Company code: Hunan Aihua Group Co.Ltd(603989) company abbreviation: Hunan Aihua Group Co.Ltd(603989)
Convertible bond Code: 113504 convertible bond abbreviation: Aihua convertible bond
Hunan Aihua Group Co.Ltd(603989)
Internal control evaluation report in 2021
Hunan Aihua Group Co.Ltd(603989) 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 Hunan Aihua Group Co.Ltd(603989) , Yiyang Aihua Fuxian Electronics Co., Ltd., Jiangsu Lifu electrode foil Co., Ltd., Xinjiang Rongze aluminum foil manufacturing Co., Ltd., Mianyang Zijiang electronic components Co., Ltd. and Sichuan Aihua Electronics Co., Ltd. 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 99.52
The total operating income of the units included in the evaluation scope accounts for 97.95% 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:
Internal environment, risk assessment, information and communication, internal supervision, fund management, financing management, procurement management, inventory management, business outsourcing management, cost management, sales management, budget management, human resources management, project management, fixed assets management, intangible assets management, related party transaction management, financial reporting, R & D management, control of subsidiaries, social responsibility, etc. 4. High risk areas of focus mainly include:
Contract management, budget management, procurement management, sales management, asset management, related party transactions, research and development, 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 according to the enterprise internal control standard system and the company's system and process. 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. Internal control standards
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 error / omission ≥ 5% of total profit, 1% of total profit ≤ error / omission error / omission 1% of total profit
5% of total profit
Total assets false / understatement ≥ 1% of total assets 0.3% of total assets ≤ false / understatement false / understatement assets less than 1% of total assets 0.3%
Total operating revenue misstatement / understatement ≥ 1% of total operating revenue, 0.3% of total operating revenue ≤ misstatement / misstatement / understatement understatement less than total assets 1% of total operating revenue, 0.3%
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 following situations are identified as major defects: (1) identify the fraud of directors, supervisors and senior managers; (2) Correcting the published financial report due to major defects; (3) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process; (4) The supervision of the audit, salary and assessment committee and internal audit institutions on internal control is invalid.
The following situations are identified as important defects: (1) the important defects after communication are not corrected within a reasonable period; Important defects (2) ineffective control environment; (3) The company's internal audit function is invalid; (4) Ineffective control over the selection and application of accounting policies in accordance with generally accepted accounting principles; (5) Invalid anti fraud procedures and controls; (6) The control over the period end financial reporting process is ineffective.
General defects and other defects that do not constitute major defects and important defect standards.
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
Direct property loss amount direct property loss amount ≥ 200.5 million yuan ≤ direct property loss amount 100000 yuan ≤ direct property loss amount
More than 10000 yuan 2 million yuan 500000 yuan
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) Violation of national laws, regulations or normative documents; (2) Unscientific decision-making procedure leads to major decision-making mistakes;
Major defects (3) institutional deficiency or systematic failure of important business; (4) Major or important defects cannot be effectively rectified;
(5) Major negative impact of safety and environmental protection accidents on the company; (6) Other major impacts on the company
Negative impact.
Defects in important business systems or systems; Important defects found in internal control and internal supervision are not rectified in time; his
He has a great negative impact on the company.
Defects in general business system or system; General defects found in internal control and internal supervision were not rectified in time.
Description: None
（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
The general defects found by the company have been incorporated into the internal control assessment system and have been rectified within the specified time. 1.4. The company's internal control report has not been rectified on the benchmark date of √ 1.5 √ yes 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
The general defects found by the company have been incorporated into the internal control assessment system and have been rectified within the specified time. 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
By continuously improving the internal control and risk management system, the company has established and improved a series of rules and regulations, which have been well operated in enterprise management activities, and the overall operation of the internal control system is effective. In 2022, the company will continue to pay attention to the changes in the external environment, continue to improve and optimize the internal control, improve the internal control system, strengthen the implementation, supervision and inspection of internal control, and continuously improve the company's operation efficiency and risk management level in combination with the enterprise's strategic operation and development, so as to promote the steady and healthy development of the enterprise. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): AI Lihua Hunan Aihua Group Co.Ltd(603989) April 6, 2022
