Internal control evaluation report in 2021
Hitevision Co.Ltd(002955) 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 Hitevision Co.Ltd(002955) (hereinafter referred to as the "company") internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company's internal control as of December 31, 2021, the benchmark date of the internal control 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, 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.
(I) evaluation scope of internal control
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.
(II) control environment
1. Corporate governance and organizational structure
(1) Corporate governance
In accordance with the provisions of the company law, the articles of association and other laws and regulations, the company has established a standardized corporate governance structure and rules of procedure, clarified the responsibilities and authorities in decision-making, implementation and supervision, and formed an effective division of responsibilities and check and balance mechanism.
The company has established the corporate governance structure of the general meeting of shareholders, the board of directors, the board of supervisors and the managers, formulated the rules and regulations based on the articles of association, the rules of procedure of the general meeting of shareholders, the rules of procedure of the board of directors, the rules of procedure of the board of supervisors and the working rules of the general manager, clarified the responsibilities and authorities in decision-making, implementation and supervision, and formed a scientific and effective division of responsibilities and check and balance mechanism.
Within the board of directors, four committees of strategy, audit, remuneration and assessment and supervision have been established according to their functions. The company has formulated the working rules of the strategy committee of the board of directors, the working rules of the audit committee of the board of directors, the working rules of the remuneration and assessment Committee of the board of directors and the working methods of the supervision committee of the board of directors. The office of the board of directors of the company, as the affairs working organization under the board of directors, coordinates and handles the work of the third meeting. In order to further improve the corporate governance structure, improve the structure of the board of directors, strengthen the restraint and supervision mechanism for internal directors and managers, protect the interests of minority shareholders and creditors, and promote the standardized operation of the company, the company has formulated the working system of independent directors.
(2) Organization
According to the division of responsibilities and in combination with the actual situation of the company, the company has established education BG, China commercial BG, overseas BG, high-end manufacturing BG, smart solution Bu and supply chain platform, and set up seven functional departments, including the office of the board of directors, the office of the general manager, the Institute of education and technology, the finance department, the human resources department, the information department and the internal control department, and formulated the corresponding department responsibilities. Each functional department has a clear division of labor, performs its own duties, cooperates and supervises each other. During the reporting period, the company performed necessary supervision on the operation, capital, personnel, finance and other major aspects of wholly-owned or holding subsidiaries through institutional arrangements in accordance with relevant laws and regulations, the articles of association and the subsidiary management system.
2. Human resource management
The company implements the all staff labor contract system, strictly abides by the new labor law, and formulates a more systematic human resource management system, such as employee manual, employee welfare management system, position and rank management system, employee welfare management system, training management system and other systems and relevant management methods, pays attention to the improvement of employees' skills and career planning, and actively carries out all kinds of training, It provides a good development platform for employees.
3. Corporate culture
The company attaches importance to the construction of corporate culture. Through years of cultural precipitation, the company has built a set of corporate culture system covering the company's mission, corporate vision and values. A series of cultural landing projects have been carried out from four aspects: cultural construction, cultural publicity, cultural practice and cultural upgrading. In the cultural construction, the company has carried out cultural shaping and content refining; In the cultural publicity, through the operation and publicity platforms such as posters on the wall and cultural official account all over the country, and organizing a series of employee activities with the theme of values, the values of customer orientation, integrity and innovation, openness and cooperation, and sincerity and boldness were once again emphasized in the activities. In cultural practice, actively organize all departments to hold seminars on values and behavior standards, so that all team members can create consensus and work out the values and behavior standards of their own departments. At the same time, cultural values are also incorporated into performance evaluation. In the cultural upgrading, it covers the satisfaction survey of functional departments and other projects. In the process of implementing a series of corporate culture construction, the company always adheres to the company's vision: ambition, joint efforts to forge ahead, pursuit of excellence and long-term foundation, and deeply publicizes and implements the company's core values to shape the company's soft cultural strength.
At the same time, the company actively establishes the concept of modern enterprise management, strengthens risk awareness, and gives full play to the leading role of directors, supervisors, managers and other senior managers in the construction of enterprise culture.
(III) risk assessment
Pay attention to strategic decision-making risk, environmental risk and procedure risk in internal risk assessment, sort out and optimize main authorities and business processes, design key control nodes, and establish effective communication channels and mechanisms for suspicious and inappropriate matters and activities in the business process, so that management, employees and customers can communicate fully and efficiently, and risk information can be effectively conveyed, So that the management can take timely and appropriate response actions in the face of various changes. (IV) control activities
1. Financial management
In accordance with the accounting law of the people's Republic of China, the accounting standards for business enterprises and the articles of association, the company has carried out systematic system construction for the company's financial management, planned and established a relatively perfect financial management and internal accounting control system. In order to ensure the maximization of shareholders' interests and asset safety, the company has formulated budget management system, financial report management system, raised fund management system, fund management system, financial analysis management system, accounts receivable management system, financial internal audit management system, etc. through a strict internal control system, the company controls financial risks, raises funds reasonably and operates assets effectively, Control costs and expenses, standardize income distribution, change the company form and other financial behaviors, and realize the optimal combination of the company's assets and maximize benefits. 2. Sales and collection management
The company has formulated a series of systems and processes related to sales and collection. The company has made strict regulations on all links of sales and collection from the aspects of market development, sales price policy formulation, order processing of different sales modes, revenue recognition, invoicing, recovery and supervision of accounts receivable, provision for bad debt and so on, so as to control the sales risk to the greatest extent.
3. Foreign investment management
In accordance with the guidelines of internal control norms, the company has established the foreign investment management system, which stipulates the investment approval authority, approval process, disclosure standards and other links. The company's foreign investment activities are carried out in strict accordance with the foreign investment management system, which is conducive to reducing the company's foreign investment risk.
In order to strengthen the management and control of subsidiaries and prevent investment risks, according to the relevant systems and governance requirements of the company, the company has formulated the subsidiary management system, which clearly stipulates the business authorization, business decision-making management, fund management, human resource management and information management of subsidiaries. The system is conducive to improving the overall operation efficiency of the company and protecting the interests of the company and the majority of investors.
4. Guarantee and related party transactions
The company has standardized related party transactions, external guarantees and other major matters in the articles of association, related party transaction management system and external guarantee management system. In terms of related party transactions, it has standardized the determination and management of transaction prices, approval and information disclosure; In terms of external guarantee, the approval and risk management of external guarantee have been standardized.
5. Procurement management
The company has formulated the procurement management system, which clearly stipulates the management of procurement and materials, reasonably plans and implements the institutions and posts of procurement and payment business, and defines the procedures of material requisition, approval, procurement or bidding procurement, acceptance and so on; The payment of accounts payable and prepayments can only be handled after the relevant procedures are complete. 6. Physical asset management
The company has formulated fixed assets management system, warehouse management system, external warehouse management system, employee borrowing management system, inventory inventory inventory management system, etc. to control the key links such as acceptance and warehousing, receiving and issuing, storage and disposal of physical assets, and has taken measures such as division of responsibilities, regular physical inventory, property records, account and actual verification, property insurance, etc, It can effectively prevent the theft, theft, damage and major loss of various physical assets, and effectively curb the growth of Dead Inventory.
7. Research and development
The company always adheres to the development concept of "integrity and innovation", takes innovation as the inexhaustible driving force for the sustainable development of the enterprise, actively pays attention to the technological change and progress of the industry according to the development strategy and the technical level of the same industry, grasps the direction of customer demand, promotes scientific and technological research and development, and requires efficiency and efficiency from innovation.
8. Quality management
The company has established a complete quality control system and quality control measures in the process of review and inspection according to the requirements of IOS9001, and has been able to implement the relevant quality control procedures and incoming materials in the daily production process.
9. After sales maintenance management
The company strictly implements the national "Three Guarantees" regulations, establishes a complete after-sales maintenance management system, controls the warehousing and storage of repaired items, maintenance material requisition, maintenance test, maintenance delivery and other links, and takes measures such as division of responsibilities and level by level audit, so as to comply with the provisions and procedural requirements of relevant systems in daily implementation.
10. Information system
According to the organizational structure, business scope, technical requirements and other factors, the company has established SAP management system, OA office system, sac budget system, CBS cross bank cash management platform, CRM management system, BCS management system, SRM management system, EHR system, PLM management system, as after-sales management system, bidding management system and other information systems. The information management department of the company has formulated the information management system and corresponding operation specifications, And entrust professional institutions to provide security services in corresponding fields such as data backup to ensure the stable operation, safety and reliability of each system. The internal control department continues to optimize the Hierarchical Authorization and separation of responsibilities of various departments and business links, prevent and control errors and fraud in advance through the information system, improve work efficiency, reduce management costs, and comprehensively improve the modern management level of the enterprise. Through the above information system, the company has built a three-dimensional communication platform covering important businesses, such as procurement, production, sales, manpower and finance. With the help of information means, the company optimizes process management and realizes seamless management.
(V) information and communication
According to the actual situation of internal production and operation, the company has formulated a scientific and effective information transmission mechanism, and uses modern information platforms such as business process system, e-mail system, collaborative office tools and internal network to make the internal information transmission timely, accurate and rigorous. Managers at all levels can effectively communicate, timely grasp relevant information and instructions according to their respective posts and correctly perform their duties. The internal information communication mechanism of the company covers top-down and bottom-up financial accounting information, production and operation information, capital operation information, personnel change information, technological innovation information, comprehensive management information, etc. The company strengthens the timely transmission of daily business information and determines the reporting system of major events to ensure the coordination and unity of information in business, finance and law.
(VI) supervision
The board of directors of the company has an audit committee and a supervision committee, and has formulated corresponding rules of procedure of the Committee. Among them, the supervision committee is responsible for establishing and improving the company's integrity and anti-corruption system, strengthening the integrity education of employees and improving the overall integrity awareness of the company. The audit committee is responsible for supervising and reviewing the implementation of the internal control system. The audit committee has an internal control department equipped with full-time auditors to exercise audit functions and powers independently and objectively without interference from other departments or individuals, and is responsible for the internal audit of the company. The internal control department shall supervise and inspect the effectiveness of internal control in accordance with laws and regulations, the company's internal audit management system and other relevant rules and regulations, maintain the company's business order and financial system, establish and improve the internal control system, and effectively implement and improve the operation status
