Lanzhou Ls Heavy Equipment Co.Ltd(603169)
Performance report of the audit committee of the board of directors in 2021
In accordance with the company law, the securities law, the guidelines for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 - standardized operation and other relevant laws and regulations, departmental rules, normative documents, the articles of association of the company, the rules of procedure of the audit committee of the board of directors and other relevant systems, The audit committee of the board of directors of Lanzhou Ls Heavy Equipment Co.Ltd(603169) (hereinafter referred to as "the company") is diligent, scrupulous and prudent in performing its duties. The performance of the audit committee of the board of directors in 2021 is reported as follows:
1、 Basic information of the audit committee of the board of directors
The audit committee of the fourth session of the board of directors of the company is composed of three members, namely Wan Hongbo (independent director), Lei Hailiang (independent director) and Zhang Pulin (non independent director). The chairman is wan Hongbo, an independent director with professional accounting qualification. All members of the audit committee have professional knowledge and business experience competent for the duties of the audit committee, The composition of the members shall comply with the provisions of relevant laws and regulations.
2、 Meetings of the audit committee of the board of directors in 2021
In 2021, the audit committee of the board of directors of the company actively performed its duties in accordance with the company law, the guidelines for the governance of listed companies and other laws and regulations, departmental rules, normative documents, the articles of association, the rules of procedure of the audit committee of the board of directors and other relevant provisions.
In 2021, the audit committee of the board of directors of the company held five meetings, and all members attended all the meetings in person. The details are as follows:
(I) on January 15, 2021, the audit committee of the board of directors held a special meeting for annual report audit. The meeting reviewed the (Unaudited) 2020 financial and accounting statements prepared by the company and the 2020 audit plan of the company, and agreed to submit the 2020 financial and accounting statements of the company to the annual audit accounting firm for audit, The company also negotiated with the annual audit accounting firm to determine the on-site audit work arrangement of the financial report in 2020, communicated the key risk areas and matters in the process of examining and approving the company's financial statements, and preliminarily determined the specific time arrangement of the audit work of the company's financial report in 2020.
(II) on April 14, 2021, the first meeting of the audit committee of the board of directors of the company in 2021 was held. Dahua Certified Public Accountants (special general partnership), an annual audit accounting firm, reported the audit of the 2020 annual report to the audit committee, We discussed and deliberated on the first draft of the company's 2020 annual report, the analysis of 2020 business results, main accounting data and financial indicators and internal control report, and the first quarter report of 2021, and agreed to submit the company's 2020 annual report and summary and the first quarter report of 2021 to the 14th meeting of the Fourth Board of directors for deliberation.
(III) on July 14, 2021, the second meeting of the audit committee of the board of directors of the company in 2021 was held to discuss and consider the proposal on hiring financial audit institutions and internal control audit institutions in 2021, and it was agreed to submit the proposal to the 16th meeting of the Fourth Board of directors of the company for deliberation.
(IV) on July 21, 2021, the third meeting of the audit committee of the board of directors of the company in 2021 was held. The meeting discussed and deliberated on the full text and summary of the company's 2021 semi annual report, and agreed to submit the full text and summary of the company's 2021 semi annual report to the 17th meeting of the Fourth Board of directors for deliberation.
(V) on October 15, 2021, the fourth meeting of the audit committee of the board of directors of the company in 2021 was held, discussed and deliberated on the relevant situation of the third quarter report of 2021, and agreed to submit the third quarter report to the 21st Meeting of the Fourth Board of directors of the company for deliberation.
3、 Main work of the audit committee of the board of directors in 2021
In the work of 2021, the audit committee of the board of directors of the company timely held various audit committee meetings in accordance with the relevant provisions of the CSRC and Shanghai Stock Exchange, fully understanding the operation and development of the company, ensuring sufficient time and energy to complete its duties, and effectively performed the review and supervision functions of the audit committee, It has played a constructive role in the decision-making of the board of directors and the standardized operation of the company.
(I) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
Dahua Certified Public Accountants (special general partnership), an external audit institution, has the qualification to audit securities, futures and other related businesses, adheres to the independent audit with a fair and objective attitude, and completes the audit work entrusted by the company on time. In the audit work, Dahua Certified Public Accountants (special general partnership) and its audit members have always maintained the dual independence in form and substance, and adhered to the basic principles of professional ethics.
2. Discussion and communication with external audit institutions
During the audit, the audit committee and Dahua Certified Public Accountants (special general partnership) had full communication on the audit scope, audit plan and audit methods in the annual report audit. Urge the annual audit certified public accountants to audit according to the agreed plan and submit the audit report within the agreed time limit. No other major matters that should be disclosed but not disclosed are found in the audit.
3. Monitor and evaluate the diligence of external audit institutions
The Audit Committee believes that Dahua Certified Public Accountants (special general partnership) was diligent and conscientious during the audit of the company and followed the professional standards of independence, objectivity and impartiality.
(II) review the company's financial report and express opinions
During the reporting period, we carefully reviewed the company's four financial reports. It is believed that the financial report of the company during the reporting period is prepared in accordance with the accounting standards for business enterprises, which fairly reflects the financial status, operating results and cash flow of the company, and there is no major misstatement caused by fraud or error, no adjustment of major accounting errors, major changes in accounting policies and estimates (except for changes in applicable standards and the requirements of the latest national regulations) Matters involving important accounting judgments and leading to non-standard unqualified audit reports.
(III) guide internal audit
During the reporting period, the audit committee carefully reviewed the company's 2021 internal audit work plan, confirmed the feasibility of the plan, urged the company's internal audit organization to implement it in strict accordance with the audit plan, and put forward guiding opinions on the problems in internal audit, which strengthened the company's internal audit supervision and inspection ability as a whole. After reviewing the internal audit work report, no major problems were found in the internal audit work.
(IV) evaluate the effectiveness of the company's internal control
During the reporting period, the audit committee gave full play to its professional advantages, actively urged the construction of the company's internal control system, guided the company's internal audit department to complete the company's internal control self-evaluation work, completed the company's internal control evaluation report, and urged and reviewed the company's internal control audit report issued by Dahua Certified Public Accountants (special general partnership).
After inspecting the operation of the company's internal control system, the Audit Committee believes that the company's internal control system is relatively complete, reasonable and effective, meets the relevant requirements of the CSRC on the governance norms of listed companies, has no major defects and important defects, and can meet the current management requirements and development needs of the company.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, in order to enable the company's management, internal audit department and other relevant departments to fully and effectively communicate with Dahua Certified Public Accountants (special general partnership), after listening to the demands and opinions of both parties, we carried out necessary coordination and performed various responsibilities to assist the smooth completion of the company's audit work, In order to complete the relevant audit work in the shortest time. Make rational use of the results of external audit work, ensure sufficient audit scope, reduce repeated audit, improve audit efficiency, share audit results, reduce audit costs, improve the quality of internal auditors, effectively promote the optimization of internal audit work and jointly play the supervision function.
(VI) supervise the related party transactions of the company
During the reporting period, the audit committee of the company reviewed the related party transactions of the company, made an objective judgment on the necessity and rationality of each related party transaction and whether it harmed the interests of the company and shareholders, especially small and medium-sized shareholders, and submitted the agreed review conclusion to the board of directors for review. When relevant related party transactions are submitted to the board of directors for deliberation, the related directors avoid voting, and the deliberation procedures comply with the provisions of relevant laws and regulations and the articles of association of the company.
(VII) improve corporate governance
During the reporting period, the audit committee of the company successfully completed all the work in 2021 with a high sense of dedication and responsibility, concerted efforts, dedication and diligence. The audit committee gave full play to its professional role, faithfully and diligently exercised its functions and powers with an attitude of being responsible to shareholders, urged the continuous standardization of corporate governance and internal control, maintained the standardization and preciseness of the company's audit work, and promoted the construction of standardized governance of the company.
4、 Overall evaluation
During the reporting period, the members of the audit committee of the board of directors of the company actively, actively and fully performed their functions in strict accordance with the guidelines for self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 - standardized operation, the articles of association, the rules of procedure of the audit committee of the board of directors and other relevant provisions, attended all meetings on time, and promoted the company to establish an effective internal control system, Supervise and urge the company's financial report preparation procedures to be in place and the financial report information to be truthful, accurate and complete disclosure; In terms of supervision and evaluation of external audit institutions, guidance of internal audit work, effectiveness of internal control, annual report audit coordination, etc., he made suggestions, scrupulously and diligently performed the duties of the audit committee of the board of directors, better completed various tasks assigned by the company, and made positive contributions to improving the level of corporate governance.
In 2022, the audit committee of the board of directors of the company will continue to effectively supervise the external audit and improve the internal audit of the company in strict accordance with the guidelines for self regulation and supervision of listed companies on Shanghai Stock Exchange No. 1 - standardized operation, the articles of association, the rules of procedure of the audit committee of the board of directors and other relevant provisions, based on the principles of prudence, diligence and loyalty, Promote the company to continuously improve the internal control system, complete the internal control audit, fully safeguard the common interests of the company and all shareholders, and give better play to the important role of the audit committee.
Lanzhou Ls Heavy Equipment Co.Ltd(603169)
Audit Committee of the board of directors
February 17, 2022
