Hanwang Technology Co.Ltd(002362)
Internal control evaluation report in 2021
Hanwang Technology Co.Ltd(002362) 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 Hanwang Technology Co.Ltd(002362) (hereinafter referred to as the "company") internal control system and evaluation methods, 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 the internal control evaluation report). 1、 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, the authenticity and integrity of financial reports and relevant information, asset safety, 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. 2、 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, no major defects in the internal control over financial reporting were found 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
□ 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
3、 Internal control evaluation (I) scope of internal control evaluation
The company determines the main units, businesses, matters and risk areas included in the evaluation scope according to the risk oriented principle. 1. The main units included in the evaluation scope include: Hanwang Technology Co.Ltd(002362) , Hanwang Manufacturing Co., Ltd., Nanjing Hanwang Cultural Development Co., Ltd., Beijing Hanwang Guocui Technology Co., Ltd., Beijing Hanwang Zhixue Technology Co., Ltd., Beijing Hanwang Zhiyuan Technology Co., Ltd., Beijing Hanwang Pengtai Technology Co., Ltd., Beijing Hanwang Digital Technology Co., Ltd., Beijing Hanwang rongbi Technology Co., Ltd Beijing Hanwang saipu Technology Co., Ltd., Beijing Hanwang Yingyan Technology Co., Ltd., Beijing Hanwang Zhuowen Technology Co., Ltd., Hanwang International Investment Co., Ltd., Hebei Hanwang fine electronic products manufacturing Co., Ltd., Fangyi (Beijing) Technology Co., Ltd., Fangyi (Shenzhen) Technology Co., Ltd., Henan Hanwang Industrial Co., Ltd., Beijing Hanwang Intelligent Digital Technology Co., Ltd Shenzhen Hanwang Youbi Technology Co., Ltd., Shenzhen Hanwang Technology Co.Ltd(002362) Co., Ltd. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
Proportion of total assets included in the company's 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:
Corporate governance and organizational structure, development strategy, human resources, social responsibility, corporate culture, financial reporting, fund management, R & D management, engineering management, procurement management, asset management, sales management, production and inventory, contract management, comprehensive budget, investment management, information system management, guarantee business, related party transactions, information disclosure, quality management, etc. 4. High risk areas of focus mainly include:
Procurement business, sales management, fund management, investment management, information disclosure, related party transactions, 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
No (II) internal control evaluation basis and internal control defect identification standard
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and relevant internal rules and regulations of the company. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with factors such as the company's size, industry characteristics, risk preference and risk tolerance, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, studied and determined specific identification standards for internal control defects applicable to the company, which were consistent with those in 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
Potential consolidated misstatement of total revenue ＞ 1% of total revenue of consolidated statements ＞ 1.5% of total revenue of consolidated statements ＜ 1.5% of total revenue of consolidated statements ≤≤ 1% of total revenue of consolidated statements
1.5% of total revenue
Potential consolidated misstatement of pre tax profit 3% of pre tax profit of consolidated statements consolidated statement
5% of pre tax profit of false statement ≤ 5% of consolidated false statement ≤ 3% of pre tax profit of pre tax profit statement
Potential consolidated misstatement of total assets 0.2% of total assets in consolidated statements 0.5% of total assets in consolidated statements ≤ 0.2% of total assets in consolidated statements ≤ 0.5% of total assets in consolidated statements
Note:
The total income, profit before tax and total assets shall be subject to the audited financial statements of the current year.
According to the importance of financial reporting misstatement that may be caused by internal control defects, the defects of internal control over financial reporting are divided into major defects, important defects and general defects. Major defect: a defect in internal control, alone or in combination with other defects, has a reasonable possibility, which makes it impossible to prevent, detect and correct major misstatement in the financial report in time. Important defect: an internal control defect, alone or in combination with other defects, has a reasonable possibility to prevent, detect and correct the misstatement in the financial report that should be paid attention to by the board of directors and management although it does not reach or exceed the importance level. General defects: internal control defects that do not constitute major defects and important 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 of the company;
② The company corrects the issued 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 internal control department on the company's external financial report and internal control of financial report is invalid.
Significant defects ① failure to select and apply accounting policies in accordance with generally accepted accounting standards;
② The company's internal control system has not established anti fraud procedures and control measures;
③ Defects in important business processes or systems;
④ There are significant misstatements in the current financial report.
General defects and other internal control defects that do not constitute major defects and important defect standards. 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
Direct loss ＞ 1% of the total revenue of the consolidated statements, direct loss ≤ 1.5% of the total revenue of the consolidated statements ＜ direct loss ≤ 1% of the total revenue of the consolidated statements, and 1.5% of the total revenue
Note:
The total income shall be subject to the audited financial statements of the current year.
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 causing heavy losses;
② The company's decision-making violates the procedures and leads to major mistakes;
③ Institutional deficiency or systematic failure of important business;
④ The loss of middle and senior managers and senior technicians is serious.
Important defects ① there are defects in the decision-making procedure, which may lead to general mistakes;
② Violation of internal rules and regulations of the enterprise, resulting in losses;
③ Serious loss of business personnel in key positions;
④ Important or general defects in internal control have not been rectified;
General defects: ① violation of internal rules and regulations of the enterprise without loss;
② There are defects in general business system or process.
(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
During the reporting period, the company had no general defects in internal control over financial reporting. 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
During the reporting period, the company has no general defects in internal control over non-financial reporting. 4、 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
Internal control is an important means for enterprises to realize standardized management, prevent business risks, realize self-restraint, self-regulation and improve the level of operation and management in the process of operation. It is an indispensable and important content of enterprise management. After careful verification, the company's existing internal control system complies with relevant Chinese laws and regulations and relevant regulations of regulatory authorities, and conforms to the company's actual business situation, which can effectively prevent and control the company's business risks and ensure the smooth development and long-term development of the company's business.
In the next year, the company will continue to strive to do a good job in the construction of internal control system, standardize management behavior and methods, further improve the company's internal control, optimize business processes, give full play to the supervision functions of the audit committee and the audit department, improve the company's governance structure and internal control system, and standardize the company's operation in accordance with the requirements of the basic norms of enterprise internal control and the supporting guidelines of enterprise internal control, Improve the company's scientific decision-making ability and risk prevention ability, 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):
Hanwang Technology Co.Ltd(002362)
