Anhui Zhongyuan New Materials Co.Ltd(603527)
Work report of the board of supervisors in 2021
In 2021, the board of supervisors of Anhui Zhongyuan New Materials Co.Ltd(603527) (hereinafter referred to as the “company”) performed its duties diligently and conscientiously in accordance with the company law of the people’s Republic of China (hereinafter referred to as the “company law”), the Anhui Zhongyuan New Materials Co.Ltd(603527) articles of Association (hereinafter referred to as the “articles of association”), the rules of procedure of the board of supervisors and other relevant provisions, and in the spirit of being responsible to all shareholders, Checked the company’s main business activities, financial status, major decisions and internal management, and supervised the performance of the company’s directors and senior managers, which played a positive role in the standardized operation and development of the enterprise and effectively ensured the standardized operation of the company. The report on the work of the board of supervisors in 2021 is as follows:
1、 Meeting of the board of supervisors in 2021
In 2021, the board of supervisors held 4 meetings of the board of supervisors, attended 5 meetings of the board of directors and 2 meetings of the general meeting of shareholders.
Meetings of the board of supervisors:
(I) the company held the fourth meeting of the fourth session of the board of supervisors on April 27, 2021. There were 3 supervisors who should be present and 3 actually present. The meeting deliberated and adopted the work report of the board of supervisors in 2020, the financial statement report in 2020, the profit distribution plan in 2020, the internal control evaluation report in 2020, and the proposal on renewing the appointment of accounting firms Special report on the annual deposit and use of raised funds, 2020 annual report and its summary, report of the first quarter of 2021, proposal on the expected daily related party transactions in 2021, proposal on the remuneration of the company’s supervisors in 2021.
(II) the company held the fifth meeting of the Fourth Board of supervisors on August 13, 2021. There were 3 supervisors who should be present and 3 actually present. The meeting deliberated and adopted the semi annual report of 2021 and its summary, the special report on the deposit and use of raised funds in 2021 and the proposal on using some idle raised funds to temporarily supplement working capital.
(III) the company held the sixth meeting of the Fourth Board of supervisors on October 25, 2021. There were 3 supervisors who should be present and 3 actually present. The report for the third quarter of 2021 was reviewed and adopted at the meeting.
(IV) the company held the 7th Meeting of the 4th board of supervisors on December 8, 2021. There were 3 supervisors and 3 actual supervisors. The meeting deliberated and passed the proposal on increasing the amount of daily connected transactions in 2021, the proposal on closing the investment projects with raised funds and permanently replenishing the surplus raised funds with working capital, and the proposal on providing connected guarantee for subsidiaries.
2、 Verification opinions of the board of supervisors on relevant matters of the company in 2021
During the reporting period, the board of supervisors strictly complied with the provisions of the company law, the securities law of the people’s Republic of China (hereinafter referred to as the Securities Law), the articles of association, the rules of procedure of the board of supervisors and other laws, regulations and rules, and carefully supervised and inspected the company’s legal operation, internal control, financial situation, related party transactions, raised funds and other matters. According to the inspection results, the following opinions are expressed on the relevant situation of the company during the reporting period: (I) the operation of the company according to law
During the reporting period, the board of supervisors supervised the operation of the company according to law, attended all meetings of the general meeting of shareholders and the board of directors, and carefully reviewed various documents of the general meeting of shareholders and the board of directors. The board of supervisors believes that the company operates in strict accordance with the provisions of the company law, the securities law and other laws and regulations and the articles of association, and the members of the board of directors and senior managers of the company perform their duties faithfully and diligently. It is not found that the directors and senior managers of the company violate laws, regulations and the articles of association or damage the interests of the company and shareholders, and the convening, convening and Voting, decision-making procedures and resolutions are legal and effective, and all major decisions are in line with legal procedures and shareholders’ interests.
(II) internal control of the company
During the reporting period, the board of supervisors reviewed the evaluation report on the company’s internal control and the construction and implementation of the company’s internal management system. The board of supervisors believes that the self-evaluation content of the company’s internal control meets the requirements of the basic norms of enterprise internal control and relevant laws, regulations and normative documents, and truly and accurately reflects the current implementation of the company’s internal control. Various internal control systems of the company have been continuously improved, and the internal control mechanism operates well.
(III) check the company’s financial situation
During the reporting period, the board of supervisors carefully supervised and reviewed the company’s financial system and financial situation. The board of supervisors believes that the company has established a sound financial management system and control measures, which meet the requirements of the accounting standards for business enterprises and the accounting system for business enterprises, and the financial operation is standardized and in good condition. The preparation of the company’s financial report complies with the requirements of relevant laws and regulations, without false records, misleading statements or major omissions, and can truly and completely reflect the company’s financial status and operating results in 2021.
(IV) related party transactions
During the reporting period, the board of supervisors effectively supervised and verified the related party transactions of the company. The board of supervisors believes that the related party transactions of the company are necessary for production and operation, its internal decision-making procedures are legal and compliant, the transaction price is reasonable and fair, and there is no situation that damages the interests of the company and shareholders, especially minority shareholders. (V) raised funds
During the reporting period, the board of supervisors supervised and inspected the use of the company’s raised funds. The board of supervisors believes that the company can use and manage the raised funds in strict accordance with the provisions of the measures for the management of raised funds, and has truly, accurately, completely and timely fulfilled the obligation of information disclosure. There is no case of changing the purpose of the raised funds in a disguised manner and damaging the interests of shareholders, and there is no case of illegal use of the raised funds.
3、 Work priorities of the board of supervisors in 2022
In 2022, the board of supervisors will continue to strictly abide by the company law, securities law and other laws and regulations, as well as the articles of association, rules of procedure of the board of supervisors and other relevant systems, hold meetings of the board of supervisors, do a good job in the deliberation of various proposals, attend the board of directors and shareholders’ meetings of the company according to law, faithfully and diligently perform various duties of the board of supervisors and timely understand the financial situation of the company, Effectively supervise the daily performance of duties of the board of directors and senior managers, put forward reasonable suggestions for the scientific decision-making of the company, strive to promote the healthy and stable development of the company and safeguard the legitimate rights and interests of the company and all shareholders.
Anhui Zhongyuan New Materials Co.Ltd(603527) board of supervisors March 25, 2022
