Guangdong No.2 Hydropower Engineering Company Ltd(002060)
Announcement on the renewal of accounting firm
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Dahua Certified Public Accountants (special general partnership) (hereinafter referred to as “Dahua certified public accountants”) is an accounting firm with securities related business qualification. In the process of serving Guangdong No.2 Hydropower Engineering Company Ltd(002060) (hereinafter referred to as “the company”) in 2021, Dahua certified public accountants adheres to the principle of independent audit, objectively, fairly and fairly reflects the financial situation of the company, and earnestly performs the responsibilities of the audit institution, The legal rights and interests of the company and its shareholders have been safeguarded from a professional perspective. In order to maintain the continuity and stability of the audit work, the company plans to continue to employ Dahua firm as the audit institution of the company’s financial report in 2022.
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
(1) Name: Dahua Certified Public Accountants (special general partnership)
(2) Date of establishment: February 9, 2012 (transformed from Dahua certified public accountants Co., Ltd. into a special general partnership).
(3) Organizational form: special general partnership.
(4) Registered address: 1101, building 7, yard 16, Middle West Fourth Ring Road, Haidian District, Beijing.
(5) Chief partner: Liang Chun.
(6) As of December 31, 2021, the number of Certified Public Accountants: 1481, including 929 certified public accountants who have signed the audit report of securities service business. Total business income in 2020: 2520553200 yuan; Audit revenue in 2020: 2253578000 yuan; Securities business income in 2020: 1095351900 yuan; Number of audit clients of Listed Companies in 2020: 376. Main industries: manufacturing, information transmission software and information technology services, real estate, wholesale and retail, construction.
Total annual report audit fees of Listed Companies in 2020: 417257200 yuan. The number of audit clients of Listed Companies in the same industry of the company is 12.
2. Investor protection ability: the sum of the accrued occupational risk fund and the purchased occupational insurance cumulative compensation limit exceeds RMB 700 million. The purchase of occupational insurance complies with relevant regulations. The CPA firm has not been required to bear civil liability due to the practice of Dahua accounting firm for nearly three years.
3. Integrity record
In the past three years, Dahua certified public accountants has been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 24 times, self-discipline and supervision measures 0 times and disciplinary punishment 2 times for its practice behavior; In recent three years, 54 employees have been subject to criminal punishment for 0 times, administrative punishment for 1 time, supervision and management measures for 25 times, self-discipline and supervision measures for 0 times and disciplinary punishment for 3 times.
(II) project information
1. Basic information
Project quality control reviewer Bao Tiejun: certified public accountant. He began to audit listed companies and listed companies in October 2001, began to practice in the Institute in February 2012, and began to review in October 2015. In recent three years, he has reviewed more than 50 audit reports of listed companies and listed companies.
Zhu Wenyue, the certified public accountant to be signed: the certified public accountant has been engaged in audit business since 1995. So far, he has participated in the restructuring and listing audit of many enterprises, annual audit of listed companies, assets and capital verification, inspection by the securities regulatory bureau and the Ministry of finance. He has experience in securities service business, has been engaged in securities business for 23 years, and has corresponding professional competence.
Project partner Wang Jianhua: certified public accountant. He began to audit listed companies in December 2006, began to practice in Dahua certified public accountants in September 2013, and began to provide audit services for the company in October 2020; Six listed companies have signed audit reports in the past three years.
2. Integrity record
Bao Tiejun, the reviewer of project quality control, Zhu Wenyue, the certified public accountant to be signed, and Wang Jianhua, the partner of the project, have not been subject to criminal punishment, administrative punishment, supervision and management measures, self-discipline supervision measures and disciplinary sanctions for their professional behavior in recent three years.
3. Independence
Dahua Certified Public Accountants (special general partnership), project partners, signed certified public accountants and project quality control reviewers can maintain their independence in the audit of the project.
4. Audit fees
The current audit fee of 954000 yuan (including tax) is charged according to the number of working days required for audit services provided by UOB and the charging standard of each working day. The number of working days shall be determined according to the nature and complexity of audit services; The charging standard of each working day shall be determined respectively according to the professional skill level of practitioners.
The audit fee of the previous period is 954000 yuan (including tax), and the audit fee of the current period has not changed compared with that of the previous period.
2、 Procedures to be performed by the accounting firm to be renewed
(I) the audit committee of the board of directors of the company has fully understood and reviewed the independence, professional competence and investor protection ability of Dahua firm, and believes that Dahua firm can follow the independent auditing standards for Chinese certified public accountants, objectively, fairly and fairly reflect the company’s financial status and operating results, and earnestly perform the duties of the audit institution. It is recommended that the company continue to employ Dahua firm as the auditor of the company’s financial report in 2022.
(II) prior approval and independent opinions of independent directors
1. Prior recognition of independent directors: we believe that Dahua firm has the qualification to engage in securities business. During its tenure as the company’s audit institution, it can follow the independent audit standards for Chinese certified public accountants, be diligent and dutiful, and fairly and reasonably express independent audit opinions. The company plans to continue to employ Dahua firm as the auditor of the financial report of 2022. We agree to submit the matter to the 24th Meeting of the seventh board of directors for deliberation.
2. Independent opinion: we believe that Dahua firm is qualified to engage in securities business. During its tenure as the company’s audit institution, it can abide by the independent auditing standards for Chinese certified public accountants, be diligent and dutiful, and give independent audit opinions fairly and reasonably. In order to ensure the smooth progress of the company’s audit work, we agree that the company will continue to employ Dahua firm as the audit institution of the company’s 2022 financial report.
(III) on March 29, 2022, the 24th Meeting of the 7th board of directors and the 13th meeting of the 7th board of supervisors respectively deliberated and adopted the proposal on the renewal of accounting firm, and agreed to renew Dahua firm as the audit institution of the company’s financial report in 2022.
(IV) the matters to be considered and approved by the general meeting of shareholders shall take effect from the date of submission to the general meeting of shareholders.
4、 Documents for future reference
(I) Guangdong No.2 Hydropower Engineering Company Ltd(002060) the resolution of the 24th Meeting of the 7th board of directors;
(II) Guangdong No.2 Hydropower Engineering Company Ltd(002060) the resolution of the 13th meeting of the seventh board of supervisors;
(III) Guangdong No.2 Hydropower Engineering Company Ltd(002060) opinions of the audit committee of the board of directors on relevant matters;
(IV) Guangdong No.2 Hydropower Engineering Company Ltd(002060) independent directors’ prior approval on the renewal of the accounting firm;
(V) Guangdong No.2 Hydropower Engineering Company Ltd(002060) independent directors’ independent opinions on relevant matters;
(VI) explanation on the basic information of the accounting firm to be renewed. It is hereby announced.
Guangdong No.2 Hydropower Engineering Company Ltd(002060) board of directors March 30, 2022
