Securities code: Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) securities abbreviation: Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) Announcement No.: 2022008 Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209)
Announcement on reappointment of audit institutions in 2022
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) (hereinafter referred to as “the company”) held the 14th meeting of the 7th board of directors and the 2nd meeting of the 6th board of supervisors on April 13, 2022, deliberated and approved the proposal on renewing the appointment of the audit institution in 2022, and planned to renew the appointment of Huaxing Certified Public Accountants (special general partnership) (hereinafter referred to as “Huaxing”) as the audit institution of the company in 2022. This matter needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. The specific matters are hereby announced as follows:
1、 Description of the proposed renewal of the accounting firm
As the audit institution of the company’s 2021 annual financial statements, Huaxing completed the annual audit tasks on time in accordance with the audit standards of Chinese certified public accountants, basic norms of enterprise internal control, guidelines for enterprise internal control audit and other laws and regulations, and put forward positive suggestions on the work related to the company’s financial management and internal control, with good work quality and service performance. The company believes that Huaxing has the audit qualification of listed companies, has rich experience, good integrity record, has the ability to protect investors, and is competent for the audit of the company’s annual financial statements and internal control. It is proposed to continue to employ Huaxing as the company’s financial statement audit and internal control audit institution in 2022.
2、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Name of accounting firm: Huaxing accounting firm (special general partnership)
Date of establishment: December 1998
Organization form: special general partnership
Registered address: 7-9 / F, block B, Zhongshan building, No. 152, Hudong Road, Gulou District, Fuzhou, Fujian
Chief partner: Lin Baoming
Business qualification: Huaxing has the practicing qualification of accounting firm and the qualification of securities and futures service business. Personnel information: as of December 31, 2021, Huaxing has 59 partners and 304 certified public accountants, including 152 certified public accountants who have signed the audit report of securities service business.
Business information: the total audited income of Huaxing in 2021 was 414559900 yuan, including 390702900 yuan from audit business and 215933700 yuan from securities business. In 2021, it provided annual report audit services for 77 listed companies. The main industries of listed companies are manufacturing, information transmission, software and information technology services, wholesale and retail, water conservancy, environment and public facilities management, real estate, construction, power, heat, gas and water production and supply, transportation, warehousing and postal services, scientific research and technical services, The total amount of audit fees (including tax) is 849543 million yuan, including 55 audit clients of Listed Companies in the same industry.
2. Investor protection ability
As of December 31, 2021, Huaxing has purchased occupational insurance with a cumulative compensation limit of 80 million yuan and has not accrued occupational risk fund. The withdrawal of occupational risk fund and the purchase of occupational insurance comply with relevant regulations. Huaxing has not had any civil litigation caused by its practice in recent three years.
3. Integrity record
In recent three years, Huaxing has received 0 criminal punishment, 0 administrative punishment, 1 supervision and management measure and 0 self-discipline supervision measure for its practice behavior. Two employees have been subject to supervision and management measures once for their practice in recent three years, and no employees have been subject to criminal punishment, administrative punishment and self-discipline supervision measures for their practice in recent three years.
(II) project information
1. Basic information items
Partner of the project to be signed: Zheng Zhentao, who became a certified public accountant in 2015, has been engaged in the business of certified public accountant since 2008 and began to practice in Huaxing in 2021. So far, he has provided securities services such as IPO declaration audit, annual report audit of listed companies and major asset restructuring audit for many listed companies.
Certified public accountant to be signed: Wu Weisheng, who became a certified public accountant in 2019, has been engaged in the audit of listed companies since 2012, began to practice in Huaxing in 2020, began to provide audit services for the company in 2020, and signed the audit report of one listed company in recent three years.
Reviewer of project quality control: Mao Xin, who became a certified public accountant in 2013, engaged in the audit of Listed Companies in January 2001, began to practice in Huaxing in 2020, and reviewed more than 10 listed companies and listed companies in recent three years.
2. Integrity record
In the past three years, the partner of the project to be signed by Huaxing, the certified public accountant to be signed and the project quality control reviewer have not been subject to criminal punishment due to their practice behavior, administrative punishment, supervision and management measures by the CSRC, its dispatched offices and industry competent departments, or self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as stock exchanges and industry associations due to their practice behavior.
3. Independence
Huaxing and Zheng Zhentao, the project partner to be signed, Wu Weisheng, the certified public accountant to be signed, and Mao Xin, the reviewer of project quality control, do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. 4. Audit fees
The audit cost of financial statements in 2021 is 800000 yuan (including tax). The pricing of audit fees in 2022 will be determined based on the company’s business scale, industry, complexity of accounting treatment and other factors, combined with the auditors required for the audit of the company’s annual report and the workload invested. The general meeting of shareholders is requested to authorize the management of the company to negotiate with Huaxing to determine the audit remuneration.
3、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
The first meeting of the audit committee of the seventh board of directors of the company in 2022 deliberated and approved the proposal on renewing the appointment of the audit institution in 2022, which holds that the audit report issued by Huaxing for the company objectively and fairly reflects the company’s financial status and operating results, strictly implements the independent, objective and fair practice standards, and can provide the company with high-quality financial statement audit and internal control audit services, Perform the responsibilities and obligations agreed by both parties. The audit committee agreed to reappoint Huaxing as the company’s 2022 financial statement audit institution and internal control audit institution.
(II) prior approval and independent opinions of independent directors
1. Prior approval of independent directors
The independent directors of the company have obtained and carefully reviewed the proposal on renewing the appointment of audit institutions in 2022 and relevant materials before the meeting, and believe that Huaxing has sufficient independence, has the qualification to engage in securities related business audit, and can provide corresponding audit services for the company with due diligence. The proposal on renewing the appointment of the audit institution in 2022 is hereby approved in advance, and it is agreed to submit the proposal to the 14th meeting of the seventh board of directors of the company for deliberation.
2. Independent opinions of independent directors
The independent directors of the company expressed their independent opinions on the renewal of the accounting firm as follows:
(1) The renewed employment of Huaxing is conducive to ensuring and improving the quality of the company’s audit work and protecting the interests of the company and other shareholders, especially the interests of minority shareholders. Huaxing has the securities and futures related business license of accounting firm issued by the Ministry of Finance and China Securities Regulatory Commission, and has sufficient independence, professional competence and investor protection ability.
(2) When the board of directors of the company deliberated this proposal, the deliberation procedures were in line with the relevant provisions of relevant laws and regulations, and the voting results were legal and valid. To sum up, all of our independent directors agreed to renew the appointment of Huaxing as the company’s 2022 financial statement audit institution and internal control audit institution, and agreed to submit it to the 2021 annual general meeting for deliberation.
3. Deliberation and voting of proposals at the board meeting
At the 14th meeting of the 7th board of directors of the company, the proposal on renewing the appointment of 2022 audit institution was deliberated and adopted by 7 votes in favor, 0 against and 0 abstention, and Huaxing was agreed to be the audit institution of the company in 2022. 4. Effective date
The proposal on renewing the appointment of the audit institution in 2022 needs to be submitted to the 2021 annual 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.
4、 Documents for future reference
1. Resolution of the 14th meeting of the 7th board of directors
2. Prior approval opinions of independent directors on matters related to the 14th meeting of the 7th board of directors 3. Independent opinions of independent directors on matters related to the 14th meeting of the 7th board of directors
4. Resolution of the second meeting of the 6th board of supervisors
5. Resolution of the first meeting of the audit committee of the seventh board of directors in 2022
6. Notes on the basic information of the proposed accounting firm
Guangzhou Tech-Long Packaging Machinery Co.Ltd(002209) board of directors
April 15, 2022
