Lihuayi Weiyuan Chemical Co.Ltd(600955)
Performance report of the audit committee in 2021
In accordance with the provisions of the relevant normative documents of the company law and the relevant provisions of the articles of association and the rules of procedure of the audit committee, the performance of the Audit Committee (hereinafter referred to as the "Audit Committee") of the board of directors of Lihuayi Weiyuan Chemical Co.Ltd(600955) (hereinafter referred to as the "company") in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the first board of directors of the company is composed of three members: independent directors Cheng Fengchao, Han Lu and non independent director Song Chengguo, of which the chairman is Cheng Fengchao, an accounting professional.
The audit committee of the second session of the board of directors of the company is composed of three members: independent director Cheng Fengchao (resigned in December 2021), Liu Xinghua (newly appointed in December 2021), Han Lu, and non independent director Song Chengguo, of which the chairman is Cheng Fengchao, an accounting professional.
Cheng Fengchao resigned as an independent director and relevant committees of the board of directors in December 2021. The company newly appointed Liu Xinghua as an independent director of the company and served as a member of the audit committee. Han Lu, an accounting professional, served as the chairman of the audit committee.
On February 22, 2022, the company convened the board of directors to adjust the members of the audit committee. Han Lu, an independent director, served as the chairman, Wei Yudong, the chairman, and Liu Xinghua, an independent director, served as members.
2、 Meetings of the audit committee
Date of the meeting and resolutions on matters considered
The audit report of the first board of directors on confirming the company 2020
On January 21, 2021, the first year of 2021, the Committee reviewed and unanimously agreed on the proposal on the report of the first meeting in, 2019 and 2018
About the company's financial statements in 2020
Proposal on final accounts report
Financial forecast of the company in 2021
Proposal on budget report (Continued)
Engagement of ShineWing Certified Public Accountants
Audit of the first board of directors
On March 6, 2021, the (special general partnership) was unanimously agreed by the public, and the second session of the Committee in 2021
Meeting of the audit institutions of the division in 2021
2021 proposal on the company
Annual daily connected transaction forecast
Proposal on 2020
Annual internal control self-evaluation
Report proposal
About confirming Lihua yiweiyuan
Chemical Co., Ltd
Discussion on capital verification report of raised funds
Audit plan of the second board of directors
On September 19, 2021, the first meeting of the committee, Huayi Weiyuan Chemical Co., Ltd. unanimously agreed that the company would replace the advance with the raised funds
First invest in self raised funds of raised investment projects
Jin's assurance report
On partial adjustment in 2021
Estimated daily related party transactions
Proposal
Audit of the second board of directors
The committee unanimously agreed to the proposal of the second quarterly report on October 19, 2021
Meeting
3、 Annual performance of the audit committee
1. Supervise and evaluate the work of external audit institutions
The audit committee of the company has carefully analyzed and evaluated the work of ShineWing Certified Public Accountants (special general partnership) (hereinafter referred to as "ShineWing"). ShineWing is an audit institution (accounting firm) in line with the provisions of the securities law and follows independent, objective and impartial professional standards, Can better complete the audit work entrusted by the company. ShineWing's personnel involved in the audit have the professional knowledge and relevant professional certificates necessary for the implementation of the audit. During the audit process, they are serious and responsible, maintain due attention and professional prudence, and are competent for the audit work of the company. The Audit Committee believes that ShineWing has been able to fulfill its duties and follow the independent, objective and impartial practice standards when it is employed to provide audit services for the company. The audit committee recommended to the board of directors that ShineWing should continue to be appointed as the auditor of the company in 2022.
2. Guide internal audit
During the reporting period, we gave full play to the role of the special committee. In accordance with the requirements of the company law, the securities law, the basic norms of enterprise internal control and in combination with the actual situation of the company, the audit committee carefully reviewed and inspected the internal audit work of the company in 2021, and urged all departments of the company to seriously implement it according to the work plan, The audit department is required to formulate the internal audit work plan for 2022.
During the reporting period, the audit committee reviewed the company's financial reports of each period and communicated with the company's management. It believed that the company's financial reports were true, accurate and complete, fairly reflected the company's financial status and operating results, and there were no relevant fraud, fraud and material misstatement. The above financial reports were reviewed and approved and submitted to the board of directors for review and approval.
4. Evaluate the effectiveness of internal control
During the reporting period, the audit committee guided the Audit Department of the company to organize the construction of internal control system, reviewed the formulation and revision of relevant internal control systems, and gave guidance to the development of internal audit and the improvement of internal control processes. Under the framework of internal control, the company further refined the internal management system and improved the internal control process. The construction of internal control system has achieved good results, which can effectively control relevant business risks and protect the interests of the company and shareholders.
5. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
During the reporting period, the audit committee coordinated the company's management, audit department, finance department, securities department and other relevant departments to maintain good communication with the external audit institutions. The relevant departments sought the opinions of the external audit institutions on the company's financial accounting standards, the construction of internal control system and other issues, and cooperated with the external audit institutions to carry out the audit of annual financial reports, Promote the company's financial and internal control norms.
6. Review of related party transactions and other matters of the company
During the reporting period, the audit committee reviewed the daily business related party transactions between the company and related parties, and believed that the daily related party transactions between the company and related parties in 2021 were required by normal business, followed the principles of openness, fairness and impartiality, and the transaction price was settled at the fair price of the market, without any behavior damaging the interests of the company and minority shareholders, It does not affect the independence of the company.
4、 Overall evaluation
In 2021, the audit committee faithfully and diligently performed its duties specified in relevant laws and regulations, carefully considered relevant bills, played a guiding, coordinating and supervising role, effectively promoted the construction of internal control and financial norms of the company, and promoted the standardized decision-making of the board of directors and standardized corporate governance.
In 2022, the audit committee will continue to earnestly perform its duties, strengthen the prior audit of relevant matters of the board of directors, strengthen the guidance of internal audit and the communication and coordination with external audit institutions, promote the standardization of financial related matters of the company, improve the construction of the company's internal control system, and promote the standardized operation and steady development of the company.
Lihuayi Weiyuan Chemical Co.Ltd(600955) Audit Committee 1 March 2022
