Guangdong Ellington Electronics Technology Co.Ltd(603328)
Internal control evaluation report in 2021
Guangdong Ellington Electronics Technology Co.Ltd(603328) 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 evaluation on the effectiveness of the company's internal control report is consistent with the audit conclusion
√ 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 Ellington Electronics Technology Co.Ltd(603328) and its 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:
Organizational structure, development strategy, social responsibility, corporate culture, risk assessment, information and communication, human resource management, financial reporting, accounting, fund management, comprehensive budget, guarantee management, business development, asset management, project management, contract management, information system, internal supervision, procurement and payment, sales and collection, inventory management, related party transactions, etc. 4. High risk areas of focus mainly include:
Procurement and payment, sales and collection, asset management, use and management of raised funds, 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
nothing
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with the enterprise internal control standard system, the guidelines for the application of enterprise internal control, the guidelines for the evaluation of enterprise internal control, the guidelines for the self discipline supervision of Listed Companies in Shanghai Stock Exchange No. 1 - standardized operation, the company's internal control system and other relevant provisions. 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
Potential misstatement of total assets ≥ 1% of total assets, 0.5% of total assets misstatement ≤ 0.5% of total assets
1% of total assets
Potential misstatement of operating revenue ≥ 1% of operating revenue, 0.5% of operating revenue misstatement ≤ 0.5% of operating revenue
1% of operating income
Potential misstatement of total profits: misstatement ≥ 8% of total profits, 5% of total profits misstatement misstatement ≤ 5% of total profits
8% of total profit
explain:
Major defects refer to the combination of one or more internal control defects, which may cause the enterprise to seriously deviate from the control objectives; Important defect refers to the combination of one or more internal control defects, whose severity and economic consequences are lower than those of major defects, but it may still cause the enterprise to deviate from the control objectives; General defects refer to other defects except 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 defect major defect refers to one or more internal control defects, which lead to the failure to prevent, detect and correct major misstatement in the financial report in time. The following circumstances (including but not limited to) are identified as major defects in the internal control of financial reporting: ① major fraud of directors, supervisors and senior managers is found; ② The company corrects the published financial statements due to material misstatement; ③ It is found that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process; ④ Ineffective supervision of the company's internal audit body and the internal audit committee; ⑤ The control environment is deemed invalid by the regulatory department; ⑥ Once the major defects found and reported to the management are not corrected within a reasonable time; ⑦ Fail to perform the obligation of information disclosure within the specified time limit in accordance with the requirements of the regulatory authorities for information disclosure, or the disclosed information has false records, misleading statements or major omissions; ⑧ Other defects that may affect the correct judgment of report users; ⑨ The company has committed serious violations and has been severely punished or bear criminal responsibility.
Significant defect: a combination of one or more defects whose impact on the financial report does not meet or exceed the recognition standard of major defects, but still deserves the attention of the management, is recognized as a significant defect.
General defects and other internal control defects of financial reporting that do not constitute major defects and important defect standards of financial reporting.
Note: for other defects except major defects, the company will identify them as important or general defects according to their impact degree.
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 direct property loss ≥ 0.3% of total assets ≤ direct property loss 0.5% of total assets property loss 0.3% of total assets
0.5%
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
Major defect the combination of one or more control defects may cause the company to seriously deviate from the control objectives. Major defects are identified in the following cases: ① the company lacks democratic decision-making procedures or the company's decision-making procedures are unscientific; ② Violation of national laws and regulations, such as major production or environmental pollution accidents; ③ Massive loss of key management personnel or important talents; ④ Major defects in internal control evaluation have not been rectified; ⑤ Lack of institutional control or systematic failure of important business; ⑥ Negative news in the media is frequent.
Important defect is a combination of one or more control defects whose severity does not meet or exceed the identification standard of major defects, but still deserves the attention of the management, which is identified as an important defect.
General defects do not constitute other internal control defects of non-financial report major defects and important defect standards.
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
According to the above identification standards of internal control defects in financial reports, the company has no general defects in internal control over financial reports during the reporting period. 1.4. After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any major defects in the internal control over 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
Defects in the company's internal control during the non-financial reporting period are not recognized according to the above-mentioned standards. 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
In 2021, the company's internal control system continued to improve and the internal control was effectively implemented. In 2022, the company will continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, optimize the internal control environment, effectively prevent various risks 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): Xiahui Guangdong Ellington Electronics Technology Co.Ltd(603328)
