Yunnan Baiyao Group Co.Ltd(000538)
Self evaluation report on internal control in 2021
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 Yunnan Baiyao Group Co.Ltd(000538) Group 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). 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 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 base 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) evaluation 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: Yunnan Baiyao Group Co.Ltd(000538) , Yunnan Baiyao Group Co.Ltd(000538) Group Health Products Co., Ltd., Yunnan Baiyao Group Co.Ltd(000538) group traditional Chinese Medicine Resources Co., Ltd., Yunnan Pharmaceutical Co., Ltd., Yunnan Baiyao Group Co.Ltd(000538) Tianyi tea products Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope accounted for 97.16% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounted for 98.03% of the total operating income in the company's consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
Internal environment, risk assessment, control activities, information and communication, internal supervision and other five aspects. The internal environment mainly includes: organizational structure, development strategy, human resources, social responsibility and corporate culture. The company's risk assessment mainly includes: risk identification, risk analysis and risk response. Control activities mainly include: capital operation management, financing management, investment management, procurement and accounts payable management, fixed assets management, intangible assets management, inventory management, sales and accounts receivable management, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, production management, tax management, tourism development business, etc. Information and communication mainly include: internal and external information communication and transmission, information system. Internal supervision mainly includes: internal audit and internal supervision. 4. High risk areas of focus mainly include:
Capital operation management, investment management, tax management, procurement and accounts payable management, inventory management, sales and accounts receivable management, production management, business outsourcing management, etc. 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
（2） 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 evaluation management measures. 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
Internal control defect of financial report: refers to the internal control design and operation defect that can not reasonably ensure the reliability of financial report, that is, the internal control defect that can not prevent, find and correct the misstatement of financial report in time
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
Total profit misstatement ≥ 5% of total profit, 3% of total profit ≤ misstatement profit misstatement 3% of total profit
5% of total profit
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
It is found that the directors, supervisors and senior managers of the company have committed fraud; Found and reported to
The major internal control defects of the management have not been corrected after a reasonable time;
Ineffective control environment for major defects; The supervision of internal control by the audit committee and internal audit institutions is invalid
； Defects affecting income trend; Major misstatements found in external audit are not first reported by the company
Found; The company corrects the published financial statements.
Failure to select and apply corresponding accounting policies in accordance with GAAP; There are significant differences in the financial report
Misstatement and omission of important defects; The accounting treatment of unconventional or special transactions has not been established or implemented
Compensatory measures.
General defects other than major defects and important defects are classified as general defects.
3. Identification standard of internal control defects in non-financial reporting
Defects in internal control over non-financial reporting: defects in the design and operation of internal control that cannot reasonably guarantee the achievement of other objectives other than financial reporting objectives, including strategic objectives, business objectives, compliance objectives, etc.
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 profit misstatement ≥ 5% of total profit, 3% of total profit ≤ misstatement profit misstatement 3% of total profit
5% of total profit
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 have been officially disclosed to the public and have a negative impact on the disclosure of the company's periodic reports; Violation of national laws and regulations, causing heavy losses to the company.
Important defects were punished by national government departments, but did not have a negative impact on the disclosure of the company's periodic reports.
General defects were punished by government departments below the provincial level (including the provincial level), but did not have a negative impact on the disclosure of the company's periodic reports.
（3） Identification and rectification of internal control defects 1 Identification and rectification of defects in internal control over financial reporting 1.1 major defects during the reporting period, whether the company has major defects in internal control over financial reporting
□ yes √ no 1.2 whether the company has significant defects in internal control over financial reporting during the reporting period
□ yes √ no
1.3 general defects
The company's internal control has established a self-evaluation and internal audit mechanism. Once the general defects that may exist in the daily operation are found, corrective measures shall be taken to make the risk controllable, which will not have a substantive impact on the operation of the company's internal control system. 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 reports
2.1 during the reporting period, whether the company found any major defects in the internal control of non-financial reporting
□ yes √ no
2.2 during the reporting period, whether the company found any significant defects in the internal control of non-financial reporting
□ yes √ no 2.3 general defects
2.4 after the above rectification, does the company find any major defects in non-financial reporting internal control that have not been rectified on the benchmark date of internal control evaluation report
□ 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
4、 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
During the reporting period, the company continued to establish and improve internal control according to the actual situation and management needs, reasonably ensure the legal compliance of operation and management, asset safety, the authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and meet the objectives of internal control.
In 2022, the company will timely update and improve the internal control system according to the changes of internal and external environment, internal organization and management requirements, modify and improve the internal control management manual, and effectively prevent risks in operation and management, improve the level of internal control management and promote the steady and sustainable development of the company through the operation, analysis and evaluation of the internal control system. 3. Description of other major events
□ applicable √ not applicable
Chairman: Wang Minghui co Chairman: Chen Fashu Yunnan Baiyao Group Co.Ltd(000538)
March 24, 2022
