Company code: Zhejiang Guangsha Co.Ltd(600052) company abbreviation: Dongwang times Zhejiang Dongwang times Technology Co., Ltd
Internal control evaluation report in 2021
All shareholders of Zhejiang Dongwang times Technology Co., Ltd.:
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 base date of internal control evaluation report to the date of issuance of 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. 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 internal control defects in non-financial reports in the internal control audit report is consistent with the disclosure in 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: Zhejiang Dongwang times Technology Co., Ltd., Zhejiang Zhenglan Energy Saving Technology Co., Ltd., Guangxia Media Co., Ltd., Hangzhou Niuwei Sports Culture Development Co., Ltd., Dongyang Hanning Technology Service Co., Ltd., Guangxia (Nanjing) real estate investment industry Co., Ltd., Zhejiang Guangsha Co.Ltd(600052) Cultural Industry Development Co., Ltd., Hangzhou Gehua film and Television Co., Ltd Guangxia (Nanjing) Cultural Media Co., Ltd. Zhejiang Guangsha Co.Ltd(600052) Cultural Tourism Development Co., Ltd. Zhejiang Guangsha Co.Ltd(600052) Sports Culture Co., Ltd., Hangzhou niuwo culture and Sports Co., Ltd., Dongyang Guangxia Travel Agency Co., Ltd. and Guangsheng sports culture (Shanghai) Co., Ltd. 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, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, related party transactions, financial reports, comprehensive budget, contract management, internal information transmission, information system, etc. 4. the high-risk areas of focus mainly include:
Guarantee business, related party transactions, capital activities, sales business, contract management and financial reporting. 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 in accordance with the enterprise internal control standard system, relevant laws, regulations and rules and the company’s system.
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
The potential misstatement reaches 3 ‰ (inclusive) of the total assets of the company in the latest audit, but does not reach 3 ‰ of the total assets, 5 ‰ or more of the total assets, but less than 5 ‰ of the total assets
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
The material misstatement in the financial report cannot be prevented, discovered and corrected in time due to individual defects or other defects.
The following situations are identified as major defects: the control environment is invalid; Directors, supervisors and senior managers commit major defects and malpractices; The major misstatement found in the external audit was not first discovered by the company; Major defects that have been found and reported to the management have not been corrected within a reasonable time; The supervision of the company’s audit committee and audit department on internal control is invalid; Other defects that may affect the correct judgment of report users.
The misstatement in the financial report that cannot be prevented, found and corrected in time due to individual defects or together with other defects, although the materiality level is not reached or exceeded, which should still attract the attention of the management.
Major defects are identified as major defects in the following circumstances: fraud by personnel in key positions; Failure of compliance supervision function and violation of laws and regulations may have a significant impact on the reliability of financial reporting; It has been reported to the management, but after a reasonable period of time, the management still fails to correct the important defects.
General defects and other internal control defects that do not constitute major defects or 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
Potential risk events can be RMB 5 million (inclusive) –
The direct wealth that can be caused is RMB 10 million or more and RMB 10 million or less than RMB 5 million
Description of property loss amount: 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
Violation of national laws and regulations, severe punishment or criminal responsibility; Loss of managers or technicians; Major defects: negative media news occurs more than twice a year and causes significant damage to the company’s reputation; The major or important defects evaluated last year have not been rectified; Lack of institutional control or systematic failure of important businesses such as materials, salary and fixed assets; The main business management or operation personnel are obviously incompetent.
Violation and punishment; Middle management fraud; Negative news appeared in the main media that year and caused great damage to the important defects of the company’s reputation; The general defects evaluated last year have not been rectified or reasonably explained; Some managers or operators are not competent enough.
General defect, general employee fraud; The general defects evaluated last year have not been rectified; 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.
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 any major defects in internal control over financial reporting during the 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, does the company find any important defects in the 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 3 Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Jiang Xufeng Zhejiang Dongwang times Technology Co., Ltd. April 13, 2022
