Bomin Electronics Co.Ltd(603936)
Internal control evaluation report in 2021
Bomin Electronics Co.Ltd(603936) 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 (the benchmark date of the 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: Bomin Electronics Co.Ltd(603936) , Shenzhen Bomin Electronics Co.Ltd(603936) Co., Ltd. and its wholly-owned subsidiary, Shenzhen Bochuang Zhilian Technology Co., Ltd., Jiangsu Bomin Electronics Co.Ltd(603936) Co., Ltd., Bomin Technology (Hong Kong) Co., Ltd., Shenzhen Juntian Hengxun Technology Co., Ltd. and its subsidiary, Wantai International Trading Limited, Shenzhen Dingtai Haohua Technology Co., Ltd Shenzhen bosimin Technology Co., Ltd. and its holding subsidiary Suzhou yulicheng Electronic 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 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:
Strategic development, corporate governance, organizational structure, corporate culture, social responsibility, production management, human resource management, engineering management, inventory management, information disclosure management, financial report, comprehensive budget, capital and asset management, investment and financing management, guarantee management, related party transaction management, contract management, information system management, internal audit and supervision, procurement and payment, sales and collection, etc. 4. High risk areas of focus mainly include:
Procurement and payment, sales and collection, fund management, asset management, safety and environmental protection, 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
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, enterprise internal control application guidelines, enterprise internal control evaluation guidelines, company internal control system and other relevant regulations. 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
Potential misstatement of total assets ≥ 1% of total assets, 0.5% of total assets misstatement asset misstatement ≤ 1% of total assets, 0.5%
Potential misstatement of operating income ≥ 1% of operating income, 0.5% of operating income misstatement business misstatement ≤ 1% of operating income, 0.5% of operating income
Potential misstatement of total profit ≥ 8% of total profit 5% of total profit misstatement 5% of total profit ≤ 8% of total profit
explain:
Major defects refer to the combination of one or more internal control defects, which may cause the enterprise to seriously deviate from the control objectives; Important defect refers to the combination of one or more internal 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; General defects refer to other defects except major defects and important defects.
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 The company's directors, supervisors and senior managers commit fraud and cause heavy losses and adverse effects to the enterprise;
② The company corrects the published financial statements due to material misstatement;
③ The external audit found that there were significant misstatements in the current financial statements, but the internal control failed to find such misstatements in the operation process;
④ The supervision of the company's audit committee and internal audit institutions on internal control is invalid;
⑤ Invalid control environment;
⑥ Once the major defects found and reported to the management are not corrected within a reasonable time;
⑦ The company has committed serious violations and has been severely punished or bear criminal responsibility.
If the impact of major defects on the financial report does not meet or exceed the recognition standard of major defects, but should still attract the attention of the management, it is recognized as a major defect.
General defects and other internal control defects of financial reporting that do not constitute major defects and important defect standards of financial reporting. explain:
The company will identify other defects other than major defects as important or general defects according to their impact degree.
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
Direct property loss direct property loss ≥ 0.3% of total assets ≤ direct property loss direct property loss 0.5% of total assets 0.3% of total assets
explain:
nothing
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
1. Unscientific decision-making or decision-making procedures for major business problems and major project investment, resulting in losses to the company and reaching the standard for determining the amount of major defects;
2. Serious violation of national laws and regulations, major defects in internal control evaluation have not been rectified, resulting in heavy losses identified by quantitative standards to the company.
If the severity of losses caused by important defects does not meet or exceed the identification standard of major defects, but should still attract the attention of the management, they are identified as important defects.
General defects do not constitute other internal control defects of non-financial report major defects and important defect standards. explain:
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 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
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, whether the company has 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
□ 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 the 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, whether the company finds any important defects in 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
In 2021, the company's internal control was effectively implemented in accordance with the requirements of the enterprise's internal control standard system and relevant regulations, and no major and important defects were found in financial reports and non-financial reports. In 2022, the company will continue to strengthen internal control training and publicity in accordance with the basic norms of enterprise internal control and supporting guidance documents, combined with the changes of the company's development strategy and external environment, and further improve and revise the internal control system. Through pre prevention, in-process control, post summary and feedback correction of risks, strengthen the implementation, supervision and inspection of internal control, improve the level of corporate governance, enhance the ability to resist risks, promote the sustainable, steady and standardized development of the company, and provide a solid and powerful supervision guarantee for the company to become the most reliable provider of integrated electronic circuit solutions. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Xu Xu Bomin Electronics Co.Ltd(603936) April 14, 2022
