Guangzhou Jiacheng International Logistics Co.Ltd(603535) : performance report of the audit committee of the board of directors in 2021

Guangzhou Jiacheng International Logistics Co.Ltd(603535)

Performance report of the audit committee of the board of directors in 2021

In 2021, the audit committee of the Fourth Board of directors of Guangzhou Jiacheng International Logistics Co.Ltd(603535) (hereinafter referred to as “the company”) in accordance with the relevant provisions of the standards for the governance of listed companies of China Securities Regulatory Commission, the guidelines for self discipline supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation of Shanghai Stock Exchange, the articles of association and the working rules of the audit committee of the board of directors, Based on the principle of diligence and conscientious performance of duties, the performance of duties in 2021 is reported as follows:

1、 Basic information of the audit committee

The audit committee of the 4th board of directors is composed of two independent directors Liang Xiaolin, Lin xunliang and one non independent director Huang Yanting. Liang Xiaolin, an independent director with professional accounting qualification, is the chairman and convener of the meeting.

2、 Meetings of the audit committee in 2021

In 2021, the audit committee of the Fourth Board of directors held 7 meetings. The meeting was as follows:

Date of the second session of the meeting

Audit Committee of the 4th board of directors 1. On the implementation of the new accounting standards

Proposal on policy change of the first meeting in 2021

Audit Committee of the fourth session of the board of directors 1. Discussion on the proposal to renew the appointment of audit institutions March 16, 2021

Proposal for convening the second conference in 2021

1. 2020 annual financial report

Audit Committee of the 4th board of directors 2. 2020 internal control evaluation report March 23, 2021

Hold the third meeting in 2021 3. Proposal on daily connected transactions expected in 2021

The audit committee of the Fourth Board of directors on April 1, 2021 1 1. Financial statements for the first quarter of 2021

Hold the fourth meeting in 2021

Audit Committee of the 4th board of directors 1. On the implementation of the new accounting standards

Proposal for convening the fifth meeting in 2021 on the change of accounting policy

Audit Committee of the 4th board of directors

August 27, 2021 1 1. Semi annual financial report of 2021

The audit committee of the 4th board of directors held the 6th meeting in 2021

On October 15, 2021, the financial statements for the third quarter of 2021 held the seventh meeting in 2021

3、 Performance of the audit committee of the board of directors in 2021

During the reporting period, in accordance with the relevant provisions of the guidelines for the operation of the audit committee of the board of directors of listed companies and the working rules of the audit committee of the board of directors, the members of the audit committee actively performed their duties and put forward professional opinions to the board of directors in supervising and evaluating the work of external audit institutions, guiding internal audit work, reviewing financial reports and evaluating the effectiveness of internal control.

(I) supervise and evaluate the work of external audit institutions

1. Evaluate the independence and professionalism of external audit institutions

The audit committee held many communication meetings with Huaxing Certified Public Accountants (special general partnership) (hereinafter referred to as “Huaxing”), negotiated and determined the 2020 financial report audit plan, discussed major matters and handling methods in the audit, coordinated the company’s management and relevant departments to actively cooperate with the audit work, and urged the annual audit accountant to arrange the work progress in strict accordance with the plan, Ensure the smooth completion of the audit.

Since the original audit team of the company joined Guangdong Si Nong Certified Public Accountants (special general partnership) (hereinafter referred to as “Si Nong”), in order to ensure that the audit of the company’s 2021 financial report is carried out on schedule and maintain the continuity of the audit work, the Audit Committee proposes to hire Si Nong as the auditor of the 2021 financial report and the auditor of internal control.

2. Discuss and communicate with external audit institutions on audit scope, audit plan, audit methods and major matters found in the audit

During the reporting period, the audit committee discussed and communicated on the audit scope, audit plan, audit methods and other matters proposed by the external audit institution. During the audit, no other major matters were found in the audit.

3. Monitor and evaluate the diligence of external audit institutions

The Audit Committee believes that the external audit institutions have been diligent in the audit process and followed the professional standards of independence, objectivity and impartiality.

(II) guide internal audit

The audit committee carefully reviewed the 2021 internal audit work plan formulated by the company’s internal audit department, recognized the feasibility of the plan, urged the internal audit department to carry out the specific implementation in strict accordance with the plan, and put forward guiding opinions on the problems of internal audit. After reviewing the relevant work reports, we found no major problems in the company’s internal audit, and believe that the internal audit department can operate effectively according to law.

(III) review the company’s financial report and express opinions

The audit committee carefully reviewed the company’s preparation of the 2020 annual financial report, the financial statements of the first quarter of 2021, the semi annual financial report of 2021, the financial statements of the third quarter of 2021 and other relevant financial materials, and considered that the preparation of the above financial reports and other relevant financial materials, Comply with the relevant accounting standards for business enterprises and their interpretation and application guidelines issued and implemented by the Ministry of finance; Comply with the rules for the preparation of information disclosure of companies offering securities to the public No. 15 – General Provisions on financial reports (revised in 2014) of the CSRC; In accordance with the accounting policies and accounting estimates currently implemented by the company, the content of financial information truly, accurately, completely and legally reflects the actual situation of the company, without any false records, misleading statements, major omissions and major misstatements, and fairly reflects the financial status, operating results and cash flow of the company in all major aspects.

The audit committee pays special attention to changes in accounting policies and estimates and matters involving important accounting judgments.

(IV) evaluate the effectiveness of internal control

The Audit Committee attaches great importance to the establishment, improvement and implementation of the company’s internal control system. After careful inspection, the Audit Committee believes that the company has established a relatively perfect corporate governance structure and internal control system in accordance with the company law, securities law and other laws and regulations as well as the requirements of the relevant provisions of the CSRC and Shanghai Stock Exchange. The company’s internal control system shall adapt to the company’s scale, business scope, competition and risk level, and shall be adjusted in time with the changes of the business environment and the company’s business. The company should strengthen informatization means, establish a structured process management system, use professional process management platform to unify the management process, improve the internal control system, implement the implementation of the internal control system, strengthen the supervision and inspection of internal control, and promote the healthy and sustainable development of the company.

(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions

During the reporting period, in order to better enable the management, the internal audit department and relevant departments to fully and effectively communicate with the external audit institutions, the audit committee carried out active coordination through multiple channels to improve the audit efficiency, reduce the audit cost, improve the professional quality and level of the internal auditors, and jointly give play to the audit supervision function.

4、 Overall evaluation

In 2021, the audit committee performed its duties 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 will continue to follow the relevant regulations, adhere to the principles of prudence, objectivity and impartiality, proceed from earnestly safeguarding the legitimate rights and interests of the company and all shareholders, continue to be diligent and responsible, give full play to the professional functions of the audit committee, and promote the steady operation, standardized operation and healthy development of the company.

The above report.

Guangzhou Jiacheng International Logistics Co.Ltd(603535) board of directors audit committee March 9, 2022

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