Company code: Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) company abbreviation: Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896)
Bond Code: 113585 bond abbreviation: Shouxian convertible bond
Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896)
Internal control evaluation report in 2021
Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) 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 that are included in the scope of assessment include: Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) biotechnologyco., Ltd., Nanjing shouxiangu Health Technology Co., Ltd It's the sort of thing that is meant to be the end of the end of the last year of the last year of the last year of the last year of the last year's company Hangzhou Yuhang Boyu Intelligent Health Research Institute. 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 is 100.00
The total operating income of the units included in the evaluation scope accounts for 100.00% 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, organizational structure, internal audit, human resources policy, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, external guarantee, major investment, related party transactions, comprehensive budget, contract management, information system, management of wholly-owned subsidiaries and information disclosure. 4. High risk areas of focus mainly include:
Fund management, procurement management, sales management, asset management, production management, capital occupation of major shareholders, major investment, 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 (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 relevant provisions of the enterprise's internal control standard system and its supporting guidelines and in combination with the actual situation of the company. 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
Misstatement of operating revenue 1% of operating revenue, 0.5% of operating revenue misstatement ≤ business misstatement ≤ 0.5% of operating revenue
1% of business income
Total profit misstatement 5% of total profit, 3% of total profit misstatement ≤ profit misstatement ≤ 3% of total profit
5% of total profit
Misstatement of total assets 2% of total assets, 1% of total assets misstatement ≤ asset misstatement ≤ 1% of total assets
2% of total production
explain:
The quantitative standard for the evaluation of internal control defects in financial reporting determined by the company shall be determined according to the principle of the lower of the above indicators.
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
(1) Directors, supervisors and senior managers commit fraud and cause heavy losses and adverse effects to the enterprise; Major defects (2) the company corrects the published financial report due to major accounting errors in previous years;
(3) There is a material misstatement in the current financial report, but the error is not found in the operation of the company's internal control;
(4) The audit committee and internal audit institution of the company have no effect on the supervision of internal control.
(1) Failure to select and apply accounting policies in accordance with GAAP;
Important defects (2) there are one or more defects in the control of the financial reporting process at the end of the period, which can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects are other control defects other than the above major defects and important defects.
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
Misstatement of operating revenue 1% of operating revenue, 0.5% of operating revenue misstatement ≤ business misstatement ≤ 0.5% of operating revenue
1% of business income
Total profit misstatement 5% of total profit, 3% of total profit misstatement ≤ profit misstatement ≤ 3% of total profit
5% of total profit
Misstatement of total assets 2% of total assets, 1% of total assets misstatement ≤ asset misstatement ≤ 1% of total assets
2% of total production
explain:
The quantitative standard for the evaluation of internal control defects in non-financial reporting determined by the company shall be determined according to the principle of the lower of the above indicators.
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) serious violation of national laws and regulations and punishment by regulatory authorities;
(2) The unscientific decision-making procedure of enterprises leads to major mistakes in decision-making;
(3) Serious loss of senior managers or key technicians;
(4) The frequent occurrence of negative news in the media is true, causing significant social impact;
(5) Lack of system or systematic failure of important business;
(6) The evaluation result of internal control is a major defect, but it has not been rectified.
Important defects: (1) unscientific decision-making procedures of the company, resulting in general losses;
(2) Serious loss of personnel in key positions of the company;
(3) Negative news in the media, affecting local areas;
(4) Defects in important business systems or systems;
(5) The evaluation result of internal control is an important defect, but it has not been rectified.
General defects are other control defects other than the above major defects and important defects.
（3） 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
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, 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 businesses and matters included in the evaluation scope of the company this year can be effectively implemented. However, with the change of the external environment and the rapid development of the company's business, higher management requirements are put forward for the company's internal control. In the next year, the company will continue to 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
