Zhongyin Babi Food Co.Ltd(605338)
Performance report of the audit committee of the board of directors in 2021
Dear directors
As a member of the audit committee of the board of directors of Zhongyin Babi Food Co.Ltd(605338) (hereinafter referred to as “the company”), we have faithfully, diligently and conscientiously performed our duties of examination and supervision in strict accordance with the standards for the governance of listed companies and other laws and regulations of the CSRC and the relevant provisions of the articles of association and the detailed rules for the work of the audit committee. The performance of duties in 2021 is reported as follows:
1、 Basic information of the audit committee
The members of the audit committee of the second board of directors of the company are Mr. Yao Lushi, Mr. Chen Xiaoman and Mr. Su Shuang. Among them, Mr. Yao Lushi and Mr. Chen Xiaoman are independent directors of the company, and Mr. Yao Lushi with accounting professional background serves as the convener.
Ms. Qian Changhua, a former member of the audit committee, submitted a resignation report to the company on October 28, 2021 for personal reasons, applying for resignation from the position of director, member of the audit committee and chief financial officer and Secretary of the board of directors. After her resignation, Ms. Qian Changhua will no longer hold any position in the company. The company held the 11th meeting of the second board of directors on October 28, 2021, deliberated and approved the proposal on electing candidates for directors and members of the audit committee of the second board of directors of the company. The board of directors of the company nominated Mr. Su Shuang as the director and member of the audit committee of the company. The proposal was deliberated and approved by the second extraordinary general meeting of shareholders of the company in 2021 held on November 15, 2021.
2、 Meetings of the audit committee
In 2021, the audit committee of the second board of directors held five meetings, and all members attended the meeting in person. The proposals considered and adopted at the meeting are as follows:
Meeting time: proposals considered at the session
1. Proposal on Zhongyin Babi Food Co.Ltd(605338) internal control inspection and evaluation report
The first meeting in 2021 on January 15, 2021
2. Proposal on the company’s intention to participate in the investment in Teri Jiahua (Tianjin) equity investment fund partnership (limited partnership) and related party transactions
1. Proposal on the financial statement report of 2020
2. Proposal on 2020 annual report and summary
3. Proposal on the special report on the deposit and actual use of the company’s raised funds in 2020
The second meeting in 2021 on April 16, 2021
4. Proposal on the performance report of the audit committee in 2020 5 Proposal on changes in accounting policies
6. Proposal on reappointment of the company’s financial audit institution and internal control audit institution in 2021
April 23, 2021 third meeting in 2021 1 1 Proposal on the company’s report for the first quarter of 2021
August 16, 2021 4th meeting Proposal on the semi annual report and summary of 2021
October 18, 2021 fifth meeting 1 Proposal on the third quarter report of the company in 2021
3、 Annual performance of the audit committee
In 2021, with rich industry experience and professional knowledge, the audit committee of the board of directors put forward professional opinions to the board of directors in supervising and evaluating the work of audit institutions, guiding the company’s internal audit, reviewing the company’s financial reports, and played an important role in the company’s audit and risk management.
(I) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
The audit committee of the board of directors reviewed the professional competence, investor protection ability, independence and integrity of Rongcheng Certified Public Accountants (special general partnership), the company’s external audit institution, and evaluated its previous annual audit work. It is considered that the firm follows independent, objective and impartial professional standards and has good service awareness, professional ethics and professional ability, It is suggested to continue to employ Rongcheng Certified Public Accountants (special general partnership) as the audit institution of the company in 2022.
2. Comment and communicate with external audit institutions on audit scope, audit plan, audit methods and major matters found in the audit
During the reporting period, the audit committee of the board of directors discussed and communicated on the audit scope, audit plan, audit methods and other matters proposed by Rongcheng Certified Public Accountants (special general partnership), and reached an agreement. In the process of financial and internal control audit, urge the annual audit certified public accountants to audit according to the agreed plan and submit the audit report within the agreed time limit. No other major matters in the audit were found during the audit.
3. Monitor and evaluate the diligence of external audit institutions
During the reporting period, the audit committee of the board of directors held that Rongcheng Certified Public Accountants (special general partnership) was diligent in the audit process and followed the professional standards of independence, objectivity and impartiality.
(II) guide internal audit
During the reporting period, the audit committee of the board of directors carefully reviewed the company’s internal audit work plan, urged the internal audit institutions to implement according to the audit plan, evaluated the results of internal audit work, and issued Guiding Opinions on the problems raised by internal audit, so as to promote the effective operation of the internal audit department.
(III) review the company’s financial report and express opinions on it
During the reporting period, the audit committee of the board of directors 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 relevant fraud, fraud and material misstatement, no adjustment of major accounting errors and the audit report with non-standard unqualified opinions.
(IV) evaluate the effectiveness of internal control
During the reporting period, the audit committee checked the construction of the company’s internal control system and the implementation of internal control in accordance with the basic norms of enterprise internal control and its supporting guidelines.
The company strictly implements the provisions of relevant laws, regulations and normative documents, the articles of association and the company’s internal control system. The internal control system operates well, and the internal control is scientific and effective. The company and its subsidiaries carry out internal control according to the plan, timely identify the defects in internal control, and continuously improve the level of internal control management through planning, implementation, inspection and improvement.
(V) 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, internal audit department and other relevant departments and external audit institutions, promoted the company to actively support and cooperate with external audit work, timely analyzed and solved the problems found in the audit process, and ensured the smooth progress of audit work.
4、 Overall evaluation
During the reporting period, the audit committee of the board of directors, based on the principles of independence, objectivity, impartiality and professionalism, performed its duties faithfully and diligently in strict accordance with the Listing Rules of Shanghai Stock Exchange, the articles of association, the working rules of the audit committee and other relevant provisions, and earnestly performed the function of audit supervision, which played a positive role in promoting the internal control management of the company.
In 2022, the audit committee will continue to conscientiously and diligently perform its duties, make full use of its professional advantages, give full play to the guidance and supervision role of the audit committee, improve the standardized operation mechanism of the company, and effectively safeguard the legitimate rights and interests of the company and all shareholders.
Zhongyin Babi Food Co.Ltd(605338) the audit committee of the board of directors on April 7, 2022 (there is no text on this page, which is the signature page of the 2021 performance report of the audit committee of the board of directors):
Yao Lushi
On April 7, 2022 (there is no text on this page, which is the signature page of the 2021 annual performance report of the audit committee of the board of directors), members of the audit committee of the board of directors:
Chen Xiaoman
On April 7, 2022 (there is no text on this page, which is the signature page of the 2021 annual performance report of the audit committee of the board of directors), members of the audit committee of the board of directors:
Su Shuang
April 7, 2022
