Dongxing Securities Corporation Limited(601198)
About Hitevision Co.Ltd(002955)
Verification opinions of 2021 internal control evaluation report
Dongxing Securities Corporation Limited(601198) (hereinafter referred to as ” Dongxing Securities Corporation Limited(601198) ” or “sponsor”) as the sponsor of Hitevision Co.Ltd(002955) (hereinafter referred to as ” Hitevision Co.Ltd(002955) ” or “company”) for initial public offering and listing of a shares, in accordance with the administrative measures for securities issuance and listing sponsor business and the stock listing rules of Shenzhen Stock Exchange According to the requirements of relevant laws, regulations and normative documents such as the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and the basic norms of enterprise internal control, the 2021 internal control evaluation report issued by the Hitevision Co.Ltd(002955) board of directors was verified, and the following verification opinions were issued:
1、 The sponsor’s verification of the company’s 2021 internal control evaluation report
Dongxing Securities Corporation Limited(601198) the sponsor representative carefully reviewed the 2021 internal control evaluation report of Hitevision Co.Ltd(002955) from the aspects of Hitevision Co.Ltd(002955) internal control environment, internal control system construction The integrity, rationality and effectiveness of its internal control and the authenticity and objectivity of the 2021 internal control evaluation report were verified in terms of the implementation of internal control.
2、 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.
The main units included in the evaluation scope include the company and its holding subsidiaries. The unit assets included in the evaluation scope account for 100% of the total assets in the company’s consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company’s consolidated financial statements.
This year’s internal control evaluation focuses on corporate governance and organizational structure, human resource management, corporate culture, financial management, sales and collection, foreign investment, guarantee and related party transactions, procurement management, asset management, research and development, quality management, after-sales maintenance management, information system, etc.
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.
3、 Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the requirements of rules and regulations such as internal audit management system, basic norms of enterprise internal control and relevant guidelines.
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the factors such as the company’s scale, industry characteristics, risk preference and risk tolerance, the board of directors of the company distinguished the internal control of financial reports from the internal control of non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company. The identification standards of internal control defects determined by the company are as follows:
(I) identification criteria for defects in internal control over financial reporting
1. The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Potential misstatement project major defects important defects general defects
Potential misstatement of operating revenue ≥ 0.3% of operating revenue ≤ potential misstatement potential misstatement 0.5% of operating revenue 0.5% of operating revenue 0.3%
Potential misstatement of total profit ≥ 3% of total profit ≤ potential misstatement ＜ 5% of total profit ＜ 5% 3% of total profit
Potential misstatement of total assets ≥ 1% of total assets ≤ potential misstatement ＜ 3% of total assets ＜ 3% of total assets
(2) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defect: a defect in internal control, alone or in combination with other defects, has a reasonable possibility, which makes it impossible to prevent, detect and correct major misstatement in the financial report in time. For example, the company’s directors, supervisors and management have a significant impact on the financial report; Major misstatement in the current financial report found by the certified public accountants of the accounting firm hired by the company but not identified by the company’s internal control; The supervision of enterprise audit committee and internal audit institution on internal control is invalid; Other defects that may affect the correct judgment of report users.
Important defects: internal control defects, alone or together with other defects, have a reasonable possibility to prevent, detect and correct the misstatement in the financial report that should be paid attention to by the board of directors and management although it does not reach or exceed the significant level. For example, accounting policies are not selected and applied in accordance with GAAP; Failure to establish anti fraud procedures and control measures; No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control; 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: defects that do not belong to the judgment criteria of major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
(1) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Major defects: the amount of direct property loss ≥ operating income 1.5%; Important defects: operating income 0.5% ≤ amount of direct property loss ＜ operating income 1.5%; General defect: the amount of direct property loss is less than operating income 0.5%.
(2) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The identification of internal control defects in non-financial reports is mainly based on the impact of defects on the effectiveness of business processes and the possibility of occurrence.
Major defects: if the possibility of defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal; Important defects: if the possibility of defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or significantly deviate from the expected goal; General defects: if the possibility of defects is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal.
2、 Internal control evaluation conclusion
According to the identification of major defects in the company’s internal control over financial reporting, on the benchmark date of internal control evaluation report, December 31, 2021, the company has no major defects or important defects in the company’s internal control over financial reporting, and no major defects or important defects in the company’s internal control over non-financial reporting have been found. 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 from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report.
5、 Verification opinions of the recommendation institution
After verification, the recommendation institution believes that:
The corporate governance structure of the company is relatively sound, and the existing internal control system and implementation meet the requirements of relevant laws and regulations such as the stock listing rules of Shenzhen Stock Exchange, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, the guidelines for the governance of listed companies, the basic norms for enterprise internal control and the requirements of securities regulatory authorities, The company has maintained effective internal control in all major aspects related to the business operation and management of the enterprise; The 2021 internal control evaluation report issued by the board of directors of the company reflects the construction and operation of its internal control system.
Dongxing Securities Corporation Limited(601198) April 27, 2022
