Company code: Infovision Optoelectronics (Kunshan) Co.Ltd(688055) company abbreviation: Infovision Optoelectronics (Kunshan) Co.Ltd(688055) Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd
Internal control evaluation report in 2021
All shareholders of Kunshan Longteng North Electro-Optic Co.Ltd(600184) 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 significant 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
The company determines the main units, businesses and matters as well as high-risk areas included in the evaluation scope according to the risk oriented principle. 1. The main units included in the evaluation scope include: Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd. and Kunshan Longteng Electronics 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, social responsibility, corporate culture, research and development, asset management, procurement business, sales business, human resources, capital activities, guarantee business, financial report, comprehensive budget, internal information transmission, contract management, etc. 4. High risk areas of focus mainly include:
Development strategy, research and development, procurement business, sales business, capital activities, financial reporting, asset management, 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
In accordance with the provisions of the enterprise's internal control standard system and supporting guidelines, other internal control regulatory requirements and the company's internal control system, the company focuses on internal control elements such as internal environment, goal setting, event identification, risk assessment, risk countermeasures, control activities, information and communication, inspection and supervision, takes various internal control objectives of the company as the guide, and follows the principles of comprehensiveness, importance, effectiveness, checks and balances and cost-effectiveness of internal control, Organize and carry out internal control evaluation. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
√ yes □ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company, ② the internal control standard of the previous year has been modified as follows: ② the identification standard of non qualitative defects in the previous year has been adjusted as follows; Modify item ③ of the qualitative standard for the evaluation of internal control defects in non-financial reports; Other recognition standards are consistent with those in 2020. 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 0.5% of total assets 1% of 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
1. Fraud by directors, supervisors and senior managers; 2. The external audit found major misstatement, while the internal control was in operation with major defects
The error is not found in the process of processing; 3. The supervision of internal control by the audit committee and internal audit institutions is invalid.
1. Failure to establish anti fraud procedures and control measures; 2. 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; 3. There are misstatements and important defects in the current financial report
Although it does not reach or exceed the degree of this important misstatement, from the nature, it should still attract the attention of the board of directors and management.
General defects and other internal control defects that do not constitute major defects or important defects.
explain:
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
When one or a group of internal control defects
There is a reasonable possibility to lead to the existence. There is a reasonable possibility that it does not constitute a major defect. When the direct property loss of the company caused by the important lack of property loss exceeds other internal control defects causing the direct property loss of the company to exceed 10 million yuan, it is 5 million yuan, but it does not reach 10 million yuan
Ten thousand yuan hour
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
It refers to the combination of one or more control defects that may cause the enterprise to seriously deviate from the control objectives. Including but not limited to: ① lack of democratic decision-making procedures; ② Violating national laws and regulations and being severely punished; ③ Serious loss of middle and senior managers and senior technicians; ④ Negative news frequently appears in the media, involving a wide range; ⑤ Lack of system control or failure of system for important business; ⑥ Major defects in internal control have not been rectified.
It refers to the combination of one or more 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. Including but not limited to: ① democratic decision-making procedures exist but are not perfect; Important defects ② violation of internal rules and regulations of the enterprise, resulting in losses; ③ Serious loss of business personnel in key positions; ④ Negative news in the media, affecting local areas; ⑤ Defects in important business systems or systems; ⑥ Important defects in internal control have not been rectified.
It refers to other control defects except major defects and important defects. Including but not limited to: ① the efficiency of decision-making procedure is not general and the defect is high; ② Serious loss of business personnel in general posts; ③ Negative news appears in the media and has a certain impact; ④ Defects in general business system or system; ⑤ General defects have not been rectified.
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
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, 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
According to the above identification standards of internal control defects in non-financial reporting, the company did not have general defects in internal control of non-financial reporting during the reporting period. 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 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 maintained effective internal control in all major, important and general aspects of financial reports and non-financial reports, and there was no need for rectification; In 2022, the company will continue to strengthen the awareness of internal control, strengthen the level of internal control management, improve operation efficiency and effect, and promote the realization of development strategy in daily operation and management activities in accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Taoyuan Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd. April 15, 2022
