Securities code: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) securities abbreviation: Changfei optical fiber Announcement No.: lin2022011 bond Code: 175070 bond abbreviation: 20 Changfei 01
Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869)
Announcement on reappointment of 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 this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content note: the name of the accounting firm to be renewed: KPMG Huazhen accounting firm (special general partnership) Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (hereinafter referred to as “the company”) held the 17th meeting of the third board of directors on March 25, 2022, deliberated and adopted the proposal on renewing KPMG Huazhen accounting firm (special general partnership) as the company’s audit institution in 2022, KPMG (the partnership) agrees to renew the appointment of general auditor and special auditor in 2022. This matter needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval.
1、 Basic information of the accounting firm to be renewed
1. Basic information
KPMG Huazhen certified public accountants was established in Beijing on August 18, 1992. It was approved by the Ministry of finance to be transformed into a special general partnership on July 5, 2012. It was renamed KPMG Huazhen Certified Public Accountants (special general partnership) (hereinafter referred to as “KPMG Huazhen”). It obtained the industrial and commercial business license on July 10, 2012 and officially operated on August 1, 2012.
KPMG Huazhen general office is located in Beijing and its registered address is 8 / F, building 2, East Oriental Plaza, No. 1, East Chang’an Street, Dongcheng District, Beijing.
Zou Jun, the chief partner of KPMG Huazhen, is a Chinese national with the qualification of Chinese certified public accountant.
On December 31, 2021, KPMG Huazhen had 199 partners and 977 certified public accountants, of which more than 210 certified public accountants signed the audit report of securities service business.
KPMG Huazhen’s total audited business income in 2020 exceeded RMB 3.4 billion, including audit business income of more than RMB 3.1 billion (including domestic legal securities business income of more than RMB 600 million, other securities business income of more than RMB 700 million, and securities business income of more than RMB 1.3 billion). KPMG Huazhen has 57 annual report audit clients of Listed Companies in 2020, and the total audit fees of financial statements of listed companies are RMB 356 million. The main industries of these listed companies involve manufacturing, finance, mining, production and supply of electricity, heat, gas and water, wholesale and retail, transportation, storage and postal services, real estate, leasing and business services, scientific research and technical services, water conservancy, environment and public facilities management, information transmission, software and information technology services, And health and social work. KPMG Huazhen had 24 audit clients of Listed Companies in the same industry in 2020.
2. Investor protection ability
The sum of the cumulative compensation limit of occupational insurance purchased by KPMG Huazhen and the accrued occupational risk fund exceeds 200 million yuan, which is in line with the relevant provisions of laws and regulations. KPMG Huazhen has not been subject to civil liability due to civil litigation related to its practice in recent three years.
3. Integrity record
KPMG Huazhen and its employees have not been subject to any criminal punishment, administrative punishment, administrative supervision measures of the CSRC and its dispatched offices, or self-discipline supervision measures or disciplinary sanctions of self-discipline organizations such as stock exchanges and industry associations in recent three years.
2、 Project information
1. Basic information
The basic information of KPMG Huazhen as the project partner, signing certified public accountant and project quality control reviewer of the company’s 2022 financial statement audit project is as follows:
Chen Yi, the project partner of the project, obtained the qualification of Chinese certified public accountant in 2007. Chen Yi began to practice in KPMG Huazhen in 2003, engaged in the audit of Listed Companies in 2003 and provided audit services for the company from 2019. Chen Yi signed or reviewed three audit reports of Listed Companies in recent three years.
Duan Yuhua, the signing certified public accountant of the project, obtained the qualification of Chinese certified public accountant in 2006. Duan Yuhua began to practice in KPMG Huazhen in 2001, engaged in the audit of Listed Companies in 2004 and provided audit services for the company from 2020. Duan Yuhua has signed or reviewed three audit reports of Listed Companies in recent three years. The quality control reviewer of the project is Xiao Zhongke. Obtained the qualification of Chinese certified public accountant in 2007. Xiao Zhongke began to practice in KPMG Huazhen in 2005, engaged in the audit of Listed Companies in 2012 and provided audit services for the company from 2021. Xiao Zhongke signed or reviewed 5 audit reports of Listed Companies in recent three years.
2. Integrity record
In the past three years, the project partner, the signing certified public accountant and the project quality control reviewer have not been subject to any criminal punishment or administrative punishment due to their professional behavior, or the administrative supervision measures of the CSRC and its dispatched offices, or the self-discipline supervision measures or disciplinary measures of self-discipline organizations such as stock exchanges and industry associations.
3. Independence
KPMG Huazhen, the project partner, the signing certified public accountant and the project quality control reviewer maintained their independence in accordance with the provisions of the code of professional ethics.
4. Audit fees
KPMG Huazhen’s audit service charge is determined according to the business responsibility, complexity, work requirements, required working conditions and working hours, as well as the professional knowledge and working experience invested by staff at all levels who actually participate in the business. The audit fee of the project in 2021 is RMB 6 million, including annual report audit fee of RMB 5.5 million and internal control audit fee of RMB 500000, an increase of 15.4% over the previous year.
3、 Procedures to be performed by the accounting firm to be renewed
1. The audit committee of the company has carefully reviewed the relevant materials provided by KPMG Huazhen and evaluated KPMG Huazhen’s performance in the company’s audit work in previous years. It believes that KPMG Huazhen’s professional competence, investor protection ability, independence and integrity meet the relevant requirements, adheres to the principle of independent audit in the process of practice, and can issue various professional reports for the company on time, with objective and fair contents. The audit committee agreed to reappoint KPMG Huazhen as the company’s financial audit institution and internal control audit institution in 2022.
2. The independent directors of the company have expressed their prior approval opinions on the renewal of KPMG Huazhen as the company’s audit institution in 2022, and their independent opinions are as follows:
KPMG Huazhen is qualified to engage in securities related businesses. During the period of serving as the company’s audit institution in 2021 and conducting various special audits, financial statement audits and internal control audits, KPMG Huazhen followed the requirements of relevant laws and regulations on independence, diligently and responsibly, fairly and reasonably issued independent audit opinions, and met the regulatory requirements in terms of professional competence, investor protection ability, independence and integrity, Good brand reputation.
The deliberation procedure and determination basis of the proposal comply with the provisions of the company law of the people’s Republic of China, the articles of association and other relevant laws, regulations and normative documents. Therefore, we unanimously agree to reappoint KPMG Huazhen as the company’s financial audit institution and internal control audit institution in 2022, and agree to submit the proposal to the general meeting of shareholders of the company for deliberation. 3. The company held the 17th meeting of the third board of directors on March 25, 2022, and adopted the proposal on renewing KPMG Huazhen Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 with 12 affirmative votes, 0 negative votes and 0 abstention votes.
4. The renewal of the accounting firm 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 of the company.
It is hereby announced. Documents for future reference: 1. Resolution of the 17th meeting of the third board of directors of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) 2. Pre approval opinions of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) independent directors on relevant deliberations of the 17th meeting of the third board of directors 3. Independent opinions of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) independent directors on relevant deliberations of the 17th meeting of the third board of directors 4. Performance report of the audit committee of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) 2021 5. Notes of KPMG Huazhen on its basic situation
Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) board of directors March 25, 2002
