Securities code: Chongqing Lummy Pharmaceutical Co.Ltd(300006) securities abbreviation: Chongqing Lummy Pharmaceutical Co.Ltd(300006) Announcement No.: 2022012 Chongqing Lummy Pharmaceutical Co.Ltd(300006)
Announcement on the renewal of accounting firm
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Chongqing Lummy Pharmaceutical Co.Ltd(300006) (hereinafter referred to as “the company” and “the company”) deliberated and adopted the proposal on the renewal of accounting firm at the 22nd Meeting of the 5th board of directors and the 18th meeting of the 5th board of supervisors held on March 24, 2022, and agreed to renew Sichuan Huaxin (Group) Accounting firm (special general partnership) (hereinafter referred to as “Sichuan Huaxin”) as the company’s accounting firm in 2022, And agreed to submit the matter to the 2021 annual general meeting of shareholders for deliberation. Now the relevant matters are announced as follows:
1、 Description of the matters to be re employed by the accounting firm
Sichuan Huaxin is qualified to engage in Securities and futures related businesses. During the period of acting as the company’s audit institution in 2021, the Institute followed the independent auditing standards for Chinese certified public accountants and the relevant rules of internal control audit, earnestly performed the responsibilities of the audit institution, and safeguarded the legitimate rights and interests of the company and shareholders from a professional perspective. Based on its rich audit experience and professional quality, the Institute can provide high-quality audit services for the company. Upon the proposal of the audit committee of the board of directors, the board of directors of the company plans to renew Sichuan Huaxin as the company’s accounting firm in 2022 for one year, which will take effect from the date of deliberation and approval of the company’s 2021 annual general meeting.
2、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Firm name: Sichuan Huaxin (Group) Certified Public Accountants (special general partnership)
Date of establishment: June 1988 (system transformation and certificate renewal, November 27, 2013)
Registered address: No. 2, unit 3, building 28, middle Jiangyang Road, Luzhou City
Headquarters office address: 28th floor, jinmaolidu south, No. 18, Ximianqiao street, Wuhou District, Chengdu
Organizational form: special general partnership
Chief partner: Li Wulin
Number of partners as of December 31, 2021: 54
As of December 31, 2021, the number of Certified Public Accountants: 127, including 106 certified public accountants who have signed the audit report of securities service business;
In 2021, Sichuan Huaxin’s total audited income was 1936055 million yuan, and its audit business income was 1936055 million yuan, including securities business income of 1331781 million yuan;
In 2021, there were 42 audit clients of listed companies, mainly including manufacturing, power, heat, gas and water production and supply, information transmission, software and information technology services, culture, sports and entertainment, construction, wholesale and retail, water conservancy, environment and public facilities management;
Audit fees in 2021: 44.215 million yuan;
Number of audit clients of Listed Companies in the same industry: 3.
2. Investor protection ability
Sichuan Huaxin has purchased professional insurance in accordance with the Interim Measures for professional liability insurance of accounting firms. As of December 31, 2021, the cumulative liability compensation limit is 80 million yuan and the occupational risk fund is 25.58 million yuan. The relevant professional insurance can cover the civil liability caused by audit failure.
In the past three years, there has been no civil litigation due to practice.
3. Integrity record
In recent three years, Sichuan Huaxin has not been subject to criminal punishment or administrative punishment for its practice.
In recent three years, Sichuan Huaxin Institute has been subject to supervision and management measures for practice for 6 times; 10 employees have been subject to supervision and management measures for 5 times and self-discipline supervision measures for 0 times in recent three years.
(II) project information
1. Basic information
Signed project partner: Chen Jie, who became a certified public accountant in May 2014, began to engage in the audit of Listed Companies in 2008, began to practice in Sichuan Huaxin in 2008, and began to provide audit services for the company in 2021; Listed companies signed in recent three years include: Chongqing Lummy Pharmaceutical Co.Ltd(300006) , Atlantic China Welding Consumables Inc(600558) , Beijing Yingtai Jiahe Biotechnology Co., Ltd. and Shandong Kaisheng New Materials Co.Ltd(301069) .
Zhao Xiangyu, a certified public accountant in Sichuan, started to audit the company in May 2013 and began to provide audit services for the company in May 2013; Listed companies signed in recent three years include Chongqing Lummy Pharmaceutical Co.Ltd(300006) and Huapont Life Sciences Co.Ltd(002004) .
Signed CPA: Li Youming, who became a CPA in May 2018, began to audit listed companies in 2014, began to practice in Sichuan Huaxin in 2014, and began to provide audit services for the company in 2020; Listed companies signed in recent three years include: Chongqing Lummy Pharmaceutical Co.Ltd(300006) , Landai Technology Group Corp.Ltd(002765) and Beijing Yingtai Jiahe Biotechnology Co., Ltd.
Arrange quality control reviewers: He Jun, who became a certified public accountant in December 1997, began to engage in the audit of Listed Companies in February 1999, began to practice in Sichuan Huaxin in February 1999, and began to provide audit services for the company in 2019; Listed companies signed in recent three years include Wisesoft Co.Ltd(002253) , Chongqing Landai Power Transmission Machinery Co., Ltd; Listed companies reviewed in recent three years include: Wuliangye Yibin Co.Ltd(000858) , Huaqi Houpu Electromechanical Equipment Co., Ltd. Chongqing Zongshen Power Machinery Co.Ltd(001696) , Huapont Life Sciences Co.Ltd(002004) and Chongqing Lummy Pharmaceutical Co.Ltd(300006) .
2. Integrity record
Chen Jie, the partner of the signed project, Zhao Xiangyu and Li Youming, the certified public accountants, and He Jun, the reviewer of project quality control, have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline punishment in the past three years. 3. Independence
Sichuan Huaxin, the signing project partner, the signing certified public accountant and the project quality control reviewer can maintain their independence in the audit of the project.
4. Audit fees
The pricing principle of audit fees is formulated according to the company’s business scale, industry and complexity of accounting treatment. It is estimated that the audit fee in 2022 will be 870000 yuan.
3、 Procedures to be performed by the accounting firm to be renewed
1. Performance of the audit committee of the board of directors
The audit committee of the board of directors of the company has fully understood the practice of Sichuan Huaxin and unanimously recognized the independence, professional competence and investor protection ability of Sichuan Huaxin after consulting the relevant qualification certificates, relevant information and integrity records of Sichuan Huaxin.
The audit committee of the board of directors of the company held a meeting, deliberated and passed the proposal on renewing the appointment of accounting firm, agreed to renew the appointment of Sichuan Huaxin as the accounting firm of the company in 2022, and submitted it to the board of directors of the company for deliberation.
2. Prior approval opinions and independent opinions of independent directors of the company
The independent directors of the company reviewed the renewal of the accounting firm and issued the independent opinions approved and agreed in advance.
Prior approval opinion of independent directors: we believe that Sichuan Huaxin has the securities qualification approved by China Securities Regulatory Commission, the signing certified public accountant and project leader have many years of experience and ability to provide audit services for listed companies, adhere to the independent audit principle in the process of cooperation with the company, issue various professional reports for the company on time, and the contents of the reports are objective and fair. We agree to continue to appoint Sichuan Huaxin as the accounting firm of the company in 2022. We agree that the company will submit the proposal to the board of directors for deliberation.
Independent opinion of independent directors: after verification, we believe that Sichuan Huaxin (Group) Certified Public Accountants (special general partnership) has the qualification of securities practice, has cooperated with the company for many years, adheres to the principle of independent audit in the process of practice, and can issue various professional reports for the company on time, and the contents of the reports are objective and fair. With the prior approval of all independent directors, it is agreed to continue to employ Sichuan Huaxin (Group) accounting firm (special general partnership) as the accounting firm of the company in 2022. Agree to submit the matter to the general meeting of shareholders for deliberation.
3. Deliberation and voting of proposals by the board of directors and the board of supervisors
On March 24, 2022, the company held the 22nd Meeting of the 5th board of directors and the 18th meeting of the 5th board of supervisors, approved the proposal on renewing the appointment of accounting firm, and agreed to renew the appointment of Sichuan Huaxin (Group) accounting firm (special general partnership) as the company’s accounting firm in 2022 for one year, which will take effect from the date of deliberation and approval of the company’s 2021 annual general meeting.
4. Procedures to be performed
The proposal on renewing the appointment of accounting firm needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
4、 Documents for future reference
1. Chongqing Lummy Pharmaceutical Co.Ltd(300006) the resolution of the 22nd Meeting of the 5th board of directors;
2. Chongqing Lummy Pharmaceutical Co.Ltd(300006) the resolution of the 18th meeting of the 5th board of supervisors;
3. Documents certifying the performance of the audit committee of the board of directors;
4. Prior approval opinions of independent directors on matters related to the 22nd Meeting of the Fifth Board of directors; 5. Independent opinions of independent directors on 2021 annual report and other related matters;
6. The business license of Sichuan Huaxin, the information and contact information of the main person in charge and the contact person of the regulatory business, and the signature of the specific audit business, the ID card, practice license and contact information of the certified public accountant.
It is hereby announced.
Chongqing Lummy Pharmaceutical Co.Ltd(300006) board of directors March 25, 2022
