Securities code: 000032 securities abbreviation: Shenzhen Sed Industry Co.Ltd(000032) Announcement No.: 2022-007
Shenzhen Sed Industry Co.Ltd(000032)
Announcement on reappointment of audit institutions in 2021
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.
Shenzhen Sed Industry Co.Ltd(000032) (hereinafter referred to as "the company") deliberated and adopted the proposal on renewing the appointment of the audit institution in 2021 at the second meeting of the ninth board of directors held on February 22, 2022, which needs to be submitted to the general meeting of shareholders of the company for deliberation. The details are hereby announced as follows:
1、 Description of the proposed accounting firm
Lixin Certified Public Accountants (special general partnership) undertook the audit of the company's financial reports and internal control in 2018, 2019 and 2020. During the audit process, it was diligent and fulfilled the responsibilities and obligations agreed by both parties. Accordingly, the company proposes to continue to employ Lixin Certified Public Accountants (special general partnership) as the company's 2021 financial report and internal control audit institution for one year. The audit cost of financial report shall not exceed RMB 2.3 million and the audit cost of internal control shall not exceed RMB 900000.
2、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as "Lixin") was founded in Shanghai in 1927 by Dr. pan Xulun, a Chinese accounting leader, and reopened in 1986. In 2010, it became the first special general partnership certified public accountants firm in China to complete the restructuring, with its registered address in Shanghai. As a member of the international accounting network BDO, Lixin has been engaged in securities service business for a long time. Before the implementation of the new securities law, it has a securities and futures business license, has H-share audit qualification, and has been registered with the American public company accounting supervision board (PCAOB). 2. Personnel information
By the end of 2020, Lixin had 232 partners, 2323 certified public accountants and 9114 employees. The chief partner was Mr. Zhu Jiandi. The certified public accountants and practitioners of Lixin have been engaged in securities service business.
3. Business scale
The business income (audited) of Lixin in 2020 was 4.106 billion yuan, including 3.151 billion yuan from audit business and 1.357 billion yuan from securities business. In 2020, Lixin provided annual report audit services for 576 listed companies and 11 audit clients of Listed Companies in the same industry.
4. Investor protection ability
By the end of 2020, Lixin had withdrawn 129 million yuan from the occupational risk fund and the cumulative compensation limit of occupational insurance purchased was 1.25 billion yuan. The relevant occupational insurance can cover the civil liability caused by audit failure. Civil liability in civil litigation related to practice in recent three years:
Litigation (Arbitration) sued (arbitrated) litigation (Arbitration) litigation (Arbitration) litigation (Arbitration) results of litigation (Arbitration)
(1) amount of Renren event
Investors Jinya technology and Zhou Xu are expected to be jointly and severally liable for 30 million yuan in the 2014 annual report. The professional Baohui and Lixin yuan insurance insured by Lixin are sufficient to cover the amount of compensation
The investor's Guangdong Chaohua Technology Co.Ltd(002288) 2014 annual report expects 8 million joint and several liabilities, and the professional insurance yuan insurance insured by Lixin is sufficient to cover the amount of compensation
5. Independence and integrity record
Lixin does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. In the past three years, Lixin has been subject to criminal punishment, administrative punishment for 4 times, supervision and management measures for 26 times, self-discipline and supervision measures for 3 times, involving 62 employees.
(II) information of project team members
1. Personnel information
Name: whether the qualification has been engaged in the securities service industry or not
Xu peimei, the partner of the project, has been a Chinese certified public accountant for 14 years
Gu Xin, a certified public accountant, has been a Chinese certified public accountant for 9 years
Shi Aihong, the reviewer of quality control, has been a Chinese certified public accountant for 11 years
(1) Experience of project partner:
Project partner: Xu peimei, Chinese certified public accountant, partner. Since 2001, he has worked full-time in accounting firms to engage in audit business, and has been focusing on special audit businesses such as annual report audit, internal control audit and listing reorganization of large central enterprises and listed companies. With 14 years of securities service experience, he joined Lixin Certified Public Accountants (special general partnership) in 2012 and did not work part-time in other units. Provide audit services for the company since 2018.
Employment in recent three years:
Time listed company name position
2018-2020 Shenzhen Sed Industry Co.Ltd(000032) signing partner 2018-2020 China Greatwall Technology Group Co.Ltd(000066) signing partner 2018-2020 Qingdao Huicheng Environmental Technology Co.Ltd(300779) signing partner 2018-2020 Nanjing Panda Electronics Company Limited(600775) Signed partner 2018-2020 Chengdu Rainbow Appliance(Group) Shares Co.Ltd(003023) signed partner of new energy Co., Ltd. signed partner 2018-2020 Shunya International Martech (Beijing) Co.Ltd(300612) signed partner of marketing technology (Beijing) Co., Ltd
(2) Working experience of certified public accountant:
Signed CPA: Gu Xin, Chinese CPA.
Since 2007, he has worked full-time in accounting firms to engage in audit business, and has been focusing on special audit businesses such as annual report audit, internal control audit and listing reorganization of large central enterprises and listed companies. With 9 years of securities service experience, he joined Lixin Certified Public Accountants (special general partnership) in 2012 and did not work part-time in other units. Provide audit services for the company since 2018.
Employment in recent three years:
Time listed company name position
2018-2020 Shenzhen Sed Industry Co.Ltd(000032) signature announcer 2018-2020 China Greatwall Technology Group Co.Ltd(000066) signature announcer 2018-2020 Qingdao Huicheng Environmental Technology Co.Ltd(300779) signature announcer 2018-2020 Nanjing Panda Electronics Company Limited(600775) signature announcer 2018-2020 Chengdu Rainbow Appliance(Group) Shares Co.Ltd(003023) Signature of new energy Co., Ltd. 2018-2020 Shunya International Martech (Beijing) Co.Ltd(300612) marketing technology (Beijing) Co., Ltd
(3) Experience of quality control reviewer:
Quality control reviewer: Shi Aihong, Chinese certified public accountant, business partner. Since 2009, he has worked full-time in accounting firms to engage in audit business, and served as the on-site audit director of large central enterprises and listed companies. With 11 years of securities service experience, he joined Lixin Certified Public Accountants (special general partnership) in 2012 and did not work part-time in other units. Provide audit services for the company since 2021.
Employment in recent three years:
Time listed company name position
Signed by Huadian Power International Corporation Limited(600027) in 2019 and Novogene Co.Ltd(688315) in 2020
2. Record the independence and integrity of project team members.
The project partner, the signing certified public accountant and the quality control reviewer do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, and there is no bad credit record.
(III) audit fees
1. Audit fee pricing principle
Pricing is mainly based on the responsibility of professional services and the degree of professional technology investment, and comprehensively considering the experience and level of employees involved in the work, the corresponding charging rate and the working hours invested.
2. Year on year changes in audit fees
Increase or decrease in 2020-2021%
Audit fee - financial report (10000 yuan) 60 230 283%
Audit fees - internal control (10000 yuan) 30 90 200%
Note: in 2021, the company completed the acquisition of 96.7186% equity of China Electronic System Technology Co., Ltd., and the company's business volume increased significantly compared with the previous year, so the audit fee increased year-on-year.
3、 Procedures to be performed by the accounting firm to be renewed
1. Performance of audit committee
The audit committee has carefully examined the professional qualification, professional ability, independence and investor protection ability of credit, and believes that it has relevant business qualification, experience and ability to provide audit services for listed companies, and the audit report issued objectively, fairly and fairly reflects the financial status and operating results of the company, Earnestly performed the duties of the audit institution and agreed that the company would continue to appoint him as the audit institution of financial report and internal control in 2021.
2. Prior approval and independent opinions of independent directors
The independent directors conducted a pre review on the re employment of Lixin Certified Public Accountants (special general partnership) as the company's audit institution in 2021, considered that it was diligent and fulfilled its responsibilities and obligations in the audit work in 2018, 2019 and 2020, and agreed to submit it to the board of directors for deliberation. It is considered that the qualification of the independent accounting firm and other relevant procedures of the board of directors of the company have not been approved, and the basic conditions for the appointment of the independent accounting firm are that the board of directors of the company has not passed the 2021 annual audit report, and it is considered that the company has not passed the qualification of the independent accounting firm and other relevant procedures. The matter shall also be submitted to the general meeting of shareholders of the company for deliberation and approval.
3. Consideration and voting of proposals by the board of directors
On February 22, 2022, the second meeting of the ninth board of directors of the company considered and approved the proposal on renewing the appointment of the audit institution in 2021. Voting: 9 votes, 9 in favor, 0 against and 0 abstention.
4. Effective date
The renewal of the accounting firm shall be submitted to the general meeting of shareholders of the company for deliberation, and shall take effect from the date of deliberation and approval by the general meeting of shareholders of the company.
4、 Filing documents
1. Relevant resolutions of the board of directors;
2. Supporting documents for the performance of the duties of the Audit Committee;
3. Opinions of relevant independent directors;
4. Explanation on the basic information of the proposed accounting firm.
It is hereby announced.
Shenzhen Sed Industry Co.Ltd(000032) board of directors
February 24, 2022
