Shenzhen Guohua Network Security Technology Co.Ltd(000004)
Special instructions on matters involved in the internal control audit report with negative opinions issued by the accounting firm
Shenzhen Guohua Network Security Technology Co.Ltd(000004) (hereinafter referred to as ” Shenzhen Guohua Network Security Technology Co.Ltd(000004) ” or “the company”) was audited by Grant Thornton Certified Public Accountants (special general partnership) (hereinafter referred to as “Grant Thornton certified public accountants”). Grant Thornton Certified Public Accountants issued a negative internal control audit report on the company in 2021. According to the relevant requirements of China Securities Regulatory Commission and Shenzhen Stock Exchange, The board of directors of the company explains the matters involved in the internal control audit report as follows:
1、 Matters leading to negative opinions in the internal control audit report
(I) significant defects in internal control related to goodwill impairment
Shenzhen Guohua Network Security Technology Co.Ltd(000004) company issued the performance forecast for 2021 (hereinafter referred to as the performance forecast) on January 26, 2022. It is estimated that the net profit attributable to shareholders of the listed company of Shenzhen Guohua Network Security Technology Co.Ltd(000004) company in 2021 will be 100 million yuan – 148 million yuan. According to the 2021 financial statements approved by Shenzhen Guohua Network Security Technology Co.Ltd(000004) company at the 7th Meeting of the 10th board of directors on April 28, 2022, the audited net loss attributable to the shareholders of the listed company is 509.11 million yuan Shenzhen Guohua Network Security Technology Co.Ltd(000004) company failed to fully consider the target company Beijing Zhiyou Wangan Technology Co., Ltd. failed to complete the performance commitments in 2021 during the goodwill impairment test, and the goodwill impairment test was not prudent, resulting in insufficient provision for goodwill impairment, resulting in significant deviation between the 2021 financial statements and the performance forecast. (II) significant defects in internal control related to income cut-off
Shenzhen Guohua Network Security Technology Co.Ltd(000004) company has cut-off problems in revenue recognition. Revenue is recognized when customers do not substantially obtain control over relevant goods or services, resulting in revenue recognition in advance, resulting in significant deviation between the financial statements of 2021 and the performance forecast.
(III) there are major defects in internal control related to employee compensation and procurement
The Commission of salesperson is paid from the purchase cost, which leads to the confusion of salary and cost, and affects the integrity and accuracy of expenses.
2、 Issue negative opinion internal control audit opinion
Grant Thornton certified public accountants believes that due to the above major defects and their impact on the realization of control objectives, Shenzhen Guohua Network Security Technology Co.Ltd(000004) failed to maintain effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations on December 31, 2021.
3、 Specific measures to eliminate relevant matters and their impact
1. The company will strengthen the prudence of goodwill impairment test in the future;
2. The company will continue to strengthen the communication and control of Finance and business in the future;
3. The company will continue to strengthen the control of cost accounting and salary management in the future.
The board of directors of the company will continue to improve the internal control system, standardize the implementation of the internal control system, strengthen the supervision and inspection of internal control, optimize the internal control environment, improve the internal control management level, strive to eliminate internal control defects as soon as possible and promote the long-term healthy and sustainable development of the company in accordance with the basic norms of enterprise internal control and supporting guidance documents.
It is hereby explained.
Shenzhen Guohua Network Security Technology Co.Ltd(000004) board of directors
April 30, 2002
