Aoyuan Beauty Valley Technology Co.Ltd(000615)
Self evaluation report on internal control in 2021
Aoyuan Beauty Valley Technology Co.Ltd(000615) 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 Aoyuan Beauty Valley Technology Co.Ltd(000615) (hereinafter referred to as the "company") internal control system and evaluation methods, on the basis of daily and special supervision of internal control, The board of directors evaluated the effectiveness of the company's internal control on December 31, 2021 (benchmark date of internal control evaluation report), and the specific contents are as follows:
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 the internal control evaluation report, the company has no major defects in the internal control over financial reporting. 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.
3、 Internal control evaluation
(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 Aoyuan Beauty Valley Technology Co.Ltd(000615) and its holding subsidiaries (grandchildren). The total assets of the units included in the evaluation scope account for 100% of the total assets of the company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue of the company's consolidated financial statements.
The main businesses and matters included in the evaluation scope include: corporate governance structure, subsidiary management, external guarantee, related party transactions, information disclosure, human resource management, risk management, computer information system management, investment management, production management, medical management, procurement and inventory management, sales and collection management, marketing and customer management, fund management, brand management, etc. The content has covered the five elements of enterprise internal control, namely internal environment, risk assessment, control activities, information and communication, and internal supervision.
The high-risk areas of focus mainly include: changes in the market competition environment, related party transactions, major business and investment decisions, sales management, medical management and fund management.
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, and there are no major omissions.
(II) basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with the enterprise internal control standard system, the basic norms of enterprise internal control and other laws and regulations, the articles of association and the actual situation of the company.
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, distinguish the internal control of financial reports from the internal control of non-financial reports, study and determine the specific identification standards of internal control defects applicable to the company, and the board of directors of the company revised the identification standards of internal control defects, The identification standards of internal control defects determined by the company are as follows:
1. 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 important defect general defect
Index name major defect important defect general defect
The amount of potential misstatement of operating income ≥ 0.5% of the total operating income, the amount of misstatement 5% of the total amount of misstatement ≤ the amount of misstatement 0.5% of the total operating income
5% of total income
Potential misstatement amount of total profit ≥ 1% of total profit ≤ misstatement amount 10% of total profit 10% of total profit
The amount of potential misstatement of total assets ≥ 0.5% of total assets ≤ the amount of misstatement 5% of the amount of misstatement 0.5% of total assets
5%
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect degree
(1) Fraud by directors, supervisors and senior managers and causing significant adverse effects to the company;
(2) There are significant accounting errors in the announced financial report;
Major defects (3) the certified public accountant finds that there is a major misstatement in the current financial report, but the internal control fails to find the misstatement in the operation process;
(4) The audit committee and internal audit department of the company have ineffective supervision on the internal control of financial reports.
(1) Fraud by directors, supervisors and senior managers, but without significant adverse impact on the company;
(2) Failure to select and apply accounting policies in accordance with GAAP;
(3) Failure to establish anti fraud procedures and control measures;
Important defect (4) 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;
(5) 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 goal of authenticity and accuracy.
General defects and other internal control defects that do not constitute major defects and important defects.
2. 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 important defect general defect
The amount of loss ≥ 0.5% of the total profit ≤ the amount of loss 5% of the direct amount caused by the total profit, or the amount of loss 5% of the total profit, or 0.5% of the total income, or the amount of loss economic loss ≥ 0.5% of the total income, and 0.05% of the amount ≤ the amount of loss 0.05% of the total income, or the amount or amount of loss ≥ 0.5% of the total assets, Or loss amount of total assets ＜ 0.05% of total assets ≤ loss amount ＜ 0.05% of total assets
0.5% of the total
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 degree
(1) Violation of the company's decision-making procedures, resulting in major decision-making mistakes;
(2) Serious violation of national laws and regulations and administrative punishment by national government departments or public condemnation by stock exchanges;
(3) Abnormal and significant changes in directors, supervisors, senior managers and key technicians of the company; Major defects (4) vicious negative news frequently appears in the media, involving a wide range and the negative impact has not been eliminated;
(5) The company's important business lacks system control or the system fails;
(6) Major defects in the company's internal control have not been rectified;
(7) Causing major safety accidents;
(8) Other circumstances that have a significant adverse impact on the company.
(1) Violating the company's decision-making procedures, resulting in general decision-making mistakes;
(2) There are defects in the company's important business system or system;
(3) Violation of national laws and regulations and administrative punishment by government departments above the provincial level or criticism circulated by stock exchanges;
Major defects (4) serious loss of business personnel in key positions of the company;
(5) Negative news in the media, affecting local areas and having a great impact;
(6) Causing major safety responsibility accidents;
(7) Major defects in the company's internal control have not been rectified;
(8) Other circumstances that have a great adverse impact on the company.
General defects and other internal control defects that do not constitute major defects and important defects.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reports.
According to the above identification standards of internal control defects in financial reporting, the company has no major defects and important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects and important defects in the company's internal control over non-financial reports were found during the reporting period.
(IV) description of other major matters related to internal control
During the reporting period, the company has no other internal control information that may have a significant impact on investors' understanding of the internal control evaluation report.
Aoyuan Beauty Valley Technology Co.Ltd(000615) April 30, 2002
