Securities code: Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) stock abbreviation: Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) No.: Lin 2022040 bond Code: 143422 bond abbreviation: 18 Fuyao 01
Bond Code: 155067 bond abbreviation: 18 Fuyao 02
Bond Code: 175708 bond abbreviation: 21 Fuyao 01
Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd
Announcement on the renewal 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 note: name of domestic accounting firm to be renewed: Ernst & Young Huaming accounting firm (special general partnership)
On March 22, 2022, the 66th meeting (regular meeting) of the 8th board of directors of Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd. (hereinafter referred to as “the company”) deliberated and adopted the proposal on the company’s continued employment of accounting firms in 2022 and the remuneration of accounting firms in 2021, The company intends to renew the employment of Ernst & Young Huaming Certified Public Accountants (special general partnership) (hereinafter referred to as “Ernst & Young Huaming”) as the domestic financial report and internal control audit institution of the company in 2022 (hereinafter referred to as “this renewal”), and the proposed renewal of domestic accounting firms is as follows:
1、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Ernst & Young Huaming was established in September 1992 and completed the localization transformation in August 2012, 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.
As of December 31, 2021, an Yonghua Ming has 203 partners, and the chief partner is Mr. Mao Anning. An Yonghua Ming has always focused on talent training. As of December 31, 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, mainly involving manufacturing, finance, wholesale and retail, information transmission, software and information technology services, real estate, etc. The company has 10 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 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 personnel information
1. Basic information
The partner of the company’s annual audit project and the first signing certified public accountant are proposed to be Mr. Hou Jie. Mr. Hou Jie became a certified public accountant in 2005, began to audit listed companies in 2000, began to practice at Ernst & Young Huaming in 2007, and began to provide audit services for the company in 2020; In the past three years, we have signed the annual reports / internal control audit projects of two listed companies and reviewed the annual reports / internal control audit projects of two listed companies. The industries involved include agricultural and sideline food processing industry, pharmaceutical manufacturing industry, non-ferrous metal smelting and rolling processing industry, manufacturing industry, leasing and business services. The second signing certified public accountant of the company’s annual audit project is proposed to be Ms. Cai Yuchen. Ms. Cai Yuchen became a certified public accountant in 2013, began to audit listed companies in 2013, began to practice at Ernst & Young Huaming in 2009, and began to provide audit services for the company in 2020; The annual report / internal control audit of a listed company has been signed in the past three years, involving the pharmaceutical manufacturing industry.
The reviewer of project quality control is proposed to be Mr. Chen Jie. Mr. Chen has been engaged in the audit of the annual report of Huaming post, the storage industry and the retail industry, and has been engaged in the audit of the company’s listed information technology companies since 1998. Mr. Chen has been engaged in the audit of the company’s annual report, including the wholesale and retail industries of Huaming post since 1998.
2. Record of independence and integrity of the above-mentioned relevant personnel
The above project partners, quality control reviewers and signing certified public 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.
(III) audit fees
In 2021, the expenses of an Yonghua Ming for providing audit services for domestic financial reports and internal control for the company were RMB 2.8 million and RMB 750000 respectively, of which the audit service expenses for financial reports increased by RMB 50000 compared with that in 2020. The audit fee of this year is determined by comprehensively considering the industry fees and the scale of the company.
2、 Procedures to be performed by the accounting firm to be reappointed
1. The proposal on the company’s reappointment of accounting firms in 2022 and the remuneration of accounting firms in 2021 has been deliberated and adopted at the fifth meeting (regular meeting) of the audit committee of the eighth board of directors in 2022. The Audit Committee believes that an Yonghua Ming has due professional competence, investor protection ability, independence and good integrity, and agrees to submit the proposal to the board of directors for deliberation.
2. After the above-mentioned proposal is approved in advance by the independent non-executive director, it shall be submitted to the 66th meeting (regular meeting) of the eighth board of directors of the company for deliberation. 11 directors of the board of directors (including 4 independent non-executive directors) participated in the voting and passed it unanimously.
The independent non-executive director of the company expressed the following independent opinions on the renewal: the accounting firm to be renewed has corresponding professional qualification and competence, as well as the experience in providing audit services for listed companies, which can meet the requirements of the company’s external audit. The deliberation procedure of the board of directors on this renewal is legal and compliant, and there is no situation that damages the interests of the company and its shareholders, especially minority shareholders. Agree to this renewal and submit it to the general meeting of shareholders for deliberation.
3. The matter of this renewal needs to be submitted to the general meeting of shareholders of the company for deliberation and effective from the date of deliberation and approval by the general meeting of shareholders.
3、 Documents for reference 1. Resolutions of the 66th meeting (regular meeting) of the 8th board of directors 2. Prior approval of independent non-executive directors 3. Special instructions and independent opinions of independent non-executive directors are hereby announced.
Board of directors of Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd. March 22, 2002
