Shanghai Huayi Group Corporation Limited(600623)
Performance report of the audit committee in 2021
In accordance with the relevant provisions of the guidelines for the operation of the audit committee of the board of directors of listed companies on the Shanghai Stock Exchange, the governance standards of listed companies, the stock listing rules of the Shanghai Stock Exchange and the articles of association and the detailed rules for the implementation of the audit committee of the company, the following report is made to the board of directors on the performance of the audit committee in 2021:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is now composed of three independent directors, Mr. Guan Yimin, Mr. Li Yuan and Ms. Wang Xia.
2、 Annual meeting of the audit committee
During the reporting period, the audit committee of the board of directors of the company actively performed its duties in accordance with the company law, the standards for the governance of listed companies, the articles of association, the detailed rules for the implementation of the audit committee and other relevant provisions.
In 2021, the audit committee held five meetings, and all members who should be present attended the meeting. The details are as follows:
1. The first meeting of the audit committee in 2021 was held on January 29, 2021. The meeting determined the audit work arrangement of the company in 2020, and reported and communicated the preliminary review of the annual report and the financial situation in 2020.
2. The second meeting of the 2021 audit committee was held on March 30, 2021. At the meeting, Lixin Certified Public Accountants (special general partnership) reported on the preliminary review of the 2020 annual report, main accounting and audit matters, and the audit progress. The members attending the meeting also heard the report on the company’s internal audit and internal control in 2020.
3. The third meeting of the audit committee in 2021 was held on April 9, 2021. The meeting considered and approved the 2020 annual report, 2020 annual financial statement report, daily related party transaction proposal, external guarantee proposal, profit distribution plan, accounting policy change, asset impairment and write off, internal control self-evaluation report, audit expenses and renewal of accounting firm, etc, All members of the audit committee unanimously agreed to submit the above proposal to the board of directors for deliberation.
4. The fourth meeting of the independent audit committee was held on the same day in 2021.
5. The fifth meeting of the audit committee in 2021 was held on August 16, 2021. The meeting reviewed the company’s interim report in 2021, the storage and use of raised funds, and listened to the report on the company’s internal audit and internal control work in the first half of 2021 and the work plan in the second half of 2021. 3、 Performance of the audit committee in 2021
1. Review the financial reports of listed companies
During the reporting period, we carefully reviewed the company’s financial report and believed that the company’s financial report fairly reflected the financial situation and operating results, the content was true, accurate and complete, and there was no relevant fraud, major misstatement, adjustment of major accounting errors, etc. 2. Review of related party transactions of the company
During the reporting period, we reviewed the daily related party transactions expected to occur in 2021 and issued written audit opinions on major related party transactions. We believe that the related party transactions reviewed by the company are necessary for production and operation, and their transaction pricing conforms to the principles of fairness, impartiality and openness, will not affect the company’s sustainable operation ability, and there is no behavior damaging the interests of the company and shareholders.
3. Review of external guarantees of the company
During the reporting period, we conducted necessary checks on the capital transactions and external guarantees between the company and related parties. The capital transactions between the company and related parties are normal operating capital transactions. We found no guarantee for shareholders, actual controllers and their related parties, as well as insider trading between related parties of the company and damage to some shareholders’ rights and interests or the interests of the company.
4. Supervise and evaluate the work of external audit institutions
During the reporting period, we fully communicated with external auditors on audit scope, plan, method and other matters, and strengthened guidance and supervision according to regulatory requirements; After reviewing the audit services provided by Bixin Certified Public Accountants (special general partnership), he believes that he has the qualification to engage in securities related business, scrupulously abides by his duties in many years of audit services for the company, follows the independent, objective and fair practice standards, and agrees to continue to appoint him as the audit institution for the next year.
5. Guide internal audit
During the reporting period, we carefully reviewed the company’s internal audit work plan and recognized the feasibility of the plan. At the same time, we urged the company’s internal audit institutions to strictly implement the audit plan and put forward guiding opinions on the problems arising from internal audit. After reviewing the internal audit report, we found no major problems in the internal audit.
6. Evaluate the effectiveness of internal control
In accordance with the requirements of the company law, the securities law and other laws and regulations and the relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange, the company has established a relatively perfect corporate governance structure and governance system, which has been implemented and implemented in the daily production and operation process. The internal control self-evaluation report truthfully reflects the relevant situation of the company’s internal control construction.
7. Review of profit distribution plan
During the reporting period, we carefully considered the profit distribution plan proposed by the company. We believe that the company can actively repay investors on the premise of meeting its own development needs. The profit distribution has a certain continuity and stability, and effectively protects the legitimate rights and interests of small and medium-sized investors.
8. Review of deposit and use of raised funds
During the reporting period, we reviewed the deposit and actual use of the raised funds. We believe that the deposit and use of the company’s raised funds comply with the measures for the administration of raised funds of listed companies on Shanghai Stock Exchange (revised in 2013), and have truly, accurately and completely performed the relevant information disclosure, and there is no illegal use of the raised funds.
9. Review of changes in accounting policies
During the reporting period, the company changed and adjusted its accounting policies in accordance with the provisions and requirements of the accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35) issued by the Ministry of finance, which was in line with the provisions of the Ministry of Finance and relevant laws and regulations and did not harm the interests of the company and minority shareholders.
10. Review of impairment provision and write off of assets
During the reporting period, we reviewed the company’s provision for asset impairment and asset write off, and believed that the company’s provision for asset impairment and asset write off were in line with the accounting standards for business enterprises and the relevant accounting policies implemented by the company, in line with the provisions of relevant laws, regulations and the company’s charter, and there was no damage to the interests of the company and minority shareholders.
4、 Overall evaluation
During the reporting period, we performed the duties of the audit committee with due diligence in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange and the implementation rules of the audit committee formulated by the company.
Members of the Audit Committee:
Guan Yimin
Li Yuan
Wang Xia
