Sunshine Global Circuits Co.Ltd(300739) internal control assurance report
Xin Hui Shi Bao Zi [2022] No. zi10148
Sunshine Global Circuits Co.Ltd(300739)
As of December 31, 2021
Internal control assurance report
Table of contents page 1, internal control assurance report 1-2, annex 2
Shenzhen Mingyang Circuit Technology Co., Ltd
1-11 appraisal report on the effectiveness of internal control on December 31, 2021 III. practice qualification certificate of the firm
Internal control assurance report
Xin Hui Shi Bao Zi [2022] No. zi10148 Sunshine Global Circuits Co.Ltd(300739) all shareholders:
We have been entrusted to verify the confirmation made by the board of directors of Sunshine Global Circuits Co.Ltd(300739) (hereinafter referred to as “your company”) on the effectiveness of your company’s internal control over financial reporting on December 31, 2021.
1、 Responsibilities of the board of directors for internal control
The responsibility of the board of directors of your company is to establish, improve and effectively implement internal control in accordance with the relevant provisions of the basic norms of enterprise internal control, evaluate its effectiveness, and truthfully disclose the internal control evaluation report.
2、 Responsibilities of Certified Public Accountants
Our responsibility is to issue assurance conclusions on the effectiveness of internal control over financial reporting based on the implementation of assurance work.
3、 Job overview
We have carried out the assurance business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 – assurance business other than audit or review of historical financial information. The standards require us to comply with the code of professional ethics of Chinese certified public accountants and plan and implement assurance work, so as to obtain reasonable assurance about whether your company maintains effective internal control over financial reporting in accordance with the relevant provisions of the basic norms of enterprise internal control in all major aspects on December 31, 2021. In the process of performing the assurance work, we have implemented other procedures including understanding, testing and evaluating the effectiveness of internal control and other procedures that we deem necessary. We believe that our assurance work provides a reasonable basis for issuing assurance conclusions.
4、 Description of significant inherent limitations
Internal control has inherent limitations, and there is the possibility of undetected misstatement due to error or fraud. In addition, due to the change of circumstances, the internal control may become inappropriate, or the degree of compliance with control policies and procedures may be reduced. According to the internal control evaluation results, it is speculated that the effectiveness of internal control in the future has a certain risk.
5、 Assurance conclusion
We believe that your company has maintained effective internal control over financial reporting in all major aspects in accordance with the relevant provisions of the basic norms of enterprise internal control on December 31, 2021. China Certified Public Accountants of Lixin Certified Public Accountants (special general partnership):
Chinese certified public accountant:
Shanghai, China April 19, 2022
Sunshine Global Circuits Co.Ltd(300739)
Internal control evaluation report on December 31, 2021
Sunshine Global Circuits Co.Ltd(300739) 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 standard system), combined with the internal control system and evaluation methods of Sunshine Global Circuits Co.Ltd(300739) (hereinafter referred to as the “company”, Sunshine Global Circuits Co.Ltd(300739) ), 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 evaluation report).
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, 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.
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 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 self-evaluation report and the date of issuance of the evaluation report.
3、 Internal control evaluation (I) scope of internal control evaluation
According to the risk oriented principle, the company determines the scope included in the evaluation, covering the main businesses and matters of the parent company and its subsidiaries and high-risk areas.
The main operations and matters included in the scope of evaluation include:
1. Internal environment
(1) Governance structure
In accordance with the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the relevant regulations of the CSRC and the provisions of the articles of association, the company has established a standardized corporate governance structure and rules of procedure, defined the responsibilities and authorities in decision-making, implementation and supervision, and formed a scientific and effective division of responsibilities and check and balance mechanism.
The company sets up the general meeting of shareholders, the board of directors, the board of supervisors and the management under the leadership of the board of directors.
The general meeting of shareholders is the decision-making body of the company and exercises the voting rights on major matters such as the company’s business policy, financing, investment and profit distribution according to law. The general meeting of shareholders shall be held at least once a year according to law, and an extraordinary general meeting of shareholders may be held in accordance with the provisions of laws and regulations.
The board of directors is responsible to the general meeting of shareholders and exercises the company’s business decision-making power according to law. The board of directors is responsible for the establishment, improvement and effective implementation of the company’s internal control system, formulating the company’s business plan, investment plan, financial budget and final settlement plan, and formulating the basic management system. The board of Directors consists of an audit committee, a strategy committee, a nomination committee and a remuneration and assessment committee. Each committee has corresponding rules of procedure, performs its duties within the specified scope of responsibilities, provides effective suggestions and assistance for the decision-making of the board of directors, and is responsible for the establishment, improvement and effective implementation of the company’s internal control system.
The board of supervisors shall be responsible to the general meeting of shareholders and supervise the directors, managers and other senior managers of the enterprise to perform their duties in accordance with the law. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors.
The management is responsible for implementing the resolutions of the general meeting of shareholders and the board of directors, presiding over the production and operation management of the company, formulating specific work plans, obtaining business and financial information in time, assessing the implementation of the plan, and appropriately revising the plan according to the actual implementation results. The management is responsible for organizing and leading the daily operation of the enterprise’s internal control.
(2) Organizational structure
The company has established an organizational structure that meets the company’s business model and business management needs in accordance with the provisions of national laws and regulations and the requirements of regulatory authorities. According to its own production and operation characteristics and the needs of business development, the company has established central platform functional departments, manufacturing plant departments and base safety, environmental protection and administrative support departments that match the company’s management framework system. The central platform functional departments include strategic planning and operation, finance, marketing, procurement management, product research and development, plan and order fulfillment Quality and customer service, production engineering, human resources, intelligent manufacturing and it, securities, internal audit and other departments;
Manufacturing plant departments include technology department, quality assurance department, production department and equipment and facility guarantee department. According to the company’s management system and work flow, each department has a clear division of responsibilities and authorities, mutual cooperation and mutual restriction, smooth information communication channels, and formed an effective mutual check and balance mechanism to ensure the orderly progress of the company’s business activities. (3) Human resources
During the operation, the company has established a more scientific personnel management system in combination with the actual situation of the company, and has made clear provisions on the employment, training, education and management, assessment, promotion, reward and punishment and dismissal of employees; Specify the post responsibilities, clarify the knowledge and skills required by each post, and let the company’s employees fully understand their responsibilities; And continuously improve the ability and level of employees through training and assessment. The company pays enough attention to human resources, a key factor affecting the company’s internal control, and attaches importance to their professional ethics and professional competence when selecting and hiring employees; The company formulates and implements targeted training plans to ensure that each employee can effectively perform their duties. The company has also established a performance evaluation system to evaluate the ability, attitude and performance of employees, so as to promote the organic unity of responsibilities and rights of employees at all levels and the effective implementation of the company’s internal control. The current human resources system of the company can basically ensure the stability of human resources and the demand of all departments of the company for human resources.
(4) Internal audit
The company has set up an internal audit department, which independently exercises audit functions and powers under the guidance of the audit committee of the board of directors.
The internal audit department is responsible for the company’s internal audit supervision, including supervising and inspecting the implementation of the company’s internal control system, evaluating the scientificity and effectiveness of internal control, and putting forward suggestions for improving internal control; Regularly and irregularly conduct audit and routine inspection on finance, internal control, major projects and other businesses to control and prevent risks. The internal audit department shall report the internal control defects found in the supervision and inspection in accordance with the internal audit procedures; Have the right to report directly to the board of directors, its audit committee and the board of supervisors on the major defects of internal control found in the supervision and inspection.
(5) Corporate culture
The company pays attention to strengthening the construction of corporate culture, formulates the employee handbook, earnestly implements the post responsibility system, cultivates positive values and sense of social responsibility, always adheres to the values of “customer orientation, efficient coordination, professional focus, joint creation and sharing”, actively implements the vision of “becoming a leader in green intelligent manufacturing of high-precision electronic circuits”, and adheres to the mission of “innovation driven and value interconnection”, Establish modern management concept and strengthen risk awareness. The company regularly carries out the selection of excellent employees, establishes the role of a benchmark, and guides all employees to learn from excellent employees; Carry out lean production activities regularly and let all employees participate in production management innovation. Tiktok continues corporate events through continuous publishing of its internal publications, Mingyang Tian Di, and the release of official account tweets and short video platforms. It creates a good learning atmosphere and promotes corporate culture. The employees’ awareness of the annual competitive activities and collective sports performances will be enriched through the organization of employees’ awareness of sports life.
The senior managers of the company can play a leading role in the construction of corporate culture; Employees of the enterprise can abide by the code of conduct of employees and earnestly perform their post responsibilities; The company’s senior managers and employees can abide by discipline and law
Act according to law.
(6) Social responsibility
In strict accordance with relevant laws, regulations and policies, combined with the actual situation and the characteristics of industrial enterprises, the company pays attention to safety production, product quality and environmental protection, actively assumes social responsibility, and formulates the investigation and control of environmental hazards
