China Merchants Securities Co.Ltd(600999)
Performance report of the audit committee of the board of directors in 2021
In 2021, China Merchants Securities Co.Ltd(600999) (hereinafter referred to as the company and the company) the audit committee of the board of directors (hereinafter referred to as the audit committee) in accordance with the operational guidelines of the audit committee of the board of directors of listed companies on the Shanghai Stock Exchange, the rules for the listing of securities on the stock exchange of Hong Kong Limited, the China Merchants Securities Co.Ltd(600999) articles of association, the working rules of the audit committee of the China Merchants Securities Co.Ltd(600999) board of directors, and the working procedures for the annual report of the audit committee of the China Merchants Securities Co.Ltd(600999) board of directors And other relevant normative documents and the company’s system and regulations, diligently and effectively carry out the work, and now the performance of duties is reported as follows:
1、 Personnel of the audit committee
In 2021, the audit committee was composed of five members, namely Xiao houfa independent director (convener), Su Jian Director (as of April 2021) / Liu Weiwu Director (as of June 2021), Huang Jian director, Hu Honggao independent director and Wang Di independent director (resigned on June 10, 2019 and continued to perform his duties before the new independent director took office). The basic information of the members of the audit committee is detailed in “IV. information of directors, supervisors and senior managers” in Section IV “corporate governance” of China Merchants Securities Co.Ltd(600999) 2021 annual report announced on the website of Shanghai Stock Exchange on the same day of this report.
2、 Convening of audit committee meetings
In 2021, the audit committee held 6 meetings, considered 16 proposals and listened to 2 reports. See the table below for details:
No. session time proposal and report on attendance
Proposal: 2020 annual report of the company; company
2020 annual financial statement report; Company 2020
Special report on the deposit and use of raised funds;
Employ an audit institution in 2021; Company 2021
Proposal on the second estimated daily related party transactions of the seventh session; board of directors
1 2020 / 3 / 25 performance report of the audit committee in 2020; All members of the company attended the 2020 internal audit report and 2021
Annual internal audit work plan; Year 2020
Internal control evaluation report; Internal of the company in 2020
Control audit report
Report: audit work of the company in 2020
2 third session of the seventh session
Proposal on April 27, 2021: all members of the company’s report for the first quarter of 2021 attended
Proposal: the company’s 2021 semi annual report and its summary
3. On August 26, 2021 of the fourth session of the seventh session, the report of the company’s internal audit work in the half year of 2021 to all members to attend the second report, and the deposit and management of the company’s raised funds in the half year of 2021
Special report on actual use
4. Proposal on September 17, 2021 of the fifth session of the seventh session: the scheme for the attendance of all members of the company’s internal control self-evaluation in 2021
All members attended 5 the sixth session of the seventh session 2021 / 10 / 22 proposal: the company’s report for the third quarter of 2021
Report: the company’s 2021 annual audit plan
Proposal of the seventh session: all members of the company’s internal audit work in the third quarter of 2021 attended 6 2021 / 12 / 9
Secondary report
3、 Performance of the audit committee
(I) supervise and evaluate the work of external audit institutions
The audit committee guided, supervised and inspected the annual audit of Deloitte Touche Tohmatsu (including Deloitte Touche Tohmatsu (special general partnership) and Deloitte guanhuang Chenfang) in 2021 through two meetings and reviewing the audit weekly report, focusing on its professional competence, investor protection ability, integrity and independence. The audit committee exchanged and discussed with the annual audit accountant on the adjustment of relevant audit strategies, the implementation of internal control, the provision of risk reserves, the valuation and impairment test of financial assets, and the impact of senior executives’ resignation.
The Audit Committee believes that Deloitte, as the company’s 2021 annual report and internal control audit institution in 2021, has shown good professional competence, can be diligent, honest and trustworthy in strict accordance with the audit standards for Chinese certified public accountants and relevant laws and regulations, and maintain its due independence. The conclusions of its 2021 annual audit report and 2021 annual internal control audit report are objective and fair, The audit committee did not find that the auditors of Deloitte violated the auditing standards and professional ethics of certified public accountants, and affirmed Deloitte’s work as the company’s external audit institution in 2021.
(II) guidance on the company’s internal audit
During the reporting period, the audit committee reviewed and approved the company’s 2020 internal audit work report and 2021 internal audit work plan, the company’s 2021 semi annual internal audit work report, the company’s 2021 internal control self-evaluation work plan, the company’s 2021 third quarter internal audit work report and other proposals.
The Audit Committee believes that the company’s management attaches great importance to the internal audit work, and the company’s internal audit mechanism is sound, which has contributed to ensuring the company’s compliant operation, standardized operation and continuously improving the level of corporate governance. The Audit Committee recognizes the company’s internal audit work in 2021.
(III) review of the company’s financial report
The audit committee reviewed the company’s regular financial and accounting reports and believed that the preparation of the company’s relevant reports complied with the relevant provisions of the Chinese accounting standards for business enterprises and the international financial reporting standards, truly and fairly reflected the company’s financial status, operating results and cash flow, and did not find any major misstatement caused by fraud or error, as well as the adjustment of major accounting errors.
(IV) evaluation of the effectiveness of the company’s internal control
Based on the understanding and investigation of the company’s internal control and careful review of the company’s 2021 internal control evaluation report and the company’s 2021 internal control audit report issued by Deloitte, the Audit Committee believes that the company has been in accordance with the relevant requirements of the company law, the guidelines for internal control of securities companies, the guidelines for internal control of listed companies and the actual situation of the company, Design and establish an appropriate internal control system; The company’s internal control mechanism covers all businesses, functional departments, branches and personnel of the company and runs through all business processes of the company; The company’s internal control organizational structure is sound and has effectively played their respective functions. The company has maintained internal control in accordance with the basic norms of enterprise internal control and relevant regulations, and no major defects have been found.
4、 Overall evaluation
During the reporting period, all members of the audit committee attended all meetings on time in strict accordance with relevant rules and systems, faithfully and diligently performed their duties in supervising and evaluating external audit institutions, guiding internal audit work, reviewing the company’s financial reports and evaluating the effectiveness of internal control, actively offered suggestions and made important contributions to improving the level of corporate governance.
Members of the audit committee of the board of directors: Xiao houfa, Liu Weiwu, Huang Jian, Hu Honggao, Wang Di
