Company code: Zhejiang Gongdong Medical Technology Co.Ltd(605369) company abbreviation: Zhejiang Gongdong Medical Technology Co.Ltd(605369)
Zhejiang Gongdong Medical Technology Co.Ltd(605369)
Internal control evaluation report in 2021
Zhejiang Gongdong Medical Technology Co.Ltd(605369) 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 (I) whether the company has any major defects in internal control over financial reporting on the benchmark date of internal control evaluation report
□ 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） Is the internal control audit opinion 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. work of 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 Zhejiang Gongdong Medical Technology Co.Ltd(605369) , Zhejiang Maide medical mould Co., Ltd. and Gd medical, Inc
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, financial reports, comprehensive budget, contract management, internal information transmission, information system and information disclosure, use of raised funds, etc.
4. High risk areas of focus mainly include:
Sales business, procurement business, engineering projects and use of raised funds.
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
No (II) internal control evaluation basis and internal control defect identification standard
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the guidelines for enterprise internal control evaluation.
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
Total profit misstatement amount ≥ 5% of total profit, 2% of total profit ≤ misstatement amount ＜ 5% 2% of total profit
The amount of misstatement of total assets ≥ 2% of total assets ≤ 1% of total assets ≤ the amount of misstatement ＜ 2% of total assets ＜ 1% of total assets
Note: 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
Invalid control environment; Major fraud of directors, supervisors and senior managers of the company; The external audit found that there was a major error in the financial report, and the corresponding control activities of the company failed to identify the error; The supervision of the company's audit committee and internal audit institutions on internal control is invalid; Failure to rectify major defects within a reasonable time.
Fraud of personnel in key positions with important defects; Failure to select and apply accounting policies in accordance with generally accepted accounting standards; Failure to rectify major defects within a reasonable period of time.
General defects are other internal control defects related to financial reporting except major defects and important defects. Note: none 3 Identification standard of internal control defects in non-financial reports the quantitative standard for the evaluation of internal control defects in non-financial reports determined by the company is as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Total profit misstatement amount ≥ 5% of total profit, 2% of total profit ≤ misstatement amount ＜ 5% 2% of total profit
The amount of misstatement of total assets ≥ 2% of total assets ≤ 1% of total assets ≤ the amount of misstatement ＜ 2% of total assets ＜ 1% of total assets
Note: 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
The possibility of defects is high, which will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, major defects or seriously deviate from the expected goal. Major decision-making mistakes; Serious violation of national laws and regulations or major accidents in production and environmental protection, resulting in significant negative impact on the company; Serious loss of senior managers and core technicians; The company's important business lacks system control or the system fails.
The possibility of defects is high, which will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, important defects or significantly deviate from the expected goal. Serious loss of business personnel in key positions; The results of internal control evaluation, especially the important defects, have not been rectified; Other situations that have a great negative impact on the company.
General defects are other control defects other than the above major defects and important defects.
explain:
No (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
During the reporting period, the company had no general defects in internal control over financial reporting.
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 reports
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
2.3. General defect
During the reporting period, the company has no general defects in internal control over non-financial reporting.
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 (I) rectification of internal control defects in the previous year
□ applicable √ not applicable (II) operation of internal control in this year and improvement direction in the next year
□ applicable √ not applicable (III) description of other major matters
□ applicable √ not applicable
Chairman (authorized by the board of directors): Shi Huiyong Zhejiang Gongdong Medical Technology Co.Ltd(605369) April 15, 2022
