Rockontrol Technology Group Co.Ltd(688051) : internal control evaluation report in 2021

Rockontrol Technology Group Co.Ltd(688051)

Internal control evaluation report in 2021

Rockontrol Technology Group Co.Ltd(688051) 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

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, due to major defects in the internal control over financial reporting, the board of Directors believes that the company has failed to maintain 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 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 Rockontrol Technology Group Co.Ltd(688051) , Taiyuan rockjiahua Industry Co., Ltd., Beijing Jiahua Zhilian Technology Co., Ltd., Taiyuan rockjiahua Data Technology Co., Ltd., Jiahua Zhizao (Taiyuan) Technology Co., Ltd., Jiahua wisdom (Taiyuan) science and Technology Co., Ltd., Shandong rock Rockontrol Technology Group Co.Ltd(688051) Co., Ltd., Chengdu Jiahua wulianyun Technology Co., Ltd., rockjiahua (Chongqing) Technology Co., Ltd Chongqing zhijiyuan science and Technology Industry Development Co., Ltd., Shanxi tianyilan Environmental Technology Co., Ltd., Taiyuan huahuan Ecological Environment Monitoring Service Co., Ltd., Jiahua ( Inner Mongolia Eerduosi Resources Co.Ltd(600295) city) science and Technology Co., Ltd., Hainan rock Rockontrol Technology Group Co.Ltd(688051) Co., Ltd. 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, human resources, social responsibility, corporate culture, capital activities, procurement and business outsourcing, asset management, sales business, research and development, financial report, comprehensive budget, contract management, internal information transmission and information system 4 The high-risk areas of focus mainly include:

Customer management, sales business, procurement and business outsourcing, research and development, capital activities 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

None (II) Basis of internal control evaluation and identification standard of internal control defects

The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the management requirements of the company's internal control system. 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

The defect may lead to misstatement amount ≥ 5 million and 3 million ≤ misstatement amount 5 million and misstatement amount 3 million

Net profit misstatement Jinwan

forehead

The defect may lead to the proportion of misstatements in net assets ≥ 1% 0.5% ≤ the proportion of misstatements in net assets the proportion of misstatements in net assets 1% 0.5%

Description of proportion of amount in net assets: 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 Fraud of directors, supervisors and senior managers of the company;

2. The amount of misstatement in the current financial report meets the standard of major defects;

3. Major defects that have been found and reported to the management have not been corrected within a reasonable time;

4. The internal control supervision of the company by the audit committee and the internal audit department is invalid;

Important defects 1 Failure to select and apply accounting policies in accordance with GAAP;

2. Failure to establish anti fraud procedures and control measures;

3. Important defects after communication are not corrected within a reasonable period;

4. The control over the ending financial reporting process is invalid;

5. The amount of misstatement in the current financial report meets the standard for major defects, but fails to meet the standard for major defects;

General defects are other control defects except 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

The amount of direct economic loss caused by direct economic loss accounts for 0.3% ≤ the amount of direct economic loss caused by direct economic loss accounts for the current net assets ≥ 0.5% and the amount accounts for the current net assets current net assets 0.3%

Proportion 0.5%

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 1 The company's violation of national laws and regulations leads to the investigation by relevant departments, and is ordered to withdraw from the industry, or its business license is revoked or severely punished;

2. Unscientific decision-making procedures of the company, resulting in major decision-making mistakes and major property losses to the company;

3. Major safety production, environmental protection, product quality or service accidents;

4. The company's important business lacks system control or the system fails;

5. Major or important defects in the company's internal control cannot be rectified;

6. The turnover rate of senior managers and core technicians of the company exceeds 30%;

Important defects 1 The company's decision-making procedure is unscientific, resulting in errors of relative importance;

2. Major safety production, environmental protection, product quality or service accidents;

3. Major defects or general defects in the company's internal control have not been rectified;

4. The company violates the internal control management system of the enterprise, resulting in losses;

5. The turnover rate of business personnel in key positions exceeds 30%

General defects and other internal control defects that do not constitute major defects or important defects;

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 any major defects in internal control over financial reporting during the reporting period

√ yes □ no

According to the above identification standards of internal control defects in financial reports, the company had 2 major defects in internal control of financial reports during the reporting period.

by

report

Internal benchmark of financial report control major defects as of the report issuing date describe the defect rectification in the business field / whether the rectification is completed on the rectification plan date

Cheng Cheng

change

The company is deciding to start a company to carry out special comprehensive management. Does the company attach importance to the supplier's access qualification

The new phase network communication business of the exhibition private network communication has been sorted out and seriously implemented

When closing a new business, rectification measures are taken in the business and the business is strictly implemented

The evaluation and technical evaluation were not carried out in the full and effective decision-making, and strengthened at the same time

The internal supervision of the business chain was not involved to ensure the procurement control

The upstream and downstream control procedures for business risks can operate effectively. company

The bank has fully demonstrated that suppliers and customers have strengthened credit management for customers,

Analyze the customer's credit risk through the customer's business situation and capital

Comprehensive judgment of necessary funds and legal disputes

The company has formulated and implemented the investigation and quality judgment of customer credit

It is suspected that no measures have been taken to issue the management of customer credit evaluation

Necessary risks