Hengdian Entertainment Co.Ltd(603103)
Performance report of the audit committee of the board of directors in 2021
In accordance with the guidelines for the operation of the audit committee of the board of directors of listed companies, the standards for the governance of listed companies, the stock listing rules of the Shanghai Stock Exchange, and in accordance with the relevant provisions of the articles of association and the working rules of the audit committee of the board of directors of the company, Hengdian Entertainment Co.Ltd(603103) (hereinafter referred to as “the company”) the audit committee of the board of directors has conscientiously performed its audit supervision duties based on the principle of diligence.
The performance of the audit committee in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is composed of independent directors Mr. Zhao Gang, Mr. Zhu Yanjian and director Hu Tiangao. The director of the audit committee is Mr. Zhao Gang, an accounting professional, and independent directors account for 2 / 3 of the members.
2、 Convening of the 2021 annual meeting of the audit committee
In 2021, the audit committee held four meetings, as follows:
1. On March 12, 2021, the 13th meeting of the audit committee of the second board of directors of the company was held. The main contents deliberated and adopted are: the company’s 2020 annual report and summary, the company’s 2020 annual financial statement report, the company’s 2020 profit distribution plan, the renewal of Lixin certified Public Accountants (special general partnership) as the company’s 2021 financial and internal control audit institution The company’s internal control evaluation report in 2020, the company’s expected daily related party transactions in 2022, investment and establishment of holding subsidiaries and related party transactions.
2. On April 29, 2021, the 14th meeting of the audit committee of the second board of directors of the company was held, and the main contents reviewed and approved were: the first quarter report of the company in 2021.
3. On August 20, 2021, the first meeting of the audit committee of the third board of directors of the company was held, and the main contents considered and adopted were: the company’s 2021 semi annual report and summary.
4. On October 29, 2021, the second meeting of the audit committee of the third board of directors of the company was held, and the main contents considered and adopted were: the third quarter report of the company in 2021.
3、 Main work of the audit committee in 2021
1. Performance of duties in annual review
In the company’s 2021 annual audit, the audit committee of the board of directors carefully read the company’s annual audit work arrangement and relevant materials in strict accordance with the relevant provisions of the detailed rules for the work of the audit committee of the board of directors, communicated with the certified public accountant in charge of the company’s annual audit, and urged the annual audit accountant to complete the annual audit work in time according to the work progress. After the accountant issued the audit opinion, the relevant meeting of the audit committee was held to review the company’s annual financial report and other matters again, and a written opinion was formed through voting, agreeing to submit the company’s 2021 annual financial and accounting statements formally audited by the annual audit accountant to the board of directors for deliberation. During the audit, no other major events were found in the audit process.
2. Supervise and evaluate the work of external audit institutions
The audit committee supervised and evaluated the audit work of Beixin Certified Public Accountants (special general partnership), and believed that it insisted on conducting a comprehensive audit with a fair and objective attitude, showed good professional ethics and professional quality, completed the audit of the company’s financial report and internal control on time, and issued a fair and objective report It truly and accurately reflects the company’s financial situation and operating results, and effectively assists the company in promoting the construction of internal control standard system. Therefore, after discussion and research, the audit committee proposed to the board of directors of the company to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the audit institution of the company’s financial statements and internal control in 2022.
3. Supervise the company’s internal audit system and its implementation
In accordance with the requirements of the company law and other relevant laws and regulations, the audit committee carefully reviewed the company’s internal audit work plan, urged the company’s internal audit institutions to implement it in strict accordance with the audit plan, put forward guiding opinions on the problems arising from internal audit, and inspected and supervised the further improvement and implementation of the company’s internal control system, Effectively prevent business risks and ensure the standardized operation and healthy development of the company. After verification, the Audit Committee believes that the internal audit can operate effectively in 2021, and no major problems are found in the company’s internal audit.
4. Review the company’s financial information and its disclosure
The audit committee gave full play to its professional level and carefully reviewed the company’s quarterly, semi annual and annual financial reports. We believe that the company’s financial reports are true, complete and accurate, there are no relevant fraud, fraud and major misstatement, and there are no major accounting error adjustment, major accounting policy and estimation changes Matters involving important accounting judgments and leading to non-standard unqualified audit reports. 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 status, operating results and cash flow.
5. Evaluate the effectiveness of the company’s internal control
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 and the requirements of the relevant provisions of the CSRC and Shanghai Stock Exchange. The company strictly implements various laws, regulations, rules, articles of association and internal management systems, and the general meeting of shareholders, the board of directors, the board of supervisors and the management operate in a standardized manner, striving to realize the standardized, comprehensive and effective implementation of the company’s internal control system, and effectively protect the legitimate rights and interests of the company and shareholders. Therefore, the Audit Committee believes that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC, and there are no major and important defects.
6. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
In order to better enable the management, internal audit department and relevant departments to fully and effectively communicate with auditors, we listened to the opinions of all parties through regular meetings, irregular meetings or other communication methods, actively cooperated with the work of external audit institutions, reasonably arranged relevant coordination matters, improved audit efficiency and reduced audit costs, Performed various duties to assist the company in the smooth completion of audit work.
4、 Overall evaluation
In 2021, the audit committee gave full play to the review and supervision role of the audit committee and earnestly fulfilled the responsibilities and obligations of the audit committee in accordance with the operation guidelines 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 formulated by the company. The audit committee will be more conscientious, pay close attention to the company’s internal audit work and the communication between the company’s internal and external audit, constantly improve and improve the internal audit system, give full play to the supervision function of the audit committee, and earnestly safeguard the common interests of the company and all shareholders.
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