Guangdonghectechnologyholdingco.Ltd(600673)
Annual internal control evaluation report in 2021
Guangdonghectechnologyholdingco.Ltd(600673) 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 (hereinafter referred to as the enterprise internal control normative system), combined with the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, and 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 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 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. 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: the headquarters of the company and its subsidiaries at all levels 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 98
The total operating income of the units included in the evaluation scope accounts for 98% 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:
Organizational structure, human resources, R & D management, procurement and payment, sales and collection, production and inventory, fund management, fixed assets, production and storage, contract management, infrastructure management, export management, personnel and wages, etc. 4. High risk areas of focus mainly include:
Procurement management risk, sales management risk, inventory management risk, export management risk, fund management risk, safety and environmental protection risk, 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 6 Is there a statutory exemption
□ yes √ no
7. Other explanatory matters
None. （2） Internal control evaluation basis and internal control defect identification standard
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 provisions of the company’s relevant systems, processes and other documents. 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
Potential misstatement of total profit ≥ 5% of total profit ≤ 3% of total profit ≤ misstatement ＜ profit misstatement ＜ 3% of total profit
5% of the total reported profit
Potential misstatement of total assets ≥ 1% of total assets, 0.5% of total assets ≤ misstatement ＜ misstatement ＜ 0.5% of total assets
Report 1% of total assets
Potential misstatement of operating income ≥ 1% of total operating income, 0.5% of total operating income ≤ misstatement 1% of total operating income, 0.5% of total operating income
Potential misstatement of owner’s equity ≥ 0.5% of total owner’s equity ≤ misstatement 1% of total owner’s equity misstatement 0.5% of total owner’s equity
1%
Description: 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
Fraud by directors, supervisors and senior managers of the joint stock company with major defects; Correction of published financial reports (non literal typos); 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 supervision of internal control by the internal audit function is invalid.
Major defects: failure to select and apply accounting policies in accordance with accounting standards; No corresponding control mechanism has been established for the accounting treatment of unconventional or special transactions; 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.
General defects do not constitute other internal control defects of the above major defects and important defect standards.
Description: 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
Direct property loss of 500000 yuan and above 100000 yuan (inclusive) – 500000 yuan (inclusive) – 100000 yuan (inclusive)
The safety accident caused the death of one or more employees or citizens whose health was affected by the accident
The excessive discharge of environmental protection indicators causes the main environmental impact, the excessive discharge causes the medium impact on the environment, and the excessive discharge has an impact on the environment or society. It takes a long time to have an impact, and it takes a certain time to recover a certain impact
Recovery, large-scale public response and individual complaints
complaint
Description: 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 violation of laws and regulations; Lack of institutional control over important business; The negative news exposed by the media has a great negative impact; Major or important internal control defects that have been found and reported to the management have not been corrected after a reasonable time; Major negative events occur and have a negative impact on the disclosure of periodic reports.
Important defects: subsidiaries lack internal control construction and management is scattered; Serious loss of management personnel and key positions; The negative news exposed by the media has a certain negative impact; For sampling test, the proportion of defects calculated or the proportion of control points not implemented exceeds 20%.
General defects do not constitute other internal control defects of the above major defects and important defect standards.
III. Description: none 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 major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period √ yes □ no
According to the above identification standards of internal control defects in financial reporting, the company had one important defect in internal control of financial reporting during the reporting period.
Internal defects in the financial report describe the rectification of defects in the business field / control whether the rectification plan for important defects has been completed as of the base date of the report and the date of the report
The sales management of the subsidiaries of the sales and collection company found that the above subsidiaries were yes
After the company’s important defects in ruyuandong, it was established
Sunshine youaishi immediately carried out rectification and
Jiejing foil Co., Ltd. is responsible for the corresponding tubes in the current period
The company and Ruyuan management system have been rectified
The specific measures are as follows:
Under sunlight and hydrophilicity:
Foil Co., Ltd. started immediately
Company, Ruyuan Dongshan company and its subsidiaries
Accounts receivable supervision of sunshine magnetic materials Co., Ltd
Material Co., Ltd., management procedure, amendment method
Individual customer legal response process
Overdue payment order, strengthen the management of accounts receivable
Payment for goods, supervision of accounts at the end of the year,
Based on prudence, various measures shall be taken at the same time
In principle, all the above measures shall be taken and
The three subsidiaries are specially assigned to deal with
The accounts receivable collection team shall follow up
Bank credit asset management. By 2021
The impairment loss is calculated as at December 31
The above sub defects have been rectified
The company found it. Since the completion of the above
Rectification of overdue receivables
