Beihai Guofa Chuanshan Jinyu Bio-Technology Co.Ltd(600201) Co., Ltd
2021 performance report of the audit committee of the board of directors
In 2021, the audit committee of the board of directors of Beihai Guofa Chuanshan Jinyu Bio-Technology Co.Ltd(600201) Co., Ltd. (hereinafter referred to as “the company”) carried out the audit of the company’s annual report, financial report and its disclosure, internal audit, supervision of the construction and implementation of the internal control system The accounting firm earnestly performs its duties in terms of appointment and so on. Now the performance of its duties in 2021 is reported as follows:
1、 Meetings of the audit committee of the board of directors
The members of the audit committee of the 10th board of directors of the company are song Xiaofang, Deng Chao and Yu Lu, of which song Xiaofang and Deng Chao are independent directors of the company, and the chairman is Ms. song Xiaofang, an independent director of accounting professionals.
In 2021, the audit committee focused on the careful review of the company’s regular reports, and supervised and inspected the audit of the company’s 2021 annual report while strengthening the supervision and inspection of the construction of the company’s internal control system. In 2021, the audit committee held three meetings in total and deliberated on the proposals such as periodic reports and appointment of accounting firms. The matters deliberated or commented on are as follows:
Date: meeting name: matters considered / commented
Reviewed and approved the summary report on the audit work of Tianjian certified public accountants in 2020, the financial statements in 2020, the evaluation report on internal control of the audit committee of the 10th board of directors in April 2021, and the first meeting of Tianjian certified public accountants in 2021 (special general partnership) on April 20 Proposal on employing Tianjian Certified Public Accountants (special general partnership) as the internal control auditor of the company in 2021, etc
In August 2021, the audit committee of the 10th board of directors reviewed and approved the company’s semi annual financial report in 2021, the second meeting in 2021 on August 23, 2021, and the third meeting in 2021 on October 25, 2021
2、 Performance of the audit committee in 2021
(I) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
During the reporting period, Tianjian Certified Public Accountants (special general partnership) (hereinafter referred to as “Tianjian certified public accountants”) provided audit services for the company’s annual financial report and internal control. Tianjian certified public accountants has successfully completed the audit work. The audit report issued by Tianjian certified public accountants can truly reflect the current financial status, operating status and cash flow of the company, and the audit conclusion issued is in line with the actual situation of the company.
The audit committee assessed the independence and professionalism of the external audit institutions. Independence: the staff of Tianjian certified public accountants did not work in the company and did not receive any cash and other forms of economic benefits other than the necessary fees for statutory audit; There is no direct or indirect mutual investment or close business relationship between Tianjian certified public accountants and the company; There is no relationship between the members of the audit team of Tianjian certified public accountants and the decision-making level of the company, and there are no other circumstances affecting the independence; The members of the audit team provided services in accordance with the requirements of the code of professional ethics for Chinese certified public accountants, and always maintained both formal and substantive independence. Professionalism: the members of the audit team have the necessary professional knowledge and qualification to undertake the audit business, are competent for the audit task, and have completed the work entrusted by the company.
2. Put forward suggestions on hiring external audit institutions
In order to ensure the smooth progress of the company’s 2021 financial report audit and the continuity of the audit work, according to the rules of procedure of the audit committee of the company, the Audit Committee proposes to renew the appointment of Tianjian certified public accountants as the company’s 2021 financial report audit institution and 2021 internal control audit institution.
3. Audit fees of external audit institutions
After audit, the financial report and internal control audit fee paid by the company to Tianjian certified public accountants in 2021 is 700000 yuan, which is consistent with the audit business of the company.
4. Discuss and communicate with external audit institutions on audit scope, audit plan, audit methods and major matters found in the audit
During the reporting period, we fully discussed and communicated with Tianjian accounting firm on audit scope, audit plan, audit methods and other matters, and found no other major matters in the audit during the audit.
5. Monitor and evaluate the diligence of external audit institutions
We believe that Tianjian certified public accountants was diligent and conscientious during the audit of the company and followed the professional standards of independence, objectivity and impartiality.
(II) 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 found in the internal audit. After reviewing the internal audit report, we found no major problems in the internal audit.
(III) supervise and evaluate the effectiveness of the company’s internal control
The company has established a relatively perfect corporate governance structure and governance system in accordance with the company law and other relevant laws and regulations and the relevant provisions of the CSRC and Shanghai Stock Exchange. During the reporting period, the company strictly implemented various laws and regulations, the articles of association and the internal control management system, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, so as to effectively protect the legitimate rights and interests of the company and shareholders. The Audit Committee believes that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
(IV) review the company’s regular financial statements and express opinions on them
During the reporting period, we carefully reviewed the financial reports of the company in each period, and analyzed the major financial data by asking the relevant financial personnel and management personnel of the company, consulting the relevant meeting materials of the general meeting of shareholders, the board of directors, the board of supervisors and other relevant meetings, looking through the relevant account books and vouchers of the company, It is believed that the relevant data of the financial and accounting statements prepared by the company truly reflect the assets and liabilities and production and operation results of each period in the current year, and no major misstatement or omission is found; No major shareholders are found to occupy the company’s funds; The company has not found any external illegal guarantee and abnormal connected transactions.
The company’s financial report is true, complete and accurate, without fraud and fraud, and does not involve matters of important accounting judgment and matters leading to non-standard unqualified audit report.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, after fully listening to the demands and opinions of all parties, the audit committee of the board of directors actively coordinated the effective communication between the management, the internal audit department and the external audit institutions to complete the relevant audit work efficiently and accurately.
(VI) pay attention to the related party transactions and external guarantees of the company
During the reporting period, the company did not provide external guarantees, nor did it occupy the company’s funds by controlling shareholders and other related parties.
In 2021, the review procedures of the company’s related party transactions comply with the provisions of relevant laws, regulations, normative documents and the articles of association. The related party transactions meet the actual needs of the company. There is no violation of related party transactions, or any other damage to the interests of the company and its shareholders or the loss of the company’s assets.
(VII) pay attention to the performance forecast of the company
During the reporting period, the company did not disclose the performance forecast.
3、 Overall evaluation
In 2021, the audit committee of the board of directors performed its duties diligently in strict accordance with laws, regulations and relevant provisions, played an active role in supervising and evaluating external audit, guiding internal audit, reviewing financial reports and evaluating internal control, and effectively safeguarded the interests of the company and all shareholders.
