Weifang Yaxing Chemical Co.Ltd(600319)
Performance report of the audit committee of the board of directors in 2021
In accordance with the standards for the governance of listed companies, the articles of association, the detailed rules for the implementation of the audit committee of the board of directors and other relevant provisions of the China Securities Regulatory Commission, the audit committee of the board of directors of Weifang Yaxing Chemical Co.Ltd(600319) (hereinafter referred to as the "company") actively carried out its work in 2021 based on the principle of diligence and responsibility. The performance of its duties in 2021 is summarized as follows:
1、 Basic information of the audit committee of the board of directors of the company
The audit committee of the 8th board of directors of the company is composed of three directors, namely Mr. Fu Xinggang, Ms. Liu Xiuli, an independent director, and Ms. Wang Xiuping, a director, of which Ms. Liu Xiuli serves as the director of the audit committee. On March 3, 2021, the company held the first extraordinary general meeting of shareholders in 2021, deliberated and approved the proposal on the election of non independent director candidates for the general election of the board of directors and the proposal on the election of independent director candidates for the general election of the board of directors, For details, see the announcement on the resolution of the first extraordinary general meeting of shareholders in 2021 (Announcement No.: pro 2021031) disclosed by the company on the designated information disclosure media on the same day, and the first meeting of the eighth board of directors was held on March 3, 2021, For details, see the announcement on the resolution of the first meeting of the eighth board of directors (Announcement No.: p.2021033) disclosed on the designated information disclosure media on the same day. The board of directors and various professional committees have been successfully changed, and a new member of the management team has been reappointed.
2、 Meetings of the audit committee of the board of directors of the company
In 2021, the audit committee of the board of directors held five meetings, as follows:
Date and content of the session
Considered and adopted:
1. 2020 annual report and summary;
2. Financial statement report of 2020;
3. 2020 profit distribution plan;
On April 22, 2021, the first meeting in 2021 4. Proposal on payment of audit fees of accounting firms in 2020;
5. Proposal on renewing the appointment of accounting firms;
6. Proposal on changes of accounting policies;
7. Report on the performance of the audit committee of the board of directors in 2020;
8. 2020 internal control evaluation report;
9. The first quarter report of 2021;
10. Proposal on applying to the controlling shareholder for loan extension.
Considered and adopted:
1. Proposal of the second meeting of 2021 on June 18, 2021 on applying for loans and related party transactions from controlling shareholders
2. Proposal on applying to the controlling shareholder for deferred repayment of loans and related party transactions
On August 21, 2021, the third meeting of 2021 considered and adopted:
Semi annual report of 2021
On October 25, 2021, the fourth meeting of 2021 considered and adopted:
Third quarter report of 2021
Considered and adopted:
Proposal on applying to the controlling shareholder for loan extension and related party transactions at the fifth meeting of 2021 on December 23, 2021
3、 Performance of relevant work of the audit committee of the board of directors of the company
1. Supervise and evaluate the work of external audit institutions
During the reporting period, the audit committee communicated with the accounting firm for many times, negotiated and determined the 2020 financial report audit plan, discussed the major matters and treatment methods in the audit, and urged the annual audit accountant to arrange the work progress in strict accordance with the plan to ensure the smooth completion of the audit work.
2. Guide internal audit
(1) During the reporting period, the members of the audit committee of the 8th board of directors carefully reviewed the company's annual report and summary in 2020, the first quarter report in 2021, the semi annual report and summary in 2021 and the third quarter report in 2021, and believed that the company's periodic reports were true, accurate and complete.
(2) Carefully reviewed the company's internal audit work plan and urged the company's internal audit organization to implement it in strict accordance with the audit plan. During the reporting period, no major problems were found in the internal audit.
3. Responsible for the communication between internal audit and external audit
During the reporting period, the audit committee actively communicated fully and effectively with the company's management, internal audit department and accounting firm: pay attention to strengthening the communication with the certified public accountant, the company's financial department and internal audit department on the annual audit plan before the entry of the annual audit certified public accountant; Review the company's financial and accounting statements again after the annual audit CPA issues the preliminary audit opinion, and timely communicate with the accountant about the problems found in the audit.
Through good and effective communication, we can find and solve problems in time, improve audit efficiency and reduce audit cost.
4. Review the company's financial report and give opinions
During the reporting period, the members of the audit committee carefully reviewed the company's financial report and believed that the company's financial report was true, complete and accurate, there was no fraud, fraud and material misstatement, and there were no major accounting error adjustment, major accounting policy and estimation changes, and matters involving important accounting judgments. The content and format of the financial report comply with the provisions of China Securities Regulatory Commission and Shanghai Stock Exchange, and fairly reflect the company's financial position, operating results and cash flow in all major aspects.
5. Review the company's internal control system and evaluate the effectiveness of internal control
The company has established a relatively perfect corporate governance structure and governance system in accordance with the company law, securities law and other laws and regulations and the requirements of the relevant provisions of the CSRC and Shanghai Stock Exchange. During the reporting period, the company strictly implemented various laws, regulations, rules, articles of association and internal management systems, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, effectively protecting the legitimate rights and interests of the company and shareholders.
During the reporting period, the members of the audit committee reviewed the 2020 internal control evaluation report, evaluated the appropriateness of the company's internal control system, and urged the rectification of internal control defects. The relevant rectification has been completed on schedule.
6. Review the renewal of accounting firm
On April 28, 2021, the third meeting of the eighth board of directors of the company deliberated and approved the proposal on renewing the appointment of accounting firm, which was deliberated and approved by the 2020 annual general meeting of shareholders, and agreed to renew the appointment of Shanghui accounting firm (special general partnership) as the audit institution of the company in 2021. The audit committee has reviewed in advance that Shanghui Certified Public Accountants (special general partnership) is qualified for securities and futures business, has the experience and ability to provide audit services for listed companies, can provide fair, fair and independent audit services for the company, meets the audit requirements of listed companies, and does not harm the interests of the company and shareholders.
4、 Overall evaluation
In 2021, the audit committee of the eighth board of directors of the company gave full play to its role of review and supervision, provided professional opinions for the scientific decision-making of the board of directors, and better fulfilled the responsibilities of the audit committee.
In 2022, the audit committee of the eighth board of directors of the company will continue to give full play to the functions of the audit committee, continue to pay attention to the company's financial information, internal control, internal audit and communication with external audit institutions, and safeguard the interests of the company and all shareholders.
Members of the Audit Committee: Liu Xiuli, Wang Xiuping, Fu Xinggang March 3, 2002
