China Hainan Rubber Industry Group Co.Ltd(601118)
Performance report of the audit committee of the board of directors in 2021
In accordance with the relevant provisions and requirements of the standards for the governance of listed companies, the rules for the listing of shares on the Shanghai Stock Exchange, the guidelines for the self discipline supervision of listed companies on the Shanghai Stock Exchange No. 1 – standardized operation and the articles of association, we, as members of the audit Committee of the board of directors of China Hainan Rubber Industry Group Co.Ltd(601118) (hereinafter referred to as “the company” or ” China Hainan Rubber Industry Group Co.Ltd(601118) “), have actively performed the responsibilities entrusted by the board of directors and played our due role. The performance of duties in 2021 is reported as follows:
1、 Basic information of the audit committee
On October 15, 2021, the board of directors of the company held a general election. Before the general election, the members of the audit committee of the company are Chen Lijing, Wang Zeying and Lin Weifu, of which Chen Lijing is the chairman; After the change of office, the members of the audit committee are Chen Lijing, AI Yilun and Wang Zeying, and Chen Lijing is the chairman. The above-mentioned personnel have professional knowledge and business experience that can be competent for the duties of the audit committee. The chairman is an independent director with professional experience in accounting or financial management, which meets the relevant regulations of Shanghai Stock Exchange and the system requirements of the articles of association.
2、 Meetings of the audit committee
During the reporting period, the audit committee held seven meetings. All members of the Committee conscientiously performed their duties in strict accordance with relevant regulations, attended all meetings in person, reviewed and approved important matters such as the employment of audit institutions, annual audit reports, periodic reports, internal control evaluation reports, profit distribution plans, special reports on the storage and actual use of raised funds, and changes in accounting policies. In addition, during the reporting period, in order to further strengthen the internal supervision and risk control of listed companies, the audit committee organized and held a series of special meetings such as audit plan communication meeting and annual report audit communication meeting to supervise and evaluate the overall financial situation, operating results, cash flow and other operating conditions of the company.
3、 Main work of the audit committee
(I) supervise and evaluate the work of external audit institutions
During the reporting period, we supervised and evaluated the financial audit and internal control audit of China audit Zhonghuan Certified Public Accountants (special general partnership). We believe that China audit Zhonghuan Certified Public Accountants (special general partnership), as the audit institution of the company, has the qualification to engage in securities related business, follows the independent, objective and fair practice standards, is diligent and responsible, and has completed various audit tasks entrusted by the company.
During the annual audit, we carefully listened to and reviewed the work plan and relevant materials of the audit institution for the audit of the company’s annual report, and fully communicated and exchanged with the audit institution on the audit plan, audit scope, audit procedures and time arrangement on the basis of giving full play to the advantages of our professional experience. After review, we believe that Zhongshen Zhonghuan certified public accountants can carry out the annual audit in strict accordance with the provisions of the independent audit standards for Chinese certified public accountants, and the audit conclusions issued are in line with the actual situation of the company.
(II) guide internal audit
During the reporting period, we carefully reviewed the work plan and summary of the company’s internal audit, urged the company’s internal audit to be carried out in strict accordance with the requirements of relevant laws, regulations and normative documents, and put forward guiding opinions.
(III) review the company’s financial report and express opinions on it
During the reporting period, we carefully reviewed the company’s regular financial report and believed that the company’s financial report truly, accurately, completely and objectively reflected the company’s current financial situation, operating results and cash flow, and there were no fraud, fraud and major misstatement, nor major accounting error adjustment, matters involving important accounting judgment, non-standard unqualified audit report, etc.
(IV) evaluate the effectiveness of internal control
During the reporting period, the company established a relatively perfect business process and internal control system in accordance with the company law, the securities law and other laws and regulations and the relevant provisions and requirements of the CSRC and Shanghai Stock Exchange. The general meeting of shareholders, the board of directors and the management operated in a standardized manner, effectively protecting the legitimate rights and interests of the company and shareholders. We actively urge the company to implement relevant systems, require all units to implement and rectify the defects found in the internal control self-assessment, and actively promote the improvement of the company’s internal control system. We believe that the actual operation of the company’s internal control meets the regulatory requirements for the standardized governance of listed companies.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, we carefully listened to the opinions of the company’s management, internal audit department and relevant departments on audit matters with China audit Zhonghuan Certified Public Accountants (special general partnership), promoted effective communication between all parties, actively coordinated relevant work, and ensured the smooth progress of audit work.
(VI) review of related party transactions of the company
During the reporting period, we continued to focus on the standardized operation of the company’s related party transactions, carefully reviewed the company’s related party transactions and expressed professional opinions. We believe that the related party transactions of the company comply with the provisions of relevant national laws and regulations, and follow the market-oriented principles of fairness, impartiality and openness. The pricing is fair and reasonable, and the decision-making procedures are legal and compliant, without harming the interests of the company and shareholders, especially minority shareholders.
4、 Summary and evaluation
During the reporting period, in accordance with the standards for the governance of listed companies, the stock listing rules of Shanghai Stock Exchange, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation, the articles of association and other relevant provisions, we fulfilled our duties, fully played the role of review and supervision, effectively safeguarded the overall interests of the company and the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders.
Members of the Audit Committee: Chen Lijing, AI Yilun, Wang Zeying
