Internal control evaluation report in 2021
Gohigh Data Networks Technology Co.Ltd(000851) all shareholders:
According to 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, 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.
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, 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.
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
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas.
The main units included in the scope of evaluation include:
1 Gohigh Data Networks Technology Co.Ltd(000851)
2. Beijing Datang Gaohong data network technology Co., Ltd
3. GAOTANG Dahong Communication Technology Co., Ltd
4. Datang fusion Communication Co., Ltd
5. Datang fusion IOT technology Wuxi Co., Ltd
6. Datang Internet technology (Wuhan) Co., Ltd
7. Datang Gaohong Information Technology Co., Ltd
8. Beijing Gaoyang Jiexun Information Technology Co., Ltd
9. Jiangsu Gaohong Dingheng Information Technology Co., Ltd
10. Jiangsu gaohongdingyuan Information Technology Co., Ltd
11. Datang Gaohong Xin'an (Zhejiang) Information Technology Co., Ltd
12. Beijing Datang Gaohong Technology Development Co., Ltd
The total assets of the units included in the evaluation scope account for 84.63% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 91.30% of the total operating revenue in the company's consolidated financial statements. The main businesses and matters included in the evaluation scope include organizational structure, development strategy, human resources, corporate culture, social responsibility, working capital management, investment, financing, procurement business, asset management, research and development, engineering projects, guarantee business, financial reporting, tax management, budget management, contract management, information and communication, information system, etc.
The high-risk areas of focus mainly include purchase price management and supplier management, fund payment, sales revenue recognition and accounts receivable management, investment decision-making, R & D business management, information system management, Internet business, related party transactions, etc.
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.
(II) basis of internal control evaluation and identification standard of internal control defects
In accordance with the basic norms of enterprise internal control, guidelines for the application of enterprise internal control, guidelines for the evaluation of enterprise internal control and other laws, regulations and rules, combined with the enterprise internal control system and evaluation methods, the company organizes and carries out the evaluation of internal control on the basis of daily and special supervision of internal control.
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.
The identification standards of internal control defects determined by the company are as follows:
1. Identification standard of internal control defects in financial reporting
The recognition standard of internal control defect of financial report depends on the importance of financial report misstatement that may be caused by the existence of internal control defect. This degree of importance mainly depends on two factors: (1) whether the defect has a reasonable possibility that the enterprise's internal control can not prevent or detect and correct the misstatement of financial reports in time. (2) The amount of potential misstatement that may be caused by the defect alone or in combination with other defects.
(1) Quantitative standard
Quantitative standard of defect grade
Misstatement ≥ 1% of total operating income;
Major defect or misstatement ≥ 5% of total profit;
Or misstatement ≥ 3% of total assets;
Or misstatement ≥ 1% of the total owner's equity.
0.5% of total operating income ≤ misstatement 1% of total operating income;
Major defects or 3% of total profits ≤ misstatement 5% of total profits;
Or 0.5% of total assets ≤ misstatement 3% of total assets;
Or 0.5% of total owner's equity ≤ misstatement 1% of total owner's equity.
Misstatement ＜ 0.5% of total operating income;
General defect or misstatement ＜ 3% of total profit;
Or misstatement ＜ 0.5% of total assets;
Or misstatement ＜ 0.5% of the total owner's equity.
The above recognition standards are calculated based on the data of financial statements in 2021, and the standard value of defect recognition is based on the principle of whichever is lower.
(2) Qualitative criteria
① Major defect standard
\uf0d8 any degree of fraud found by the company's management;
\uf0d8 major internal control defects that have been found and reported to the management have not been corrected after a reasonable period of time;
\uf0d8 invalid control environment;
Defects affecting income trend;
\uf0d8 defects affecting the total amount of connected transactions exceeding the amount of connected transactions approved by shareholders; \uf0d8 major misstatement found by external audit, which is not first found by the company;
\uf0d8 other defects that may affect the correct judgment of report users;
\uf0d8 violation of national laws and regulations and punishment;
\uf0d8 the board of directors, its Committee and the internal audit department fail to supervise the internal control; \uf0d8 there are significant accounting errors in the issued financial report;
\uf0d8 other internal control defects that have a serious impact on the company.
② Important defect standard
\uf0d8 major internal control defects that have been found and reported to the management are not fully and thoroughly rectified after a reasonable time;
\uf0d8 imperfect internal control environment;
\uf0d8 accounting measurement is not timely and accurate, resulting in information lag or information error;
\uf0d8 there are serious defects in the financial system;
\uf0d8 the recognition basis of accounting items does not meet the requirements of accounting standards.
③ General defect standard
In addition to major defects and important defects, internal control defects related to financial reporting.
As long as one of the above major defects, important defects and general defect standards is met, the type of the defect can be determined.
2. Identification standard of internal control defects in non-financial reporting
(1) Quantitative standard
Quantitative standard of defect grade
The direct property loss of major defects is 10 million yuan or more.
The direct property loss of major defects is 5 million yuan (including) ~ 10 million yuan.
The direct property loss of general defects is less than 5 million yuan.
As long as one of the above major defects, important defects and general defect standards is met, the type of the defect can be determined.
(2) Qualitative criteria
① Major defect standard
\uf0d8 it has been officially disclosed to the public and has a negative impact on the disclosure of the company's periodic reports; \uf0d8 lack of democratic decision-making procedures;
\uf0d8 major mistakes caused by violation of decision-making procedures;
\uf0d8 major negative news frequently appeared in the media, involving a wide range;
\uf0d8 lack of system control or system failure of important business;
\uf0d8 there are collective violations of laws and regulations.
② Important defect standard
\uf0d8 punished by national government departments, but did not cause negative impact on the disclosure of the company's periodic reports
influence;
\uf0d8 democratic decision-making procedures exist but are not perfect;
\uf0d8 general errors caused by decision-making procedures;
\uf0d8 major and local negative news media;
\uf0d8 violation of internal rules and regulations of the enterprise, resulting in losses;
\uf0d8 defects in important business systems or systems;
\uf0d8 important or general defects in internal control have not been rectified within a reasonable period of time;
\uf0d8 major internal control defects that have been found and reported to the management are not rectified comprehensively and thoroughly after a reasonable time;
\uf0d8 imperfect internal control environment;
\uf0d8 serious loss of management personnel or personnel in key positions.
③ General defect standard
\uf0d8 punished by government departments below the provincial level (including the provincial level), but did not have a negative impact on the disclosure of the company's periodic reports;
\uf0d8 inefficient decision-making procedures;
\uf0d8 violation of internal regulations without loss;
\uf0d8 negative news appears in the media, but the impact is small;
Defects in general business system or system;
\uf0d8 general defects have not been rectified;
\uf0d8 other non-financial reporting defects.
As long as one of the above major defects, important defects and general defect standards is met, the type of the defect can be determined.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company has no other internal control information that may have a significant impact on investors' understanding of the internal control evaluation report, evaluation of internal control or investment decisions.
In the future, based on this evaluation, 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, and promote the healthy and sustainable development of the company.
Chairman: Fu Jinglin
Gohigh Data Networks Technology Co.Ltd(000851) April 13, 2022
