Company code: Ningbo Ronbay New Energy Technology Co.Ltd(688005) company abbreviation: Ningbo Ronbay New Energy Technology Co.Ltd(688005)
Ningbo Ronbay New Energy Technology Co.Ltd(688005)
Internal control evaluation report in 2021
Ningbo Ronbay New Energy Technology Co.Ltd(688005) 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 scope of evaluation include the company and its subsidiaries included in the scope of consolidated statements. 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 100
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:
Human resources, fund payment, procurement business, asset management, sales business, research and development, engineering projects, financial reports, comprehensive budget, contract management, internal information transmission, information system, organizational structure and development strategy. 4. High risk areas of focus mainly include:
Customer credit management, accounts receivable collection management, fund management, procurement management, sales business, engineering project and litigation 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 in accordance with the provisions of the enterprise internal control standard system and the enterprise internal control evaluation guidelines. 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
If the amount of misstatement of pre tax profit is ≥ 10% of the average pre tax profit in recent 3 years, except for major defects and important defects, the amount of misstatement is ≥ 5% of the average pre tax profit of internal control in other financial reports except for the average pre tax profit in recent 3 years
If the amount of misstatement of total assets is ≥ 1% of the total assets of the last three years, except for 1% of the total assets of major defects and important defects the amount of misstatement is ≥ 0.5% of the total assets of internal control in other financial reports
explain:
The company makes quantitative judgment based on the average pre tax profit and average total assets of the consolidated financial statements in recent three years, and evaluates the proportion of the annual financial misstatement amount that may be caused by internal control defects in the average pre tax profit and average total assets of the company’s consolidated financial statements in recent three years, which is divided into three levels: major defects, important defects and general defects.
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;
2) Correction of published financial statements;
3) The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process;
4) The supervision of the company’s audit committee and internal audit institutions on internal control is invalid.
Material defect the internal control defect alone or together with other defects has a reasonable possibility to cause the misstatement of the financial report to be less serious than the material defect, but it may still cause the company to deviate from the control objectives.
General defects are internal control defects in financial reporting except for major defects and important 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
If the amount of potential loss caused by business objectives is ≥ 10% of the average pre tax profit in recent 3 years, other control defects in non-financial reports ≥ the average pre tax profit in recent 3 years, except that 10% of the annual average pre tax profit caused by major defects and important defects the amount of potential loss
5%
If the amount of direct property loss caused by the asset target is ≥ 1% of the average total assets in recent three years other non-financial internal reports except for the amount of direct property loss caused by major defects and important defects
Control defect of 1% amount ≥ average total assets in recent 3 years
0.5% of
Note: internal control over non-financial reporting refers to the internal control over other objectives other than financial reporting objectives, which is divided into three levels: major defects, important defects and general defects.
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 defect 1) the internal control defect alone or together with other defects has a reasonable possibility, which leads to the company running counter to the strategic objectives and causing serious damage to the realization of the company’s strategic objectives;
2) Serious violation of national laws and regulations.
Significant defect 1) the internal control defect alone or in combination with other defects has a reasonable possibility, resulting in significant deviation from the strategic objectives of the company and moderate damage to the realization of the strategic objectives of the company;
2) Violation of national laws and regulations, but no significant impact.
General defects 1) internal control defects of non-financial reporting other than major defects and important 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, during the reporting period, the company found some general defects in internal control of financial reports, adopted the strategy of “discovery and rectification”, and instructed the heads of relevant departments to formulate rectification plans and implement rectification. Most general defects have been rectified in time, and a small number of general defects have been actively arranged for rectification, which will not affect the realization of the company’s financial report control objectives. 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
According to the above identification standards of internal control defects in non-financial reporting, during the reporting period, the company found some general defects in internal control of non-financial reporting, adopted the strategy of “discovery and rectification”, and instructed the heads of relevant departments to formulate rectification plans and implement rectification. Most general defects have been rectified in time, and a small number of general defects have been actively arranged for rectification, which will not affect the realization of the company’s non-financial reporting control objectives. 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
For the internal control defects found during the reporting period, the company has taken corresponding rectification measures. The corresponding business director of internal control defects is the person in charge of problem rectification. The internal control working group tracks and summarizes the rectification work, accepts the defect rectification results, and regularly reports to the company’s internal control leading group to ensure that the defect rectification is in place and the relevant internal defects of the previous year have been effectively rectified, The company has no major defects or important defects during the reporting period. 2. Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
1、 Operation of internal control in this year
During the reporting period, the company improved the internal control of businesses and matters included in the evaluation scope, and reasonably ensured the safety of the company’s capital and assets and the authenticity of financial reports
