaluators shall strictly implement the procedures specified in the basic norms and evaluation guidelines, follow the principles of comprehensiveness, importance and objectivity, formulate a detailed evaluation work plan in combination with the actual situation of internal control design and operation, clarify the responsibilities and authorities of relevant institutions or posts, implement the responsibility system, and carry out internal control evaluation in an orderly manner in accordance with the specified methods, procedures and requirements.
The company's internal control evaluation work is to test the effectiveness of internal control design and implementation by means of observation, inspection, inquiry, analysis procedures and so on. During the evaluation, the evaluators comprehensively analyzed and identified the internal control defects and carefully recorded them, which ensured the reliability of the test conclusions to a certain extent.
（3） 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.
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. Evaluation criteria 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:
Important degree major defect important defect general defect
Misstatement ≥ misstatement of total assets in consolidated financial statements consolidated financial statements
Total assets
0.5% of total assets in consolidated financial statements ≤ misstatement 0.5% of total assets in consolidated financial statements
Misstatement amount
1% of total assets
Misstatement ≥ consolidated accounting statement owner's equity misstatement consolidated accounting statement
Owners' rights, interests and mistakes
0.5% of the owner of the accounting statement ≤ misstatement 0.5% of the owner's equity in the consolidated accounting statement
Reported amount
1% of equity statement 1% of owner's equity
Misstatement ≥ misstatement of business income in consolidated accounting statements consolidated accounting statements
business income
0.5% of business income in the consolidated financial statements ≤ misstatement 0.5% of business income in the consolidated financial statements
Misstatement amount
1% of revenue
Misstatement ≥ misstatement of total profits in consolidated financial statements consolidated financial statements
Total profit
1.5% of the total profit in the consolidated financial statements ≤ misstatement 1.5% of the total profit in the consolidated financial statements
Misstatement amount
3% of total profit
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Major defects: ineffective control environment; The company's directors, supervisors and senior managers commit fraud and cause important losses and adverse effects to the enterprise; The external audit found that there were significant misstatements in the current financial statements, but the internal control failed to find such misstatements in the operation process; The internal control supervision of the company by the board of directors or its authorized institution and the internal audit department is invalid; The results of internal control evaluation, especially major or important defects, have not been rectified.
(2) Significant deficiencies: failure to select and apply accounting policies in accordance with GAAP; 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.
(3) General defects: other internal control defects that do not constitute major defects and important defect standards.
2. Evaluation criteria 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:
The quantitative standard for the evaluation of internal control defects in non-financial reports shall be implemented with reference to the quantitative standard for the evaluation of internal control defects in financial reports.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
(1) Major defects: violation of decision-making procedures, resulting in major decision-making mistakes; 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; The media frequently expose major negative news, which is difficult to restore its reputation; The company failed to manage the safety production, resulting in safety liability accidents with heavy casualties.
(2) Important defects: General mistakes caused by decision-making procedures; Lack of institutional control or systematic failure of important business; 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.
(3) General defects: the efficiency of decision-making procedure is not high; Defects in general business system or system; Serious loss of general business personnel; General defects have not been rectified.
(IV) 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 reports, combined with the daily supervision and special inspection of the company's internal control, the company has no major defects and important defects in the internal control of financial reports 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, combined with the daily supervision and special inspection of the company's internal control, no major defects and important defects in the company's internal control in non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company did not explain other major matters related to internal control.
5、 Next improvement measures
In order to further explore the effective measures of corporate governance, pay attention to the combination of effectiveness and long-term effectiveness, and continuously improve the level of corporate governance, so as to ensure the sustainable, healthy and rapid development of the company, the company will continue to take the following measures to improve and perfect internal control:
1. On the basis of continuing to implement the existing internal control systems, the company will constantly revise and improve the company's internal control system according to the actual changes, improve the company's internal control level, and strengthen the company's internal control management in terms of system construction.
2. The company will further strengthen the supervision and inspection of the implementation of the internal control system, give full play to the role of internal audit in error detection and correction, optimize the company's internal control system, and ensure that the internal control work can be carried out effectively and standardized, so as to promote the sustainable development of the company.
3. The company will vigorously carry out publicity and implementation training of internal control construction, organize personnel to learn relevant laws, regulations, systems and norms, constantly improve employees' professional ethics and professional competence, effectively and comprehensively improve the effectiveness of internal control and accelerate the realization of high-quality development.
Yunding Technology Co.Ltd(000409) March 24, 2022
