Hunan Warrant Pharmaceutical Co.Ltd(688799)
Performance report of the audit committee of the board of directors 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 Shanghai Stock Exchange, the standards for the governance of listed companies, the Listing Rules of the science and Innovation Board of Shanghai Stock Exchange and the articles of association, Hunan Warrant Pharmaceutical Co.Ltd(688799) (hereinafter referred to as the “company”) the audit committee of the board of directors of Hunan Warrant Pharmaceutical Co.Ltd(688799) (hereinafter referred to as “the company”) has conscientiously performed its audit and supervision duties based on the principle of diligence. As the current member of the audit committee of the company, the performance of the audit committee in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the third board of directors of the company is composed of three members, namely Mr. Wu Chun, an independent director, Mr. Peng Tong and Mr. Xu Yan, vice chairman. The convener of the committee is Mr. Wu Chun, an accounting professional. Independent directors account for more than half of the audit committee and have professional knowledge and experience in performing the duties of the audit committee. Comply with the relevant requirements of relevant laws and regulations on the proportion of audit committee members and professional allocation.
2、 Meetings of the audit committee in 2021
In 2021, the audit committee held 6 meetings, and all members attended the meeting by on-site or communication. The details are as follows:
Name, time and content of the meeting
1. Proposal on confirmation of related party transactions of the company in 2020 for review by the second board of directors;
On February 27, 2021, 2021, the Planning Committee issued the proposal on examining, confirming and agreeing to take the first meeting report of the company’s 2020 annual audit report as the application material for initial public offering and listing on the science and innovation board.
1. Proposal on the company’s 2020 annual report and the summary of 2020 annual report;
The second session of the board of directors reviewed 2. Proposal on the company’s 2020 annual financial statement report; Proposal on the company’s profit distribution plan for 2020 on March 28, 2021; The second meeting 4. Proposal on the company’s 2021 annual financial budget report; 5. Proposal on the prediction of related party transactions of the company in 2021
6. Proposal on the company’s reappointment of the audit institution in 2021
1. Proposal on adjusting the amount of raised funds to be invested in the investment project of raised funds to be reviewed by the second board of directors;
On August 3, 2021, 2021, the Planning Commission 2. Proposal on using part of the raised funds to provide interest free loans for the third meeting to wholly-owned subsidiaries to implement raised investment projects;
3. On using some temporarily idle raised funds for cash management
Reasonable proposal;
4. Proposal on using self owned funds to purchase financial products;
5. Proposal on using self owned funds and bank acceptance bills to pay the funds required for raised investment projects and replacing them with raised funds in equal amount.
The second session of the board of Directors examined 1. The proposal of the Planning Committee on August 25, 2021 on the company’s 2021 semi annual report and its summary.
The fourth meeting 2. Proposal on using raised funds to replace self raised funds invested in raised investment projects in advance and paid issuance expenses.
The third session of the board of directors on October 27, 2021
The first day of the Planning Committee 1. Proposal on the third quarter report of the company in 2021.
meeting
The third session of the board of Directors examined 1. Proposal on the renewal of the appointment of accounting firms;
On December 13, 2021, the second session of the Planning Commission, 2. Proposal on Amending the management system of related party transactions of the company;
3. Proposal on increasing the forecast of daily connected transactions in 2021.
3、 Main performance of the audit committee
In 2021, the audit committee of the board of directors of the company conscientiously performed its duties based on the principle of diligence, and was mainly responsible for the supervision, verification and communication of the audit process. The key work is as follows:
(I) supervision and evaluation of external audit
During the reporting period, the audit committee supervised and evaluated the independence and professionalism of Tianjian Certified Public Accountants (special general partnership), an external audit institution hired by the company. We believe that Tianjian Certified Public Accountants (special general partnership) can perform the responsibilities and obligations of the audit institution independently and diligently in strict accordance with the professional standards of Chinese certified public accountants, the relevant audit opinions are objective and fair, and the audit report truly, accurately and completely reflects the overall situation of the company.
(II) guide internal audit
During the reporting period, the audit committee carefully reviewed the company’s annual internal audit work plan, recognized the feasibility of the plan, urged the company’s internal audit department to implement it in strict accordance with the internal audit system, and put forward guiding opinions on the problems found in the internal audit.
The audit committee did not find any major problems in the internal audit.
(III) review the company’s financial report and express opinions on it
During the reporting period, the audit committee carefully reviewed the company’s financial report and believed that the company’s financial report was true, accurate and complete, fairly reflected the company’s financial status and operating results, and there were no major accounting error adjustment, major accounting policy and estimation changes caused by non-implementation of accounting standards for business enterprises, matters involving important accounting judgments and non-standard unqualified audit report, and no fraud related to financial report Fraud and material misstatement.
(IV) consideration of related party transactions
During the reporting period, the audit committee reviewed the daily related party transactions of the company in 2021. The Audit Committee believes that the related party transactions between the company and related parties are the daily business behavior of the company. The pricing of related party transactions follows the principle of fairness and rationality, takes the market price as the pricing basis, and defines the rights and obligations of all parties in the form of contract.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, the audit committee actively coordinated the communication between the company’s management and relevant departments and external audit institutions on audit issues, and promoted the communication between internal audit departments and external audit institutions and the cooperation of external audit work.
(VI) supervise and evaluate the company’s internal control
During the reporting period, the audit committee listened to the report of the company’s internal audit director on internal control and found no major defects related to the company’s internal control over financial reports and non-financial reports. We believe that the company has established a relatively perfect internal control system and has been effectively implemented, which meets the requirements of relevant laws and regulations on the governance norms of listed companies.
4、 Overall evaluation
During the reporting period, the audit committee of the board of directors played the role of review and supervision in strict accordance with the standards for the governance of listed companies, the operation guidelines of the audit committee of the board of directors of listed companies of Shanghai Stock Exchange, the Listing Rules of science and Innovation Board of Shanghai Stock exchange and other relevant laws and regulations and the articles of association, and earnestly performed the duties of the audit committee of the board of directors.
In 2022, the audit committee will further strengthen communication with the company’s internal audit department, external audit institutions and management, fulfill its duties, give full play to the supervision function of the audit committee and safeguard the common interests of the company and all shareholders.
Hunan Warrant Pharmaceutical Co.Ltd(688799) board of directors audit committee March 26, 2022
