Huafa Industrial Co.Ltd.Zhuhai(600325) board of directors
Performance report of the audit committee in 2021
According to the relevant requirements of the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 - standardized operation, the articles of association and the working rules for institutions under the board of directors, the audit committee of the board of directors of the company performed its duties diligently and conscientiously in 2021. Now the performance of its duties in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is composed of three independent directors. The members of the audit committee of the ninth board of directors are Chen Shimin, Tan Jinsong and Zhang Liguo. The company held a general election in May 2021, and the members of the audit committee of the 10th board of directors were Wang Yuetang, Gao Zicheng and Xie Gang. 2、 Meetings of the audit committee in 2021
In 2021, the audit committee of the company held 6 meetings, the specific contents are as follows:
Meeting time proposal voting results
Proposal on the first meeting in 2021 of the company's 2020 financial statement approval meeting, February 5, 2021, by the auditor of the ninth board of directors
On March 30, 2021, the audit committee of the ninth board of directors adopted the proposal on the preliminary review opinions of the second meeting in 2021 of the company's 2020 audit report
About the company's 2020 Annual Report
Proposal on full text and abstract
Discussion on the financial statement report of 2020
Proposal of the audit committee of the ninth board of directors
Proposal of the third meeting of the board of directors in 2021 on the budget report on April 13, 2021
Proposal on internal control of the company
Proposal on making audit report
Proposal on accounting firm
2020 performance report of the audit committee of the company
Proposal to report to the general assembly
Report on the first quarter of 2021 by the auditor of the ninth board of directors
Proposal of the fourth meeting of the board of directors in 2021 on April 29, 2021
Proposal on the 2021 semi annual report and the summary of the first meeting of the board of directors in 2021 adopted by the audit committee of the 10th board of directors on August 19, 2021
On October 26, 2021, the audit committee of the 10th board of directors adopted the proposal on the second meeting of the 2021 meeting of the third quarter report of 2021
3、 Performance of audit committee in 2021
(I) regular report review and annual report audit communication
During the 2020 annual report audit, the audit committee of the board of directors of the company inspected and urged the annual report work to be carried out in a timely and orderly manner in accordance with the articles of association, the annual report work system of independent directors and other relevant systems; Fully communicated with the auditors on the audit work plan of the annual report, defined the auditors' responsibilities, audit work arrangement, audit scope and key audit matters, and regularly supervised the auditors according to the audit plan to ensure the smooth completion of the audit work.
After reviewing the 2020 financial and accounting statements prepared by the company, the Audit Committee believes that the relevant data in the financial and accounting statements prepared by the company basically reflect the company's assets and liabilities as of December 31, 2020 and the production and operation results in 2020, and agrees to carry out the audit in 2020 based on the financial statements. After the auditor issued the preliminary audit opinion according to the overall audit arrangement, the audit committee reviewed the financial and accounting statements after the above preliminary audit opinion, agreed to prepare the company's 2020 annual report based on the financial statements and submit it to the board of directors for deliberation, and required the accounting firm to complete the audit work as soon as possible according to the overall audit plan, so as to ensure that the company disclosed the 2020 annual report on schedule. After the accounting firm completed the final audit report and relevant reports as scheduled according to the overall audit plan, the company prepared the full text and summary of the 2020 annual report. After reviewing the above report and related proposals, the audit committee agreed to submit the above report and related proposals to the meeting of the board of directors for deliberation. So far, the audit of the company in 2020 has been successfully completed.
The audit committee has carefully reviewed the company's regular reports such as the first quarterly report, the semi annual report and the third quarterly report of 2021, and believes that the above regular reports can truly reflect the company's current operation and financial situation.
(II) internal control and supervision
During the reporting period, the audit committee gave full play to its professional role, urged the company to implement relevant requirements, evaluated the appropriateness of the design of the company's internal control system, strengthened the supervision and inspection of the implementation of the internal control system, and actively promoted the construction of the company's internal control system according to the requirements of relevant laws, regulations and normative documents on internal control. The audit committee actively urged the company to complete the self-evaluation of internal control, and reviewed the internal control evaluation report and the internal control audit report issued by the external audit institution.
The Audit Committee believes that the internal control evaluation report issued by the company objectively reflects the actual situation of the construction and implementation of the company's current internal control system, and there are no major defects in the internal control system.
(III) supervise and evaluate the work of external audit institutions
Since the establishment of the company, the internal audit committee has played an important role in actively coordinating with the external audit department and the management of the company. The convener of the audit committee is responsible for convening and presiding over the communication meetings before each annual audit, listening to the report of the company's senior management, the summary of the audit department and the work plan of the accounting firm, and actively coordinating the communication between the management, the internal audit department and the external audit, which has laid a good foundation for the development of the annual audit and the smooth preparation of the company's annual report.
The audit committee has supervised and evaluated the audit work of Dahua Certified Public Accountants (special general partnership) in 2021, and believes that it has a good professional level, is diligent and responsible, and can express audit opinions on the company's accounting reports objectively and fairly. The audit committee proposed to the board of directors to renew the appointment of the Institute as the company's financial audit institution and internal control audit institution in 2022. 4、 Overall evaluation
During the reporting period, the audit committee performed the duties of the audit committee with due diligence in accordance with the guidelines for self regulation and supervision of listed companies of Shanghai Stock Exchange No. 1 - standardized operation and the terms of reference and implementation rules of the audit committee. In 2022, the audit committee will continue to be diligent and responsible, give full play to its expertise, continue to promote the standardized operation of the company, improve internal control, improve the operation efficiency and operation quality of the company, and promote the sustainable, healthy and stable development of the company.
Huafa Industrial Co.Ltd.Zhuhai(600325) board of directors audit committee
April 8, 2022
