Company code: Shanghai Pharmaceuticals Holding Co.Ltd(601607) company abbreviation: Shanghai Pharmaceuticals Holding Co.Ltd(601607)
Shanghai Pharmaceuticals Holding Co.Ltd(601607)
Internal control evaluation report in 2021
Shanghai Pharmaceuticals Holding Co.Ltd(601607) 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
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, Shanghai Pharmaceuticals Holding Co.Ltd(601607) Central Research Institute, Shanghai Pharmaceutical Holding Co., Ltd., Shanghai Pharmaceutical Keyuan Xinhai Pharmaceutical Co., Ltd., Shanghai Pharmaceutical Xinyi Pharmaceutical Co., Ltd., Shanghai medicinal materials Co., Ltd., Shanghai Pharmaceutical first biochemical pharmaceutical Co., Ltd., Shanghai Pharmaceutical Xinya Pharmaceutical Co., Ltd., Shanghai Zhongxi Sanwei Pharmaceutical Co., Ltd., Shanghai Pharmaceutical Group Changzhou Pharmaceutical Co., Ltd Liaoning shangyaohao nurse Pharmaceutical (Group) Co., Ltd. Shanghai Pharmaceuticals Holding Co.Ltd(601607) Group Qingdao Guofeng Pharmaceutical Co., Ltd., Shanghai Zhonghua Pharmaceutical Co., Ltd., Guangdong Tianpu Biochemical Pharmaceutical Co., Ltd. and other directly managed units and their subordinate companies. 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 98.29% of the total assets in the company's consolidated financial statements
The proportion of total operating income included in the company's financial statements accounted for 66.99%
3. The main operations and matters included in the scope of evaluation include:
Company level control, budget management, fund management, sales management, inventory management, procurement management, expense management, guarantee management, R & D management, equity investment management, asset and engineering management, seal and contract management, human resource management, information system management and financial report management. 4. High risk areas of focus mainly include:
Fund management, asset and engineering project management, equity investment management, sales management, procurement management, inventory management, financial report management and information system management. 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 (II) 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 various rules and 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 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
Total profit misstatement ≥ 5% of total profit, 3.5% of total profit ≤ misstatement misstatement 3.5% of total profit, 5% of total profit
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
The company with major defects has the following situations (including but not limited to): 1) the company's directors, supervisors and senior managers have major fraud in the company's management activities; 2) The supervision of the company's audit committee and internal audit institutions on internal control is invalid; 3) . there are major misstatements in the current financial report that are not recognized by the company's internal control; 4) . correcting the published financial report due to accounting errors and causing administrative punishment by the securities regulatory authority.
The following situations (including but not limited to): 1) the company with major defects has not established anti fraud procedures and control measures; 2) . failing to select and apply accounting policies in accordance with generally accepted accounting standards; 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; 4) For the accounting treatment of unconventional or special transactions, no corresponding control mechanism has been established or no corresponding compensatory control has been implemented.
General defects internal control defects that fail to meet the standards of major defects and important defects are judged as general defects of internal control over financial reporting by the company.
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
Total profit misstatement ≥ 5% of total profit, 3.5% of total profit ≤ misstatement misstatement 3.5% of total profit, 5% of total profit
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
The following situations (including but not limited to): 1) the company is severely punished by the regulatory department for serious violations of laws and regulations; 2) . major decisions are unscientific and have caused or may cause major direct property losses; 3) The overall lack of institutional system has caused or may cause the failure of enterprise control; 4) The loss of senior managers or key positions is serious, affecting the normal business activities of the enterprise.
The following situations (including but not limited to): 1) the company violates laws and regulations and is fined a large amount due to internal control; 2) . major decisions are unscientific and have caused or may cause large direct property losses; 3) The lack of institutional control over important businesses or key processes may or has caused the failure of business or process control; 4) The loss of middle-level managers is serious, affecting the normal business activities of the enterprise.
General defects internal control defects that fail to meet the above standards of major defects and important defects are judged as general defects of non-financial reporting internal control by the company.
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 general defects of internal control over financial reporting found in the internal control inspection, the company has formulated the rectification plan, and defined the rectification measures, rectification time and rectification responsible person. 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 general defects of non-financial Report internal control found in the internal control inspection, the company has formulated the rectification plan, and defined the rectification measures, rectification time and rectification responsible person. 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 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
The board of directors of the company noted that the internal control should be adapted to the company's business scale, business scope, competition and risk level, and should be adjusted in time as the situation changes. In 2022, the company will continue to follow the requirements of the basic norms of enterprise internal control and supporting guidelines, take comprehensive risk management as the guidance, constantly improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, and promote the healthy and sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Zhou Jun Shanghai Pharmaceuticals Holding Co.Ltd(601607) March 30, 2022
