Jiangxi Hongdu Aviation Industry Co.Ltd(600316) the performance report of the audit committee of the board of directors in 2021 is in accordance with the relevant provisions of laws, regulations and normative documents such as the standards for corporate governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the guidelines for self discipline supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation of China Securities Regulatory Commission, as well as the articles of association and the detailed rules for the implementation of special committees of the company, As a member of the audit committee of Jiangxi Hongdu Aviation Industry Co.Ltd(600316) (hereinafter referred to as “the company”), we have conscientiously performed the duties of the audit committee based on the principle of diligence. Now we report the performance of our duties in 2021 as follows:
1、 Basic information of the audit committee
There are three current members of the audit committee of the board of directors of the company, namely Ms. Huang Yihong, Mr. Wan Hong and Mr. Cao Chun. The chairman is Ms. Huang Yihong with professional accounting qualification.
2、 Convening of the 2021 annual meeting of the audit committee
During the reporting period, the audit committee of the board of directors of the company actively performed its duties in accordance with the company law, the standards for the governance of listed companies, the articles of association, the working rules of the audit committee and other relevant provisions, as follows:
In 2021, the audit committee held five meetings, and all members attended all the meetings in person.
(I) the first meeting of the audit committee of the seventh board of directors in 2021 was held on March 22, 2021, and the following matters were considered and adopted:
1. The company’s 2020 financial report;
2. Internal self-evaluation report of the company in 2020;
3. Internal control audit report of the company in 2020;
4. Proposal on the company’s daily connected transactions in 2021;
(II) on April 21, 2021, the second meeting of the audit committee of the seventh board of directors of the company in 2021 was held, and the proposal on the text and summary of the first quarter report of the company in 2021 was deliberated and adopted.
(III) the third meeting of the audit committee of the board of directors of the company in 2021 was held on May 28, 2021, and the proposal on changing the accounting firm of the company was considered and adopted.
(IV) on August 17, 2021, the fourth meeting of the audit committee of the board of directors of the company in 2021 was held, and the full text and summary of the company’s 2021 semi annual report were considered and adopted.
(V) on October 21, 2021, the fifth meeting of the audit committee of the seventh board of directors of the company in 2021 was held, and the full text and text of the third quarter report of the company in 2021 were reviewed and adopted.
3、 Annual main work contents of the audit committee
(I) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
Dahua Certified Public Accountants (special general partnership) is qualified for securities practice, has the experience and ability to provide audit services for listed companies, can meet the requirements of the company’s financial audit in 2021, and can independently audit the company’s financial situation, because we agree to appoint Dahua Certified Public Accountants (special general partnership) as the company’s financial audit and internal control audit institution in 2021.
2. Supervise and evaluate whether the external audit institutions are diligent and responsible
We believe that Dahua Certified Public Accountants (special general partnership) was diligent during the audit period, followed the professional standards of independence, objectivity and impartiality, 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) supervise and evaluate internal audit
During the reporting period, we carefully reviewed the company’s internal audit work plan and recognized the feasibility of the plan. At the same time, we 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 company’s financial report and express opinions on it
During the reporting period, after the annual audit accountant issued the preliminary audit opinion, we reviewed the company’s 2020 financial and accounting statements, maintained the original review opinion, and believed that the company strictly followed the provisions of the new accounting standards for business enterprises and the company’s relevant financial systems, the preparation process of the financial and accounting statements was reasonable and standardized, and fairly reflected the company’s assets, liabilities, equity and operating results as of December 31, 2020, with true, accurate and reliable contents Complete.
During the reporting period, we reviewed the 2021 annual financial statements prepared by the company’s financial department submitted by the company’s management before the annual audit accountant entered the site. By asking the company’s relevant financial personnel and management personnel, consulting the information of relevant meetings such as the general meeting of shareholders, the board of directors and the board of supervisors, and implementing analysis procedures for major financial data, we believe that:
1. The company’s financial and accounting statements are prepared in accordance with the company’s accounting policies, the application of accounting policies is appropriate, accounting estimates are reasonable, and meet the requirements of the new accounting standards for business enterprises, enterprise accounting system and relevant regulations issued by the Ministry of finance;
2. The company’s financial and accounting statements are included in the consolidation scope, the contents of the statements are complete, and the consolidation basis of the statements is accurate;
3. The contents of the company’s financial and accounting statements are objective, true and accurate, and no major misstatement or omission is found.
(IV) supervise and evaluate the company’s internal control
The company has established a relatively perfect corporate governance structure and governance system in accordance with the requirements of the company law, the securities law and other laws and regulations and the relevant provisions of the China Securities Regulatory Commission and Shanghai Stock Exchange. During the reporting period, the company strictly implemented various laws, regulations, rules, articles of association and internal management systems, 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. Therefore, 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 better enable the management, internal audit department and relevant departments to fully and effectively communicate with auditors, we actively carried out relevant coordination after listening to the demands and opinions of both parties, so as to complete relevant audit work in the shortest time.
4、 Overall evaluation
During the reporting period, we performed the due diligence of the audit committee in accordance with relevant laws and regulations and the rules of procedure of the audit committee formulated by the company.
Members of the audit committee of the board of directors:
Huang Yihong (Chairman), Wan Hong, Cao Chun March 29, 2022
