Securities code: Kede Numerical Control Co.Ltd(688305) securities abbreviation: Kede Numerical Control Co.Ltd(688305) Announcement No.: 2022018 Kede Numerical Control Co.Ltd(688305)
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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Name of accounting firm to be employed: Lixin Certified Public Accountants (special general partnership)
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) was founded in Shanghai in 1927 by Dr. pan Xulun, a Chinese accounting leader, 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).
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.
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. In 2020, Lixin provided annual report audit services for 578 listed companies and 191 audit clients of Listed Companies in the same industry.
2. Investor protection ability
By the end of 2020, Lixin had withdrawn 129 million yuan from the occupational risk fund, and the cumulative compensation limit of the occupational insurance purchased was 1.25 billion yuan.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. 3. Integrity record
In the past three years, Lixin has been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 24 times, self-discipline and supervision measures 0 times and disciplinary punishment 2 times for its practice behavior, involving 63 employees.
(II) project information
1. Basic information
Project partner and signature certified public accountant: Wang Na, engaged in the audit business of listed companies since 2005, obtained the qualification of Chinese certified public accountant in July 2009, and has been practicing in Lixin since 2013; Provide audit services for the company from 2019 to 2022; In the past three years, 12 listed companies and 12 listed companies have been signed, with corresponding professional competence.
Signature certified public accountant: Wang Ying, who has been engaged in the audit business of listed companies since 2018, obtained the qualification of Chinese certified public accountant in May 2018, and has been practicing in Lixin since 2015; Provide audit services for the company from 2021 to 2022; In the past three years, 12 listed companies and 12 listed companies have been signed, with corresponding professional competence.
Reviewer of project quality control: Xu peimei, who obtained the qualification of Chinese certified public accountant in May 2002, began to engage in the audit business of Listed Companies in 2008 and has been practicing in Lixin since 2012; In recent three years, 8 listed companies and 3 listed companies have been reviewed.
2. Integrity record
In the past three years (the last three complete natural years and the current year), the project partner, the signing certified public accountant and the project quality control reviewer have not been subject to criminal punishment due to their professional behavior, administrative punishment and supervision measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary measures by self-discipline organizations such as securities trading places and industry associations.
3. Independence
There are no circumstances that may affect the independence of Lixin, the project partner, the certified public accountant to be signed and the project quality control reviewer.
4. Audit fees
The audit fee in 2021 is 500000 yuan. In 2022, according to the specific audit requirements of the company in 2022, the industry and business scale of the company, and considering the factors such as the level of project team members, investment time and work quality of Lixin audit, the general meeting of shareholders will authorize the company’s operation and management to negotiate with Lixin to determine the audit fee and sign relevant service agreements.
2、 Procedures to be performed by the accounting firm to be renewed
(I) opinions of the audit committee
Lixin Certified Public Accountants (special general partnership) is qualified to engage in securities related business, has many years of experience in providing audit services for listed companies, and meets the requirements of providing professional audit work for the company. We agree that the company will continue to employ Lixin Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022.
(II) prior approval opinions of independent directors
Lixin Certified Public Accountants (special general partnership) is qualified to engage in securities related business, has many years of experience in providing audit services for listed companies, and meets the requirements of providing professional audit work for the company. The company’s re employment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022 complies with the provisions of relevant laws and regulations and will not damage the interests of the company and all shareholders, especially minority shareholders. Therefore, we unanimously agree to submit this proposal to the 22nd Meeting of the second board of directors of the company for deliberation.
(III) independent opinions of independent directors
Lixin Certified Public Accountants (special general partnership) is qualified to engage in securities related business, has many years of experience in providing audit services for listed companies, and meets the requirements of providing professional audit work for the company. The company’s re employment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022 complies with the provisions of relevant laws and regulations and will not damage the interests of the company and all shareholders, especially minority shareholders. The decision-making process of the company’s renewed appointment of accounting firm complies with relevant laws and regulations and the relevant provisions of the articles of association. As an independent director of the company, we unanimously agree to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution and internal control audit institution in 2022 for one year.
(IV) deliberation and voting of the board of directors
At the 22nd Meeting of the second board of directors held on April 7, 2022, the company considered and approved the proposal on renewing the company’s 2022 audit institution and internal control audit institution. All directors unanimously agreed that the company would renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s 2022 financial audit institution and internal control audit institution, and submitted the proposal to the general meeting of shareholders for deliberation.
(V) 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.
It is hereby announced.
Kede Numerical Control Co.Ltd(688305) board of directors April 11, 2022
