Guangdong Lyric Robot Automation Co.Ltd(688499)
Internal control evaluation report in 2021
Guangdong Lyric Robot Automation Co.Ltd(688499) 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 Guangdong Lyric Robot Automation Co.Ltd(688499) and holding subsidiaries 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:
The main businesses and matters included in the evaluation scope include: development strategy, corporate governance, financial management, human resource management, corporate culture management, monetary fund management, procurement management, sales management, asset management, research and development, financial report, related party transactions, investment management, guarantee management, information and communication, information disclosure, contract management, internal supervision and control over subsidiaries. 4. High risk areas of focus mainly include:
The high-risk areas that need to be focused on the businesses and matters included in the evaluation scope mainly include: strategic risk, market risk, raw material price risk, technological progress risk, financial risk, 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 relevant internal control systems established according to 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
0.5 of operating revenue ≤ misstatement ＜ business misstatement ＜ 0.5% of total assets; misstatement of operating revenue ≥ 1% of operating revenue
1% of business income
0.5 of total assets ≤ misstatement ＜ asset misstatement ＜ 0.5% of total assets misstatement ≥ 1% of total assets
1% of total production
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
Fraud of directors, supervisors and senior managers of the company; The company corrects the published financial report to reflect the correction of material misstatement; Major defects found by certified public accountants but not identified by the company’s internal control in the current financial report
Material misstatement; The supervision of the audit committee and the audit department on the company’s external financial report and internal control of financial report is invalid; The results of internal control evaluation, especially major defects, have not been rectified.
Failure to select and apply accounting policies in accordance with GAAP; Failure to establish anti fraud procedures and control measures; For the accounting treatment of unconventional or special transactions, no corresponding control mechanism has been established or implemented, and there are no corresponding important defects
Compensatory control; There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the true and complete goal.
General defects refer to other control defects other than the above 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
0.5 of operating income ≤ misstatement ＜ operating income
Misstatement of operating income ≥ 1% of operating income ＜ 0.5% of total assets and 1% of operating income
0.5 of total assets ≤ misstatement ＜ assets
Total assets misstatement ≥ 1% of total assets misstatement ＜ 0.5% of total assets and 1% 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
The company’s operation or decision-making seriously violates national laws and regulations; Serious quality, environment and occupational health and safety incidents occur in the company; The management is incompetent, does not act, or is above the internal control; Serious loss of middle and senior managers and senior technicians, which has a significant impact on the company’s business; Lack of institutional control or systematic failure of important business, and lack of effective compensatory control; Major internal control defects or major defects of the company have not been rectified; The disclosure of important information or infringement of intellectual property rights of the enterprise weaken the market competitiveness of the company’s products and cause heavy losses.
The company has the behavior of failure in the use of large assets; Important quality, environment and occupational health and safety events occur in the company; Serious loss of business personnel in key positions of the company; There is a lack of control standards or important defects in the company’s key business operations
Failure; The company has important defects in internal control that have not been rectified; The disclosure of important information or infringement of intellectual property rights of the enterprise weakened the market competitiveness of the company’s products, but did not cause significant losses.
General defects and other internal control defects that do not constitute major defects or important defects.
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
Is there any major defect in the company’s internal control during the financial 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
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 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
In 2021, the company organized and carried out internal control evaluation according to the enterprise internal control standard system and other internal control supervision requirements, combined with the company’s relevant internal control management system. The company has maintained an effective internal control system in all major aspects of financial reports and non-financial reports, and the overall internal control has been operated continuously and effectively.
In 2022, the company will continue to revise and improve various internal control management systems in combination with the development strategy, changes in the external business environment and the development trend of the company’s industry, maintain the continuous and effective operation of the internal control system, further promote fine control, strengthen the supervision and inspection of the implementation of internal control, continuously optimize various business processes and internal control environment, and provide effective guarantee for the realization of the company’s economic benefits and strategic objectives, Promote the sustainable development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Zhou Junxiong
