Securities code: 603176 securities abbreviation: Huitong group Announcement No.: 2022030 Huitong Construction Group Co., Ltd
Announcement on the renewal of accounting firm
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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Name of accounting firm to be employed: Rongcheng accounting firm (special general partnership)
Huitong Construction Group Co., Ltd. (hereinafter referred to as “Huitong group” or “the company”) held the 20th meeting of the first board of directors on April 8, 2022, deliberated and adopted the proposal on the company’s renewal of Rongcheng Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022, Rongcheng Certified Public Accountants (special general partnership) is proposed to be reappointed as the company’s audit institution and internal control audit institution in 2022, responsible for providing various audit and related services for the company. The matter must be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The relevant matters are hereby announced as follows:
1、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Rongcheng Certified Public Accountants (special general partnership) was renamed from the former Huapu Tianjian Certified Public Accountants (special general partnership). It was initially established in August 1988 and restructured into a special general partnership on December 10, 2013. It is one of the first certified public accountants in China to be allowed to engage in securities service business and has been engaged in securities service business for a long time. The registered address of the chief partner is 901901, building 22, houfa West Street, Chengfu District, Beijing.
As of December 31, 2021, Rongcheng accounting firm has 160 partners and 1131 certified public accountants, of which 504 have signed the audit report of securities service business. The total audited revenue of Rongcheng certified public accountants in 2020 is 1875787300 yuan, including 16312632 million yuan from audit business and 7361092 million yuan from securities and futures business.
Rongcheng certified public accountants Co., Ltd. undertakes the annual report audit of 274 listed companies in 2020, with a total audit fee of 318433900 yuan. Its customers are mainly concentrated in manufacturing (including but not limited to computer, communication and other electronic equipment manufacturing, special equipment manufacturing, electrical machinery and equipment manufacturing, chemical raw materials and chemical products manufacturing, automobile manufacturing, pharmaceutical manufacturing) and information transmission, software and information technology services, Construction industry, wholesale and retail industry, water conservancy, environment and public facilities management industry, transportation, warehousing and postal industry, scientific research and technical services industry, financial industry, power, heat, gas and water production and supply industry, culture, sports and entertainment industry, mining industry and other industries. Rongcheng certified public accountants has 11 audit clients for listed companies in the same industry where Huitong Construction Group Co., Ltd. is located.
2. Investor protection ability
Rongcheng certified public accountants has purchased professional liability insurance for certified public accountants, and the purchase of professional insurance complies with relevant regulations; As of December 31, 2021, the cumulative limit of liability and compensation is 900 million yuan. In the past three years, there is no relevant civil litigation and civil liability in practice.
3. Integrity record
Rongcheng certified public accountants has received 0 criminal punishment, 0 administrative punishment, 1 supervision and management measure, 1 self-discipline supervision measure and 0 disciplinary punishment for its practice in recent three years. Five employees have been subject to self regulatory measures once due to their professional behavior during their practice in Rongcheng certified public accountants in recent three years; 11 employees have been supervised and managed once during their practice in Rongcheng certified public accountants in recent three years.
10 employees have been subject to supervision and management measures once each during their practice in other accounting firms in recent three years.
(II) project information
1. Basic information
Project partner: Zhang Xueyong, who became a Chinese certified public accountant in 2011, began to engage in the audit business of Listed Companies in 2015, began to practice in Rongcheng certified public accountants in 2011, and began to provide audit services for Huitong group in 2018; In recent three years, he has signed audit reports of two listed companies, including Asymchem Laboratories (Tianjin) Co.Ltd(002821) ( Asymchem Laboratories (Tianjin) Co.Ltd(002821) ) and Beijing Succeeder Technology Inc(688338) ( Beijing Succeeder Technology Inc(688338) ).
Certified public accountant signing the project: Liu Changming, who became a Chinese certified public accountant in 2015, began to engage in the audit business of Listed Companies in 2016, began to practice in Rongcheng certified public accountants in 2016, and began to provide audit services for Huitong group in 2018; Signed Center International Group Co.Ltd(603098) ( Center International Group Co.Ltd(603098) ) in recent three years.
Reviewer of project quality control: reviewer of project quality control: Tian Zhongzhi, who became a Chinese certified public accountant in 2004, began to engage in the audit business of Listed Companies in 2002 and began to practice in Rongcheng certified public accountants in 2016; Audit reports of several listed companies have been reviewed in recent three years. 2. Integrity record
Zhang Xueyong, the project partner, Liu Changming, the signing certified public accountant and Tian Zhongzhi, the reviewer of project quality control, have not been subject to criminal punishment, administrative punishment, supervision and management measures, self-discipline supervision measures and disciplinary sanctions for their professional behavior in recent three years.
3. Independence
Rongcheng certified public accountants and the above personnel do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
4. Audit fees
Pricing principle of audit fees: the final audit fees shall be determined according to the business scale of the unit (the company), the industry and the complexity of accounting treatment, as well as the auditors required for the annual report audit of the unit (the company), the workload invested and the fee standard of the firm.
2、 Procedures to be performed by the accounting firm to be reappointed
(I) review opinions of the audit committee
The audit committee of the board of directors of the company reviewed the relevant qualifications of Rongcheng Certified Public Accountants (special general partnership), and considered that it has the qualifications to engage in Securities and futures related businesses, has rich audit experience in listed companies, can reasonably arrange the audit team in the past audit services, strictly abide by relevant laws, regulations and policies, and abide by independent, objective and impartial professional standards, and is diligent and responsible, He has demonstrated good professional ethics and completed various audit work of the company. The reports issued by him can objectively, fairly and fairly reflect the financial situation and operating results of the company, earnestly perform the responsibilities of the audit institution, and safeguard the legitimate rights and interests of the company and shareholders from a professional perspective.
In order to maintain the continuity of the company’s financial audit, the audit committee of the board of directors reviewed and proposed that the company continue to hire Rongcheng firm as the company’s audit institution in 2022, which is responsible for providing the company with financial report audit and internal control audit services in 2022, and submit the proposal to the 20th meeting of the first board of directors for deliberation.
(II) prior approval and independent opinions of independent directors
1. Prior approval opinions of independent directors
We believe that Rongcheng Certified Public Accountants (special general partnership) has the qualification for securities related business, can independently be competent for the company’s audit work, and can adhere to the independent audit standards in the company’s audit work in 2021, and the audit opinions truly and accurately reflect the actual situation of the company. We recognize the company’s continued engagement of Rongcheng Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agree to submit the matter to the board of directors of the company for deliberation.
2. Independent opinions of independent directors:
We believe that Rongcheng Certified Public Accountants (special general partnership) has the ability and experience to provide audit services for listed companies for many years, can evaluate the company’s financial status and internal control independently, objectively and fairly, and can meet the requirements of the company’s 2022 financial report and internal control audit; The review procedures of the board of directors of Rongcheng Certified Public Accountants (special general partnership) for this renewal comply with the provisions of the company law and other laws and regulations, normative documents and the articles of association, and there is no situation damaging the interests of the company and shareholders; In order to ensure the continuity of the company’s financial report audit and internal control audit, we agree to continue to appoint Rongcheng Certified Public Accountants (special general partnership) as the company’s 2022 financial report and internal control audit institution, and agree to submit the matter to the general meeting of shareholders for deliberation.
(III) deliberation and voting of the board of directors
The proposal on the renewal of the internal audit institution of the partnership was approved by the board of directors of the general audit institution on February 2020 with the first abstention vote of the general audit institution on February 2020, It is agreed to continue to appoint Rongcheng Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022.
(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 of the company.
It is hereby announced.
Board of directors of Huitong Construction Group Co., Ltd. April 9, 2022
