Kede Numerical Control Co.Ltd(688305)
2021 annual performance report of the audit committee of the second board of directors
In 2021, the audit committee of the board of directors of the company conscientiously performed its duties in accordance with the requirements of relevant normative documents such as the standards for the governance of listed companies issued by the China Securities Regulatory Commission, the rules for the listing of shares on the science and Innovation Board of Shanghai Stock Exchange, the Kede Numerical Control Co.Ltd(688305) articles of association, the rules of procedure of the audit committee of Kede Numerical Control Co.Ltd(688305) board of directors and other relevant provisions, based on the principle of diligence and responsibility. The report on the work of 2021 is as follows:
1、 Basic information of the audit committee
The audit committee of the second session of the board of directors is composed of three directors. The chairman of the committee is Ms. sun Jihui, an independent director of accounting. The other members are Mr. Liu Xu, an independent director, and Mr. Ruan Sanya, a non independent director.
2、 Meetings of the audit committee
In 2021, the audit committee of the board of directors of the company strictly complied with the laws and regulations, the articles of association, the rules of procedure of the audit committee and other relevant requirements, and held four meetings. Since the company was listed on the science and Innovation Board of Shanghai Stock Exchange on July 9, 2021, it deliberated and approved the 2021 semi annual report, the third quarter report, daily connected transactions and other relevant proposals, as well as the convening, convening, attendance, voting procedures The records and resolutions comply with the company law, the articles of association, the rules of procedure of the board of directors, the rules of procedure of the audit committee and other relevant requirements.
3、 Main contents of the audit committee in 2021
(I) review the company's financial report and express opinions
In 2021, we reviewed the company's financial report for 2020, the semi annual report for 2021 and the report for the third quarter of 2021, fully communicated with the company's management on the preparation of relevant financial reports and key issues, and evaluated and supervised the authenticity, accuracy and integrity of the company's financial reports from a professional perspective. The Audit Committee believes that the contents of the company's relevant regular financial reports can be true, accurate and Fully reflect the company's financial situation, operating results and cash flow; It does not involve major accounting error adjustment, major accounting policy and estimation changes, and there are no matters involving important accounting judgments, matters leading to the issuance of non-standard unqualified audit opinions, etc; There is no possibility of fraud, fraud and material misstatement related to the financial report; There is no need to rectify the financial reporting problems.
(II) supervise and evaluate the effectiveness of internal control
After reviewing the internal control evaluation report prepared by the board of directors according to the company's internal control situation, the Audit Committee believes that the company has established a relatively sound internal control system and system in accordance with the company law, the securities law and other laws and regulations and the relevant provisions of the China Securities Regulatory Commission and Shanghai Stock Exchange. The relevant internal control system meets the requirements of national laws and regulations and the system design is appropriate, It can effectively ensure the orderly operation of the company's production and operation activities; The general meeting of shareholders, the board of directors, the board of supervisors and all operation and management departments of the company operate in a standardized manner and strictly implement the requirements of various laws and regulations, rules, articles of association and internal control management. The actual operation of the company's internal control meets the relevant requirements and can be effectively implemented to protect the legitimate rights and interests of the company and all shareholders.
(III) review related party transactions and express opinions
In 2021, we learned about the company's daily related party transactions in advance and fully communicated with relevant personnel. The Audit Committee believes that various daily related party transactions of the company meet the needs of the company's daily business development, follow the market-oriented principles of equality, voluntariness, equivalence and compensation, and the pricing is reasonable, reasonable, objective and fair, without damaging the interests of the company and all shareholders, There are no circumstances that affect the independence of the company or form significant dependence on related parties due to related party transactions. When considering relevant matters, Mr. Ruan Sanya, a member of the audit committee, avoided voting as a related person.
(IV) supervise and evaluate the work of external audit institutions
1. Evaluate the independence and professionalism of external audit institutions
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as "Lixin") is an external audit institution employed by the company. It has the qualification to engage in securities related business, can be diligent and conscientious in the audit work, has the experience and ability to provide professional audit services for the company, and can meet the requirements of the company's audit work. As the company's annual financial audit institution, the Institute adhered to the independent, objective and fair audit standards, fairly and reasonably issued independent audit opinions, better fulfilled the responsibilities and obligations stipulated in the contract signed by both parties, and issued the audit opinions of financial report on schedule.
2. Agree to renew the appointment of external audit institution and submit it to the board of directors for deliberation
After a careful and comprehensive review of the basic information and materials of Lixin and its work as the company's annual financial audit institution, we believe that Lixin is qualified to engage in securities related business and has good professional ethics and professional ability. We agree to renew the appointment of Lixin as the company's audit institution in 2021 and submit the proposal to the board of directors for deliberation.
3. Discuss and communicate relevant audit matters with external audit institutions
In 2021, in accordance with the articles of association, rules of procedure of the audit committee and other relevant provisions, the audit committee communicated with Lixin on the annual audit plan, audit scope and audit methods, as well as major matters found in the audit process, paid attention to the progress of relevant audit work, and coordinated the communication and cooperation between the management, internal audit department and external audit institutions to ensure the smooth completion of all audit work.
(V) continuously supervise the internal audit
In 2021, the audit committee reviewed the company's internal audit work plan, actively urged the internal audit department to implement it in strict accordance with the internal audit work plan, guided the normal and orderly development of the company's internal audit work, and put forward guiding opinions on the problems found in the internal audit process. The audit committee did not find any major problems in the internal audit work.
4、 2022 work plan of the audit committee
In 2021, we performed the duties of the audit committee with due diligence in accordance with the relevant provisions of the standards for the governance of listed companies, the Listing Rules of the science and Innovation Board of Shanghai Stock Exchange, the Kede Numerical Control Co.Ltd(688305) articles of association and the rules of procedure of the audit committee of Kede Numerical Control Co.Ltd(688305) board of directors, and supervised and evaluated the work of external audit institutions, guided internal audit work and the effectiveness of internal control Reviewing the company's financial report and coordinating the communication between internal and external audit institutions have played their due role, ensured the effective progress of relevant work, improved the quality of the company's financial information disclosure, and promoted the further improvement of the company's governance structure.
In 2022, we will scrupulously perform the duties of the audit committee, uphold the spirit of being responsible to the company and all shareholders, perform our duties in accordance with relevant laws and regulations, give full play to the role of the audit committee, and actively safeguard the legitimate rights and interests of the company and all shareholders.
All members: Sun Jihui, Ruan Sanya, Liu Xu
Kede Numerical Control Co.Ltd(688305) board of directors April 7, 2022
