Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273)
Performance report of the audit committee of the board of directors in 2021
In accordance with the standards for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the guidelines for the operation of the audit committee of the board of directors of listed companies of Shanghai Stock Exchange and other relevant laws and regulations, normative documents and the articles of association of Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) (hereinafter referred to as “the company” or ” Zhejiang Jiahua Energy Chemical Industry Co.Ltd(600273) “), the audit committee of the board of directors is based on the principle of diligence, We have conscientiously performed the duties of the audit committee and now report the performance of our duties in 2021 as follows:
1、 Basic information of members of the audit committee of the board of directors
The audit committee of the ninth board of directors of the company is composed of three directors, including two independent directors, and the convener is Mr. Li Yuming, an independent director with professional accounting qualification, which complies with relevant rules and the articles of association.
2、 Annual meeting of the audit committee
In 2021, the audit committee held five meetings. The details of the meetings are as follows:
(I) on March 25, 2021, the company held the third meeting of the audit committee of the ninth board of directors, which deliberated and approved the report on the performance of duties of the audit committee of the board of directors in 2020, the proposal on the scrapping of some fixed assets and projects under construction in 2020, the proposal on the provision for asset impairment in 2020, the annual report in 2020 and the summary The proposal on the renewal of the company’s audit institution and internal control audit institution in 2021, the proposal on the expected daily amount of connected transactions in 2021, the proposal on the implementation of the new leasing standards and the change of relevant accounting policies and other proposals reviewed the special report on the deposit and use of raised funds in 2020 and the internal control evaluation report in 2020. (II) on April 19, 2021, the company held the fourth meeting of the audit committee of the ninth board of directors, which deliberated and adopted the full text and text of the report of the first quarter of 2021.
(III) on July 30, 2021, the company held the fifth meeting of the audit committee of the ninth board of directors, which deliberated and adopted the full text and summary of the semi annual report of 2021.
(IV) on October 20, 2021, the company held the sixth meeting of the audit committee of the ninth board of directors, which deliberated and approved the third quarter report of 2021, the proposal on adding the daily connected transaction quota of 2021 and other proposals. At the same time, it communicated with Lixin audit to determine the schedule of the audit of the financial report of this year and prepared the overall audit plan of 6 Guangdong Yantang Dairy Co.Ltd(002732) 021.
(V) on December 23, 2021, the company held the seventh meeting of the audit committee of the ninth board of directors, which deliberated and adopted the proposal on the expected daily amount of connected transactions in 2022.
3、 Performance of audit committee
(I) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) is an audit institution with the qualification to engage in Securities and futures related business and independently undertake the business of certified public accountants according to law. The members of the audit team fully have the professional knowledge and relevant professional certificates necessary for the implementation of annual report audit. All employees have not served in the company and have not obtained any form of economic benefits other than the necessary fees for statutory audit; There is no mutual investment or close business relationship between Lixin and the company; There is no correlation between the members of the audit team and the decision-making level of the company. Lixin and its audit members have maintained both formal and substantive independence and adhered to the basic principles of professional ethics.
2. Discuss and communicate the audit scope, audit plan and audit report evaluation with external audit institutions
During the audit process, the auditors formulated the overall audit strategy and specific audit plan through preliminary business training activities, and made full preparations for completing the audit task and reducing the audit risk. In this year’s audit, the auditors carried out appropriate audit procedures in accordance with the requirements of the auditing standards for Chinese certified public accountants, and obtained sufficient and appropriate audit evidence for expressing audit opinions. The unqualified audit opinion issued by Lixin on the financial statements is made on the basis of obtaining sufficient and appropriate audit evidence.
3. Monitor and evaluate the diligence of external audit institutions
We believe that Lixin was diligent and responsible in the annual report audit process, followed the independent, objective and fair professional standards, showed good professional ethics and professional quality, well performed the responsibilities and obligations specified in the business agreement signed by both parties, and completed the annual audit of the company on time.
(II) guide internal audit
During the reporting period, we carefully reviewed the company’s internal audit work plan, recognized the feasibility of the audit plan, 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.
(III) review the financial reports of listed companies and express opinions on them
During the reporting period, we carefully reviewed the company’s financial report and believed that the company’s financial report was true, complete and accurate. The company did not have major accounting error adjustment, major accounting policy and estimation changes, matters involving important accounting judgment and matters leading to non-standard unqualified audit report. We paid special attention to whether there were fraud, fraud and the possibility of major misstatement related to the financial report.
(IV) evaluate the effectiveness of internal control
The company has established relevant corporate governance structure and management system in accordance with the company law, securities law and other laws and regulations, as well as the requirements of China Securities Regulatory Commission, Shanghai Stock Exchange and relevant regulations. During the reporting period, the company strictly implemented various laws and regulations, the articles of association and the internal management system, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, effectively protecting the legitimate rights and interests of the company and shareholders. At the same time, the company employs an audit institution to conduct annual audit on the company’s internal control. We believe that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, in order to ensure the full and effective communication between the company’s management, internal audit department and relevant departments and Lixin certified public accountants, we actively carried out relevant coordination work and provided convenient conditions for all parties to fully communicate, so as to complete relevant audit work in the shortest time.
(VI) pay attention to the use of raised funds and related party transactions
Adhering to the principles of independence, objectivity and impartiality, the audit committee of the board of directors reviewed the raised funds and related proposals constituting related party transactions, and reviewed the special report on the use of the raised funds and the inspection report on major events of the company. We believe that the company did not provide guarantee for the controlling shareholders, actual controllers and their related parties in 2021, and the controlling shareholders, actual controllers and other related parties did not force the company to provide guarantee for others. The related party transactions of the company in 2021 have followed the principles of equality, voluntariness, equivalence and compensation, and have fulfilled the relevant approval procedures in accordance with the articles of association and decision-making procedures.
4、 Overall evaluation
During the reporting period, the audit committee of the board of directors of the company gave full play to its functions, performed its duties diligently and scrupulously, and performed relevant duties in strict accordance with the relevant provisions of the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange.
In 2022, the audit committee of the company will continue to perform its duties in accordance with the principles of prudence, diligence and loyalty, effectively supervise external audit, improve and improve the internal audit of the company, promote the standardized operation of the company, fully safeguard the common interests of the company and all shareholders, and give better play to the important role of the audit committee.
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