Securities code: Sino Biological Inc(301047) securities abbreviation: Sino Biological Inc(301047) Announcement No.: 20220025 Sino Biological Inc(301047)
Announcement on reappointment of audit institutions in 2022
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.
Sino Biological Inc(301047) (hereinafter referred to as “the company”) held the 13th meeting of the first board of directors on February 25, 2022, deliberated and adopted the proposal on renewing the appointment of audit institutions in 2022, which needs to be submitted to the 2021 general meeting of shareholders for deliberation. The details are hereby announced as follows:
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Name of accounting firm: Zhitong accounting firm (special general partnership) (hereinafter referred to as “Zhitong”) date of establishment: 1981
Registered address: 5th floor, Saite square, No. 22 Jianguomenwai street, Chaoyang District, Beijing
Chief partner: Li Huiqi
Practice certificate issuing unit and serial number: Beijing Municipal Bureau of finance no.0014469
By the end of 2021, Zhitong has more than 5000 employees, including 204 partners, 1153 certified public accountants, and more than 400 certified public accountants who have signed the audit report of securities service business.
The business income of Grant Thornton in 2020 was 2.196 billion yuan, including 1.679 billion yuan from audit business and 349 million yuan from securities business. In 2020, there were 210 audit clients of listed companies, mainly in manufacturing, information transmission, software and information technology services, wholesale and retail, real estate, transportation, warehousing and postal services, with a total charge of 279 million yuan; In 2020, the audit fee of listed companies was 322236 million yuan; To 8 audit clients of Listed Companies in the same industry / companies listed on the new third board.
2. Investor protection ability
Grant Thornton has purchased occupational insurance with a cumulative compensation limit of 600 million yuan, and the purchase of occupational insurance complies with relevant regulations. By the end of 2020, the occupational risk fund was 104351 million yuan.
Zhitong shall not bear civil liability for any civil litigation related to its practice that has been concluded in recent three years.
3. Integrity record
In the past three years, Grant Thornton has been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 8 times, self-discipline and supervision measures 0 times and disciplinary punishment 1 time. In recent three years, 20 employees have been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 9 times, self-discipline and supervision measures 0 times and disciplinary punishment 1 time.
(II) project information
1. Basic information
Project partner: Dong Xu, who became a certified public accountant in 2003, began to audit listed companies in 2005, began to practice in Zhitong in 2019, and began to provide audit services for the company in 2018. In recent three years, he has signed four audit reports of listed companies and one audit report of companies listed on the new third board.
Signature certified public accountant: Nie Shengyong, who became a certified public accountant in 2018, began to engage in the audit of Listed Companies in 2012, began to practice in Zhitong in 2018, began to provide audit services for the company in 2018, and signed 0 audit reports of Listed Companies in recent three years.
Reviewer of project quality control: Liang Weili, who became a certified public accountant in 1999, began to audit listed companies in 2001, began to practice in Zhitong in 2003, and reviewed 10 audit reports of Listed Companies in recent three years. 2. Integrity record
In recent three years, project partners, signed certified public accountants and project quality control reviewers have not been subject to criminal punishment for their professional behavior, administrative punishment, supervision and management measures and self-discipline supervision measures of the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions of self-discipline organizations such as securities exchanges and industry associations.
3. Independence
There are no circumstances that may affect the independence of Grant Thornton, project partners, signing certified public accountants and project quality control reviewers.
4. Audit fees
The pricing principle of audit fees is mainly based on the business scale and distribution of the company, the fair and reasonable pricing principle of the market, the nature of audit services, complex procedures and other factors.
2、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
The audit committee of the company reviewed relevant qualification certificates, relevant information and integrity records of Grant Thornton, recognized Grant Thornton’s independence, professional competence and investor protection ability, and agreed to propose to the board of directors to reappoint Grant Thornton as the company’s audit institution in 2022.
(II) prior approval and independent opinions of independent directors
1. Prior approval opinions of independent directors
After verification, Zhitong Certified Public Accountants (special general partnership) meets the relevant requirements of the securities law, has the experience and ability to provide audit services for listed companies, can meet the requirements of the company’s audit work in 2022, takes into account the company’s business development and the needs of the overall audit, and maintains the consistency and continuity of the audit work, We agree to renew the appointment of Zhitong Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agree to submit the proposal to the 13th meeting of the first board of directors for deliberation.
2. Independent opinions of independent directors
After investigation, we believe that Zhitong Certified Public Accountants (special general partnership) was responsible, diligent, familiar with the company’s business, and audited the company’s financial situation in strict accordance with the relevant provisions of current laws and regulations, showing a high professional level, Gave positive suggestions and help to the standardized operation and relevant management of the company. Zhitong Certified Public Accountants (special general partnership) has sufficient independence, professional competence and investor protection ability, and is in good faith. The appointment of Zhitong Certified Public Accountants (special general partnership) can ensure the quality of the company’s audit work and protect the interests of the company and other shareholders, especially the interests of minority shareholders. In order to maintain the continuity of audit work, we unanimously agree to renew the appointment of Zhitong Certified Public Accountants (special general partnership) as the auditor of the company’s 2022 financial report.
In conclusion, we agree to renew the appointment of Zhitong Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agree to submit the proposal to the general meeting of shareholders for deliberation.
(III) deliberations of the board of directors
The company held the 13th meeting of the first board of directors on February 25, 2022, deliberated and approved the proposal on renewing the appointment of the company’s 2022 audit institution, proposed to renew the appointment of Grant Thornton as the company’s 2022 audit institution, and submitted to the general meeting of shareholders to authorize the company’s management to negotiate with Grant Thornton to determine relevant audit fees according to the company’s specific audit requirements and audit scope.
(IV) deliberation of the board of supervisors
The board of supervisors deliberated and approved the proposal on renewing the appointment of the company’s 2022 audit institution, and agreed to renew the appointment of Grant Thornton as the company’s 2022 audit institution.
(V) effective date
The appointment of an accounting firm needs to be submitted to the general meeting of shareholders for audit, and the appointment period will take effect from the date of deliberation and approval by the general meeting of shareholders.
3、 Documents for future reference
1. Resolution of the 13th meeting of the first board of directors;
2. Resolution of the 12th meeting of the first board of supervisors;
3. Independent opinions of independent directors on matters related to the 13th meeting of the first board of directors of the company; 4. Resolution of the sixth meeting of the first audit committee;
5. Basic information of Grant Thornton Certified Public Accountants (special general partnership). It is hereby announced.
Sino Biological Inc(301047) board of directors February 25, 2022
