Beijing Thunisoft Co.Ltd(300271)
Internal control evaluation report in 2021
Beijing Thunisoft Co.Ltd(300271) 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 internal control system and evaluation methods of the company (hereinafter referred to as the “company”), 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 [benchmark date of 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 company’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 evaluation scope include Beijing Thunisoft Co.Ltd(300271) , Beijing Huayu Information Technology Co., Ltd., Huayu (Dalian) Information Service Co., Ltd., Guangzhou Huayu Information Technology Co., Ltd., Shanghai Pudong Huayu Information Technology Co., Ltd., Beijing wanhu Software Technology Co., Ltd., Beijing Yixin Huachen Software Co., Ltd., Beijing Huayu Yuandian Information Service Co., Ltd. and Lianyi Technology Co., Ltd.
The total assets of the units included in the evaluation scope account for 99.92% of the total assets in the company’s consolidated financial statements, and the total operating revenue accounts for 100.00% 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, human resources, corporate culture, capital activities, procurement business, asset management, sales business, research and development, financial reporting, contract management, major investment, related party transactions, comprehensive budget and information system.
The high-risk areas of focus mainly include: management risk of holding subsidiaries, accounts receivable risk, financial reporting quality, raised funds risk, goodwill impairment risk, information disclosure risk, major investment risk, major related party transaction risk and technical 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.
(II) 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 and the Shenzhen Stock Exchange’s guidelines for the standardized operation of companies listed on the gem.
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 criteria for defects in internal control over 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
2% of total profit ≤ misstatement ＜ profit
Total profit misstatement ≥ 5% of total profit misstatement 2% of total profit 5% of total profit
1% of total assets ≤ misstatement ＜ assets
Misstatement of total assets ≥ 2% of total assets misstatement ＜ 1% of total assets 2% of total assets
When a potential misstatement caused by an internal control defect affects multiple indicators, the nature of the defect shall be determined according to the lower principle.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Defect type internal control defect evaluation qualitative standard of financial report
Major defects 1. Fraud by the company’s directors, supervisors and senior managers and causing important losses and adverse effects to the company;
Defect type internal control defect evaluation qualitative standard of financial report
2. Major defects in internal control over financial reporting that have been found and reported to the management have not been rectified within a reasonable time;
3. If major accounting errors are found in previous years, the disclosed financial reports shall be corrected;
4. The company’s internal control environment is invalid;
5. Material misstatement in the current financial report found by the certified public accountant but not identified by the company’s internal control; 6. The internal supervision of the audit committee and internal audit institutions over financial reports is invalid.
1. Failure to select and apply accounting policies in accordance with GAAP;
2. Failure to establish anti fraud procedures and control measures or invalid;
Important defect 3. No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control;
4. 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 goal of authenticity and accuracy.
Other internal control defects related to financial reporting if general defects do not constitute major defects and important defect standards.
2. 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
2% of total profit ≤ impact
Total profit influence amount ≥ 5% of total profit influence amount 2% of total profit amount 5% of total profit
1% of total assets ≤ impact
The affected amount of total assets ≥ 2% of total assets 1% of total assets 2% of total assets
When the impact amount of an internal control defect involves multiple indicators, the nature of the defect shall be determined according to the lower principle.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Defect type non financial report internal control defect evaluation qualitative standard
The defect complies with any of the following:
1. Lack of democratic decision-making procedures or major mistakes in violation of decision-making procedures for major matters, resulting in major losses identified by quantitative standards;
Major defects 2. Serious violation of national laws and regulations, punishment by government departments, and significant negative impact on the disclosure of the company’s regular reports;
3. Serious loss of key management personnel or senior technical personnel;
4. The frequent occurrence of negative news in the media is true, causing significant social impact;
Defect type non financial report internal control defect evaluation qualitative standard
5. Lack of system control or systematic failure of important business, resulting in significant losses recognized by the company according to quantitative standards;
6. Major defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time.
The defect complies with any of the following:
1. Democratic decision-making procedures exist but are not perfect or the decision-making procedures are wrong, resulting in important property losses identified by quantitative standards;
2. Violation of national laws and regulations and punishment by government departments, but did not have a negative impact on the disclosure of the company’s periodic reports;
Important defects
3. Serious loss of business personnel in key positions;
4. Negative news in the media, affecting local areas;
5. There are major defects in the implementation of important business systems;
6. Significant defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time.
General defects in addition to the above major defects and important defects, other internal control defects related to non-financial reporting.
(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 did not have 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 did not explain other major matters related to internal control.
Chairman (authorized by the board of directors): Shao Xue
Beijing Thunisoft Co.Ltd(300271)
April 15, 2022
