Internal control evaluation report in 2021
Sailun Group Co.Ltd(601058) 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 included in the evaluation scope include: Sailun Group Co.Ltd(601058) , Sailun (Shenyang) Tire Co., Ltd., Sailun (Dongying) Tire Co., Ltd., Zhucheng Yong'an Rubber Technology Co., Ltd., Sailun (Vietnam) Co., Ltd., Sailun Group Co.Ltd(601058) Sales Co., Ltd., Maichi International Tire Co., Ltd., Sailun group (Hong Kong) Co., Ltd., Sailun America Co., Ltd., Sailun (Cambodia) Tire Co., Ltd Shanghai Sailun Enterprise Development Co., Ltd., actr Company Limited
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 95.19
The total operating income of the units included in the evaluation accounted for 97.89% 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 management, procurement management, asset management, production and inventory management, sales management, research and development, investment management, financial report management, comprehensive budget and information system management. 4. High risk areas of focus mainly include:
Fund management, procurement management, asset management and sales 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, internal control manual and internal control evaluation manual. 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
Misrepresentation of operating revenue ≥ 0.5% of operating revenue 0.2% ≤ misrepresentation misrepresentation 0.2% of operating revenue
Operating income 0.5%
Total profit misstatement ≥ 5% of total profit, 2% of total profit ≤ misstatement ＜ profit misstatement ＜ 2% of total profit
Total profit 5%
Misstatement of total assets ≥ 0.5% of total assets 0.2% ≤ misstatement ＜ misstatement ＜ 0.2% of total assets
0.5% of total assets
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
(1) Discover fraud of directors, supervisors and senior managers;
(2) The disclosed enterprise reports and accounting information are seriously inaccurate and unfair;
Major defects (3) the supervision of the enterprise's board of supervisors, audit committee or internal audit department on internal control is invalid;
(4) Due to serious violation of national accounting laws and regulations, enterprise accounting standards and industry financial system, the state organ has been notified and punished within the scope above the industry;
(1) The disclosed financial reports and accounting information are materially inaccurate and unfair.
Important defects (2) the board of supervisors, the audit committee or the internal audit department of the enterprise do not supervise the internal control in place.
(3) Due to violation of national accounting laws and regulations, accounting standards for business enterprises and the industry's financial system, they were notified and punished within the group company.
General defects are other control defects except major and important ones.
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 assets misstatement ≥ 0.5% of total assets, 0.2% of total assets ≤ misstatement ＜ assets misstatement ＜ 0.2% of total assets 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
(1) Seriously deviate from the enterprise strategy or business objectives, which will have a serious negative impact on the realization of the strategy or business objectives.
(2) The unit fails to effectively comply with national laws and regulations, and is or is likely to be notified and punished by the state. Major defects (3) serious product quality problems with serious consequences.
(4) Major safety accidents have occurred.
(5) There was a serious leak.
(6) Major defects in internal control have not been rectified.
(1) Deviation from the enterprise strategy or business objectives will have a great negative impact on the realization of the strategy or business objectives. (2) The unit fails to comply with national laws and regulations and group rules and regulations, and is or is likely to be notified and punished by the group company.
Important defects (3) have serious product quality problems and cause serious consequences.
(4) Major safety accidents occurred.
(5) A relatively serious leak occurred.
(6) Important or general defects in internal control have not been rectified.
General defects are other control defects except major and important ones.
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
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 3 Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): yuan Zhongxue Sailun Group Co.Ltd(601058) April 2, 2022
