Si-Tech Information Technology Co.Ltd(300608) : self evaluation report on internal control in 2021

Si-Tech Information Technology Co.Ltd(300608)

Self evaluation report on internal control in 2021

Si-Tech Information Technology Co.Ltd(300608) all shareholders:

According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company's (hereinafter referred to as the company's) 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, 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.

2、 Internal control evaluation conclusion

According to the identification of major defects in the company's internal control over financial reporting, on the benchmark date of the internal control evaluation report, the company has no major defects in the internal control over financial reporting. 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.

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.

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.

3、 Internal control evaluation

(I) evaluation scope of internal control

Based on the principle of risk orientation, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The units included in the scope of this evaluation are the company and its holding subsidiaries. The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, comprehensive budget, fund management, human resources, corporate culture, R & D management, raised funds management, asset management, procurement and payment, sales and collection, related party transactions, external guarantee, information disclosure, financial report, internal information transmission, information system, subsidiary management, internal audit, etc. The key risk areas of this year mainly include: fund management risk, subsidiary management and information disclosure risk.

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, and there are no major omissions. The details are as follows:

1. Organizational structure

In accordance with the relevant provisions of the company law and the articles of association, improve and standardize the internal control organizational structure of the company, and ensure the effective and standardized operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management organization under the leadership of the board of directors.

The general meeting of shareholders is the highest authority of the company, which carries out daily management and supervision of the company through the board of directors and the board of supervisors. Its power complies with the provisions of the company law and the securities law. In accordance with the provisions of the company law, the securities law and the articles of association, the general meeting of shareholders decides the company's development strategy, considers the changes of the company's capital, considers the company's major transactions, and elects directors and supervisors.

The board of directors is the company's permanent decision-making body, elected by the general meeting of shareholders, authorized by the general meeting of shareholders to be responsible for the operation and management of the company, formulate the company's general policy, general objectives and annual general plan, and is the company's business decision-making center. The board of directors is responsible for and reports to the shareholders' meeting. The board of directors shall establish a securities affairs department and a secretary of the board of directors to handle the daily affairs of the board of directors. The board of directors of the company has four professional committees: Strategic Development Committee, salary and assessment committee, nomination committee and audit committee.

The board of supervisors is the supervisory body of the company, in which the employee representative supervisors are elected by the employee congress. Authorized by the general meeting of shareholders, the board of supervisors is responsible for protecting shareholders' rights and interests, protecting the interests of the company and the legitimate rights and interests of employees from infringement, supervising the legal operation of the company and the behavior of directors and senior managers of the company. The board of supervisors shall be responsible for and report to the general meeting of shareholders.

The general manager and other senior managers of the company shall be appointed by the board of directors, implement the general manager responsibility system, organize and implement the resolutions of the general meeting of shareholders and the board of directors, and preside over the production, operation and management of the enterprise.

According to the actual situation and the needs of business operation and management, the company has set up marketing and sales specialty, product and demand specialty, human resources specialty system, business value specialty (under the jurisdiction of finance department, securities department, legal department, etc.), internal audit department, operation Department, project operation specialty, safety specialty, excellent quality professional committee, user experience specialty, internationalization department, business development department, technical professional committee Professional systems such as smart operation professional committee, data professional committee and Research Institute, as well as more than 10 product lines and other departments in the direction of core business, Internet, cloud computing, big data and operation, as well as more than 60 branches distributed across the country, clearly define the responsibilities and authorities of each Department, optimize business processes, and play a positive role in improving management efficiency and implementing internal control.

2. Development strategy

The strategic development committee under the board of directors of the company studies and puts forward suggestions on the company's long-term development strategy, major investment and financing schemes and capital operation. The company has formulated the implementation measures of development strategy management, defined the implementation process of development strategy formulation, implementation, evaluation and adjustment, and ensured the realization of the company's strategic objectives.

3. Comprehensive budget

According to the actual situation, the company has formulated the guidelines for the formulation of annual operation and management plan, comprehensive budget and operation indicators, and defined the budget management system and the responsibilities and authorities, authorization and approval procedures and work coordination mechanism of each budget implementation unit; Standardize the business operations such as budget preparation, budget execution and budget assessment, ensure that the budget preparation meets the requirements of the company's development strategy and objectives, improve the quality and operation efficiency of comprehensive budget management, and ensure that the company's development strategic objectives can be effectively implemented through budget management.

4. Fund management

According to the actual situation, the company comprehensively combs the business process of monetary funds, strengthens the accounting system control of working capital, strictly standardizes the revenue and expenditure conditions, procedures and approval authority of funds, scientifically sets up organizational structures and posts, defines the responsibilities, authorities and post separation requirements of various links of monetary funds, follows the relevant provisions of cash, bank accounts, bills and signature management, and effectively protects the safety of monetary funds of the company. The company has established a sound monetary capital information reporting system, regularly or irregularly inspected and evaluated the capital activities, implemented the accountability system, ensured the safe and effective operation of funds, standardized the company's investment, financing and capital operation activities, effectively prevented the risks of capital activities and improved the capital efficiency.

The audit department shall audit and inspect the monetary capital and its internal control system every quarter.

5. Human resources

The company focuses on internal promotion, supplemented by open recruitment, and adheres to the personnel system management of "openness, equality, competition and merit" appointment, training, assessment, reward and punishment. Internally, the company has formed a mechanism to promote employees to be proactive and establish a channel for employee development. The company will strive to establish a scientific incentive mechanism and restraint mechanism, and pay attention to the professional feelings and growth of employees through humanistic care; Create a learning organization, attract talents with good enterprise development prospects, encourage talents with good income and working environment, retain talents with career development, and stimulate everyone's potential with competition mechanism; Through scientific human resource management, fully mobilize the enthusiasm of the company's employees, and form an appointment mechanism of equal competition, reasonable mobility, application of talents and making full use of talents, so as to effectively improve work efficiency. The company has formulated a series of human resource management systems such as recruitment management, salary management, performance appraisal, appointment and removal of managers, internal training organization and management, and implemented a personnel management system of combining rewards and punishments, being able to go up and down and getting more for more work, so as to provide human resource guarantee for the further development of the company in the future and realize the common growth and development of the company and employees.

6. Corporate culture

The company ensures the effective implementation of the internal control system through the creation and maintenance of corporate culture. Carry out various activities to improve the cohesion of the company, and require each employee, including senior managers, to strengthen professional cultivation and business learning, abide by honest and trustworthy professional ethics, discipline and law-abiding. The company encourages employees to be brave in innovation and provides a broad career development space and excellent growth environment for all kinds of talents, so that every capable and enterprising employee can give full play to his ability and realize self-worth in the company.

In order to standardize the management of R & D projects, the company has formulated a series of regulations such as innovation planning, R & D project initiation, project budget, project tracking and monitoring, demand management, software design and product version management, so that the company has rules to rely on in terms of product demand, development design and version use, give better play to its technical expertise, continuously improve the technical management level, improve the management and control efficiency, and provide technical support for the sustainable development of the company.

8. Management of raised funds

In order to standardize the management of the company's raised funds, improve their use efficiency and safeguard the legitimate interests of all shareholders, the company has formulated the management measures for the use of raised funds, clarify the use, management and supervision procedures of the special account for raised funds, and clearly stipulate the storage, use, management supervision and accountability of the special account for raised funds. The company strictly follows the system and regulations, and strictly performs the application and approval procedures for the use of funds. At the same time, the internal audit department shall audit the use and storage of raised funds every quarter.

9. Asset management

The company has formulated the fixed assets management measures, research and development capitalization system, equipment management system and other asset management systems to control the key links such as acceptance, warehousing, receiving, delivery, storage and treatment of inventory and physical assets, and has taken measures such as division of responsibilities, periodic physical inventory, property records and account verification to regularly check accounts receivable, foreign investment, fixed assets Investigate the problems and potential losses in intangible assets and other items, reasonably withdraw the provision for asset impairment in accordance with the financial manual and other systems formulated by the company, and report the estimated loss, the basis of provision and the items to be written off for approval in accordance with the specified procedures and approval authority.

10. Procurement and payment

The company has formulated a series of procurement management systems and control measures, established a supplier evaluation mechanism, reasonably set up departments and posts for procurement and payment business, clarified responsibilities and authorities, and strengthened the control of procurement plan preparation and approval, supplier selection, procurement method selection, procurement price determination, procurement contract signing, acceptance, payment approval, accounting treatment review, regular reconciliation and other links, Reduce procurement and payment related risks. 11. Sales and collection

The company has formulated a series of sales management systems and control measures, reasonably determined the pricing mechanism and credit mode, timely adjusted the sales strategy according to the market changes, and promoted the improvement of market share. Strengthen the control of sales contract approval, implementation and payment collection business, and record the sales contract, acceptance certificate and payment recovery in detail. Strengthen customer after-sales service, improve customer satisfaction and loyalty, and ensure the realization of sales objectives. 12. Related party transactions

The company has formulated and implemented the measures for the administration of connected transactions, which strictly stipulates the scope, decision-making procedures and information disclosure of connected transactions, ensures that connected transactions are carried out under the conditions of "fairness, impartiality, openness, compensation for equal value and without deviating from the price or charging standard of an independent third party in the market", and ensures the legitimacy, fairness and rationality of connected transactions without violations of laws and regulations.

13. External guarantee

In accordance with the notice on regulating the capital exchanges between listed companies and related parties and the external guarantee of listed companies and other relevant provisions of the CSRC, the company has formulated the external guarantee management system, defined the approval authority of the general meeting of shareholders and the board of directors on external guarantee matters in the articles of Association and the external guarantee management system, standardized the company's external guarantee behavior and effectively controlled the company's external guarantee risk.

14. Disclosure of information

The company has formulated information disclosure management system, accountability system for major errors in annual report information disclosure, registration and filing system for insiders and investor relations management system, which defines the responsibilities and reporting procedures of all departments, holding subsidiaries and relevant personnel in information disclosure, ensures the timeliness, accuracy and integrity of the company's information disclosure, and avoids the disclosure of important information Illegal disclosure and other situations occur.

15. Financial Report

In order to standardize the company's accounting and information disclosure, improve the quality of accounting information, ensure the legal compliance, authenticity and integrity of financial reports, and protect the legitimate rights and interests of investors, creditors and other stakeholders, the company has established major control processes such as related party transaction approval, accounting business processing, changes in accounting policies and accounting estimates, preparation and review of financial reports, and reasonably set up departments and posts related to financial reports, Clarify the responsibilities and authorities, and clarify the control procedures and division of responsibilities for accounting, report preparation, review and approval.

16. Internal information transmission

The company pays attention to strengthening the management of internal information. It has established internal information transmission mechanisms such as insider registration management system, CEO special meeting mechanism, joint meeting mechanism and Si-Tech Information Technology Co.Ltd(300608) person information broadcasting, and established special complaint and reporting channels to clarify the collection, processing, transmission procedures and transmission scope of information related to internal control, so as to ensure timely communication of information, And reasonably screen, check and integrate various internal and external information collected, so as to improve the usefulness of the information and timely transmit the important information found to the board of directors, the board of supervisors and the management.

17. Information system

The company has established an EIP information system in line with the company's business development strategy and integrated with operation and management activities, designated the public cloud and big data operation center to implement centralized management on the construction of the information system, standardized the relevant business operations of the information system, enhanced the security, reliability and rationality of the information system and the confidentiality, integrity and availability of relevant information, and provided support and guarantee for the establishment of an effective information and communication mechanism, Improve the modern management level of the company and reduce human error factors.

18. Subsidiary management

In order to standardize the internal operation mechanism of the company, the company has carried out overall control over the subsidiaries, and made clear provisions from the aspects of business decision-making management, financial management, information management and personnel management, which fully reflects the company's business management, control and service functions for each subsidiary. Effective internal control measures have been implemented for subsidiaries on the premise of ensuring normal operation