Star Lake Bioscience Co.Inc.Zhaoqing Guangdong(600866)
Performance report of the audit committee of the board of directors in 2021
In accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange, the governance standards of listed companies and the articles of association, in 2021, the audit committee of Star Lake Bioscience Co.Inc.Zhaoqing Guangdong(600866) (hereinafter referred to as "the company") board of directors conscientiously performed its audit and supervision duties based on the principle of diligence. The performance of duties in 2021 is reported as follows:
1、 Basic information of the audit committee
At the end of the reporting period, the audit committee of the board of directors of the company was composed of five directors, including three independent directors, and the chairman was an independent director with accounting expertise. The composition of the audit committee of the company is reasonable, and all members have earnestly fulfilled their audit supervision responsibilities with rich industry experience and professional knowledge.
2、 Performance of relevant work of the audit committee
In 2021, the audit committee held 7 meetings and considered 12 proposals. All members of the committee, based on the principle of diligence, conscientiously performed their duties, attended the meeting and reviewed the company's periodic report, the deposit and actual use of raised funds, the employment of the company's audit institution in 2021, related party transactions, internal control evaluation report and other matters, And submit relevant deliberation opinions and resolutions to the board of directors and the board of supervisors of the company. The above meeting procedures meet the requirements of relevant laws and regulations and relevant systems of the company. All members were aware of their corresponding rights, obligations and responsibilities, and devoted enough time to dealing with the company's affairs, including listening to the company's report, reviewing proposals, attending meetings, putting forward deliberation opinions, etc.
3、 Key concerns of the audit committee in 2021
1. Supervise and evaluate the work of external audit institutions
During the audit of the 2020 financial report, the audit committee reviewed the financial statements prepared by the company in time, fully communicated and communicated with the annual audit institution Dahua Certified Public Accountants (special general partnership), and urged the annual audit certified public accountants to audit according to the agreed plan and submit the audit report within the agreed time limit. The Audit Committee believes that Dahua Certified Public Accountants (special general partnership) has scrupulously performed its duties during the audit of the company, followed the independent, objective and impartial professional standards, been able to audit and evaluate the overall financial situation, operation and internal control system of the company, showed good professional quality, and better fulfilled the responsibilities and obligations of the audit institution.
Since Dahua Certified Public Accountants (special general partnership) has provided audit services for the company for 11 consecutive years, there is no rotation during this period. In order to continue to maintain the independence and objectivity of the company's financial audit and internal control audit, combined with the needs of the company's overall audit work, after comprehensive evaluation and careful research, the audit committee proposed to the board of directors of the company to hire ShineWing Certified Public Accountants (special general partnership) as the audit institution of financial report and internal control in 2021.
2. Supervise and evaluate internal audit
The audit committee carefully reviewed the implementation of the annual internal audit work plan for 2020 and the work plan for 2021, affirmed the company's internal audit work results in 2020, confirmed the feasibility of the plan, urged the company's internal audit institutions to implement the plan in strict accordance with the audit plan, put forward guiding opinions on the problems arising from the internal audit, and proposed to further strengthen the existing work on the basis of the existing work, combined with the new situation and new requirements, Gradually implement the requirements of full coverage of internal audit and laying a solid foundation for the company's continuous compliance operation.
3. Review and comment on the company's financial report
During the reporting period, the audit committee carefully reviewed the company's financial reports of each period, focusing on the major accounting and audit issues of the company's financial reports, and believed that the financial reports disclosed during the reporting period were prepared in accordance with the accounting standards for business enterprises, which fairly reflected the company's financial status, operating results and cash flow, and there were no major misstatements caused by fraud or error, no adjustment of major accounting errors Significant changes in accounting policies and estimates (except for changes in applicable standards and the requirements of the latest national regulations), matters involving important accounting judgments, and matters leading to non-standard unqualified audit reports.
4. Supervise and evaluate the company's internal control
During the reporting period, the audit committee gave full play to its professional role and continued to pay attention to the company's risk management and internal control,. Pay close attention to the implementation of the company's internal control system, supervise and urge the standardized operation of the company's daily operation, provide professional suggestions on the strengthening and improvement of the company's internal control system, and actively promote the construction of the company's risk internal control system. The company has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations. There are no major defects in internal control over financial reporting, no major defects in internal control over non-financial reporting and no factors affecting the evaluation conclusion of the effectiveness of internal control.
5. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
During the reporting period, the audit committee maintained continuous and good communication with the company's management, internal audit department, relevant departments and external audit institutions, fully listened to the opinions of all parties, actively coordinated and solved the problems in the audit, promoted the communication between the management, internal audit department and relevant departments and external audit institutions and the cooperation of external audit work, and improved the efficiency of audit work, Ensure the smooth progress of annual audit work. 6. Inspection on the management and use of the company's raised funds
During the reporting period, the audit committee of the board of directors urged the internal audit department of the company to regularly inspect the storage and use of the raised funds, and carefully reviewed the special report on the actual use and storage of the raised funds. The management and use of the company's raised funds comply with the regulatory provisions, and there is no disguised change in the investment direction of the raised funds and damage to the interests of shareholders.
7. Inspection of related party transactions
During the reporting period, the audit committee of the board of directors of the company continued to focus on the standardized operation of the company's related party transactions, carefully reviewed the documents related to related party transactions, actively communicated with the management, understood the background of related party transactions, and carefully evaluated the rationality, necessity and pricing basis of related party transactions. During the execution of related party transactions, the company strictly followed the relevant provisions of the articles of association on the decision-making power and procedures of related party transactions, and timely fulfilled the obligation of information disclosure. The pricing of related party transactions was fair and reasonable without harming the interests of the company and shareholders, especially minority shareholders.
During the reporting period, the members of the audit committee of the board of directors of the company faithfully and diligently performed the duties specified in relevant laws and regulations, made full use of the professional knowledge of the members, actively expressed opinions and suggestions, played the role of guidance, coordination and supervision, and effectively promoted the construction of the company's internal control and financial norms in supervising the company's external audit, guiding the construction of internal audit and internal control, It has promoted the standardized decision-making of the board of directors and the standardized governance of the company.
4、 Overall evaluation
In 2021, the members of the audit committee of the board of directors of the company, in line with the attitude of being responsible to shareholders, gave full play to their professional and technical level and rich professional experience, supervised the preparation of the company's regular reports and the implementation of internal control norms, scrupulously performed their duties, actively and effectively performed the duties of the audit committee, ensured the scientific compliance of the company's business decisions and effectively safeguarded the interests of the company and all shareholders. With the changes of the company's internal audit environment, the company should make timely adjustment and suggestions on the continuous improvement of the company's internal audit environment. Further refine the internal management system, improve the internal control process, strengthen the supervision and inspection of internal control, more effectively control relevant business risks and protect the interests of the company and shareholders.
Star Lake Bioscience Co.Inc.Zhaoqing Guangdong(600866) board of directors audit committee March 25, 2021
