Company code: Kunshan Guoli Electronic Technology Co.Ltd(688103) company abbreviation: Kunshan Guoli Electronic Technology Co.Ltd(688103)
Kunshan Guoli Electronic Technology Co.Ltd(688103)
Internal control evaluation report in 2021
Kunshan Guoli Electronic Technology Co.Ltd(688103) 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 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 internal control over financial reports on the benchmark date of the internal control evaluation report. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the base date of internal control evaluation report to the date of issuance of internal control evaluation report
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 Kunshan Guoli Electronic Technology Co.Ltd(688103) , Kunshan guoliyuantong New Energy Technology Co., Ltd., Kunshan Ruipu Electric Co., Ltd., Kunshan Guoli Electronics Co., Ltd., Kunshan Guoli high power device Industrial Technology Research Institute Co., Ltd. and Kunshan jinglidate Ceramics 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 100.00
The total operating income of the units included in the evaluation scope accounts for 100.00% 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:
Corporate level control (9): corporate governance, management structure, development strategy, human resources, administrative management, information communication, corporate culture, risk management and internal supervision.
Business process level control (18): budget management, fund management, financial reporting, accounting, financial derivatives management, asset management, related party transactions, financial management, procurement management, sales management, engineering management, production and operation management, quality management, safety and environmental protection, investment M & A, guarantee business, legal affairs, research and development.
General control of information system (1): information system. 4. High risk areas of focus mainly include:
Purchase and payment, inventory, human resources, asset management. 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
According to the enterprise internal control standard system and other internal control supervision requirements, and in combination with the provisions of the company’s internal control management system, the company organizes and carries out internal control evaluation on the implementation of the company’s internal control in 2021. 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
1% of total assets, liabilities and equity assets 0.5% of total assets misstated and understated amount misstated and understated ≤ amount of total assets ≤ 0.5% of total assets
Total profit of profit and loss category: 2% 1% of total profit of misstatement and understatement amount of misstatement and understatement ≤ 1% of total profit amount ≤ 1% of total profit amount
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 1. Fraud of directors, supervisors and senior managers of the company.
2. Major errors found by certified public accountants but not identified by the company’s internal control in the current financial report. 3. 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 1. Accounting policies are not selected and applied in accordance with generally accepted accounting standards.
2. No anti fraud procedures and control measures have been established.
3. For the accounting treatment of unconventional or special transactions, no corresponding control mechanism is established or not implemented and there is no corresponding compensatory control.
4. 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 true and complete goal.
General defects are internal control defects in financial reporting except for 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 loss the amount of direct property loss is greater than the amount of direct property loss is greater than the amount of direct property loss is less than 5 million yuan (inclusive) and less than 2 million yuan (inclusive)
Ten thousand yuan
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 defects 1. The company’s business activities violate national laws and regulations;
2. Decision making procedures lead to major mistakes, lack of institutional control or systematic failure of important businesses;
3. Serious loss of senior managers and core technicians;
4. Frequent negative news in the media, causing serious impact;
5. Major defects in internal control have not been rectified.
Important defects 1. There are loopholes in the system and defects in the system control of important businesses;
2. The loss of personnel in key positions is relatively serious;
3. Major safety responsibility accident;
4. The results of internal control, especially important defects, have not been rectified.
General defects are internal control defects in financial reporting except for 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 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
For the general defects of internal control over financial reporting found during the reporting period, a special report has been made to the board of directors. The company attaches great importance to it, instructs relevant units and responsible persons to rectify and implement within a time limit, and ensures that the rectification is in place through continuous tracking. The company’s internal control has a dual supervision mechanism of self-evaluation and internal audit, and the risk of internal control defects is controllable. 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
For the general defects of internal control over non-financial reporting found during the reporting period, a special report has been made to the board of directors. The company attaches great importance to it, instructs relevant units and responsible persons to rectify and implement within a time limit, and ensures that the rectification is in place through continuous tracking. The company’s internal control has a dual supervision mechanism of self-evaluation and internal audit, and the risk of internal control defects is controllable. 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 implemented effectively, and no major and important defects were found in financial reports and non-financial reports. In 2022, the company will continue to improve the internal control system, standardize the implementation of the company’s internal control system, strengthen the supervision and inspection of internal control, strengthen the publicity and training of internal control, improve the management level of internal control and ensure the long-term and healthy development of the company in strict accordance with the basic norms of enterprise internal control and supporting guidance documents and in combination with the actual production and operation of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Yin Jianping Kunshan Guoli Electronic Technology Co.Ltd(688103) April 18, 2022
