Jiangsu Kanion Pharmaceutical Co.Ltd(600557)
Performance report of the audit committee of the board of directors in 2021
In accordance with the relevant provisions of the Shanghai Stock Exchange, the guidelines for self regulatory supervision of listed companies on the Shanghai Stock Exchange No. 1 – standardized operation, the working procedures for the annual report of the audit committee of the board of directors and the working rules of the audit committee of the board of directors, the audit Committee of Jiangsu Kanion Pharmaceutical Co.Ltd(600557) (hereinafter referred to as the “company”) was diligent and conscientious in 2021, Earnestly perform relevant responsibilities, actively carry out work and give full play to professional role. The performance of the audit committee of the board of directors in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the 7th board of directors of the company is composed of three directors, including Xu Min, Chen Kaixian and Wu Yun, of which Xu Min and Chen Kaixian are independent directors, and the chairman is Xu Min, an independent director with professional accounting qualification. Yang Zheng, the former independent director and chairman of the audit committee, left office during the reporting period (with a term of office of six years). Xu Min became an independent director of the seventh board of directors of the company in May 2021 and chairman of the audit committee of the seventh board of directors of the company in August 2021.
2、 Convening of the 2021 annual meeting of the audit committee
In 2021, the audit committee of the board of directors of the company held five meetings, and all members attended in person
The details are as follows:
On April 9, 2021, the audit committee held its first meeting in 2021, The proposal on agreeing to submit the company’s 2020 financial report to the board of directors for deliberation, the proposal on the expected daily connected transactions in 2021, the proposal on the company’s 2020 internal control evaluation report, and the proposal on renewing the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2021 were reviewed and approved;
On April 28, 2021, the audit committee held its second meeting in 2021, deliberated and approved the company’s proposal on agreeing to submit the company’s financial report for the first quarter of 2021 to the board of directors for deliberation;
On August 19, 2021, the audit committee held the third meeting in 2021, deliberated and adopted the company’s proposal on agreeing to submit the company’s 2021 semi annual financial report to the board of directors for deliberation;
On October 27, 2021, the audit committee held the fourth meeting in 2021, deliberated and adopted the company’s proposal on agreeing to submit the company’s financial report for the third quarter of 2021 to the board of directors for deliberation;
On December 22, 2021, the audit committee held its fifth meeting in 2021 and deliberated and adopted the company’s proposal on electing Mr. Xu Min as the chairman of the audit committee.
3、 Main work of the audit committee in 2021
In 2021, the audit committee of the company strictly abided by relevant laws and regulations, focusing on the work related to the company’s annual audit, the preparation of periodic reports, the implementation of internal control norms and other key issues. During the preparation and review of the company’s financial reports, the audit committee of the company performed its duties according to law, carefully performed its own work, and ensured the authenticity and accuracy of the company’s periodic reports Accurate and complete, which has laid a solid foundation for the improvement of corporate governance structure and the improvement of management level.
(I) supervise the company’s annual audit in 2020 in the whole process
1. Before the audit of the company’s annual report, the audit committee reviewed the 2020 financial statements prepared by the company’s financial department and listened to the report of the company’s management on the operation in accordance with the requirements of the company’s annual report working procedures of the audit committee of the board of directors.
2. Before the audit of the annual report audit accounting firm, the audit committee and independent directors attended a meeting with the annual audit certified public accountants. At the meeting, the head of the company’s financial department reported the company’s financial status, operating results and cash flow in 2020 and the schedule of the audit of the financial report in 2020, The audit work plan was determined through consultation with Lixin Certified Public Accountants (special general partnership).
3. After the audit team entered the site for audit, the audit committee held a separate communication meeting with the accounting firm without the participation of the management. During the audit period, the audit committee conscientiously performed the functions of supervision and verification, and required the annual audit accountant to inform the audit committee of the latest progress of the audit work in time, continue to promote it according to the audit plan and complete the audit work in time.
4. After the annual audit CPA issued the preliminary audit opinion, the audit committee communicated with the annual audit CPA on the preliminary audit opinion together with the independent directors to understand the problems found in the annual audit in detail. Agree to prepare the company’s 2020 annual report and summary based on the financial statements and submit them to the board of directors for review. At the same time, the accounting firm is required to complete the audit work as soon as possible according to the overall audit plan, so as to ensure that the company will disclose the 2020 annual report on schedule.
5. After the accounting firm finalized the audit report according to the overall audit plan, the audit committee held its first meeting in 2021, The proposal on agreeing to submit the company’s 2020 financial report to the board of directors for deliberation, the proposal on the expected daily connected transactions in 2021, the proposal on the company’s 2020 internal control evaluation report, and the proposal on renewing the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2021 were reviewed and adopted. It is suggested that the board of directors of the company continue to appoint Lixin Certified Public Accountants (special general partnership) as the audit institution of the company in 2021 for one year, and the audit fee shall be determined by both parties through negotiation according to the audit workload.
(II) review the periodic reports prepared by the company
In 2021, the audit committee of the board of directors of the company held a total of five meetings, four of which reviewed the annual report of the company in 2020, the report of the first quarter of 2021, the semi annual report of 2021 and the report of the third quarter of 2021 respectively. On the basis of fully understanding and grasping the macro-economy, industrial environment and business development of the company, Give full play to the professional role of financial accounting, put forward professional opinions and suggestions on the preparation of the company’s periodic reports, and provide guarantee for the periodic reports to truly, accurately and completely reflect the development of the company. Xu Min, an independent director, is an accounting professional who meets the requirements of serving as the chairman of the audit committee and is competent for his duties.
(III) other work
In 2021, on the basis of completing routine work, the audit committee of the board of directors of the company timely understood the progress of the company’s implementation of internal control norms and key work, conducted special audit on the construction of the company’s internal control system, the formulation and implementation of rules and regulations, and made decisions on major matters in the work, The results of the construction of the internal control system are accepted and tested in stages, and it is considered that the formulation of the company’s internal control system is scientific, reasonable and effective.
4、 Overall evaluation
In 2021, the audit committee of the board of directors of the company fully developed its professional and technical level and rich professional experience in strict accordance with the relevant provisions of the guidelines for self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 – standardized operation, the working procedures for the annual report of the audit committee of the board of directors and the working rules of the audit committee of the board of directors, Supervise the preparation of the company’s regular reports and the implementation of internal control norms, and strictly abide by their duties, actively and effectively perform the duties of the audit committee, so as to ensure the scientific compliance of the company’s business decisions and effectively safeguard the interests of the company and all shareholders.
Jiangsu Kanion Pharmaceutical Co.Ltd(600557) board of directors audit committee
Members: Xu Min, Chen Kaixian, Wu Yun March 2, 2022
