Company code: Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) company abbreviation: Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513)
Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513)
Internal control evaluation report in 2021
Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) 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 base date of internal control evaluation report to the date of issuance of 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 Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) , Sichuan Qingmu Pharmaceutical Co., Ltd., Sichuan sunshine Runhe Pharmaceutical Co., Ltd., Tibet Runhe Pharmaceutical Co., Ltd., Chengdu shuode Pharmaceutical Co., Ltd. and Chengdu Youluo Biotechnology Co., Ltd
2. Youluo biological (Shanghai) Co., Ltd Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
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
The total operating income of the units included in the evaluation scope accounts for 100% 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:
Governance structure, development strategy, corporate culture, information disclosure, internal audit, financial report, human resources, capital activities, asset management, foreign investment management, related party transaction management, foreign guarantee management, procurement business, production management, sales business, research and development, engineering project, contract management, information system, subsidiary control, etc. 4. High risk areas of focus mainly include:
Sales risk, R & D risk, product quality risk, production management risk, capital risk, financial reporting risk, human resources risk, safety risk, fraud 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
nothing
（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 industry regulations. 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 criteria for defects in internal control over 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 operating revenue ≥ 0.5% of total operating revenue ≤ misstatement ＜ 1% of total operating revenue ＜ 1% of total operating revenue ＜ 0.5% of total operating revenue
1.0% of the total amount of assets reported wrongly ≥ 5.0% of the total amount of assets reported wrongly
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 defects 1. Fraud of directors, supervisors and senior managers of the company;
2. The company corrects the published financial report;
3. Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control; 4. The supervision of the audit committee and the audit department on the company's external financial report and internal control of financial report is invalid.
Important defects 1. No anti fraud procedures and control measures have been established;
2. No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, 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 and accuracy.
In addition to the above-mentioned major defects and control defects.
Note: 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
Loss and profit statement misstatement ≥ 0.5% of total operating revenue ≤ misstatement ＜ 1% of total operating revenue ＜ 1% of total operating revenue ＜ 0.5% of total operating revenue
Loss and asset management misstatement ≥ 1% of total assets, 0.5% of total assets ≤ misstatement misstatement 0.5% of total assets, and 1% of total relevant profits
No: description
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 1. Unscientific decision-making procedures of the company lead to major decision-making failure;
2. Violation of national laws and regulations;
3. The lack of system leads to systematic failure;
4. Major defects or major defects in the early stage have not been rectified;
5. Other situations that have a significant negative impact on the company.
Important defects 1. Unscientific decision-making procedures of the company have a moderate impact on the company's operation;
2. Violation of industry norms and punishment by government departments or regulatory agencies;
3. Imperfect important systems lead to systematic operation obstacles;
4. Major defects in the early stage cannot be rectified;
5. Other situations that have a significant negative impact on the company.
In addition to the above-mentioned major defects and control 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 any major defects in internal control over financial reporting during the reporting period
□ yes √ no 1.2 Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no 1.3 General defect
None 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 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
None 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, does the company find any important defects in the internal control of non-financial reporting 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 2 Operation of internal control in this year and improvement direction in the next year
□ applicable √ not applicable 3 Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Wang Ying Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) March 29, 2022
