Nacity Property Service Group Co.Ltd(603506)
Performance report of the audit committee of the board of directors in 2021
In accordance with relevant laws and regulations such as the company law, the guidelines for the governance of listed companies, the articles of association, the detailed rules for the work of the audit committee of the board of directors and other relevant provisions, Nacity Property Service Group Co.Ltd(603506) (hereinafter referred to as the “company”) the audit committee of the board of directors, based on the principle of diligence, pays attention to the development of the company and earnestly performs its audit and supervision responsibilities. Now, the performance of its duties in 2021 is reported as follows:
1、 Basic information of the audit committee of the board of directors
The audit committee of the second board of directors of the company is composed of independent directors Ms. Cai Daiyan and Mr. Jia Shenghua, of which the independent director Ms. Cai Daiyan is the chairman. There was one vacancy in the audit committee of the company during the reporting period.
2、 Meetings of the audit committee of the board of directors
In 2021, the audit committee of the board of directors held four meetings, and the meeting procedures were in line with the relevant provisions of Listing Supervision. The specific meeting time and topics are as follows:
(I) on April 23, 2021, the eighth meeting of the audit committee of the second board of directors was held. The meeting considered the following contents: 1. Proposal on the performance report of the audit committee of the board of directors in 2020; 2. Proposal on the company’s 2020 annual report and its summary; 3. Proposal on the company’s internal control evaluation report in 2020; 4. Proposal on the company’s 2020 financial final accounts report; 5. Proposal on the company’s profit distribution plan in 2020; 6. Proposal on reappointment of the company’s financial audit institution in 2021; 7. Special report on the deposit and actual use of the company’s raised funds in 2020.
(II) on April 27, 2021, the ninth meeting of the audit committee of the second board of directors was held. The meeting considered the following contents: the proposal on the company’s report for the first quarter of 2021.
(III) on August 20, 2021, the 10th meeting of the audit committee of the second board of directors was held. The meeting considered the following contents: 1. Proposal on the company’s 2021 semi annual report and its summary; 2. Special report on the deposit and actual use of the company’s raised funds in the half year of 2021.
(IV) on October 25, 2021, the 11th meeting of the audit committee of the second board of directors was held. The meeting considered the following contents: the proposal on the third quarter report of the company in 2021.
3、 Annual main work of the audit committee of the board of directors
(I) supervise and evaluate the work of external audit institutions
The audit committee of the board of directors of the company evaluated the independence and professionalism of Tianjian Certified Public Accountants (special general partnership) (hereinafter referred to as “Tianjian”), the annual audit institution hired by the company. When performing the audit of annual financial statements and internal control audit, Tianjian followed the professional standards of independence, objectivity, fairness and impartiality, and the financial report issued by Tianjian was true, complete and reliable Accurately reflect the financial status and operating results of the company; At the same time, the company made in-depth investigation and understanding of the company, played a positive role in strengthening risk prevention and improving management level, and diligently fulfilled the responsibilities and obligations stipulated by both parties. It also supervised and evaluated its implementation of financial statement audit and internal control audit in 2020. It is considered that Tianjian’s audit personnel are reasonably allocated and have strong professional competence, and there is no relationship with the company’s decision-making level. The financial audit report issued by Tianjian for the company objectively and fairly reflects the company’s financial situation. During the audit period, no other major matters were found in the audit process, There is no objection to the audit opinion on the company’s 2020 financial and accounting statements issued by Tianjian. (II) guide internal audit
During the reporting period, the audit committee of the board of directors inspected and supervised the establishment, improvement, implementation and rectification of the company’s internal control system, and agreed that during the reporting period, the company strictly implemented various laws, regulations, the articles of association and other internal management systems, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, effectively protecting the legitimate rights and interests of the company and all shareholders, The actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by China Securities Regulatory Commission and Shanghai Stock Exchange.
(III) 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 company’s financial report and believed that the company’s financial report was true, accurate and complete, prepared in strict accordance with the provisions of accounting standards and the company’s financial system, fairly reflected the company’s financial status, operating results and cash flow in all major aspects, and found no major accounting errors, adjustments and There are no false records, misleading statements and major omissions in major changes in accounting policies and estimates and matters leading to non-standard unqualified audit reports.
(IV) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, in order to better enable the management, the internal audit department and relevant departments to fully and effectively communicate with the accounting firm, fully listen to the opinions of all parties, actively coordinate and solve problems, successfully complete the relevant audit work, and urge the relevant internal departments of the company to cooperate with the external audit work, so as to improve the efficiency of the relevant audit work.
(V) make professional suggestions on the renewal of the accounting firm
After deliberation and voting by the audit committee of the board of directors, it is believed that Tianjian has been serious and responsible in the audit process, maintained due attention and professional prudence, and better fulfilled its responsibilities and obligations. It is suggested that the board of directors propose to reappoint the institution as the company’s audit institution in 2021.
(VI) review of related party transactions
During the reporting period, the audit committee of the board of directors carefully reviewed the proposals and materials when considering related party transactions in accordance with laws and regulations, the articles of association and other systems, and considered that the company’s daily related party transactions in 2021 were in line with the needs of the company’s future development and strategic development, the relevant cross-linked transaction contracts were concluded in accordance with normal commercial terms, and the related party pricing was fair and fair, There is no situation that damages the interests of the company and other shareholders, especially minority shareholders. 4、 Overall evaluation
In 2021, the audit committee of the board of directors of the company actively paid attention to the development of the company, timely understood the production and operation of the company, gave full play to the audit committee’s functions of review and supervision, actively participated in corporate governance, performed their duties diligently, paid full attention to the development and operation of the company, carefully analyzed and judged the matters considered during the year, made scientific and reasonable decisions, and promoted the standardized operation of the company, Improve the level of corporate governance. In 2022, we will continue to perform our duties in accordance with the requirements of relevant laws and regulations and the company’s system, fulfill the obligations of integrity and diligence, earnestly exercise our functions and powers, and safeguard the overall interests of the company and the legitimate rights and interests of all shareholders, especially minority shareholders.
Nacity Property Service Group Co.Ltd(603506) board of directors audit committee April 15, 2022
