Securities code: Hubei Yihua Chemical Industry Co.Ltd(000422) securities abbreviation: Hubei Yihua Chemical Industry Co.Ltd(000422) Announcement No.: 2022032 Hubei Yihua Chemical Industry Co.Ltd(000422)
Announcement on the renewal of accounting firm
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Daxin Certified Public Accountants (special general partnership) (hereinafter referred to as "Daxin certified public accountants") is the 2021 audit institution hired by Hubei Yihua Chemical Industry Co.Ltd(000422) (hereinafter referred to as "the company"), and successfully completed the audit of the company's 2021 annual report. In accordance with laws and regulations, self regulatory rules and relevant provisions of the articles of association, the company plans to continue to employ Daxin firm as the financial and internal control audit institution in 2022 for a period of one year. The details are as follows:
1、 Description of the proposed accounting firm
Daxin accounting firm is an accounting firm mainly engaged in the audit business of large enterprises and listed companies. It has provided audit services for the company for many years. Daxin certified public accountants is qualified to engage in Securities and futures related businesses. In accordance with the requirements of audit related laws, regulations and policies, Daxin certified public accountants has independently practiced according to law and performed its duties diligently. Over the years, Daxin certified public accountants has completed various audit businesses of the company as planned.
As the company's audit institution in 2021, Daxin firm followed the independent audit standards for Chinese certified public accountants and the relevant rules of internal control audit, worked diligently and conscientiously, adhered to the independent, objective and fair audit standards, better fulfilled the responsibilities and obligations specified in the audit contract, and better completed the company's financial and internal control audit in 2021.
Based on the rich audit experience and professional quality of the Institute, in order to meet the requirements of the company's future business development and financial audit work and maintain the continuity of the company's audit work, the company plans to continue to employ Daxin firm as the company's financial and internal control audit institution in 2022 for a period of one year. The audit fees of Daxin firm over the years are based on its audit workload and determined by both parties through negotiation. The 2022 annual audit fee shall be submitted to the general meeting of shareholders of the company to authorize the management to determine it through negotiation based on its workload. This proposal still needs to be submitted to the general meeting of shareholders for deliberation.
2、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Daxin firm was founded in 1985 and transformed into a special general partnership firm in March 2012. It has the practice certificate of accounting firm issued by the Ministry of finance. It is one of the first firms in China to engage in securities business and obtain the audit qualification of H-share enterprises. It has nearly 30 years of securities business experience.
Name: Daxin Certified Public Accountants (special general partnership)
Unified social credit Code: 91110108590611484c
Enterprise type: special general partnership
Address: 2206, 22nd floor, No. 1, Zhichun Road, Haidian District, Beijing
Chief partner: Wu Weixing
Date of establishment: March 6, 2012
Business term: March 6, 2012 to March 5, 2112
Business qualification: Daxin firm has the practice certificate of accounting firm and the qualification of securities and futures business, and can independently audit the company's financial status and meet the requirements of the company's financial and internal control audit.
Business information in 2020
The total revenue is RMB 1.832 billion
The income from audit business is RMB 1.568 billion
The income from securities business is RMB 584 million
The number of audit firms exceeds 10000
165 audit clients of Listed Companies in 2020 (including H shares)
Industry distribution is mainly distributed in manufacturing, information transmission software and information technology services
Audit fees: RMB 584 million
Number of audit clients of Listed Companies in the same industry
Number of partners: 144
Number of Certified Public Accountants: 1192
Number of employees: 4449
More than 500 people have signed the audit report of securities service business, and the number of accountants who have signed the audit report of securities service business
2. Investor protection ability
(1) The sum of the cumulative compensation limit of occupational insurance and the occupational risk fund withdrawn exceeds 80 million yuan, and the withdrawal of occupational risk fund and the purchase of occupational insurance comply with relevant regulations.
(2) Civil liability in civil litigation related to practice in recent three years: in December 2020, Hangzhou intermediate people's court ruled that Daxin firm and other institutions should bear joint and several liability for compensation in the "Wuyang debt" case, and Daxin firm appealed against the judgment. In September 2021, the higher people's Court of Zhejiang Province made a judgment and upheld the original judgment.
3. Integrity record
Daxin firm does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. Daxin office has been subject to administrative punishment once and administrative supervision measures 14 times in recent three years, and has not been subject to criminal punishment, self-discipline supervision measures and self-discipline sanctions. In the past three years, 2 employees have been subject to administrative punishment and 25 people have been subject to supervision and management measures.
(II) project information
1. Basic information
(1) Relevant personnel of the project have corresponding professional competence, and the information of the main members is as follows:
Name and qualification of the members of the project team, whether they have been engaged in securities service industry, and their working years in securities service business
Li Chaohong, the project partner and the certified public accountant to be signed, has been a certified public accountant for 21 years
Huang Chengang, the certified public accountant to be signed, has been a certified public accountant for 15 years
Xiao Xianmin, a certified public accountant, has been reviewing the quality control of the proposed project for 17 years
(2) Name and experience of relevant personnel of the project
He has the qualification of certified public accountant and has worked for 21 years. He is now the partner and department manager of Daxin firm. He began to engage in the audit of Listed Companies in 1998, began to practice in the exchange in 1998, and began to provide Li Chaohong with audit services for the company in 2021. The listed companies signed in recent three years are mainly Hubei Donper Electromechanical Group Co.Ltd(601956) ( Hubei Donper Electromechanical Group Co.Ltd(601956) ), Guozhen environmental protection ( Cecep Guozhen Environmental Protection Technology Co.Ltd(300388) ), Winall Hi-Tech Seed Co.Ltd(300087) ( Winall Hi-Tech Seed Co.Ltd(300087) ), Chengxin Lithium Group Co.Ltd(002240) ( Chengxin Lithium Group Co.Ltd(002240) ) and many other listed companies.
Not part-time in other units.
Certified public accountant qualification. He became a certified public accountant in 2007 and joined Daxin accounting Huang Chengang in January 2006. He began to audit listed companies in 2009 and provided audit services to the company in 2021. The audit reports of listed companies signed in recent three years include Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) 2018, 2019 and 2020. Not part-time in other units.
The reviewer has the qualification of certified public accountant. He became a certified public accountant in 2006 and has been engaged in audit related work in Daxiao xianminxin Certified Public Accountants (special general partnership) since 2005. Having experience in securities business quality review, not working part-time in other units.
2. Integrity record
The partner of the proposed project, the certified public accountant to be signed and the quality control reviewer of the proposed project have not been subject to criminal punishment due to professional behavior, administrative punishment and supervision measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as stock exchanges and industry associations in recent three years.
3. Independence
The partner of the project to be signed, the certified public accountant to be signed and the quality control reviewer of the project to be signed do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, do not hold and buy and sell the company's shares, and do not have other economic benefits affecting the independence. The regular rotation meets the requirements.
4. Audit fees
According to the principle of fair and reasonable pricing in the market and in combination with the entrusted workload, the management of the company and Daxin certified public accountants determined that the audit fee for 2021 was RMB 2.35 million (no change compared with the audit fee of the previous period), of which the annual report audit fee was RMB 1.5 million and the internal control audit fee was RMB 850000. The 2022 annual audit fee shall be submitted to the general meeting of shareholders of the company to authorize the management to determine it through negotiation based on its workload.
3、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
The audit committee of the board of directors has fully understood Daxin firm and verified its scale, professional qualification, business ability, independence, integrity and investor protection ability. After verification, the audit committee of the board of Directors believes that Daxin firm has the qualification requirements for serving the company and is well qualified for the work. It is recommended to renew the appointment of Daxin firm as the audit institution of the company in 2022 for one year.
(II) prior approval and independent opinions of independent directors
1. Prior approval of independent directors
Before the fourth meeting of the 10th board of directors, the independent directors reviewed the proposal on the proposed renewal of the accounting firm and issued the following prior approval opinions:
(1) We have fully understood Daxin Certified Public Accountants (special general partnership) and checked its professional qualification, business ability, independence, integrity and investor protection ability. After verification, we agree to continue to appoint Daxin Certified Public Accountants (special general partnership) as the audit institution of the company in 2022 for one year. The company's continued employment of Daxin Certified Public Accountants (special general partnership) complies with relevant laws and regulations and the actual situation of the company, and there is no situation that damages the rights and interests of the company and other shareholders, especially minority shareholders. (2) We agree to submit this proposal to the board of directors of the company for deliberation, and ask the board of directors and relevant personnel of the company to implement relevant approval procedures in strict accordance with the requirements of relevant national laws and regulations. 2. Independent opinions expressed by independent directors
During the fourth meeting of the 10th board of directors, the independent directors reviewed the proposal on the proposed renewal of accounting firm and issued the following independent opinions: they agreed to renew Daxin accounting firm (special general partnership) as the company's 2022 audit institution for one year. And agreed to submit the proposal to the general meeting of shareholders of the company for deliberation.
(III) deliberation and voting of proposals by the board of directors
At the fourth meeting of the 10th board of directors held on April 7, 2022, the company deliberated and adopted the proposal on the proposed renewal of the accounting firm with a unanimous vote.
(IV) effective date
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.
4、 Documents for future reference
1. The resolution of the fourth meeting of the 10th board of directors signed by the attending directors and stamped with the seal of the board of directors;
2. The minutes of the first meeting of the audit committee of the 10th board of directors signed by the members of the audit committee of the board of directors;
3. Prior approval opinions of independent directors on matters related to the fourth meeting of the 10th board of directors of the company;
4. Special instructions and independent opinions of independent directors on matters related to the fourth meeting of the 10th board of directors of the company.
It is hereby announced.
Hubei Yihua Chemical Industry Co.Ltd(000422)
Board of directors
April 7, 2022
