Announcement No.: Shandong Iron And Steel Company Ltd(600022) 8
China Petroleum & Chemical Corporation(600028)
Announcement on the renewal of accounting firm
China Petroleum & Chemical Corporation(600028) the board of directors and all directors 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: KPMG Huazhen accounting firm (special general partnership) and KPMG accounting firm
The renewal of the accounting firm needs to be submitted to the general meeting of shareholders of the company for deliberation.
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. KPMG Huazhen Certified Public Accountants (special general partnership)
(1) Basic information
KPMG Huazhen Certified Public Accountants (special general partnership) (hereinafter referred to as "KPMG Huazhen") has its registered address at 8 / F, building 2, East Oriental Plaza, No. 1, East Chang'an Street, Dongcheng District, Beijing, and its headquarters is located in Beijing. The predecessor was KPMG Huazhen certified public accountants, which was established in Beijing on August 18, 1992. With the approval of the Ministry of finance, it was transformed into KPMG Huazhen Certified Public Accountants (special general partnership) on July 5, 2012.
The chief partner of KPMG Huazhen is Zou Jun, 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, including more than 210 certified public accountants who signed the audit report of securities service business.
KPMG Huazhen's total audited business income in 2020 was RMB 3.4 billion, including audit business income of RMB 3.1 billion (total securities business income was RMB 1.3 billion, including domestic legal securities business income of RMB 600 million and other securities business income of RMB 700 million).
KPMG Huazhen has 57 audit clients for the annual report of Listed Companies in 2020, and the total audit fees for the financial statements of listed companies are RMB 356 million. The main industries of listed companies served include 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, as well as health and social work. Among the listed companies that KPMG Huazhen provided audit services in 2020, there are two customers in the same industry as China Petroleum & Chemical Corporation(600028) (hereinafter referred to as " China Petroleum & Chemical Corporation(600028) " or "the company").
(2) Investor protection ability
The sum of the accumulated 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 and supervision measures of the CSRC and its dispatched offices and industry competent departments, or self-discipline supervision measures or disciplinary sanctions of self-discipline organizations such as stock exchanges and industry associations in recent three years.
2. KPMG
KPMG Certified Public Accountants (hereinafter referred to as "KPMG Hong Kong") is a partnership firm established under the laws of Hong Kong, China, which is wholly owned by its partners. KPMG Hong Kong has provided professional services such as audit, tax and consulting in Hong Kong, China since 1945, and provided audit services for many listed companies in Hong Kong, China, including banking, insurance, securities and other financial institutions. KPMG Hong Kong has been a member of the global organization of independent members associated with KPMG international since its establishment.
Since October 1, 2019, KPMG Hong Kong has been registered as an auditor of public interest entities in accordance with the financial reporting Bureau ordinance of Hong Kong, China. In addition, KPMG Hong Kong has obtained the temporary audit business license in China with the approval of the Ministry of finance of the people's Republic of China, and is an accounting firm registered in US PCAOB (American public company accounting supervision committee) and Japanese Financial Services Agency (Japan financial agency) to engage in relevant audit business.
In December 2021, KPMG Hong Kong has more than 2000 employees. KPMG Hong Kong shall purchase occupational insurance every year in accordance with relevant laws and regulations.
Relevant regulators in Hong Kong, China conduct independent inspection on KPMG Hong Kong every year. The practice quality inspection in the last three years has not found any matters that have a significant impact on KPMG's audit business in Hong Kong.
(II) project information
1. Basic information
Project partner and signature certified public accountant: Yang Jie, who obtained the qualification of Chinese certified public accountant in 2008. Yang Jie began to practice in KPMG Huazhen in 1998, engaged in the audit of Listed Companies in 1999 and provided audit services for China Petroleum & Chemical Corporation(600028) in 2021. Yang Jie signed or reviewed 11 audit reports of Listed Companies in recent three years.
Signed CPA: he Shu, who obtained the qualification of Chinese CPA in 2006. He Shu began to practice in KPMG Huazhen in 2004, engaged in the audit of Listed Companies in 2004, and began to provide audit services for China Petroleum & Chemical Corporation(600028) in 2021. He Shu signed or reviewed 4 audit reports of Listed Companies in recent three years.
Certified public accountant signing international standards: he Yingwen, obtained the qualification of certified public accountant in Hong Kong, China in 1995. He Yingwen began to practice in KPMG Hong Kong in 1991, began to audit listed companies in 1992, and began to provide audit services for China Petroleum & Chemical Corporation(600028) in 2021. He Yingwen signed or reviewed 39 audit reports of Listed Companies in recent three years.
Reviewer of project quality control: Wu Guoqiang, who obtained the qualification of certified public accountant in Hong Kong, China in 1992. Wu Guoqiang began to practice in KPMG Huazhen in 2013, engaged in the audit of Listed Companies in 1992 and provided audit services for China Petroleum & Chemical Corporation(600028) in 2021. Wu Guoqiang signed or reviewed 4 audit reports of Listed Companies in recent three years.
2. Integrity record
Project partners, signed certified public accountants and project quality control reviewers have not been subject to any criminal punishment, administrative punishment, supervision and management measures of the CSRC and its dispatched offices and industry competent departments, or self-discipline supervision measures or disciplinary sanctions of self-discipline organizations such as stock exchanges and industry associations in the past three years.
3. Independence
KPMG Huazhen, the project partner, the signing certified public accountant and the project quality control reviewer have maintained their independence in accordance with the provisions of the code of professional ethics for Chinese certified public accountants, and there is no violation of the independence requirements of the code of professional ethics for Chinese certified public accountants.
4. Audit fees
The audit service fees of KPMG Huazhen and KPMG Hong Kong are 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 the staff at all levels who actually participate in the business.
60 Tianjin Guifaxiang 18Th Street Mahua Food Co.Ltd(002820) 21: the audit fee paid to KPMG Huazhen and KPMG Hong Kong was 41.69 million yuan. Under the condition that there is no significant change in the audit scope of the company in 2022, it is expected that there should be no significant change in the audit fee in 2022 compared with that in 2021. The audit fees for 2022 will be submitted to the board of directors authorized by the company's 2021 annual general meeting for final determination.
2、 Procedures to be performed by the accounting firm for this renewal
(I) performance of the audit committee
The audit committee of the 8th board of directors of the company held a meeting on March 23, 2022 to review this renewal. The audit committee evaluated the audit work and audit report of KPMG Huazhen and KPMG Hong Kong in 2021. After deliberation, the Audit Committee believes that KPMG Huazhen and KPMG Hong Kong have corresponding professional qualifications and investor protection ability, are competent for the company's audit work, and no violation of integrity and independence is found. The review procedure of this renewal meets the China Petroleum & Chemical Corporation(600028) articles of Association (hereinafter referred to as the "articles of association") and relevant regulatory requirements. The audit committee agrees to this renewal and agrees to submit the above suggestions to the board of directors for consideration.
(II) prior approval and independent opinions of independent directors
The renewal has been approved by the independent non-executive director in advance before being submitted to the board of directors for consideration, and the independent non-executive director has expressed the following independent opinions on the renewal: KPMG Huazhen and KPMG Hong Kong have corresponding professional qualifications and investor protection ability, are competent for the company's audit work, and no violation of integrity and independence is found. The review procedure of this renewal complies with the articles of association and relevant regulatory requirements. There is no behavior damaging the rights and interests of the company and minority shareholders, and there are no major risks that may exist. We agree to this renewal.
(III) deliberation and voting of the board of directors
The company held the 7th Meeting of the 8th board of directors on March 25, 2022. All directors considered and unanimously approved the renewal of KPMG Huazhen and KPMG Hong Kong as the company's external auditors in 2022.
(IV) effective date
This renewal shall be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and shall take effect from the date of deliberation and approval by the 2021 annual general meeting of shareholders.
It is hereby announced.
Huang Wensheng, vice president and Secretary of the board of directors appointed by the board of directors, March 25, 2022
