China National Medicines Corporation Ltd(600511)
Performance report of the audit committee of the board of directors in 2021
In 2021, the audit committee under the board of directors of China National Medicines Corporation Ltd(600511) board of directors, in line with the principle of diligence and responsibility, will be established in accordance with the standards for the governance of listed companies, the guidelines for the operation of the audit committee under the board of directors of listed companies of Shanghai Stock Exchange, the stock listing rules of Shanghai Stock Exchange, the articles of association and the detailed rules for the implementation of the audit committee under the board of directors of China National Medicines Corporation Ltd(600511) of China Securities Regulatory Commission, Conscientiously fulfilled the responsibility of audit and supervision. The performance of the audit committee in 2020 is reported as follows:
1、 Composition of audit committee
The audit committee of the board of directors is composed of four directors: Chairman: Zhang Lianqi, and members: Ren Peng, Liu Fengzhen and Jiang Xiuchang. The audit committee includes three independent directors, and the chairman shall be an independent director with the qualification of certified public accountant.
2、 Meetings of the audit committee
During the reporting period, the audit committee held many audit committee meetings in due course:
1. On March 17, 2021, the annual report audit communication meeting of the audit committee of the board of directors was held to listen to the work report and management proposal of the audit institution, fully communicate the problems encountered in the annual report audit, and listen to the report on internal control work.
2. At the 26th meeting of the seventh board of directors held on March 17, 2021, the Audit Committee deliberated and approved the proposal on the company’s daily connected transactions in 2020 and the expected daily connected transactions in 2021, the proposal on applying for entrusted loans and connected transactions from the holding subsidiary Sinopharm group Guorui Pharmaceutical Co., Ltd. in 2021 The proposal on Issuing internal loans and related party transactions for the holding subsidiary Sinopharm holding Beijing Tianxing Puxin biomedical Co., Ltd. in 2021, the proposal on the company’s internal control audit report in 2020 and the company’s internal control self-evaluation report in 2020 Proposal on reappointment of Ernst & Young Huaming Certified Public Accountants (special general partnership) as the company’s audit institution in 2021.
3. At the 28th meeting of the seventh board of directors held on April 23, 2021, the audit committee considered and adopted the proposal on the full text and text of the company’s first quarter report in 2021.
4. At the 32nd meeting of the seventh board of directors held on August 18, 2021, the Audit Committee deliberated and adopted the proposal on the full text and summary of the company’s 2021 semi annual report.
5. At the 34th meeting of the seventh board of directors held on October 20, 2021, the Audit Committee deliberated and adopted the proposal on reviewing the full text and text of the company’s report for the third quarter of 2021.
6. The annual report audit communication meeting of the audit committee of the board of directors was held in January 2022. In accordance with the relevant provisions of the working procedures for the annual report of the audit committee of the board of directors, the audit committee shall fully communicate with the certified public accountants before the annual audit, listen to the annual audit report of the audit institution, and make work arrangements for important matters such as share audit. Listen to the report on internal control and the internal audit plan of 2021.
3、 Performance of audit committee
1. Audit of the company’s annual report
In the audit of the annual report, the audit committee has carried out a series of work in accordance with the relevant provisions and spirit of the China Securities Regulatory Commission, Beijing Securities Regulatory Bureau and Shanghai Stock Exchange on doing a good job in the annual report of listed companies. The details are as follows:
(1) Determine the annual report audit plan. Before Ernst & Young Huaming certified public accountants entered the site to carry out the audit, the audit committee held the first communication meeting with the audit institution to negotiate the audit work arrangement and determine the specific audit matters and time arrangement. It also requires the audit institution to carry out the audit work in strict accordance with the requirements of the practice standards for Chinese certified public accountants, and communicate with the audit committee in time if any major problems are found in the audit process.
(2) Track the progress of annual report audit. During the entry of Certified Public Accountants into the audit, the audit committee maintained close communication with the project audit leader to supervise the audit progress, and timely held the second communication meeting with the audit institution after the on-site audit, so as to solve the problems found in the audit process and clarify the submission time of the first draft of the audit report.
(3) Review the audit report. All members of the audit committee carefully reviewed the first draft of the audit report, put forward modification opinions, carefully reviewed the final draft of the audit report again, and agreed to submit the audit report and the company’s annual financial statements approved by the audit institution to the board of directors for deliberation.
(4) Renew the appointment of accounting firm. The members of the audit committee made a fair and objective summary and evaluation of the audit work carried out by Ernst & Young Huaming Certified Public Accountants (special general partnership) hired by the company, and believed that in providing audit services for the company, Ernst & Young Huaming Certified Public Accountants (special general partnership) hired by the company strictly abided by the provisions of the auditing standards for Chinese certified public accountants, Scrupulously perform their duties, follow the independent, objective and fair practice standards, and better complete the work entrusted by the company. At the 26th meeting of the 7th board of directors held on March 17, 2021, the proposal on renewing Ernst & Young Huaming Certified Public Accountants (special general partnership) as the company’s audit institution in 2021 was passed.
2. Other audit work
During the reporting period, the audit committee also considered the company’s first quarterly report, semi annual report and third quarterly report, as well as the company’s financial final accounts, profit distribution, entrusted loans and other important matters.
In 2022, the audit committee will be more conscientious, pay close attention to the company’s internal audit work, constantly improve and improve the internal audit system, give full play to the supervision function of the audit committee, and effectively safeguard the interests of the company and all shareholders.
China National Medicines Corporation Ltd(600511) board of directors audit committee March 16, 2022
