About Jsti Group(300284)
Verification opinions on self-evaluation report of internal control in 2021
China Securities Co.Ltd(601066) (hereinafter referred to as ” China Securities Co.Ltd(601066) securities” or “recommendation institution”) as a recommendation institution of Jsti Group(300284) (hereinafter referred to as ” Jsti Group(300284) ” or “company”) that issues shares to specific objects and is listed on the gem, in accordance with the law on the administration of securities issuance and listing recommendation business and the rules for the listing of shares on the gem of Shenzhen Stock Exchange In accordance with the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM and other relevant provisions, the internal control of 3 Guangdong Xianglu Tungsten Co.Ltd(002842) 021 was verified. The verification results and opinions are as follows:
1、 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, due to environmental changes that 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.
2、 Internal control evaluation conclusion
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.
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.
There are no factors affecting the evaluation conclusion of the effectiveness of internal control between the benchmark date of the internal control evaluation report and the issuance of the internal control evaluation report.
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The scope of this internal control evaluation includes the parent company Jsti Group(300284) and its subsidiaries. The total assets of the unit included in the evaluation scope account for 100% of the total assets of the company’s consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue of the company’s consolidated financial statements. The main businesses and matters included in the evaluation scope include: governance structure, organization, human resources, corporate culture, capital activities, asset management, sales business, engineering projects, guarantee business, financial report, budget management, contract management, information disclosure, related party transactions, etc. The high-risk areas of focus mainly include: corporate governance risk, marketing risk, main business operation risk, investment management risk, financial management risk, human resources risk, etc.
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, and there are no major omissions.
(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 basic norms of enterprise internal control, guidelines for the application of enterprise internal control, guidelines for the evaluation of enterprise internal control and the company’s internal control system. According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with factors such as the company’s size, industry characteristics, risk preference and risk tolerance, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, studied and determined specific identification standards for internal control defects applicable to the company, which were consistent with those in previous years. The identification standards of internal control defects determined by the company are as follows: 1. Identification standards of internal control defects in financial reports
Internal control defects in financial reporting can be divided into major defects, important defects and general defects. The recognition standard adopted depends on the importance of potential misstatement of financial reporting caused by the existence of internal control defects. This degree of importance mainly depends on two factors: (1) whether the defect has a reasonable possibility to lead to the failure of the enterprise’s internal control to prevent or detect and correct the potential misstatement of the financial statements in time; (2) The amount of potential misstatement that may be caused by the defect alone or in combination with other defects.
The quantitative and qualitative standards for the identification of internal control defects in the company’s financial reports shall be determined in accordance with the following indicators and principles. The details are shown in the table below:
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
General defect important defect major defect
If the business profit is less than or equal to 5 million yuan, or if the business profit is less than or equal to 5 million yuan or the business profit is less than or equal to 5 million yuan
element
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
General defect important defect major defect
Failure to select and apply accounting control environment in accordance with GAAP is invalid; The supervision of the audit committee and the audit policy department on internal control is invalid
Directors, supervisors and senior managers commit fraud, fail to establish anti fraud procedures and control measures, or employees collude in fraud and cause losses or adverse effects to the company
For other internal control problems that do not belong to major defects and important defects, the company shall correct the published financial report; Defects within the scope of registration criteria: there is one item in the control of the financial reporting process at the end of the period, or the accountant finds that there are multiple defects in the current financial report and can not reasonably guarantee the preparation of the financial misstatement, and the internal control fails to achieve the objective of truthfulness and accuracy in the operation of the statements
For the major defects after the accounting treatment of unconventional or special transactions is not communicated, the corresponding control mechanism is not established or not implemented within a reasonable time limit to be corrected
Compensatory control of
2. Identification standard of internal control defects in non-financial reporting
According to its actual situation, management status and development requirements, the company has reasonably determined the qualitative and quantitative standards of internal control defects in non-financial reports on the basis of referring to the internal control defects in financial reports, and identified them as general defects, important defects and major defects according to their impact on the realization of internal control objectives.
Where: quantitative standard, i.e. the amount involved, is formulated according to the absolute amount of direct property loss; Qualitative criteria, that is, the severity of the nature of the business involved, shall be determined according to the nature and scope of its direct or potential negative impact.
The quantitative and qualitative standards for the identification of internal control defects in non-financial reports of the company shall be determined in accordance with the following indicators and principles. The details are shown in the table below:
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
General defect important defect major defect
Direct property loss of less than 5 million yuan, direct property loss of 5 million yuan, direct property loss of 10 million yuan (inclusive) to more than 10 million yuan
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
General defect important defect major defect
There are loopholes in project management, resulting in poor management of large-scale projects, illegal operation of general projects, serious delay of major quality projects or certain quality accidents, resulting in economic losses, accidents, major economic losses or weight and potential safety hazards, causing the owner not to send the owner’s written complaints about major casualties, causing the government Full regulatory investigation or litigation
If the company violates the internal rules of the enterprise, but does not form a violation of national laws and regulations, the company will be severely punished for serious violations of national laws and regulations
General business system, process or system important business system, process or system lack of system for important business, defect in process control or system failure
General defects of internal control have not been rectified, important defects of internal control have not been rectified, and major or important defects of internal control have not been rectified
The turnover of business personnel in general posts is frequent, and the loss of business personnel in key posts is serious, with the serious loss of middle and senior managers and senior technicians
There are negative news in the media, but it affects the media to have negative news, which affects the local media, and the negative news is frequently exposed, causing significant damage to the reputation of the regional division of the company
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reports, the company has no major defects and important defects in internal control related to financial reports during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, there were no major defects and important defects in the company’s internal control related to non-financial reports during the reporting period.
4、 Description of other major matters related to internal control
The company has no explanation of other major matters related to internal control.
5、 Verification opinions of the recommendation institution on the self-evaluation report of Jsti Group(300284) internal control
After verification, the recommendation institution believes that in 2021, Jsti Group(300284) the corporate governance structure is relatively sound, and the existing internal control system and implementation meet the requirements of relevant laws and regulations and securities regulatory authorities Jsti Group(300284) maintained effective internal control related to business operation and management in all major aspects Jsti Group(300284) the internal control self-evaluation report basically reflects the construction and operation of its internal control system.
(there is no text on this page, which is the signature and seal page of China Securities Co.Ltd(601066) verification opinions on 3 Guangdong Xianglu Tungsten Co.Ltd(002842) 021 annual internal control self-evaluation report)
Signature of sponsor representative:
Tan Yongfeng, Zhao Long
China Securities Co.Ltd(601066) mm / DD / yyyy
