Shenyang Chemical Co.Ltd(000698) Audit Committee of the board of directors
Explanation of reasonableness of relevant proposals at the third meeting of the ninth board of directors in accordance with the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange and the accounting standards for Business Enterprises No. 8 – asset impairment, we are a member of the audit Committee of the board of directors of Shenyang Chemical Co.Ltd(000698) (hereinafter referred to as “the company”), After careful consideration of the company’s proposal on the provision for impairment of long-term assets in 2021 and the proposal on the provision for impairment of long-term equity investment in subsidiaries in 2021, based on prudent judgment, the following statements are issued:
1. Proposal on the provision for impairment of long-term assets in 2021
The company has provided detailed information on the provision for impairment of long-term assets in 2021 and fully explained the relevant contents. On the basis of careful review of relevant information, the audit committee of the board of directors of the company believes that the provision for impairment of long-term assets to be accrued in 2021 complies with the accounting standards for business enterprises and relevant accounting policies of the company, reflects the principle of accounting prudence and has sufficient basis, It fairly reflects the company’s financial position as of December 31, 2021 and its operating results in 2021, which helps to provide investors with more reliable accounting information.
2. Proposal on the provision for impairment of long-term equity investment in subsidiaries in 2021 the provision for impairment of long-term equity investment this time is in line with the accounting standards for business enterprises and relevant accounting policies of the company, with sufficient basis, reflecting the principle of accounting prudence and in line with the actual situation of the company. After the provision for impairment of long-term equity investment is withdrawn, it can more fairly reflect the company’s financial status, asset value and operating results, make the company’s accounting information more reasonable, and there is no damage to the interests of the company and minority shareholders.
We unanimously agree to submit the above proposal to the general meeting of shareholders of the company for deliberation. Audit Committee: Wu Li (Chairman)
Sun Zesheng, Li Zhong, Yang Xianghong, bu Xinping
March 29, 2002
