Sun Create Electronics Co.Ltd(600990)
Internal control evaluation report in 2021
Sun Create Electronics Co.Ltd(600990) 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 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 the company and all subsidiaries included in the consolidated statements in 2021. 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:
Organizational structure, development strategy, social responsibility, human resources, corporate culture, capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system. 4. High risk areas of focus mainly include:
The fields of "reputation, financial management, project management and related party" and "reputation, financial management and technology". 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
（2） Basis of internal control evaluation and identification standard of internal control defects
According to the enterprise internal control standard system, internal control system and internal control evaluation methods, combined with relevant supporting systems and internal control manual, the company organizes and carries out internal control evaluation on the basis of daily supervision and special supervision of internal control. 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
Total profit misstatement ≥ 5% of total profit, 3% of total profit ≤ misstatement ＜ profit misstatement ＜ 3% of total profit
5% of total profit
Misstatement of total assets ≥ 1% of total assets 0.5% of total assets ≤ misstatement ＜ asset misstatement ＜ 0.5% of total assets
Total output 1%
Misstatement of business income ≥ 1% of business income 0.5% of business income ≤ misstatement ＜ business misstatement ＜ 0.5% of business income
Business income 1%
Direct property loss of more than 5 million yuan (including) and less than 1 million yuan (including) to 5 million yuan and less than 1 million yuan
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) ineffective control environment; (2) Fraud of directors, supervisors and senior managers, including fraud in financial reports, improper use and acquisition of assets and false income, expenses and liabilities; (3) The external audit found that there was a material misstatement in the current financial report, but the company failed to find the misstatement in the process of operation; (4) The supervision of the Audit Committee on the company's external financial report and internal control of financial report is invalid.
Major defects (1) major defects after communication are not rectified; (2) Ineffective internal audit function; (3) There are no corresponding control measures or one or more measures have not been implemented and there is no supplementary and compensatory control over whether to select and apply accounting policies in accordance with generally accepted accounting principles; (4) Failure to establish anti fraud procedures and controls; (5) For the control of accounting treatment of unconventional, complex or special transactions, no corresponding control mechanism has been established or implemented, and there is no corresponding supplementary and compensatory control.
General defects do not belong to the defects within the judgment criteria of 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 direct property loss ≥ 5 million yuan 1 million yuan ≤ direct property loss ＜ direct property loss ＜ 1 million 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: the negative news about enterprise safety, environmental protection, social responsibility, professional ethics and business conditions spread all over the country and was specially investigated by the government or regulatory agencies, causing continuous special reports in the public media. Therefore, the enterprise has adverse events such as capital lending and recovery, suspension or revocation of administrative license, pledge of assets and a large number of claims.
Important defects: the negative news about enterprise safety, environmental protection, social responsibility, professional ethics and business conditions has been continuously reported by the national media for more than three times, and has been concerned and investigated by the industry or regulatory authorities, causing great adverse effects within the industry.
General defects: negative news about enterprise safety, environmental protection, social responsibility, professional ethics and business status has been reported by national media for less than 3 times (including), and the government departments or enterprises of provinces, autonomous regions and municipalities directly under the central government require reporting, which has a certain adverse impact on the reputation of the enterprise.
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
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, 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
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
During the reporting period, the evaluation and test found that the company had general defects in procurement management, asset management and fund management, but did not affect the effectiveness of internal control. 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
The internal control defects of the previous year involved procurement process, information system, system and other aspects, which have been rectified. 2. Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
During the reporting period, the evaluation and test found that the company had general defects in procurement management, asset management, fund management and other aspects, but did not affect the effectiveness of internal control. All defects are being rectified.
In 2022, the company will continue to revise and improve the company's internal control system and optimize business processes. At the same time, the company will implement rectification according to the defect rectification plan in 2021, strengthen the inspection and supervision of internal control, continuously improve the level of internal control management, ensure the long-term operation of internal control management mechanism and promote the stable and healthy development of the company. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Wang Yubao Sun Create Electronics Co.Ltd(600990) April 23, 2022
