Xinjiang Daqo New Energy Co.Ltd(688303) : Xinjiang Daqo New Energy Co.Ltd(688303) announcement on the renewal of Deloitte Touche Tohmatsu (special general partnership) as the audit institution of the company in 2022

Securities code: Xinjiang Daqo New Energy Co.Ltd(688303) securities abbreviation: Xinjiang Daqo New Energy Co.Ltd(688303) Announcement No.: 2022034 Xinjiang Daqo New Energy Co.Ltd(688303)

Announcement on the renewal of Deloitte Touche Tohmatsu (special general partnership) as the company's 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 the announcement, and bear legal responsibility for the authenticity, accuracy and integrity of the contents according to law.

Important content tips:

Xinjiang Daqo New Energy Co.Ltd(688303) (hereinafter referred to as "the company" or "Xinjiang Daquan") plans to appoint Deloitte Touche Tohmatsu Huayong Certified Public Accountants (special general partnership) as the company's 2022 financial report audit and internal control audit institution.

1、 Basic information of the accounting firm to be employed

(I) institutional information

1. Basic information

Deloitte Touche Tohmatsu (special general partnership) (hereinafter referred to as "Deloitte Touche Tohmatsu") was formerly known as Hujiang Deloitte Touche Tohmatsu Co., Ltd. established in February 1993. It was renamed Deloitte Touche Tohmatsu Co., Ltd. in 2002 and was transformed into a special general partnership with the approval of the Ministry of Finance and other departments in September 2012. Deloitte Huayong's registered address is 30 / F, No. 222 Yan'an East Road, Huangpu District, Shanghai.

Deloitte Huayong has the practice certificate of accounting firm approved by the Ministry of finance, and is approved by the Ministry of Finance and China Securities Regulatory Commission to engage in the audit business of A-share enterprises. Deloitte Huayong has filed for securities service business in accordance with the administrative measures for the filing of accounting firms engaged in securities service business and other relevant documents issued by the Ministry of Finance and the CSRC. Deloitte Huayong has been engaged in Securities and futures related service business for more than 20 years and has rich experience in securities service business.

The chief partner of Deloitte Huayong is Mr. Fu Jianchao. At the end of 2021, the number of partners was 220, there were 6681 employees and 1131 certified public accountants, including those who signed the audit report of securities service business

Deloitte Huayong's total audited business income in 2020 was RMB 4 billion, including audit business income of RMB 3.1 billion and securities business income of RMB 688 million. Deloitte Huayong provided annual report audit services for 60 listed companies in 2020, with a total audit fee of RMB 205 million. Among the listed companies served by Deloitte Huayong, the main industries are manufacturing, finance, information transmission, software and information technology services, real estate and mining. Among the listed companies that Deloitte Huayong provides audit services, there are 3 customers in the same industry as the company.

2. Investor protection ability

By the end of 2021, Deloitte Touche Tohmatsu (special general partnership) had purchased more than 200 million yuan of occupational insurance, and the purchase of occupational insurance mentioned in the occupational risk fund was in line with the relevant provisions of the Ministry of Finance on the measures for the administration of occupational risk fund of accounting firms and other documents.

In recent three years, Deloitte Touche Tohmatsu (special general partnership) is not required to bear civil liability in the civil litigation related to practice.

3. Integrity record

Deloitte Touche Tohmatsu (special general partnership) and its employees have not been subject to supervision and management measures, criminal punishment, administrative punishment, self-discipline supervision measures and disciplinary sanctions due to their professional behavior in recent three years. (II) project information

1. Basic information

Mr. Lin Hong, the project partner and signing certified public accountant, joined Deloitte Huayong in 2000 and began to engage in the audit of listed companies and professional services related to the capital market. He was registered as a certified public accountant in 2004 and is now a practicing member of Chinese certified public accountants and a non practicing member of the American Institute of certified public accountants. Mr. Lin Hong has not signed the audit report of Listed Companies in recent three years. Mr. Lin Hong has provided professional audit services for Xinjiang Daquan since 2017.

Mr. Yu Yang, the reviewer of quality control, has joined Deloitte since 1999. He has been registered as a certified public accountant since 2001 and has been engaged in the audit of listed companies and professional services related to the capital market. He is now a practicing member and senior member of the Chinese Institute of certified public accountants, a non practicing member of the American Institute of certified public accountants and the Australian Institute of public accountants. Yu Yang has been engaged in professional audit services for more than 20 years. He has worked full-time in the firm and has provided audit services for many large state-owned enterprises, listed companies and multinational enterprises. Mr. Yu Yang has been a partner for more than 9 years and has worked in securities business for more than 20 years. The audit reports of listed companies signed by Mr. Yu Yang in recent three years include Jiangsu Expressway Company Limited(600377) , Nanjing Chervon Auto Precision Technology Co.Ltd(603982) , Ways Electron Co.Ltd(605218) share audit professional services.

Mr. Huang Yuxiang, the signing certified public accountant, has been engaged in the audit of listed companies and professional services related to the capital market since joining Deloitte Huayong in 2018. He was registered as a Chinese certified public accountant in 2019 and is now a practicing member of Chinese certified public accountants. Mr. Huang Yuxiang has signed the audit report of Listed Companies in recent three years, which is the 2020 audit report of Xinyuan Microelectronics (Shanghai) Co., Ltd. Mr. Huang Yuxiang has provided professional audit services for Xinjiang Daquan since 2020.

2. Integrity record

In the past three years, the above personnel have not been subject to criminal punishment or administrative punishment due to their professional behavior, nor have they been subject to the supervision and management measures of securities regulatory institutions or the self-discipline supervision measures and disciplinary sanctions of stock exchanges, industry associations and other self-discipline organizations.

3. Independence

The above-mentioned personnel can maintain their independence during the audit of the project, and there is no violation of the independence requirements of the code of professional ethics for Chinese certified public accountants.

4. Audit fees

The audit fee of the company in 2021 is RMB 2 million. The pricing principle of audit fees in 2021 is mainly based on various factors such as the company's business scale, industry and complexity of accounting treatment, and is determined according to the allocation of auditors, the workload invested and the charging standard of the firm.

The board of directors of the company requests the general meeting of shareholders to authorize the operation and management of the company to negotiate with the audit institution to determine the audit fees (including the audit fees of financial reports and internal control) according to the actual business and market conditions of the company in 2022, and sign relevant service agreements and other matters.

2、 Procedures to be performed by the accounting firm to be reappointed

(I) review opinions of the audit committee of the board of directors

The audit committee of the board of directors of the company has fully understood and reviewed the independence, professional competence and investor protection ability of Deloitte Touche Tohmatsu (special general partnership). After consulting the basic information, qualification certificates, integrity records and other relevant information of Deloitte Touche Tohmatsu (special general partnership), it is considered that Deloitte Touche Tohmatsu (special general partnership) has securities Futures related business qualification, with the professional ability and qualification of audit. During the period of providing audit services for the company, it adhered to the principle of independent audit, performed its duties diligently, objectively, fairly and fairly reflected the company's financial status and operating results, and earnestly performed the duties of the audit institution.

It is unanimously agreed to submit the matter of re employment of Deloitte Touche Tohmatsu (special general partnership) as the audit institution of the company in 2022 to the board of directors of the company for deliberation.

(II) prior approval and independent opinions of independent directors

The independent directors of the company recognized the renewal of the accounting firm in advance: as the independent directors of the company, we learned the specific situation from the company's management about the matters of the company's proposed renewal of the accounting firm, and reviewed the relevant qualifications and other supporting materials of the proposed renewal of the accounting firm. We believe that Deloitte Huayong Certified Public Accountants (special general partnership) to be renewed by the company is an accounting firm with securities and futures practice qualification approved by the Ministry of finance of the people's Republic of China and China Securities Regulatory Commission. Deloitte Touche Tohmatsu (special general partnership) has been diligent, independent, objective and impartial in the audit of the company's accounting statements in 2021, and has the experience and ability to continue to provide the company with audit services in 2022. The review procedure of the company's renewal of the accounting firm complies with the provisions of relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and its shareholders, especially the interests of minority shareholders. Therefore, we agree to renew the appointment of Deloitte Touche Tohmatsu (special general partnership) as the audit institution of the company in 2022, and agree to submit the proposal to the board of directors of the company for deliberation.

The independent directors of the company expressed independent opinions on the proposed renewal of the accounting firm: Deloitte Huayong accounting firm (special general partnership) is an accounting firm with securities and futures practice qualification approved by the Ministry of finance of the people's Republic of China and the China Securities Regulatory Commission. Deloitte Touche Tohmatsu (special general partnership) has been diligent, independent, objective and impartial in the audit of the company's accounting statements in 2021, and has the experience and ability to continue to provide the company with audit services in 2022. The review procedure of the company's renewal of the accounting firm complies with the provisions of relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and its shareholders, especially the interests of minority shareholders. Therefore, we agree to renew the appointment of Deloitte Touche Tohmatsu (special general partnership) as the audit institution of the company in 2022, and agree to submit the proposal to the general meeting of shareholders of the company for deliberation.

(III) deliberation and voting of the board of directors

The company held the 22nd Meeting of the second board of directors on March 15, 2022, and adopted the proposal on renewing the appointment of Deloitte Touche Tohmatsu (special general partnership) as the company's audit institution in 2022 with 9 affirmative votes, 0 negative votes and 0 abstention votes.

(IV) the renewal of the accounting firm needs to be submitted to the 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.

Xinjiang Daqo New Energy Co.Ltd(688303) board of directors March 16, 2022

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