Quectel Wireless Solutions Co.Ltd(603236)
Internal control evaluation report in 2021
Quectel Wireless Solutions Co.Ltd(603236) 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 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 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 Quectel Wireless Solutions Co.Ltd(603236) and its important subsidiaries Hefei mobile Rui Communication Technology Co., Ltd., Shanghai Quectel Wireless Solutions Co.Ltd(603236) Technology Co., Ltd., Hefei Quectel Wireless Solutions Co.Ltd(603236) Technology Co., Ltd. and Changzhou Quectel Wireless Solutions Co.Ltd(603236) Technology 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 is 95.48
The total operating income of the units included in the evaluation scope accounted for 94.97% of the total operating income in the company's consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
According to the basic norms of enterprise internal control issued by the Ministry of Finance and its supporting guidelines, as well as the actual development and operation needs of the company, the company has a comprehensive understanding of the organizational structure, corporate culture, human resources, social responsibility, development strategy, budget management, risk management, information communication and transmission, internal supervision, asset management, project management, procurement business, contract management, production management, business outsourcing, sales business, guarantee business Seal management, related party transactions, fund activity management, financial report management, tax management, information system, research and development and other 24 aspects were tested and evaluated. 4. High risk areas of focus mainly include:
Procurement business management and research and development. 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. （2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the company's internal control system documents. 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 amount of misstatement of pre tax profit ≥ 5% of pre tax profit 3% ≤ the amount of misstatement 3% of pre tax profit 5% of pre tax profit
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
Major defects if the defects found comply with any of the following, they shall be recognized as major defects in the internal control of financial reporting: 1 The directors, supervisors and senior managers of the company commit fraud; 2. The supervision of the enterprise audit committee and internal audit institutions on internal control is invalid; 3. The company corrects the published financial report; 4. Material misstatement and omission in the current financial report found by the certified public accountant but not identified by the company's internal control.
Important defects if any of the following defects are found, they shall be recognized as important defects in the internal control of financial reporting: 1 Failure to select and apply accounting policies in accordance with GAAP; 2. Failure to establish anti-corruption and fraud procedures and control measures; 3. There are single or multiple defects in the process of financial reporting, which do not meet the identification standard of major defects, but affect the achievement of the goal of truthfulness and accuracy of financial reporting.
General defects other internal control defects in financial reporting other than the above major and important defects shall be recognized as general defects.
Description: 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
The amount of misstatement of pre tax profit ≥ 3% of pre tax profit 1% ≤ the amount of misstatement 1% of pre tax profit 3% of pre tax profit
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 defects if the defects found comply with any of the following, they shall be recognized as major defects in non-financial reporting internal control: 1 Lack of democratic decision-making procedures or major mistakes caused by decision-making procedures; 2. Serious violation of national laws and regulations and punishment; 3. Massive loss of key management personnel or important talents; 4. Frequent negative news in the media; 5. The results of internal control evaluation, especially major or important defects, have not been rectified for a long time; 6. Lack of system control or failure of system for important business.
Significant defects if any of the following defects is found, it shall be recognized as a significant defect of non-financial reporting internal control: 1 The democratic decision-making procedure exists but is not perfect or the decision-making procedure makes great mistakes; 2. Violating the internal rules and regulations of the enterprise, resulting in large losses; 3. Serious loss of business personnel in key positions; 4. There are many negative news in the media; 5. There are defects in important business systems or systems.
General defects other internal control defects in non-financial reporting other than the above major and important defects shall be recognized as general defects.
Description: none. （3） 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
In view of the general defects in the internal control of financial reporting found by the company in the process of internal control evaluation, once found, the company immediately took corresponding rectification measures and improved them. After rectification, the defect will not affect the realization of the company's internal control objectives. 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
In view of the general defects of non-financial reporting internal control found in the process of internal control evaluation, once found, the company immediately took corresponding rectification measures and improved them. After rectification, the defect will not affect the realization of the company's internal control objectives. 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 internal control of non-financial reporting 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
During the reporting period, the company continued to improve the internal control system and effectively implemented it. After the evaluation of the company's internal control, all internal controls of the company can effectively prevent risks and achieve the goal of the company's internal control. In 2022, the company will continue to improve the internal control system, supervise and standardize the implementation of the internal control system, and continuously optimize the company's internal control system to make the company's business activities efficient, legal and compliant. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Qian penghe Quectel Wireless Solutions Co.Ltd(603236) April 15, 2022
