Securities code: Kaili Catalyst & New Materials Co.Ltd(688269) securities abbreviation: Kaili Catalyst & New Materials Co.Ltd(688269) Announcement No.: 2022012 Kaili Catalyst & New Materials Co.Ltd(688269)
Announcement on reappointment of the company’s audit institution in 2022
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Name of accounting firm to be employed: ShineWing Certified Public Accountants (special general partnership)
Kaili Catalyst & New Materials Co.Ltd(688269) (hereinafter referred to as “the company”) held the third meeting of the third board of directors on March 29, 2022, deliberated and adopted the proposal on renewing the company’s audit institution in 2022 and employing internal control audit institution. In order to maintain the continuity and stability of audit work, The board of directors agreed to renew the appointment of ShineWing Certified Public Accountants (special general partnership) (hereinafter referred to as “ShineWing firm” and “ShineWing”) as the audit institution of the company’s financial statements and internal control in 2022 for one year. This matter still needs to be submitted to the general meeting of shareholders for deliberation. The details are announced as follows:
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Organization Name: ShineWing Certified Public Accountants (special general partnership)
Date of establishment: March 2, 2012
Organizational form: special general partnership
Registered address: 8 / F, building a, Fuhua building, No. 8, Chaoyangmen North Street, Dongcheng District, Beijing
Chief partner: Mr. Tan Xiaoqing
As of December 31, 2021, ShineWing has 236 partners (shareholders) and 1455 certified public accountants. More than 630 certified public accountants have signed the audit report of securities service business.
ShineWing’s business income in 2020 was 3.174 billion yuan, including 2.267 billion yuan from audit business and 724 million yuan from securities business. In 2020, there were 346 annual report audit projects of ShineWing listed companies, with a total charge of 383 million yuan. The main industries involved include manufacturing, information transmission, software and information technology services, power, heat, gas and water production and supply, transportation, warehousing and postal services, finance, wholesale and retail, real estate, mining, etc. The number of audit clients of Listed Companies in the same industry of the company is 205.
2. Investor protection ability
ShineWing has purchased occupational insurance. The purchase of occupational insurance complies with relevant regulations and covers the civil compensation liability due to the provision of audit services; As of December 31, 2021, the cumulative compensation limit is 700 million yuan.
In the past three years, there has been no civil liability due to relevant civil litigation in practice.
3. Integrity record
In recent three years (from 2019 to 2021), ShineWing firm has received 0 criminal punishment, 0 administrative punishment, 12 supervision and management measures, 0 self-discipline supervision measures and 0 disciplinary sanctions for its practice. In recent three years, 29 employees have been subject to criminal punishment 0 times, administrative punishment 2 times, supervision and management measures 27 times and industry self-discipline supervision measures 2 times.
(II) project information
1. Basic information
Project partner: Mr. Miao CE, who obtained the qualification of Chinese certified public accountant in 2001, began to engage in the audit of Listed Companies in 2000, began to practice in ShineWing in 2018, began to provide audit services for the company in 2018, and more than 10 audit reports of listed companies have been signed or reviewed in recent three years.
Signature certified public accountant: Ms. Sha Xiaotian became a certified public accountant in 2019, began to participate in the audit of Listed Companies in 2013, began to practice in ShineWing in 2018, began to provide audit services for the company in 2019, and signed more than 2 audit reports of Listed Companies in recent three years.
Reviewer of quality control of the proposed project: Mr. Liang Zhigang, who became a certified public accountant in 2001, began to engage in the audit of Listed Companies in 2001, began to practice in ShineWing in 2001, began to provide audit services for the company in 2018, and has signed the audit reports of three listed companies in recent 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 due to their professional behavior, administrative punishment and supervision measures by the CSRC and its dispatched offices and industry competent departments, and have not been subject to self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as securities trading places and industry associations.
3. Independence
ShineWing firm, project partners, signing certified public accountants and project quality control reviewers can maintain independence in the audit of the project.
4. Audit fees
The pricing principle of audit fees is determined according to the company’s business scale, industry and complexity of accounting treatment. The audit fee of the company’s financial statements in 2021 is 700000 yuan. The board of directors of the company requests the general meeting of shareholders to authorize the management of the company to decide the audit fee of ShineWing Certified Public Accountants (special general partnership) for the financial statements and internal control audit fee in 2022 according to the actual business and market conditions of the company in 2022.
2、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
After verification, the members of the audit committee of the company believe that ShineWing firm has the qualification, experience, professional ability and investor protection ability to provide audit services for the company, adheres to the principles of integrity and independent audit in the process of practice, and can meet the requirements of the company’s audit work. Agree to propose to the board of directors that ShineWing firm be reappointed as the audit institution of the company’s financial statements and internal control in 2022.
(II) prior approval opinions and independent opinions of independent directors
1. Prior approval opinion of independent directors: the company has communicated with us in advance on the renewal of ShineWing firm as the audit institution in 2022. After understanding the practice of ShineWing firm, we believe that ShineWing firm has the professional qualification to carry out relevant audit business, has many years of experience and ability to provide audit services for listed companies, and has sufficient independence, professional competence The investor protection ability meets the requirements of the company’s audit work. Therefore, we agree to renew the appointment of ShineWing firm as the audit institution in 2022 and agree to submit the matter to the third meeting of the third board of directors for deliberation.
2. Independent opinions of independent directors: after audit, ShineWing firm has scrupulously performed its duties in the process of providing audit services for the company, abided by the professional standards of independence, objectivity and impartiality, better completed the audit of financial statements in 2021, and charged reasonable audit fees.
In order to maintain the independence and stability of the company’s audit business, the company plans to continue to employ ShineWing firm as the auditor of financial report and internal control in 2022. ShineWing firm has the experience and ability to provide audit services for the company, as well as sufficient independence, professional competence and investor protection ability, which can meet the requirements of the company’s audit work, help to ensure the quality of the company’s audit work and protect the interests of the company and all shareholders. We believe that the company has reasonable reasons to renew the appointment of ShineWing firm as the audit institution in 2022, and the review procedures comply with relevant laws and regulations and the provisions of the articles of association. We agree to renew the appointment of ShineWing firm as the company’s 2022 audit institution for one year, and agree to submit the proposal to the company’s 2021 annual general meeting for deliberation.
(III) deliberation and voting of proposals by the board of directors
At the third meeting of the third board of directors of the company, the proposal on renewing the company’s 2022 audit institution and employing an internal control audit institution was deliberated and adopted with 9 votes in favor, 0 against and 0 abstention. ShineWing firm was agreed to be renewed as the company’s 2022 financial statements and internal control audit institution, and the general meeting of shareholders was requested to authorize the company’s management to determine the 2022 audit remuneration and sign relevant service agreements.
(IV) effective date
The renewal of the accounting firm needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and effective from the date of deliberation and approval by the general meeting of shareholders.
It is hereby announced
Kaili Catalyst & New Materials Co.Ltd(688269) board of directors March 31, 2002
