Securities code: China Merchants Securities Co.Ltd(600999) securities abbreviation: China Merchants Securities Co.Ltd(600999) No.: 2022015 China Merchants Securities Co.Ltd(600999)
Announcement on reappointment of accounting firm
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: Deloitte Touche Tohmatsu (special general partnership), Deloitte guanhuang Chenfang
Deloitte Touche Tohmatsu (special general partnership) (hereinafter referred to as Deloitte Touche Tohmatsu) and Deloitte guanhuang Chenfang Certified Public Accountants (hereinafter referred to as Deloitte guanhuang Chenfang) served as the external auditor and internal control auditor of China Merchants Securities Co.Ltd(600999) (hereinafter referred to as the company) in 2021. They performed their duties in accordance with independent, objective and impartial professional standards and successfully carried out the relevant audit and review of the company in 2021. In view of this, the 15th meeting of the seventh board of directors of the company proposed to renew the appointment of Deloitte Huayong and Deloitte guanhuang Chenfang as the company’s external auditor in 2022, and the appointment of Deloitte Huayong as the company’s Internal Control Auditor in 2022. Among them, the domestic accounting firms to be renewed are as follows:
1、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Deloitte Touche Tohmatsu (special general partnership), formerly known as Hujiang Deloitte Touche Tohmatsu Co., Ltd. established in February 1993, was renamed Deloitte Touche Tohmatsu Co., Ltd. in 2002. In September 2012, it was approved by the Ministry of Finance and other departments to become a special general partnership. Deloitte Huayong’s registered address is 30 / F, No. 222 Yan’an East Road, Huangpu District, Shanghai.
Deloitte Huayong has the practice certificate of accounting firm approved by the Ministry of finance, and is approved by the Ministry of Finance and China Securities Regulatory Commission to engage in the audit business of H-share enterprises. Deloitte Huayong has filed for securities service business in accordance with the administrative measures for the filing of accounting firms engaged in securities service business and other relevant documents issued by the Ministry of Finance and the CSRC. Deloitte Huayong has been engaged in Securities and futures related service business for more than 20 years and has rich experience in securities service business.
The chief partner of Deloitte Huayong is Mr. Fu Jianchao. At the end of 2021, there were 220 partners, 6681 employees and 1131 certified public accountants, including more than 220 certified public accountants who signed the audit report of securities service business.
Deloitte Huayong’s total audited business income in 2020 was RMB 4 billion, including audit business income of RMB 3.1 billion and securities business income of RMB 688 million. Deloitte Huayong provided annual report audit services for 60 listed companies in 2020, with a total audit fee of RMB 205 million. Among the listed companies served by Deloitte Huayong, the main industries are manufacturing, finance, information transmission, software and information technology services, real estate and mining. Among the listed companies that Deloitte Huayong provides audit services, there are 11 customers in the same industry as China Merchants Securities Co.Ltd(600999) company.
2. Investor protection ability
The cumulative compensation limit of occupational insurance purchased by Deloitte Huayong exceeds 200 million yuan, which is in line with relevant regulations. In recent three years, Deloitte has not been judged to be liable for civil acts related to Deloitte’s practice.
3. Integrity record
Deloitte Huayong and its employees have not been subject to criminal punishment or administrative punishment due to their professional behavior in recent three years, and have not been subject to the supervision and management measures of securities regulatory institutions or the self-discipline supervision measures and disciplinary sanctions of stock exchanges, industry associations and other self-discipline organizations.
(II) project information
1. Basic information
Ms. Hong Ruiming, the project partner, joined the accounting firm in 2002, joined Deloitte Huayong in 2004 and began to engage in the audit of listed companies and professional services related to the capital market. She was registered as a certified public accountant in 2004 and is now a practicing member of China Certified Public Accountants and a senior member of China Certified Public Accountants Association. Ms. Hong Ruiming has signed the audit reports of three listed companies in recent three years. Ms. Hong Ruiming has provided professional audit services for China Merchants Securities Co.Ltd(600999) since 2018.
Ms. Hu Xiaojun, partner of project quality control review, has been engaged in auditing and professional services related to the capital market since 1997. She was registered as a certified public accountant in 2001 and is now a practicing member of Chinese certified public accountants. Ms. Hu Xiaojun joined Deloitte Huayong in 2004. There are 5 audit reports of listed financial institutions signed or reviewed by Ms. Hu Xiaojun in recent three years.
Mr. Zhou Hanlin, the proposed certified public accountant, has joined Deloitte Huayong since 2013 and began to engage in the audit of listed companies and professional services related to the capital market. He was registered as a certified public accountant in 2017 and is now a practicing member of Chinese certified public accountants. Mr. Zhou Hanlin has provided professional audit services for China Merchants Securities Co.Ltd(600999) since 2018.
2. Integrity record
In the past three years, the above personnel have not been subject to criminal punishment or administrative punishment due to their professional behavior, nor have they been subject to the supervision and management measures of securities regulatory institutions or the self-discipline supervision measures and disciplinary sanctions of stock exchanges, industry associations and other self-discipline organizations.
3. Independence
Deloitte Huayong and above project partners, signed certified public accountants and project quality control reviewers have no circumstances that may affect their independence.
4. Audit fees
The audit fee is determined based on the time cost spent by Deloitte & Touche Tohmatsu partners and other employees at all levels in this audit, and taking into account the responsibilities and risks of professional services and other factors. The current audit fee is expected to be 4.25 million yuan (including accommodation, travel and other expenses, including tax), an increase of 400000 yuan over the previous audit fee, including 3.9 million yuan for annual reports and 350000 yuan for internal control audit.
(III) other information that Shanghai Stock Exchange deems should be disclosed
None.
2、 Procedures to be performed by the accounting firm to be reappointed
(I) performance of the audit committee
The eighth meeting of the audit committee of the seventh board of directors of the company pre approved the proposal on employing the company’s audit institution in 2022. The audit committee of the board of Directors believes that Deloitte Huayong has good professional competence and investor protection ability, good integrity and independence. It plans to agree to reappoint Deloitte as the audit institution of the company’s financial report and internal control in 2022, and agree to submit the proposal to the board of directors of the company for deliberation. (II) prior approval and independent opinions of independent directors
The independent directors of the company approved the above proposals in advance and expressed their independent opinions as follows: Deloitte Touche Tohmatsu (including Deloitte Huayong Certified Public Accountants (special general partnership) and Deloitte guanhuang Chenfang certified public accountants) have relevant qualifications and meet the qualification requirements of regulators and local stock exchanges for financial reports and internal control audit institutions of listed companies. The firm has many years of experience in auditing listed companies, Good integrity, able to meet the company’s audit needs in 2022, and can audit the company’s financial status independently.
The decision-making procedure for the company to hire an audit institution this time is legal and compliant, which has been approved by us in advance and approved by the audit committee of the board of directors. There is no harm to the interests of the company and shareholders. We unanimously agree to submit this matter to the general meeting of shareholders for deliberation.
(III) deliberation and voting of the board of directors
The company held the 15th meeting of the 7th board of directors on March 27, 2022, deliberated and adopted the proposal on employing the company’s audit institution in 2022. Voting status of the proposal: 13 in favor, 0 against and 0 abstention.
(IV) effective date
The appointment of an accounting firm needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and will take effect from the date of deliberation and approval by the general meeting of shareholders.
It is hereby announced.
China Merchants Securities Co.Ltd(600999) board of directors March 27, 2022
