Stock Code: China National Medicines Corporation Ltd(600511) stock abbreviation: China National Medicines Corporation Ltd(600511) Announcement No.: pro 2022013
China National Medicines Corporation Ltd(600511)
Announcement on reappointment of accounting firm 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.
Important content tips:
Name of accounting firm to be renewed: Ernst & Young Huaming accounting firm (special general partnership) (hereinafter referred to as “Ernst & Young Huaming accounting firm”)
China National Medicines Corporation Ltd(600511) (hereinafter referred to as “the company”) held the 37th meeting of the seventh board of directors on March 16, 2022, deliberated and adopted the proposal on renewing the appointment of accounting firm in 2022, and proposed to renew Ernst & Young Huaming accounting firm (special general partnership) (hereinafter referred to as “Ernst & Young Huaming”) as the company’s audit institution in 2022. This matter needs to be submitted to the general meeting of shareholders of the company for deliberation and approval. Now the relevant matters are announced as follows: I. Basic information of the proposed renewal of the accounting firm
(I) institutional information
1. Basic information. Ernst & Young Huaming Certified Public Accountants (special general partnership), hereinafter referred to as “Ernst & Young Huaming”, was established in September 1992, completed the localization transformation in August 2012, and transformed from a Sino foreign cooperative limited liability firm to a special general partnership firm. Ernst & Young Huaming is headquartered in Beijing and its registered address is room 01-12, 17th floor, Ernst & Young building, Oriental Plaza, No. 1, East Chang’an Street, Dongcheng District, Beijing. By the end of 2021, it has 203 partners, and the chief partner is Mr. Mao Anning. An Yonghua Ming has always paid attention to talent training. By the end of 2021, it has 1604 certified public accountants, including more than 1300 certified public accountants with experience in securities related business services, and more than 400 certified public accountants who have signed the audit report of securities service business. The total business income of Ernst & Young Huaming in 2020 was RMB 4.76 billion, including audit business income of RMB 4.589 billion (including securities business income of RMB 2.146 billion). In 2020, there were 100 annual report audit clients of A-share listed companies, with a total charge of RMB 824 million. The main industries of these listed companies involve manufacturing, finance, wholesale and retail, information transmission, software and information technology services, real estate, etc. The company has 6 audit clients of Listed Companies in the same industry.
2. Investor protection ability. Ernst & Young Huaming has good investor protection ability, and has withdrawn occupational risk fund and purchased occupational insurance in accordance with relevant laws and regulations, covering Beijing head office and all branches. The sum of the accrued occupational risk fund and the purchased occupational insurance cumulative compensation limit exceeds 200 million yuan. Ernst & Young Huaming has not borne any civil liability due to civil litigation related to practice in recent three years.
3. Integrity record. Ernst & Young Huaming and its employees have not been subject to any criminal punishment or administrative punishment due to their professional behavior in recent three years, as well as the self-discipline supervision measures and disciplinary sanctions of self-discipline organizations such as stock exchanges and industry associations. It has twice received the decision of warning letter measures issued by the securities regulatory authority, involving 13 employees. The aforesaid decision to issue a warning letter is a supervisory and administrative measure, not an administrative penalty. According to the provisions of relevant laws and regulations, the supervision and management measures will not affect an Yonghua ming to continue to undertake or perform securities service business and other businesses.
(II) project member information
1. Ms. Yang Jinglu, the project partner and the signing certified public accountant, became a certified public accountant in 2005, began to engage in the audit of Listed Companies in 2004, began to practice at Ernst & Young Huaming in 2002, and began to provide audit services for the company in 2021; Signed or reviewed the annual reports and internal control audits of three listed companies in the past three years, involving industries including scientific research and technical services, pharmaceutical manufacturing, wholesale and retail;
Ms. Yang Shujuan, the reviewer of project quality control, became a certified public accountant in 1997, began to engage in the audit of Listed Companies in 1994 and began to practice at Ernst & Young Huaming in 1994; Signed or reviewed the annual reports and internal control audits of 8 listed companies in the past three years, including pharmaceutical manufacturing, civil engineering and construction, business services, wholesale and retail;
The signing certified public accountant is Ms. Luo Yang, who became a certified public accountant in 2014, began to engage in the audit of Listed Companies in 2011, began to practice at Ernst & Young Huaming in 2014, and began to provide audit services for the company in 2021; Signed or reviewed the annual report and internal control audit of a listed company in recent three years, involving wholesale and retail industries.
2. Record of the independence and integrity of the above relevant personnel. The above project partners, quality control reviewers and current signing accountants have not violated the independence requirements of the code of professional ethics for Chinese certified public accountants, and have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline supervision measures in the past three years.
3. Independence. Ernst & Young Huaming and the above project partners, signed certified public accountants and project quality control reviewers do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
(III) audit fees
The audit fee for the current financial report is RMB 1.61 million (including subsidiaries), and the audit fee for internal control is RMB 870000, totaling RMB 2.48 million. The service fee is charged according to the working days and man day fee standard required by Ernst & Young Huaming Certified Public Accountants (special general partnership) to provide audit services. The number of working days shall be determined according to the nature and complexity of audit services; The charging standard for person days shall be determined respectively according to the professional skill level of practitioners. The changes in the price of the company’s financial report audit fees and internal control audit fees in 2021 and 2020 are mainly due to the audit fees for subsidiaries increased by the company’s business expansion and consolidation scope. In addition to this factor, the overall change is small. (IV) other information that the exchange deems should be disclosed.
None.
2、 Procedures to be performed by the accounting firm to be reappointed
(I) the audit committee of the board of directors of the company has reviewed Ernst & Young Huaming Certified Public Accountants (special general partnership) and believes that it adheres to the principle of independent audit, objectively, fairly and fairly reflects the company’s financial situation and operating results, and earnestly performs the responsibilities of the audit institution, Agree to propose to the board of directors to reappoint Ernst & Young Huaming Certified Public Accountants (special general partnership) as the company’s accounting firm in 2022.
(II) prior approval and independent opinions of independent directors
The independent directors of the company approved the matter of the company’s reappointment of the accounting firm in 2022 in advance, and expressed the following opinions on this matter:
1. Ernst & Young Huaming Certified Public Accountants (special general partnership) is an accounting firm mainly engaged in the audit business of listed companies. It independently undertakes the business of certified public accountants according to law and has the qualification of securities and futures related business.
2. Ernst & Young Huaming Certified Public Accountants (special general partnership) has achieved a leading position in China in terms of business scale, practice quality and social image. It has rich experience and strong professional service ability in providing high-quality audit services for listed companies for many years, and can better meet the requirements of the company’s future business and strategic development and financial audit.
3. It is agreed to submit the proposal on renewing the appointment of accounting firm in 2022 to the board of directors for deliberation. The independent opinions of the independent directors on this matter are as follows:
1. Ernst & Young Huaming Certified Public Accountants (special general partnership) is an accounting firm mainly engaged in the audit business of listed companies. It independently undertakes the business of certified public accountants according to law and has the qualification of securities and futures related business. 2. Ernst & Young Huaming Certified Public Accountants (special general partnership) has achieved a leading position in China in terms of business scale, practice quality and social image. It has rich experience and strong professional service ability to provide high-quality audit services for listed companies for many years, and can better meet the requirements of the company to establish and improve internal control and financial audit.
3. Agree to renew Ernst & Young Huaming Certified Public Accountants (special general partnership) as the company’s accounting firm in 2022.
(III) at the 37th meeting of the 7th board of directors of the company, the proposal on renewing the appointment of accounting firm in 2022 was deliberated and adopted by 9 votes in favor, 0 against and 0 abstention, and Ernst & Young Huaming Certified Public Accountants (special general partnership) was agreed to be the company’s audit accounting firm in 2022.
(IV) the renewal of the accounting firm in 2022 needs to be submitted to the company’s 2021 annual general meeting for deliberation, and will take effect from the date of deliberation and approval by the company’s 2021 annual general meeting.
3、 Documents for future reference
1. Resolutions of the 37th meeting of the 7th board of directors of the company;
2. Prior approval opinions and independent opinions of independent directors;
It is hereby announced
China National Medicines Corporation Ltd(600511) March 17, 2022
