Allwinnertech Technology Co.Ltd(300458)
Self evaluation report on internal control in 2021
Allwinnertech Technology Co.Ltd(300458) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, 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). 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 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. 2、 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.
3、 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. The main units included in the evaluation scope include Allwinnertech Technology Co.Ltd(300458) and its branches, wholly-owned subsidiaries Shenzhen xinzhihui Technology Co., Ltd., Quansheng (Hong Kong) Co., Ltd., Shenzhen Quanzhi online Co., Ltd., Guangzhou xinzhilian Technology Co., Ltd., Xi’an Allwinnertech Technology Co.Ltd(300458) Co., Ltd., Shanghai quanzhixin Technology Co., Ltd. and its grandson Hong Kong QUANTONG Technology 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 financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company’s consolidated financial statements; The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, corporate culture, fund management, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system, etc; The high-risk areas of focus mainly include:
R & D risk: the risk of technical direction, the risk of R & D failure and the risk of backward R & D.
Financial risk: financial report risk, exchange rate risk, prepayment risk and fund management risk.
Market risk: competition risk and customer credit risk.
Operational risk: product quality risk and supplier credit risk.
Legal risk: governance risk, compliance and performance risk of major contracts, etc.
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 relevant provisions of the enterprise’s internal control standard system and its supporting guidelines and in combination with the actual situation of the company.
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 standard of internal control defects in financial reporting
(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 net profit as the measurement index.
Defect definition quantitative standard
It refers to the combination of the amount of misstatement in one or more control deficient financial statements, which may cause the enterprise to be strict in the following range: the amount of misstatement is a major defect
Heavy deviation from control objectives. ≥ 10% of the net profit, and the amount of misstatement ≥ 5 million yuan.
It refers to the combination of the amount of misstatement in one or more financial statements with control defects, and its severity and economy are in the following range: the economic consequences of the important defect of the net profit are lower than those of the major defect, but if 5% ≤ the amount of misstatement net profit, the enterprise may still deviate from 10%, and 2.5 million yuan ≤ the control target of misstatement. Amount 5 million yuan.
Except that the amount of misstatement in the financial statements with major defects and important defects falls below the general defects, other control defects are in the following range: the amount of misstatement is less than 5% of the net profit, and the amount of misstatement is less than 2.5 million yuan.
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative criteria for defect definition
It refers to one or more control defects. 1) the combination of audit committee and internal audit may cause the supervision of internal control by the enterprise’s strict accounting institution to deviate from the control goal.
Invalid supervision;
2) The fraud of directors, supervisors and senior managers with major defects has led to serious losses of the company;
3) The regulatory authorities ordered the company to correct the major errors in the previous annual financial reports.
Refers to one or more control deficiencies 1) the combination of material deficiencies not in accordance with GAAP, their severity and selected and applied accounting policies; The economic consequences are lower than the major defects, but 2) the accounting treatment that may lead to the deviation of the enterprise from the normal or special transactions is not established
Control objectives. Corresponding control mechanism or not implemented and there is no corresponding compensatory control;
3) 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, accuracy and integrity.
General defects are other control defects except major defects and important defects. Other control defects.
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 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.
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative criteria for defect definition
It refers to one or more control defects. 1) the unscientific combination of the company’s decision-making procedures may lead to serious bias and major decision-making mistakes of the enterprise;
Away from the control target. 2) Serious violation of national laws and regulations, resulting in major fines; 3) Serious loss of core technical personnel.
It refers to one or more control defects. 1) unscientific decision-making procedure leads to combination, and its severity and economy are greatly wrong;
The results of important defects are lower than those of major defects, but there are still 2) violation of internal rules and regulations of the enterprise, which can lead the enterprise to deviate from the control objectives. Cause great losses;
3) Serious loss of management and technical personnel.
General defects other than major defects and important defects
Other control deficiencies. Other control deficiencies.
(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 reports, the company has no major defects in internal control over 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, no major defects in the company’s internal control over non-financial reports were found during the reporting period.
We note that internal control should adapt to the company’s business scale, business scope and risk level, and be adjusted and improved in time as the situation changes. The company will continue to promote and improve the construction of internal control according to the actual situation, widely publicize the internal control system, strengthen training, improve the internal control awareness of employees, and promote their better implementation in business management and daily work. 4、 Description of other major matters related to internal control
The company has no explanation of other major matters related to internal control.
Allwinnertech Technology Co.Ltd(300458)
March 24, 2022
