Ningxia Baofeng Energy Group Co.Ltd(600989)
2021 annual performance report of the audit committee of the third board of directors in 2021, Ningxia Baofeng Energy Group Co.Ltd(600989) (hereinafter referred to as “the company”) the audit committee of the third board of directors in accordance with the standards for corporate governance of listed companies, the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange and the articles of association of the company In accordance with the relevant provisions of the detailed rules for the work of the audit committee of the board of directors of the company, the company shall perform its duties in strict accordance with the law and regulations in accordance with the principle of due diligence. The performance of the audit committee of the third board of directors in 2021 is reported as follows.
1、 Basic information of the audit committee of the third board of directors
The third board of directors of the company has an audit committee. The audit committee of the third session of the board of directors is composed of independent directors Ms. Guo Ruiqin, Ms. Zhao Enhui and Mr. Lu Jun. Among them, Ms. Guo Ruiqin is an accounting professional and serves as the convener and chairman.
Ms. Guo Ruiqin: Master’s degree, certified public accountant, certified tax agent. He has been an independent director of the company since April 2017, the project manager of Rongcheng Certified Public Accountants (special general partnership) since October 2020, and the project manager of Beijing Xinghua certified public accountants from 2006 to September 2020.
Ms. Zhao Enhui: Bachelor degree, lawyer. He has been an independent director of the company since April 2017 and deputy director and lawyer of the Management Committee of Beijing Yingke (Yinchuan) law firm since 2016.
Mr. Lu Jun: Master’s degree, senior accountant. From August 2012 to now, he has served as the vice president of Ningxia Baofeng Group Co., Ltd.
2、 Meeting of the audit committee of the third board of directors in 2021
In 2021, the audit committee of the third board of directors of the company held 4 meetings, including 1 on-site meeting and 3 communication meetings, and considered 15 proposals in total. The details are as follows:
Time and content of the session
1. Reviewed and approved the financial final accounts for 2020 and the 2021 budget report of the third audit and Planning Committee of the board of directors for 2021
10th meeting of the board of Commissioners March 10 2 The proposal on the implementation of daily related party transactions in 2020 and the forecast of daily related party transactions in 2021 was reviewed and approved
3. Deliberated and adopted the regulations on the deposit of the company’s annual raised funds in 2020
Proposal on special report on and use
4. Deliberated and adopted the 2020 internal control evaluation report
5. The proposal on the 2020 annual audit report of the company was deliberated and passed
6. The proposal on the company’s 2020 annual profit distribution plan was deliberated and passed
7. The proposal on the company’s 2020 annual report and its summary was deliberated and adopted
8. The proposal on the company’s donation to Ningxia Yanbao charity foundation was deliberated and passed
9. The proposal on the company’s reappointment of the audit institution in 2021 and the payment of audit fees was deliberated and passed
10. The proposal on the performance of the audit committee was considered and adopted
Audit Committee of the third board of directors January 2021 The proposal on the report of the 11th meeting of the Ningxia Baofeng Energy Group Co.Ltd(600989) Commission on the first quarter of 2021 on April 16 was deliberated and adopted
2. The proposal on changes of accounting policies was considered and adopted
1. Deliberated and passed the proposal on the special report on the release and use of the company’s raised funds in 2021 semi annual deposit in the third audit and Planning Committee of the board of directors in 2021;
12th meeting of the board of Commissioners August 9 2 Deliberated and passed the proposal on the company’s 2021 semi annual report and its summary;
Audit Committee of the third board of directors January 2021 The proposal on the report of the 13th meeting of the Ningxia Baofeng Energy Group Co.Ltd(600989) Commission on the third quarter of 2021 on October 27 was deliberated and adopted
3、 Performance of the audit committee of the third board of directors in 2021
(I) review periodic reports
During the reporting period, the audit committee of the board of directors of the company performed its duties in strict accordance with the working procedures for the review of annual financial reports by the audit committee of the board of directors of the company and the working rules of the audit committee of the board of directors of the company, carefully reviewed them regularly, and fully communicated with the external audit institution on the audit scope, plan and method, Ensure that regular reports and audits are carried out efficiently and smoothly. The audit committee of the third session of the board of directors of the company held meetings on March 10, 2021, April 16, 2021, August 9, 2021 and October 27, 2021 respectively to review and express opinions on the company’s 2020 annual report, 2021 first quarter report, 2021 semi annual report and 2021 third quarter report, The audit committee agreed that the financial report of the company was true, accurate and complete, and there was no fraud, fraud and material misstatement.
(II) supervise and evaluate the independence and professionalism of external audit institutions
In 2021, the external auditor of the company was Ernst & Young Huaming Certified Public Accountants (special general partnership).
During the reporting period, the audit committee of the board of directors of the company comprehensively supervised and evaluated the independence, professionalism and diligence of the external audit institution. The audit committee of the board of directors of the company fully discussed and communicated with the external audit institutions on audit matters, plans and arrangements, and no other major matters were found during the audit. During the audit of the company, the external audit institution is serious and responsible, and follows the independent, objective and fair practice standards. The financial audit performed by the external audit institution meets the requirements of the audit standards for Chinese certified public accountants and can objectively and fairly reflect the actual operation status of the company.
(III) supervise the company’s internal audit system and its implementation, and guide the internal audit work
The audit committee of the board of directors of the company gives full play to the role of professional committees and actively supervises and urges the improvement and implementation of the company’s internal audit system. During the reporting period, the audit committee supervised and urged the company to continuously strengthen the internal control management concept, continuously improve various systems, timely optimize the internal control process, effectively prevent relevant risks and ensure that all work can be carried out effectively in combination with the actual situation in its own production and operation process and management process. In 2021, the company’s internal control environment continued to be optimized, no major problems were found in the internal audit, and the internal control management achieved remarkable results.
(IV) coordinate the communication between management, internal audit and relevant departments and external audit institutions
In order to promote the full and effective communication between the management, internal audit and relevant departments and external audit institutions, during the reporting period, the audit committee of the board of directors of the company gave full play to its role as a link, actively coordinated the timely communication and collaborative work of all parties, and promoted the efficient completion of all audit work of the company.
(V) review related party transactions of the company
On March 10, 2021, the audit committee of the board of directors of the company deliberated on the related party transactions, including the proposal on the implementation of daily related party transactions in 2020 and the prediction of daily related party transactions in 2021, and the proposal on the company’s donation to Ningxia Yanbao charity foundation. After research, the members attending the meeting believed that the above deliberation procedures of related party transactions were in line with laws and regulations, the articles of association, the management system of related party transactions of the company and other relevant provisions, and there was no damage to the interests of the company and shareholders, so they unanimously agreed to the related party transactions. In addition to the above matters, the company has no other related party transactions to be considered during the reporting period.
4、 Overall evaluation
In 2021, based on the principle of safeguarding the interests of the company and shareholders, the audit committee of the board of directors of the company scrupulously performed its duties of supervision, communication and evaluation in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange and the working rules of the audit committee of the board of directors of the company. In 2022, the audit committee of the board of directors will continue to be diligent and conscientious, actively participate in the supervision of the company’s finance, production and operation, decision-making on major matters, continue to urge the external audit institutions to perform their duties diligently, strengthen the supervision of the company’s internal audit system and its implementation, and strengthen the coordination and communication with the management, internal audit and other relevant departments, external audit institutions and other relevant parties, Improve the quality of financial information disclosure of listed companies and earnestly perform the duties of the audit committee.
Hereby report!
March 9, 2022
