Juneyao Grand Healthy Drinks Co.Ltd(605388)
Internal control evaluation report in 2021
Juneyao Grand Healthy Drinks Co.Ltd(605388) 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 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 Juneyao Grand Healthy Drinks Co.Ltd(605388) , Junyao Group Shanghai Food Co., Ltd., Junyao food (Quzhou) Co., Ltd. and Junyao food (Huaibei) 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 99.69
The total operating income of the units included in the evaluation scope accounted for 88.42% 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, corporate culture, social responsibility, human resources, budget management, capital activities, financial reporting, information system, asset management, investment management, engineering projects, procurement business, sales business, research and development, contract management, internal information transmission, etc. 4. High risk areas of focus mainly include:
Key business control links that affect the authenticity of financial information, business efficiency and efficiency, asset safety and integrity, compliance with laws and regulations, 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
（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 management system. 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
Consolidated pre tax profit misstatement ≥ 5% 2% ≤ misstatement ＜ 5% misstatement ＜ 2%
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 the signs of major defects in financial reporting include:
(1) Fraud of directors, supervisors and senior managers of the company;
(2) The company corrects the published financial report and has a significant impact on the decision-making of the statement users;
(3) Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control; (4) The supervision of the audit committee and the audit department on the company's external financial report and internal control over financial report is invalid.
Significant defects signs of significant defects in financial reporting include:
(1) Failure to establish anti fraud procedures and control measures;
(2) There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects are other control defects other than the above major defects and important defects.
Note: 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
Direct property loss ＞ 0.5% of consolidated total assets ＞ 0.3% of consolidated total assets ＜ loss ≤ loss ≤ 0.3% of total assets
0.5% of total consolidated assets
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 defect the company's defects with one of the following six characteristics shall be determined as major defects and important defects as appropriate.
(1) Lack of democratic decision-making procedures or unscientific decision-making procedures, resulting in decision-making mistakes;
(2) Serious violation of laws and regulations;
(3) Serious loss of management personnel and key positions, seriously affecting the company's production and operation;
(4) The negative news exposed by the media has a great negative impact;
(5) The results of internal control evaluation, especially major or important defects, have not been rectified;
(6) Lack of institutional control or systematic failure of important business.
Major defects: the company's defects with one of the following six characteristics shall be determined as major defects and major defects as appropriate.
(1) Lack of democratic decision-making procedures or unscientific decision-making procedures, resulting in decision-making mistakes;
(2) Serious violation of laws and regulations;
(3) Serious loss of management personnel and key positions, seriously affecting the company's production and operation;
(4) The negative news exposed by the media has a great negative impact;
(5) The results of internal control evaluation, especially major or important defects, have not been rectified;
(6) Lack of institutional control or systematic failure of important business.
General defects other control defects besides the above major defects and important defects
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
None 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
None 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
The implementation of the company's internal control is good this year. In the next year, the company will continue to optimize various internal control systems, further strengthen the implementation of the internal control system, further strengthen the inspection and supervision of the implementation of internal control activities, improve the internal control awareness of all employees, form an enterprise internal control culture, and continuously improve the defects in the design and operation of internal control to ensure the realization of internal control objectives. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Wang Junhao Juneyao Grand Healthy Drinks Co.Ltd(605388) April 19, 2022
