Securities code: Xgd Inc(300130) securities abbreviation: Xgd Inc(300130) Announcement No.: 2022013 Xgd Inc(300130)
Announcement on the proposed 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.
In order to maintain the continuity and stability of the audit work, Xgd Inc(300130) (hereinafter referred to as “the company”) upon the proposal of the audit committee of the board of directors, held the 17th meeting of the 5th board of directors on March 28, 2022, deliberated and adopted the proposal on the proposed renewal of Dahua Certified Public Accountants (special general partnership) as the audit institution of the company in 2022, Dahua Certified Public Accountants (special general partnership) (hereinafter referred to as “Dahua certified public accountants”) is proposed to be reappointed as the audit institution of the company in 2022 until the company holds the next annual general meeting of shareholders. Dahua certified public accountants is a professional audit institution with securities and futures qualifications. It has a team of certified public accountants with rich experience. In providing audit services for the company, Dahua certified public accountants can scrupulously abide by their duties and follow independent, objective and fair professional standards.
1、 Basic information of the accounting firm to be renewed
(I) institutional information
Organization Name: Dahua Certified Public Accountants (special general partnership)
Date of establishment: February 9, 2012 (transformed from Dahua certified public accountants Co., Ltd. into a special general partnership)
Organizational form: special general partnership
Registered address: 1101, building 7, yard 16, Middle West Fourth Ring Road, Haidian District, Beijing
Chief partner: Liang Chun
Number of partners as of December 31, 2021: 264
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, wholesale and retail, real estate and construction
Total annual report audit fees of Listed Companies in 2020: 417257200 yuan
Number of audit clients of Listed Companies in the same industry: 254
2. Investor protection ability
The sum of the accrued occupational risk fund and the purchased occupational insurance cumulative compensation limit exceeds 700 million yuan. 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
Dahua certified public accountants has been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 25 times, self-discipline and supervision measures 0 times and disciplinary punishment 2 times in recent three years. In the past three years, 76 employees have been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 36 times, self-discipline and supervision measures 1 time and disciplinary punishment 3 times for their practice behavior.
(II) project information
1. Basic information:
Project partner: Chen Baohua
He became a certified public accountant in September 1995, began to audit listed companies in July 1993, began to practice in Dahua certified public accountants in February 1998, and began to provide audit services for the company in July 2021; Six listed companies have signed audit reports in the past three years.
Name of CPA to be signed: Chen Baohua, Liu Jun
Working experience of the certified public accountant to be signed:
Chen Baohua, who became a certified public accountant in September 1995, began to audit listed companies in July 1993, began to practice in Dahua certified public accountants in February 1998, and began to provide audit services for the company in July 2021; Six listed companies have signed audit reports in the past three years.
Liu Jun became a certified public accountant in August 2017, began to audit listed companies in December 2015, began to practice in Dahua certified public accountants in January 2020, and began to provide audit services for the company in November 2020; Signed the audit report of one listed company in recent three years.
Reviewed by: he Jingjing
He became a certified public accountant in May 2014, began to audit listed companies in July 2010, began to practice in Dahua certified public accountants in July 2019, and began to provide review work for the company in November 2021; More than 8 audit reports of listed companies and listed companies have been undertaken or reviewed in the past three years.
2. Integrity record
In recent three years, project partners, signed certified public accountants and project quality control reviewers have not been subject to criminal punishment for their professional behavior, administrative punishment, supervision and management measures of the CSRC and its dispatched offices and industry competent departments, or self-discipline supervision measures and disciplinary sanctions of self-discipline organizations such as stock exchanges and Industry associations. 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 is no less than 1.55 million yuan, which is charged according to the number of working days required by Dahua certified public accountants to provide audit services 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 1.55 million yuan. The audit fee and pricing principle of the current period will not change greatly compared with that of the previous year. After being approved by the general meeting of shareholders, the management of the company is authorized to determine through consultation by both parties according to the specific workload and market price level of the audit in 2022.
2、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
On March 16, 2022, the company convened the audit committee of the board of directors to consider and approve the proposal on the proposed renewal of Dahua Certified Public Accountants (special general partnership) as the company’s audit institution in 2022.
The audit committee of the board of directors of the company believes that Dahua certified public accountants has the experience and professional ability to provide audit services for listed companies, strong investor protection ability and good integrity. During his tenure as the company’s audit institution, he was able to follow the independent auditing standards for Chinese certified public accountants, objectively, fairly and fairly reflect the company’s financial situation and operating results, and earnestly performed the duties of the audit institution. In order to ensure the smooth progress of the company’s audit work, the Audit Committee proposes to reappoint Dahua certified public accountants as the company’s audit institution in 2022 for one year.
(II) prior approval and independent opinions of independent directors
The independent directors of the company recognized and expressed independent opinions on the renewal of the accounting firm in advance, and believed that in the process of providing audit services for the company over the years, the auditors of Dahua accounting firm strictly abide by the code of professional ethics, work seriously and rigorously, have sufficient independence, professionalism, investor protection ability and good integrity. The reports issued can objectively and truly reflect the company’s financial situation and operating results, and the company has a good long-term cooperative relationship with it. The renewal of Dahua Certified Public Accountants (special general partnership) as the audit institution of the company in 2022 is in line with the interests of the company and shareholders, especially the interests of minority shareholders. We agree to recommend Dahua certified public accountants as the audit institution of listed companies and submit it to the general meeting of shareholders for deliberation.
(III) deliberation and voting of the proposal by the board of directors and the board of supervisors
The company held the 17th meeting of the 5th board of directors and the 15th meeting of the 5th board of supervisors on March 28, 2022, deliberated and approved the proposal on the proposed renewal of Dahua Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agreed to renew Dahua Certified Public Accountants as the company’s audit institution in 2022 to provide audit services for the company for one year, After the audit fee is approved by the general meeting of shareholders, the management of the company is authorized to be determined by both parties through consultation according to the specific workload and market price level of the audit in 2022. The proposal has been unanimously voted by all directors and supervisors.
(IV) effective date
This proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation, and will take effect from the date of deliberation and adoption of the general meeting of shareholders of the company. 3、 Filing documents
1. Xgd Inc(300130) independent directors’ prior approval opinions on the proposed renewal of the accounting firm;
2. Xgd Inc(300130) independent directors’ independent opinions on 2021 annual report and related matters;
3. Xgd Inc(300130) the resolution of the seventh meeting of the audit committee of the Fifth Board of directors; 4. Xgd Inc(300130) the resolution of the 17th meeting of the 5th board of directors;
5. Xgd Inc(300130) the resolution of the 15th meeting of the 5th board of supervisors;
6. Explanation on the basic information of the proposed accounting firm.
It is hereby announced.
Xgd Inc(300130) board of directors
March 30, 2022
