Securities code: Hengdian Entertainment Co.Ltd(603103) securities abbreviation: Hengdian Entertainment Co.Ltd(603103) Announcement No.: 2022005 Hengdian Entertainment Co.Ltd(603103)
Announcement on re employment of Lixin Certified Public Accountants (special general partnership) as the company's financial and internal control audit institution in 2022
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
1、 Description of the matters to be re employed by the accounting firm
In order to maintain the continuity and stability of the audit work, upon the proposal of the audit committee of the board of directors of the company, Hengdian Entertainment Co.Ltd(603103) (hereinafter referred to as "the company") deliberated and adopted the proposal on renewing the appointment of Lixin Certified Public Accountants (special general partnership) as the company's financial and internal control audit institution in 2022 at the fourth meeting of the third board of directors, We agree to renew the appointment of Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as "Lixin") as the company's financial and internal control audit institution in 2022 for one year.
2、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Lixin was founded in Shanghai in 1927 by Dr. pan Xulun, a leading Chinese accountant, and reopened in 1986. In 2010, Lixin became the first special general partnership accounting firm in China to complete the restructuring. Its registered address is Shanghai and its chief partner is Mr. Zhu Jiandi. As a member of the international accounting network BDO, Lixin has been engaged in securities service business for a long time. Before the implementation of the new securities law, it has a securities and futures business license, has H-share audit qualification, and has been registered with the American public company accounting supervision board (PCAOB).
By the end of 2021, Lixin had 252 partners, 2276 certified public accountants, 9697 employees, and 707 certified public accountants who had signed the audit report of securities service business.
In 2020, the business income (audited) of Lixin was 4.106 billion yuan, including 3.431 billion yuan from audit business and 1.357 billion yuan from securities business.
In 2021, Lixin provided annual report audit services for 587 listed companies, with an audit fee of 719 million yuan and one audit client of Listed Companies in the same industry.
2. Investor protection ability
By the end of 2021, Lixin had withdrawn 129 million yuan of occupational risk fund and purchased a total of occupational insurance
The compensation limit is 1.25 billion yuan, and the relevant occupational insurance can cover the civil liability caused by audit failure.
Civil liability in civil litigation related to practice in recent three years:
Litigation (Arbitration) (sued (arbitrated) (arbitrated) (Arbitration) litigation (Arbitration) litigation (Arbitration) results
Amount of dismissal event
Geeya technology and Lixin are expected to be jointly and severally liable for 4500 yuan. The occupational insurance insured by Lixin is enough to cover the compensation amount of 10000 yuan in the 2014 annual report of investors Zhou Xuhui and Lixin. At present, the effective judgment has been fulfilled
Baoqianli and baoqianli East in the first instance in 2015, Lixin made a judgment against baoqianli due to the evaluation, filing and reporting of securities investors' trust from December 30, 2016 to December 14, 2017 The amount of compensation for the insured's professional statements in 2016 is enough to cover 150000% of the investor's liability for false insurance statements
3. Integrity record
In recent three years, Lixin has been subject to criminal punishment, no administrative punishment and 24 supervision and management measures for its practice
Second, there were no self regulatory measures and disciplinary sanctions twice, involving 63 employees.
(II) project information
1. Basic information
Name: Certified Public Accountant starting to be engaged in listing starting to be held in the exchange starting to provide business time for the company company audit time business time for audit service time
Project partner he Qirui December 2002 October 2018 October 20112020
Signature: Certified Public Accountant Fang Zhenping July 1996 July 1996 October 20112020
Quality control reviewer Li Xinhang June 1999 January 20122020
(1) Employment of project partners in recent three years:
Name: he Qirui
Time listed company name position
2019 Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) Senior Manager
Funeng Oriental Equipment Technology Co.Ltd(300173) project partner
2020 Hengdian Group Tospo Lighting Co.Ltd(603303) project partner
Hengdian Entertainment Co.Ltd(603103) project partner
Hengdian Group Tospo Lighting Co.Ltd(603303) project partner
Partner of Hengdian Entertainment Co.Ltd(603103) project in 2021
(2) Employment of Certified Public Accountants in recent three years:
Name: Fang Zhenping
Time listed company name position
2019 Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) Senior Manager
2020 Hengdian Entertainment Co.Ltd(603103) Senior Manager
2021 Hengdian Entertainment Co.Ltd(603103) Senior Manager
(3) Employment of quality control reviewer in recent three years:
Name: Li Xinhang
Time listed company name position
2019 Guangdong Guanghua Sci-Tech Co.Ltd(002741) project partner
Guangdong Guanghua Sci-Tech Co.Ltd(002741) project partner
2020 Guangzhou Haige Communications Group Incorporated Company(002465) project partner
Guangzhou Grg Metrology&Test Co.Ltd(002967) project partner
Guangdong Jiayuan Technology Co.Ltd(688388) , project partner
Partner of Guangdong Xiongsu Technology Group Co.Ltd(300599) project in 2021
2. Record the independence and integrity of project team members.
The project partner, the signing certified public accountant and the quality control reviewer do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
The above personnel have no bad records in the past three years.
(III) audit fees
1. Audit fee pricing principle
Pricing is mainly based on the responsibility of professional services and the degree of professional technology investment, and comprehensively considering the experience and level of employees involved in the work, the corresponding charging rate and the working hours invested.
2. Year on year changes in audit fees
Audit service fees are determined according to the business responsibility, scale, complexity, work requirements, required working conditions and working hours, as well as the professional knowledge and work experience invested by staff at all levels who actually participate in the business. The audit fee of the project in 2021 is RMB 1.2 million, including annual report audit fee of RMB 1 million and internal control audit fee of RMB 200000. The pricing principle of audit fees in 2022 is consistent with that in 2021.
3、 Procedures to be performed by the accounting firm to be renewed
(I) opinions of the audit committee of the board of directors
At the third meeting of the audit committee of the third board of directors held on March 10, 2022, the company considered and adopted the proposal on proposing to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company's financial and internal control audit institution in 2022.
The Audit Committee believes that Lixin has rich experience in the audit of listed companies and has provided audit services for the company for 9 consecutive years. During the annual audit of 2021, the certified public accountants engaged in the annual audit in strict accordance with relevant laws and regulations, attached importance to understanding the company's operation, understanding the company's financial management system and relevant internal control system, timely communicated with the audit committee of the board of directors, independent directors and senior managers of the company, and better completed the audit of the 2021 annual report. The Audit Committee proposes to renew the appointment of Lixin as the company's financial and internal control audit institution in 2022 for one year.
(II) prior approval opinions and independent opinions of independent directors
Prior approval opinion of independent directors: in providing audit services for the company, Lixin has been able to fulfill its duties, follow the independent, objective and fair professional standards, fully complete the relevant audit work, and the audit report issued can objectively and truly reflect the financial status and operating results of the company. Lixin Certified Public Accountants (special general partnership) has the operation and ability to provide audit services for listed companies for many years, and its practitioners have good professional quality. Therefore, we agree to continue to employ Lixin Certified Public Accountants (special general partnership) as the company's financial and internal control audit institution in 2022 and submit it to the fourth meeting of the third board of directors for deliberation.
Independent opinions of independent directors: in the process of providing audit services for the company over the years, the auditors of Lixin strictly abide by the code of professional ethics, work seriously and rigorously, and have high comprehensive quality. The reports issued can objectively and truly reflect the financial situation and operating results of the company. The company has a good long-term cooperative relationship with it. We believe that it is in the interests of the company and its shareholders to renew the appointment of Lixin as the company's financial and internal control audit institution in 2022, and agree to submit it to the general meeting of shareholders of the company for deliberation.
(III) opinions of the board of directors and the board of supervisors
The fourth meeting of the third board of directors and the fourth annual financial and internal control audit institution of the third board of supervisors were held on March 10, 2022. The proposal was unanimously voted by all directors and supervisors. (IV) effective date
This matter needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and will take effect from the date of deliberation and approval by the general meeting of shareholders of the company.
It is hereby announced.
Hengdian Entertainment Co.Ltd(603103) board of directors
March 12, 2022
Filing documents
1. Resolutions of the fourth meeting of the third board of directors of the company;
2. Resolutions of the fourth meeting of the third board of supervisors of the company;
3. Resolutions of the third meeting of the audit committee of the third board of directors of the company;
4. Prior approval opinions and independent opinions of independent directors on matters related to the fourth meeting of the third board of directors;
5. Statement of Lixin Certified Public Accountants (special general partnership) on its basic information.
