Stock abbreviation: Guangzhou Development Group Incorporated(600098) Stock Code: Guangzhou Development Group Incorporated(600098) Lin No. 2022029
Corporate bond abbreviation: G17 development 1 corporate bond Code: 127616
Corporate bond abbreviation: 21 suifa 01, 21 suifa 02 corporate bond Code: 188103, 188281 Guangzhou Development Group Incorporated(600098)
Announcement on reappointment 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:
The company plans to continue to employ Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) as the company’s audit institution in 2022
Guangzhou Development Group Incorporated(600098) issued a written notice of convening the meeting of the board of directors to all directors on March 28, 2022, and held the 43rd meeting of the eighth board of directors in the form of on-site meeting on April 7, 2022. There were 8 directors who should attend the meeting and 7 directors who actually attended the meeting. Director Zhang Long entrusted director Li Guang to attend the meeting and exercise voting rights. The board of supervisors attended the meeting as nonvoting delegates, which was in line with the relevant provisions of the company law and the articles of association. The meeting deliberated and passed the proposal on the appointment of the company’s audit institution, and agreed to appoint Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 to be responsible for the audit of the company’s financial report in 2022 and the company’s internal control in 2022. The proposal still needs to be submitted to the 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 renewed
(I) institutional information
Lixin Certified Public Accountants (special general partnership) was founded in Shanghai in 1927 by Dr. pan Xulun, a leading Chinese accountant, and reopened in 1986. In 2010, it became the first special general partnership certified public accountants firm in China to complete the restructuring. Its registered address is Shanghai and its chief partner is Mr. Zhu Jiandi. As a member of the international accounting network BDO, Lixin has been engaged in securities service business for a long time. Before the implementation of the new securities law, it has a securities and futures business license, has H-share audit qualification, and has been registered with the American public company accounting supervision board (PCAOB).
The relevant audit business of the company is mainly undertaken by Lixin Guangdong branch. Lixin Guangdong branch was established on June 7, 2011. It is a branch of Lixin in China. It is located on floor 11, block B, Yaozhong Plaza, No. 9, Linhe West Road, Tianhe District, Guangzhou. The unified social credit code is 91440101581859795y. It has obtained the practice certificate of accounting office branch issued by the Department of finance of Guangdong Province (Certificate No.: 31 Shenzhen Zhenye(Group)Co.Ltd(000006) 4401). Lixin Guangdong branch has been engaged in securities service business since its establishment.
2. Personnel information
By the end of 2021, Lixin had 252 partners, 2276 certified public accountants, 9697 employees, and 707 certified public accountants who had signed the audit report of securities service business.
3. Business scale
In 2020, the business income (audited) of Lixin was 4.106 billion yuan, including 3.431 billion yuan from audit business and 1.357 billion yuan from securities business.
Last year, Lixin provided annual report audit services for 587 listed companies, with an audit fee of 719 million yuan, and 6 Audit customers of Listed Companies in the same industry (power, heat production and supply industry).
4. Investor protection ability
By the end of 2021, Lixin had withdrawn 129 million yuan from the occupational risk fund, and the cumulative compensation limit of the occupational insurance purchased was 1.25 billion yuan. The relevant occupational insurance can cover the civil liability caused by audit failure.
Civil liability in civil litigation related to practice in recent three years
Situation:
Litigation (Arbitration) (sued (arbitrated) (arbitrated) (Arbitration) litigation (Arbitration) litigation (Arbitration) results
Amount of dismissal event
Investors Jinya technology and Zhou’s 2014 annual report expect 4500 joint and several liabilities. The professional Xuhui and Lixin 10000 yuan insurance insured by Lixin are enough to cover the amount of compensation. At present, the effective judgments have been fulfilled
Investors baoqianli and Northeast China weighed 800000 yuan in 2015, and Lixin was sentenced to baoqianli in the first instance
Securities, bank credit rating group, appraisal from December 30, 2015 to 2017, Lixin and other reports, and 2016 annual report due to securities
The impact of Misrepresentation on Investors
15% of the negative debt shall bear supplementary compensation
Compensation liability, Lixin insurance occupation
The insurance is sufficient to cover the amount of compensation
5. Independence and integrity record
Lixin does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
In the past three years, Lixin has not been subject to criminal punishment, administrative punishment once, supervision and management measures 24 times, no self-discipline and supervision measures, disciplinary punishment twice, involving 63 employees.
(II) project member information
1. Personnel information
Name: Qualification: have you ever worked part-time in securities service business of other units
The project partner Jiang Gan is a certified public accountant of China
Signature certified public accountant situ Huiqiang Chinese certified public accountant is none
Wang Jianmin, the quality control reviewer, is a certified public accountant of China
(1) Experience of project partner:
Name: Jiang Gan
Time work unit title
December 2000 – March 2003: Project Manager of Lianda Xinlong Certified Public Accountants
April 2000 to September 2011: Lixin Dahua Certified Public Accountants (formerly Guangdong Hengxin salaried partner Deloitte certified public accountants)
September 2011 present partner of Lixin Certified Public Accountants (special general partnership)
(2) Working experience of certified public accountant:
Name: situ Huiqiang
Time work unit title
October 1996 June 2011 business manager of Lixin Yangcheng Certified Public Accountants
From June 2011 to now, senior manager of Lixin Certified Public Accountants (special general partnership)
(3) Experience of quality control reviewer:
Name: Wang Jianmin
Time work unit title
19982000 project manager of Guangzhou Tiancheng Certified Public Accountants
2 Dongrui Food Group Co.Ltd(001201) 0 senior manager of Lixin Yangcheng Certified Public Accountants
Partner of Lixin Certified Public Accountants (special general partnership) since 2011
2. Record of the independence and integrity of the above relevant personnel.
The above-mentioned personnel have not violated the independence requirements of the code of ethics for practice of China certified public accountants examination, and have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline supervision measures in the past three years.
(III) audit fees
Pricing principle of audit fees: the final audit fees shall be determined according to the company’s business scale, industry, accounting complexity and other factors, as well as the auditors required for the audit of the company’s annual report, the workload invested and the charging standard of the firm.
In 2021, the company paid 2.51 million yuan (including tax) for financial report audit and 250000 yuan (including tax) for internal control audit to Lixin Certified Public Accountants (special general partnership), a total of 2.76 million yuan (including tax), slightly lower than that of the previous year.
2、 Procedures to be performed by the accounting firm to be reappointed
(I) the audit committee of the board of directors of the company has reviewed the trust accounting firm (special general partnership) and believes that it adheres to the principle of independent audit in the process of practice, carries out audit work in accordance with the auditing standards for Chinese certified public accountants, reflects the company’s financial status and operating results objectively, fairly and fairly, earnestly performs the duties of the audit institution, and has objective and fair audit opinions and professional competence. Lixin Certified Public Accountants (special general partnership) has purchased professional insurance, has the ability to protect investors, does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, and can meet the needs of the company’s future audit work. It is agreed to appoint Lixin Certified Public Accountants (special general partnership) as the company’s 2022 financial report and internal control audit institution.
According to the actual workload, the financial report audit fee paid by the company to Lixin Certified Public Accountants (special general partnership) in 2021 is 2.51 million yuan, and the internal control audit fee is 250000 yuan, which is reasonable.
(II) prior approval and independent opinions of independent directors of the company on the appointment of accounting firm
After verification, we believe that Lixin Certified Public Accountants (special general partnership) has the experience and ability to provide audit services for listed companies and can meet the requirements of the company’s financial report audit and internal control audit in 2022. The decision-making procedures of the company’s appointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 are legal and effective, comply with relevant laws, regulations, the articles of association and other relevant provisions, and will not damage the legitimate rights and interests of the company and all shareholders. All independent directors unanimously agreed to appoint Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, agreed to submit the proposal on appointing the company’s audit institution to the 43rd meeting of the eighth board of directors for deliberation, and agreed to submit the matter to the general meeting of shareholders for deliberation.
(III) deliberation and voting of the board of directors on the proposals related to the appointment of accounting firms.
The 43rd meeting of the 8th board of directors of the company deliberated and adopted the proposal on the appointment of the company’s audit institution. There were 8 directors who should be present at the meeting, and 8 actually participated in the voting, which was passed by 8 votes. It is agreed to appoint Lixin Certified Public Accountants (special general partnership) as the audit institution of the company in 2022.
(IV) the appointment of an accounting firm needs to be submitted to the general meeting of shareholders of the company for deliberation, and will take effect from the date of deliberation and approval by the general meeting of shareholders of the company.
It is hereby announced.
Guangzhou Development Group Incorporated(600098) board of directors
April 9, 2022
