Youon Technology Co.Ltd(603776)
Performance report of the audit committee of the board of directors in 2021
The audit committee of the third board of directors of Youon Technology Co.Ltd(603776) (hereinafter referred to as “the company”) actively carried out various work, earnestly performed its duties and played its due role in accordance with the standards for corporate governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the guidelines for self discipline supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation, the articles of association and the working rules of the audit committee of Youon Technology Co.Ltd(603776) (hereinafter referred to as “the company”). The report on the performance of the audit committee in 2021 is as follows: I. Basic information of the audit committee
During the reporting period, the audit committee of the third board of directors of the company was composed of two independent directors and one non independent director. The director of the committee was Ms. Zhao Lijin, an independent director with professional accounting qualification, and Ms. Jiang Bing, an independent director and Mr. Sun Wei, a non independent director, served as members.
During the reporting period, Mr. Chen Peng, the former independent director, expired in April 2021 and no longer held relevant positions of the audit committee. The company held the 2020 annual general meeting of shareholders, deliberated and approved the proposal on the expiration of the term of office of independent directors and the nomination of candidates for independent directors, and agreed to elect Ms. Jiang Bing as an independent director of the third board of directors of the company, as well as a member of the third audit committee and the remuneration and assessment committee of the company. The term of office is from the date of deliberation and approval of the 2020 annual general meeting of shareholders to the date of expiration of the term of office of the third board of directors.
2、 Meetings of the audit committee
In 2021, the audit committee actively performed its duties in accordance with the relevant provisions of relevant laws, regulations and corporate governance system. A total of four meetings were held during the year to consider the following matters:
1. On April 14, 2021, the audit committee of the board of directors held the fifth meeting of the audit committee of the third board of directors, The proposal on the performance report of the audit committee of the board of directors in 2020, the proposal on the final financial statement report of the company in 2020, the proposal on the financial budget report of the company in 2021, the proposal on the full text and summary of the company’s annual report in 2020 and the proposal on the internal control evaluation report in 2020 were reviewed and approved Proposal on the special report on the deposit and actual use of the company’s raised funds in 2020, proposal on the change of accounting policies and proposal on the renewal of the employment of accounting firms.
2. On April 27, 2021, the audit committee of the board of directors held the sixth meeting of the audit committee of the third board of directors, deliberated and adopted the proposal on the company’s report for the first quarter of 2021.
3. On August 24, 2021, the audit committee of the board of directors held the seventh meeting of the audit committee of the third board of directors, deliberated and approved the proposal on the full text and summary of the company’s 2021 semi annual report and the proposal on the special report on the deposit and actual use of the company’s 2021 semi annual raised funds.
4. On October 28, 2021, the audit committee of the board of directors held the eighth meeting of the audit committee of the third board of directors, deliberated and adopted the proposal on the third quarter report of the company in 2021.
3、 Performance of audit committee
(I) review the company’s financial report and express opinions on it
During the reporting period, the audit committee of the board of directors carefully reviewed the financial reports of the company and believed that the financial and accounting reports of the company were true, accurate and complete, without false records, misleading statements or major omissions, and fairly reflected the financial status and operating results of the company in all aspects, meeting the requirements of the accounting standards for business enterprises.
(II) supervise and evaluate the work of external audit institutions
During the reporting period, the audit committee of the board of directors of the company supervised and evaluated the financial statement audit and internal control audit of the company’s annual audit institution Rongcheng Certified Public Accountants (special general partnership), and considered that Rongcheng Certified Public Accountants (special general partnership) carried out the audit work in strict accordance with the relevant national regulations and the requirements of the practice norms of Certified Public Accountants in the audit services provided to the company, We adhered to the independent auditing standards and diligently fulfilled the responsibilities and obligations stipulated by both parties. The audit report issued by the Institute truly, objectively and fairly reflects the actual situation of the company at the end of each periodic report period.
(III) guide internal audit
During the reporting period, the audit committee of the board of directors of the company gave full play to the role of professional committee, carefully reviewed the company’s internal audit work plan in combination with the actual situation of the company, and actively urged the implementation of the company’s internal audit plan. After reviewing the internal audit work report, no major problems are found in the company’s internal audit work, and the Audit Committee believes that the company’s internal audit work can operate effectively.
(IV) evaluate the effectiveness of internal control
During the reporting period, the company established a relatively perfect corporate governance structure and governance system in accordance with the company law, the securities law and other laws and regulations and the requirements of the relevant provisions of the CSRC and Shanghai Stock Exchange. In 2021, the company strictly implemented various laws, regulations, rules, articles of association and internal management systems, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, so as to effectively protect the legitimate rights and interests of the company and shareholders. Therefore, we believe that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
(V) review of the management and use of the company’s raised funds
During the reporting period, the audit committee of the board of directors carefully reviewed the actual use and storage of the company’s raised funds. The company’s use of the raised funds did not conflict with the implementation plan of the raised funds investment project, did not affect the normal progress of the raised funds investment project, and did not change the investment direction of the raised funds in a disguised manner and damage the interests of shareholders. The audit committee of the board of Directors believes that the management and use of the company’s raised funds comply with the regulatory provisions and do not harm the interests of shareholders.
(VI) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
In the audit of the company’s 2021 annual report, the audit committee of the board of directors promoted relevant work in strict accordance with the requirements of the company’s annual report working procedures of the audit committee. After fully listening to the demands and opinions of all parties, it actively promoted the communication between internal and external audit institutions, integrated the audit resources of internal and external audit, cooperated with external audit institutions, and ensured the smooth progress of all audit work in the year.
4、 Overall evaluation
During the reporting period, the audit committee of the board of directors of the company strictly complied with the relevant regulatory requirements of China Securities Regulatory Commission and Shanghai Stock Exchange, as well as the relevant provisions of the articles of association, the working rules of the audit committee of the board of directors of the company, gave full play to its professional level and professional experience, and fully performed its duties in key areas such as the preparation and disclosure of the company’s periodic reports, the employment of audit institutions and the standardized implementation of internal control systems, Provide professional support for the company’s major decision-making and promote the steady improvement of the company’s overall governance level.
In 2022, the audit committee of the board of directors of the company will, in combination with the new regulatory requirements, continue to uphold the spirit of diligence and responsibility to the company and all shareholders, earnestly perform the duties of the audit committee, play a good guiding role in various internal and external audits of the company, and better promote the healthy and standardized development of the company.
Member of the audit committee of the board of directors: Zhao Li, Jin Jiang Bing, Sun Wei April 12, 2022
