Securities code: 000635 securities abbreviation: Ningxia Younglight Chemicals Co.Ltd(000635) Announcement No.: 2022-007 Ningxia Younglight Chemicals Co.Ltd(000635)
Announcement on the appointment of 2021 financial report audit institution
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
In 2020, the name of the financial report audit institution appointed was Zhongshen Zhonghuan Certified Public Accountants (special general partnership) (hereinafter referred to as Zhongshen Zhonghuan). In order to ensure the independence, objectivity and fairness of the company's audit work, and in combination with the actual situation of the company, the company plans to appoint Daxin Certified Public Accountants (special general partnership) (hereinafter referred to as Daxin) as the audit institution of the company's 2021 annual financial report. The company has communicated with the auditor of the financial report of 2021 in advance. The auditor is aware of the matter and confirms that it has no objection.
1、 Basic information on the appointment of financial report audit institutions
(I) basic information
1. Institutional information
Daxin was founded in 1985 and transformed into a special general partnership firm in March 2012. Its registered address is room 1504, College International Building, No. 1, Zhichun Road, Haidian District, Beijing. Daxin has 31 branches across the country, set up branches in Hong Kong and initiated the establishment of Daxin international accounting network in 2017. At present, the global members of Daxin international accounting network include 26 network members such as the United States, Canada, Australia, Germany, France, the United Kingdom and Singapore. Daxin has the practicing certificate of accounting firm issued by the Ministry of finance. It is one of the earliest accounting firms engaged in securities business in China and one of the first to obtain the audit qualification of H-share enterprises. It has nearly 30 years of securities business experience.
2. Personnel information
The chief partner is Mr. Hu Yonghua. As of December 31, 2021, Daxin has 4262 employees, including 156 partners and 1042 certified public accountants. More than 500 certified public accountants have signed the audit report of securities service business.
3. Business information
In 2020, the business revenue was 1.832 billion yuan, providing services to more than 10000 companies. Among the business income, the audit business income is 1.568 billion yuan and the securities business income is 584 million yuan. In 2020, there were 181 annual report audit clients of listed companies (including H shares), with an average asset of 24.951 billion yuan and a total charge of 231 million yuan. It is mainly distributed in manufacturing, information transmission software and information technology services, water conservancy environment and public facilities management, power, heat, gas and water production and supply, transportation, storage and postal services. The company has audit experience in Listed Companies in the same industry.
4. Investor protection ability
The sum of the cumulative compensation limit of occupational insurance and the occupational risk fund withdrawn exceeds 80 million yuan, and the withdrawal of occupational risk fund and the purchase of occupational insurance comply with relevant regulations.
Civil liability in civil litigation related to practice in recent three years: in December 2020, Hangzhou intermediate people's court ruled that the exchange and other institutions should bear joint and several liability for compensation in the "Wuyang debt" case, and the exchange appealed against the judgment. In September 2021, the higher people's Court of Zhejiang Province made a judgment and upheld the original judgment.
5. Independence and integrity record
Daxin does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. In the past three years, Daxin has been subject to administrative punishment once and administrative supervision measures 14 times, and has not been subject to criminal punishment, self-discipline supervision measures and self-discipline sanctions. In the past three years, 2 employees have been subject to administrative punishment and 25 people have been subject to supervision and management measures.
(II) project information
1. Basic information
Project partner to be signed: Ding Tingting
It has the professional qualifications of Chinese certified public accountant, Chinese certified asset appraiser, Chinese certified tax agent and international certified internal auditor. He became a certified public accountant in 1999, began to audit listed companies in 2000 and began to practice in the exchange in 2013. The audit reports of listed companies signed in recent three years include Guanhao Biotech Co.Ltd(300238) 2019 and 2020 audit reports, Qinghai Huzhu Barley Wine Co.Ltd(002646) 2019 and 2020 audit reports. Not part-time in other units.
Certified public accountant to be signed: Li Cheng
It has the professional qualification of certified public accountant and land appraiser. He became a certified public accountant in 2009, began to audit listed companies in 2012 and began to practice in the exchange in 2013. The audit reports of listed companies signed in recent three years include Baiyang Investment Group Inc(002696) 2018 and 2019 annual audit reports. Not part-time in other units.
Proposed project quality reviewer: Song Zhizhong
Song Zhizhong has been engaged in audit related work in Daxin Certified Public Accountants (special general partnership) since November 1997. The audit reports of listed companies reviewed in recent three years include Shantou Wanshun New Material Group Co.Ltd(300057) , Mys Group Co.Ltd(002303) , Kennede Electronics Mfg.Co.Ltd(002723) , Guangxi Guidong Electric Power Co.Ltd(600310) , Guilin Tourism Corporation Limited(000978) , Ledman Optoelectronic Co.Ltd(300162) , Walvax Biotechnology Co.Ltd(300142) , Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) , Ife Elevators Co.Ltd(002774) , Shenzhen Weiguang Biological Products Co.Ltd(002880) , Teyi Pharmaceutical Group Co.Ltd(002728) , Shenzhen Liande Automatic Equipment Co.Ltd(300545) , Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) , Xiamen Anne Co.Ltd(002235) , Baiyang Investment Group Inc(002696) . Not part-time in other units.
2. Integrity record
In the past three years, the partners of the project to be signed, the signing certified public accountants and the quality review personnel have not been subject to criminal punishment due to their professional behavior, administrative punishment, supervision and management measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as stock exchanges and industry associations.
3. Independence
The partners of the project to be signed, the signing certified public accountants and the quality review personnel do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, do not hold and buy or sell the company's shares, and do not have other economic interests that affect the independence. Regular rotation meets the requirements.
4. Audit fees.
It is proposed to employ Daxin as the company's 2021 annual audit institution for one year to be responsible for the audit of the company's 2021 annual financial statements. The audit fee is 270000 yuan (including tax), and the audit fee of the previous annual report was 350000 yuan (including tax), which is more than 20% lower than that of the previous year. The audit fee is determined on the basis of industry standard and market price, combined with the actual situation of the company, and comprehensively considering the professional and technical level of professional services, personnel level, experience, working time and other factors involved in the audit.
2、 Description of the proposed change of financial report audit institution
(I) previous financial report audit institutions and audit opinions of the previous year
The former financial report audit institution of the company is Zhongshen Zhonghuan, which provides the company with financial report and internal control audit services from 2018 to 2020. The type of audit opinion in 2020 is standard unqualified opinion.
The company does not have the situation of dismissing the company after entrusting the company to carry out part of the audit work.
(II) reasons for the proposed change of financial report audit institution
In order to ensure the independence, objectivity and fairness of the company's audit work, and in combination with the actual situation of the company, the company plans to appoint Daxin as the audit institution of the company's 2021 financial report. The company has communicated with the auditor of the financial report of 2021 in advance. The auditor is aware of the matter and confirms that it has no objection.
(III) communication between the listed company and previous accounting firms
The company has fully communicated with Zhongsheng Zhonghuan and Daxin on the appointment of Daxin as the auditor of the company's 2021 financial report. All parties have clearly known the matter and confirmed that they have no objection. Zhongshen Zhonghuan and Daxin will do a good job of communication and cooperation in accordance with the requirements of China Auditing Standards for certified public accountants No. 1153 - communication between former certified public accountants and subsequent certified public accountants. 3、 It is proposed to change the performance procedures of the financial report audit institution
（1） Deliberations of the audit committee of the board of directors
The company convened the audit committee of the board of directors on January 21, 2022, deliberated and approved the announcement on the appointment of 2021 annual financial report audit institution, agreed to appoint Daxin as the company's 2021 annual financial report audit institution, and agreed to submit this proposal to the 24th Meeting of the eighth board of directors for deliberation. The Audit Committee believes that Daxin has the qualification of securities and futures related business audit, has the experience and ability to provide audit services for listed companies, and can audit the company's financial status independently. The appointment of Daxin does not affect the operation of the company or damage the interests of the company, nor does it damage the interests of shareholders of the company, especially small and medium-sized shareholders. （2） Opinions issued by independent directors
The independent directors of the company have issued prior approval opinions and independent opinions on the appointment of 2021 annual financial report audit institution on January 21 and January 27, 2022 respectively. The independent directors believe that the appointment of 2021 annual financial report audit institution meets the needs of the company's financial audit work, and Daxin holds the business license related to securities and futures, Have the business qualification as the audit institution of listed companies, have the experience and ability to provide audit services for listed companies, be able to audit the company's financial status independently, meet the requirements of the company's financial report audit, and employ Daxin without affecting the company's operation or damaging the company's interests, Nor does it harm the interests of the company's shareholders, especially the minority shareholders. The board of directors has obtained the prior written approval of the independent directors before considering the proposal on the appointment of the 2021 annual financial report audit institution. The independent directors agreed to submit the appointment of Daxin as the company's 2021 annual financial report audit institution to the 24th Meeting of the eighth board of directors for deliberation. 4、 Documents for future reference
1. Resolutions of the 24th Meeting of the 8th board of directors;
2. Resolutions of the audit committee of the 8th board of directors;
3. Prior approval opinions and independent opinions of independent directors.
Ningxia Younglight Chemicals Co.Ltd(000635) board of directors January 28, 2022
