Hunan Aihua Group Co.Ltd(603989)
Performance report of the audit committee in 2021
According to the operation guidelines of the audit committee of listed companies of Shanghai Stock Exchange and the Shanghai Securities Regulatory Commission
Relevant laws and regulations such as the stock listing rules of the stock exchange, the articles of association and the procedures of the audit committee
Rules and other relevant provisions of the company’s system, Hunan Aihua Group Co.Ltd(603989) Audit Committee of the board of directors
It is very important to review the company’s financial information and its disclosure, supervise the company’s related party transactions, and review the company’s internal control
System, review the annual audit plan, evaluate the work of external audit institutions, and promote the standardization of the company
Efficient operation. The performance of the audit committee in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the Fourth Board of directors of the company is composed of independent director Ms. Xu Liping, independent director Ms. Gu Qun and
The director Ms. Wang An’an is composed of three members, of which the chairman is Xu an, an independent director with professional accounting qualification
Ms. Liping acted as. The company held the first meeting of the 5th board of directors on November 16, 2021, and passed the deliberation
Through the proposal on the election of members and chairman of the special committee of the Fifth Board of directors of the company, the election has
Mr. Deng Zhonghua, an independent director with professional accounting qualification, is the chairman, and Mr. Xiao Haijun, an independent director, is the member and director
Ms. Wang An’an is a member of the Committee. The audit committee of the 5th board of directors did not hold a meeting within the term of office in 2021.
2、 Meetings of the audit committee
In 2021, the audit committee held 6 meetings, and all members attended the meeting in person to review
The relevant proposals of the meeting were adopted and the opinions agreed to be submitted to the board of directors for deliberation were expressed. The specific conditions are as follows:
Time session proposal
1. Review opinions on the 2020 financial statements prepared by the company audited by the 4th board of directors 2. Review opinions on the 2020 annual report audit plan issued by the accounting firm on February 18, 2021
Ninth meeting of the Committee
3. Listen to the report on the company’s internal audit in 2020
Audit of the 4th board of directors
March 24, 2021 1 1. The 10th meeting of the Committee on communicating and reporting the audit progress and first draft of 2020 annual financial report
1. Performance report of the audit committee in 2020
2. Financial statement report of 2020
3. Full text and summary of 2020 Annual Report
4. Proposal on profit distribution in 2020
5. Special report on the deposit and actual use of raised funds in 2020
6. Internal control evaluation report and internal control audit report in 2020 audited by the 4th board of directors 7. Proposal on closing the project at the 11th meeting of the Committee on March 31, 2021 and permanently replenishing the working capital with the surplus raised capital
Discussion 8. Proposal on re signing of house lease contract and related party transactions 9. Proposal on daily related party transactions in 2020 and prediction of daily related party transactions in 2021
10. Proposal on reappointment of the company’s audit institution in 2021
11. Proposal on using some idle raised funds to purchase financial products
12. Proposal on changes in accounting policies.
13. 2020 audit report
14. Summary of audit work of the company in 2020
Audit of the 4th board of directors
The 12th meeting of the Committee on April 28, 2021 1 1. Report of the company for the first quarter of 2021
Discuss
Audit of the 4th board of directors 1. Full text and summary of the company’s 2021 semi annual report
The 13th meeting of the Committee on August 2, 2021 2. Special report on the deposit and actual use of the company’s raised funds in the half year of 2021
Audit of the 4th board of directors
The 14th meeting of the Committee on October 28, 2021 1 1. Report of the company for the third quarter of 2021
Discuss
3、 Performance of the audit committee in 2021
(I) performance of duties in the audit of annual report
During the company’s 2021 audit, the audit committee of the board of directors of the company strictly followed the
Material.
Before entering the company, the accountant held an annual audit communication meeting with the certified public accountant in charge of the company’s annual audit and the company’s management, and fully exchanged the work content, audit plan and their respective concerns of the annual audit. After the accountant entered the site, the audit committee conducted continuous and sufficient communication with the person in charge of the audit project on the consolidation of statements, accounting adjustments, the application of accounting policies, and the accounting work to be improved found in the audit. After the on-site work, the financial statements of the company in 2021 were reviewed again and written opinions were formed. The Audit Committee believes that the audit work of the company’s 2021 annual report is in line with the company’s audit arrangements, the preparation is in line with the requirements of accounting standards for business enterprises and relevant regulations, and the annual report truly reflects the company’s operation and financial status.
(II) supervise and evaluate the work of external audit institutions
Tianzhi International Certified Public Accountants (special general partnership) (hereinafter referred to as “Tianzhi international”) is an external audit institution employed by the company and is qualified to engage in securities related businesses. There is no direct or indirect mutual investment or close business relationship between Tianzhi international and the company; Tianzhi international has no self-evaluation on the audit business of the company, and there is no correlation between the members of the audit team and the decision-making level of the company. The Audit Committee believes that since its appointment, Tianzhi international has carried out the audit work in strict accordance with the relevant national regulations and the practice norms of certified public accountants, adhered to the independent audit standards, provided good audit services for the company, its audit work is scientific, rigorous and meticulous, the work results are objective and fair, and can realistically express relevant audit opinions and issue objective reports Truly reflect the financial situation and operating results of the company.
(III) guide internal audit
During the reporting period, in accordance with the requirements of the company law and other relevant laws and regulations, the audit committee carefully reviewed the company’s internal audit work plan, urged the company’s internal audit institutions to strictly implement the audit plan, put forward guiding opinions on the problems arising from internal audit, and inspected and supervised the further improvement and implementation of the company’s internal control system, so as to effectively prevent business risks, Promote the continuous improvement and effective implementation of the company’s internal control and various systems to ensure the standardized operation and healthy development of the company. The audit committee did not find any major problems in the internal audit.
(IV) review the company’s financial report and express opinions on it
During the reporting period, the audit committee carefully reviewed the company’s financial report and believed that the company’s financial report was true, accurate and complete, fairly reflected the company’s financial status and operating results, and there were no major accounting error adjustment, major accounting policy and estimation changes caused by non-implementation of accounting standards for business enterprises, matters involving important accounting judgments and non-standard unqualified audit report, and no fraud related to financial report Fraud and material misstatement. The content and format of the financial report comply with the provisions of China Securities Regulatory Commission and Shanghai Stock Exchange, and fairly reflect the company’s financial status, operating results and cash flow.
(V) evaluate the effectiveness of 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. The audit committee listened to the report on internal control by the person in charge of internal audit of the company and found no major defects related to the internal control of the company’s financial report and non-financial report. 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.
(VI) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, the audit committee actively coordinated the communication between the company’s management and external audit institutions on major audit matters by holding meetings and other means; At the same time, during the implementation of the annual financial report audit and internal control audit, fully listen to and understand the opinions of all parties, actively coordinate the communication between the internal audit department and relevant departments and external audit institutions, promote the optimization of internal audit work, improve audit efficiency, reduce audit costs, and jointly give full play to the function of audit supervision.
4、 Overall evaluation
During the reporting period, we performed the duties of the audit committee in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange and the working rules of the audit committee of the board of directors of the company, and played a due role in supervising and evaluating the external audit work, reviewing and expressing opinions on the company’s financial reports, and guiding the supervision and evaluation of the company’s internal control construction, Earnestly safeguard the interests of the company and all shareholders, especially the interests of minority shareholders.
In 2022, the audit committee will continue to perform its duties in accordance with laws and regulations, be diligent and conscientious, continuously improve its level of adequacy, and earnestly safeguard the legitimate interests of the company and all shareholders.
It is hereby reported.
Hunan Aihua Group Co.Ltd(603989) board of directors audit committee April 6, 2022
