Kunshan Longteng North Electro-Optic Co.Ltd(600184) Co., Ltd
2021 performance report of the audit committee of the board of directors
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 guidelines for the application of the self regulatory rules of the science and Innovation Board of Shanghai Stock Exchange No. 1 – standardized operation, the guidelines for the operation of the audit Committee of the board of directors of listed companies of Shanghai Stock Exchange, and in accordance with the relevant provisions of the company’s internal systems such as the articles of association and the working system of the audit committee, Based on the principle of diligence, the audit committee of the board of directors of the company actively carries out its work and earnestly performs its duties. The performance of the audit committee in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is composed of Ms. Geng Aihua, Mr. Jian Tingxian and Ms. Xu Lingyun, with Ms. Geng Aihua as the chairman. Among them, Ms. Geng Aihua and Mr. Jian Tingxian are independent directors. Ms. Xu Lingyun resigned from the company’s director and audit committee due to work adjustment in October 2021
Business.
2、 Meetings of the audit committee
During the reporting period, the audit committee of the board of directors of the company held 4 meetings, as follows:
Name and time of the meeting: deliberation on proposals
1. Proposal on the company’s 2020 annual report and its summary
2. Proposal on the performance report of the audit committee of the board of directors in 2020
3. Proposal on the company’s 2020 profit distribution plan
The first director 4 Proposal on the company’s 2020 financial final accounts report
5. Auditor’s meeting April 2021 Proposal on the company’s internal control evaluation report in 2020
The eighth meeting on June 16 Proposal on internal control audit report of the company
Discussion 7 Proposal on the company’s appointment of audit institutions in 2021
8. Proposal on the prediction of daily connected transactions in 2021
9. Proposal on the company’s application for comprehensive credit line from the bank
10. Proposal on the company accepting the guarantee from the controlling shareholder and providing counter guarantee and related party transaction
11. Proposal on guarantee provided by the company for subsidiaries
12. Proposal on the change of accounting policies of the company
13. Proposal on the company’s report for the first quarter of 2021
14. Proposal on the summary report of the company’s internal audit work in 2020
15. Proposal on the company’s 2021 annual internal audit work plan 16 Proposal on the summary report of the company’s external audit in 2020
First director
1. August 2021 audit committee Proposal on the company’s 2021 semi annual report and its summary
The ninth meeting of the conference was held on June 6
Discussion on the first board of directors
1. Auditor’s Committee October 2021 Proposal on the third quarter report of the company in 2021
The 10th meeting of the conference will be held on May 20
Discussion on the first board of directors
1. Board of auditors November 2021 Communication on the company’s 2021 annual audit plan and other matters
The 11th meeting will be held on May 15
meeting
3、 Performance of the audit committee of the board of directors in 2021
（1） Supervise and evaluate the work of external audit institutions
During the reporting period, the audit committee reviewed the audit fees of Daxin Certified Public Accountants (special general partnership) (hereinafter referred to as “Daxin”) and evaluated its professionalism and independence. It is considered that it has securities related business qualifications, the auditors have the professional knowledge and relevant professional certificates required for the audit work, and all employees do not work in the company, There are no economic benefits in any form other than the necessary fees for statutory audit. There is no mutual investment between Daxin and the company; There is no close business relationship; There is no correlation between the members of the audit team and the decision-making level of the company.
During the reporting period, the audit committee actively discussed and communicated the audit scope, audit plan and audit methods with Daxin, supervised and evaluated its implementation of annual audit and internal control audit, and believed that Daxin strictly abided by the provisions of the auditing standards for Certified Public Accountants of China, scrupulously performed its duties, followed the professional standards of independence, objectivity and impartiality, and showed good professional quality, It can meet the requirements of the company’s annual financial audit and internal control audit, and better complete various audit tasks in 2021. Therefore, it is recommended to continue to employ Daxin as the company’s financial statement audit institution and internal control audit institution.
（2） Review and comment on the company’s financial report
During the reporting period, the audit committee of the board of directors carefully reviewed various financial reports and believed that the company’s financial reports were prepared in accordance with the accounting standards for business enterprises and the company’s financial system, which truly, accurately and completely reflected the company’s financial status and operating results, and there were no fraud, fraud and major errors; There are no major accounting errors, adjustments and other matters involving important accounting judgments, and there are no matters leading to non-standard and qualified audit reports.
（3） Evaluate the effectiveness of the company’s internal control
The company has established a relatively perfect governance structure and governance system in accordance with the company law, the standards for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the guidelines for the application of self regulatory rules for companies listed on Shanghai Stock Exchange, No. 1 – standardized operation, the basic norms of enterprise internal control and other internal control regulatory requirements, and in combination with the actual situation of the company.
During the reporting period, the company strictly implemented the provisions of relevant laws, regulations and normative documents, the articles of association and the company’s internal system, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, effectively safeguarding the legitimate rights and interests of the company and all shareholders.
During the reporting period, the audit committee actively promoted the construction of the company’s internal control system and reviewed the company’s internal control self-evaluation report and the internal control audit report issued by the external audit institution. There were no major defects in the company’s internal control. The company has maintained effective internal control in all major aspects in accordance with the requirements of the enterprise’s internal control standard system and relevant regulations, which can protect the legitimate rights and interests of the company and shareholders.
(IV) guide internal audit
During the reporting period, the audit committee carefully reviewed the company’s internal audit work plan, urged the company’s internal audit department to implement it in strict accordance with the audit plan, and guided the effective operation of the internal audit department; After carefully reviewing the internal audit report, no major problems were found in the company’s internal audit.
（5） Coordinate the communication between management, internal audit department and other relevant departments and external audit institutions
During the reporting period, the audit committee maintained continuous and good communication with the company’s management, internal audit department, other relevant departments and Daxin, fully listened to the opinions of all parties, and actively coordinated and solved the matters arising in the audit, so as to make the communication between the company’s management, internal audit department and accounting firm more effective and improve the efficiency of audit work.
4、 Overall evaluation during the reporting period
During the reporting period, the audit committee performed the functions of the audit committee of the board of directors in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange, the articles of association, the working system of the audit committee of the board of directors and other relevant provisions, and relied on their professional background and experience to prepare the company’s regular reports, supervise the internal audit, evaluate the external audit The standardized operation of the company and other major issues were carefully discussed and deliberated, which provided professional support for the company’s business decision-making and promoted the sound operation and development of the company.
In 2021, we will continue to adhere to the principles of prudence, objectivity and independence, give full play to the important functions of the audit committee, carefully supervise and regulate the internal and external audit of the company, strengthen communication with the board of directors, the board of supervisors and the management, and promote the steady and standardized operation of the company.
Board of directors of Kunteng Co., Ltd
