China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd
Internal control evaluation report in 2021
All shareholders of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd.:
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: China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. (Headquarters), China The Pacific Securities Co.Ltd(601099) Property Insurance Co., Ltd., China The Pacific Securities Co.Ltd(601099) Life Insurance Co., Ltd., The Pacific Securities Co.Ltd(601099) Asset Management Co., Ltd., CPIC Allianz Health Insurance Co., Ltd., Changjiang Endowment Insurance Co., Ltd., The Pacific Securities Co.Ltd(601099) Anxin Agricultural Insurance 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 98.84% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounts for 99.13% 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:
Life insurance, property insurance and other insurance business, as well as asset management business. 4. High risk areas of focus mainly include:
The company adopts the method of combining quantitative and qualitative analysis to determine the high-risk areas of key concern in combination with regulatory requirements and the actual situation of the company. 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
nothing
（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 enterprise internal control standard system, basic guidelines for internal control of insurance companies and other relevant regulatory requirements and the company's internal control policies. 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
Starting from the two dimensions of defect impact degree and occurrence possibility, the company adopts the method of combining quantitative and qualitative analysis to comprehensively evaluate the defect level of internal control of financial reporting, which is divided into three levels: major defect, important defect and general defect.
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
The insurance business income has a great impact on the company's financial report. The impact on the company's financial report is less than or equal to the insurance business income, which is equal to 0.5% of the insurance business income. 0.125%, and less than 0.125% of insurance business.
0.5% of revenue.
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
Major defect refers to the combination of one or more control defects, which causes the company to seriously deviate from the control objectives.
Significant defect refers to the combination of one or more control defects, whose severity is lower than that of major defects, but enough to attract the attention of the board of directors and management and lead the company to deviate from the control objectives.
General defects control defects other than major defects and important defects are general defects.
Note: none 3 Identification standard of internal control defects in non-financial reporting
Starting from the two dimensions of defect impact degree and occurrence possibility, the company adopts the method of combining quantitative and qualitative analysis to comprehensively evaluate the defect level of internal control of non-financial reporting, which is divided into three levels: major defect, important defect and general defect.
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
The amount of direct loss caused by the tax on the consolidated financial statements is greater than the amount of direct loss caused by the tax on the consolidated financial statements. The amount of direct loss caused by the tax on the consolidated financial statements is less than the profit before tax, which is equal to the tax on the consolidated financial statements of the company and 5% of the profit before profit before tax in the consolidated financial statements of the company. 1.25% of the profit before and less than 1.25% of the profit.
Profit before tax of the company's consolidated financial statements
Moist 5%.
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 include the combination of one or more control defects, such as the serious loss of the company caused by the violation and crime of the board of directors and management personnel, and the significant administrative punishment of the company by the regulatory authorities, resulting in the serious deviation of the company from the control objectives.
Important defect refers to the combination of one or more control defects, whose severity is lower than that of major defects, but it may still cause the company to deviate from the control objectives.
General defects control defects other than major defects and important defects are general defects.
Note: none (III) 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 1.3 General defect
According to the above identification standards of internal control defects in financial reports, there were general defects in individual internal control processes of the company during the reporting period. The defects have been or may be within the controllable scope of rectification. 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, whether the company has 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 reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no
2.2. Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
According to the above identification standards of internal control defects in non-financial reports, there were general defects in individual internal control processes of the company during the reporting period. The risks that may be caused by general defects are within the controllable range, and rectification has been or is being implemented. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company finds any important defects in non-financial reporting internal control that have not been rectified □ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year
√ applicable □ not applicable
The internal control defects of the previous year have been rectified. The company attaches importance to the rectification of internal control defects, analyzes the causes of defects found in internal control evaluation, formulates rectification plans and carries out targeted rectification. By further improving the long-term mechanism of rectification, strengthening supervision and implementation, constantly optimizing rectification measures and effectively improving the effectiveness of rectification. 2. Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
Operation of internal control: during the reporting period, the company has established and implemented internal control over the businesses and matters included in the evaluation scope, achieved the objectives of the company's internal control, and found no major defects and important defects in internal control.
Next year's improvement direction: in 2022, the company will closely focus on the group's key work, compact the legal person's main responsibility, build an internal control compliance firewall, reduce the associated risks in the company's development process, improve the risk prevention and control mechanism, and comprehensively improve the effectiveness of the internal control system. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Kong Qingwei China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. March 25, 2022
