Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051)
Internal control assurance report
Zhongxi zhuanshen No. 2022z00159
Zhongxi Certified Public Accountants (special general partnership)
Address: 11th floor, block a, Xincheng culture building, No. 11, Chongwenmenwai Street, Dongcheng District, Beijing zip code: 100062
Tel: 01067085873
Fax: 01067084147
Email: [email protected].
catalogue
Content page I. internal control assurance report 1-2
2、 Internal control self evaluation report 3-10
3、 Business license and qualification certificate of accounting firm
Zhongxi CPA (special general partner ship)
Internal control assurance report
Zhongxi zhuanshen No. 2022z00159 Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) all shareholders:
We have accepted the entrustment to review the confirmation of the management of Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) (hereinafter referred to as ” Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) company”) on the effectiveness of internal control related to financial statements as of December 31, 2021 Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) the responsibility of the management of the company is to establish and improve the internal control and maintain its effectiveness. At the same time, it shall make a determination on the effectiveness of the internal control related to the financial statements as of December 31, 2021 and ensure the authenticity and integrity of the determination. Our responsibility is to express assurance opinions on the effectiveness of the internal control related to the financial statements of Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) company as of December 31, 2021.
We have carried out the assurance business in accordance with the standards for other assurance business of Chinese certified public accountants No. 3101 – assurance business other than the audit or review of historical financial information and with reference to the guidance on internal control audit. The above provisions require us to plan and execute the assurance work to obtain reasonable assurance on whether the information of the assurance object is free from material misstatement. In the assurance process, we have implemented other procedures, including understanding, testing and evaluating the establishment and implementation of the internal control system, as well as other procedures we deem necessary. We believe that our assurance work provides a reasonable basis for expressing opinions.
Internal control has inherent limitations, and there is the possibility of misstatement and undetected due to error or fraud. In addition, changes in circumstances may lead to inappropriate internal control or reduce the degree of compliance with control policies and procedures. Therefore, the effective internal control on December 31, 2021 does not guarantee that it will be effective in the future. According to the internal control evaluation results, it is speculated that the effectiveness of internal control in the future has certain risks.
In our opinion, Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) company maintained effective internal control related to financial statements in all material aspects on December 31, 2021.
Address: floor 11, block a, Xincheng culture building, No. 11, Chongwenmenwai Street, Dongcheng District, Beijing
Tel: 01067085873 Fax: 01067084147 postal code: 100062
Zhongxi CPA (special general partner ship)
(no text on this page)
Zhongxi Certified Public Accountants (special general partnership) Chinese certified public accountant:
(project partner)
Xie Cui
Chinese certified public accountant:
Shen Jianping
Beijing, China March 23, 2002
Address: floor 11, block a, Xincheng culture building, No. 11, Chongwenmenwai Street, Dongcheng District, Beijing
Tel: 01067085873 Fax: 01067084147 postal code: 100062
Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051)
Internal control self evaluation report
Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) 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 system), combined with Shenzhen Xinhao Photoelectricity Technology Co.Ltd(301051) (hereinafter referred to as the “company”) internal control system and evaluation methods, on the basis of daily supervision 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
According to the provisions of the enterprise’s internal control system, it is the responsibility of the company’s board of directors to establish, improve and effectively implement internal control, evaluate its effectiveness, and truthfully disclose the internal control evaluation report. 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 and all directors 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 liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company’s internal control is to ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve the company’s operation and management efficiency and profitability, 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
The management of the company fully realized the importance of good and perfect management mechanism to achieve the operation and management objectives, and established an internal control system covering all links of production and operation according to its own actual situation, so as to ensure the normal operation of the company’s business activities.
The company has a good internal control environment, a sound and perfect internal control system and standardized business processes, strong information transmission and communication skills and internal supervision. The company’s internal control system has been effectively implemented.
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) 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 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 operating revenue accounts for 100% of the total operating revenue in the company’s consolidated financial statements.
The main businesses included in the evaluation include: corporate governance structure, development strategy, organizational structure, internal audit, human resources and corporate culture construction; As well as budget management control, purchase and payment control, inventory management control, sales and collection control, monetary capital control, financing and investment, long-term asset management, production and storage, related party transaction control, information and communication.
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.
1. Internal environment
(1) Governance structure
In strict accordance with the requirements of the company law and other laws and regulations, the company has established and improved governance institutions, rules of procedure and decision-making procedures such as the general meeting of shareholders, the board of directors and the board of supervisors, and performed various duties specified in the company law and the articles of association. Major decision-making matters, such as the approval of the company’s business policy and investment plan, the election and replacement of directors and supervisors, and the amendment of the articles of association, shall be deliberated and approved by the general meeting of shareholders. The board of directors is responsible for implementing the decisions made by the general meeting of shareholders and reporting to the general meeting of shareholders. Important decisions on major investment projects, mergers and acquisitions, the purchase of important assets and the signing of important contracts and agreements shall be decided by the board of directors. The chairman is the legal representative of the company. When the board of directors is not in session, the board of directors authorizes the chairman to exercise some functions and powers of the board of directors. The board of supervisors is the supervisory organ of the company, which is responsible for and reports to the general meeting of shareholders. It is mainly responsible for supervising whether directors and senior managers violate laws and regulations and infringe on the interests of the company and shareholders when performing their duties, and inspecting the financial situation of the company.
Establish the general manager responsibility system under the leadership of the board of directors. In accordance with the provisions of the articles of association, the company’s senior managers (including the general manager, deputy general manager, chief financial officer, Secretary of the board of directors and technical director) shall be appointed and dismissed by the board of directors. The general manager is the person in charge of the company’s management and makes decisions within the authorization of the board of directors in terms of major business and contract signing. The deputy general manager and other senior managers are responsible for handling the work under the leadership of the general manager.
(2) Development strategy
Based on the comprehensive analysis and scientific prediction of the current situation and future trend, the company formulates and implements long-term development objectives and strategic planning. Divide the core strategy into long-term development strategy and short-term strategy according to the time span, and set the time interval of long-term development strategy as three years to meet the challenges of industry competition and the changes of China’s macro environment; Set the time interval of short-term development strategy as 1 year (equivalent to annual business objectives and plans); At the end of each year, according to the changes of internal and external factors and competitive situation, combined with the implementation of the strategic objectives of the previous year, formulate the business objectives and annual plan of the company for the next year, and adjust the strategic development plan if necessary.
The company will continue to adhere to the core business philosophy of “achieving partners and realizing enterprise value”, focus on glass protective screen products, take technological development and meeting customer needs as the starting point, and continue to provide customers with the most cost-effective glass protective screen solutions by continuously strengthening production, R & D, service and internal management, so as to drive the continuous improvement of the company’s business performance and give back to the society and investors. Specifically include: 1. Promote the construction of raised investment projects and improve the scale competitiveness; 2. Strengthen R & D and innovation to adapt to market changes; 3. Integrate resources and seek extensive development; 4. Improve internal management and explore intelligent manufacturing.
(3) Organization
Combined with the actual situation of the company, the company has set up marketing center, manufacturing center, R & D center, quality center, human resources administration center, material department, planning department, procurement department, finance department, audit department, securities affairs department, system management department, Songgang branch and Yanluo branch, information department and other departments, and formulated corresponding department and post responsibilities. Each department has a clear division of labor, takes its own responsibilities, cooperates with each other, restricts and supervises each other.
The organizational structure of the company is shown in the figure below:
(4) Internal audit
The audit committee of the board of directors of the company has set up an independent audit department, equipped with full-time auditors, and formulated the internal audit management system to independently and objectively supervise and evaluate the authenticity, legitimacy and effectiveness of the company’s financial revenue and expenditure, business performance, asset quality, construction projects and other relevant economic activities, as well as the appropriateness, legitimacy and effectiveness of internal control. Through internal audit, special inspection and other means, timely find and rectify the problems existing in the process of business activities, and effectively prevent business risks and financial risks.
(5) Human resources
The company has established and implemented scientific and systematic organization planning, personnel employment, training, job rotation, assessment, reward and punishment, promotion and elimination and other relevant management systems, defined various processes of human resource management, clarified the responsibilities of each post, hired qualified employees and completed all work of the company.
(6) Enterprise culture construction
The company’s business philosophy, code of conduct and core values
Business philosophy: focus on customers, pursue excellence, harmony and win-win results
Code of conduct: attitude, details, goals, actions
Core values: Hospitality enthusiasm, courage and responsibility; Integrate innovation and pursue excellence; Make good use of resources and achieve harmony and win-win results
2. Risk assessment
The company has formulated long-term overall objectives, supplemented by specific strategies and business process plans to clearly convey the business objectives to every employee. The company has established an effective risk assessment process, established an audit department and held regular management meetings to identify and respond to major and generally influential changes that the company may encounter, including business risks, environmental risks, financial risks and so on.
3. Main control activities
(1) Budget management control
The company has formulated the comprehensive
