Securities code: Zhejiang Damon Technology Co.Ltd(688360) securities abbreviation: Zhejiang Damon Technology Co.Ltd(688360) Announcement No.: 2022015 Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd
Announcement on the renewal of accounting firm
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Name of accounting firm to be employed: Zhonghui accounting firm (special general partnership) (hereinafter referred to as “Zhonghui accounting firm”)
Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd. (hereinafter referred to as “the company”) held the 16th meeting of the third board of directors on April 15, 2022, deliberated and approved the proposal on renewing the appointment of accounting firm. The company plans to renew the appointment of Zhonghui accounting firm as the company’s audit institution in 2022, which needs to be submitted to the company’s 2021 annual general meeting for deliberation. Relevant matters are hereby announced as follows:
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Zhonghui certified public accountants Co., Ltd. was transformed into a special general partnership in December 2013. Its management headquarters is set up in Hangzhou. It is one of the accounting firms with the original audit qualification for securities and futures business, and has been engaged in securities service business for a long time.
Firm name: Zhonghui Certified Public Accountants (special general partnership)
Date of establishment: December 19, 2013
Organizational form: special general partnership
Registered address: Room 601, building a, Hualian times building, No. 8 Xinye Road, Jianggan District, Hangzhou
Chief partner: Yu Qiang
Number of partners at the end of last year (December 31, 2021): 88
Number of certified public accountants at the end of last year (December 31, 2021): 557
Number of certified public accountants who signed the audit report of securities service business at the end of last year (December 31, 2021): 177
The total audited income, audit business income and securities business income in 2020 are 788.12 million yuan, 632.5 million yuan and 340.08 million yuan respectively
In 2020, the number of audit clients of listed companies was 111, and the main industries involved were (1) information transmission, software and information technology services – software and information technology services, (2) manufacturing – Electrical machinery and equipment manufacturing, (3) manufacturing – chemical raw materials and chemicals manufacturing, (4) manufacturing – special equipment manufacturing, and (5) manufacturing – pharmaceutical manufacturing. The total audit fee is 99.84 million yuan, and the number of audit customers of Listed Companies in the same industry: 5
2. Investor protection ability
Zhonghui certified public accountants did not withdraw the occupational risk fund, and the cumulative compensation limit of the occupational insurance purchased was 100 million yuan. The purchase of occupational insurance met the relevant provisions.
Zhonghui certified public accountants is not required to bear civil liability in the civil litigation related to professional behavior concluded in recent three years.
3. Integrity record
In recent three years, Zhonghui certified public accountants has been subject to administrative punishment once and supervision and management measures four times for its practice behavior, and has not been subject to criminal punishment, self-discipline supervision measures and disciplinary sanctions. In the past three years, three employees have been subject to administrative punishment once, eight employees have been subject to supervision and management measures four times, and six employees have been subject to self-discipline supervision measures two times. They have not been subject to criminal punishment and disciplinary sanctions.
(II) project information
1. Basic information
Project partner: Chen Xiaohua, who became a certified public accountant in 2001, began to audit listed companies in 1999, began to practice in Zhonghui certified public accountants in October 2020, and began to provide audit services for the company in 2021; Signed and reviewed audit reports of more than 10 listed companies in the past three years.
Signature certified public accountant: Chen long, who became a certified public accountant in 2011, began to audit listed companies in 2010, began to practice in Zhonghui certified public accountants in December 2021, and began to provide audit services for the company in 2021; No audit report of listed companies has been signed in recent three years.
Reviewer of project quality control: Wang Qichao, who became a certified public accountant in 2001, began to engage in the audit of listed companies and listed companies in 1998, and began to practice in Zhonghui certified public accountants in July 2009; Audit reports of more than 10 listed companies and listed companies have been reviewed in recent three years.
2. Integrity record
In the past three years, the project partner, the signing certified public accountant and the project quality control reviewer have not been subject to criminal punishment due to their professional behavior, administrative punishment and supervision measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as securities trading places and industry associations.
3. Independence
Zhonghui certified public accountants, the above project partners, the signing certified public accountants and the project quality control reviewers have no circumstances that may affect their independence.
4. Audit fees
The audit fee of the company in 2021 (including financial report audit fee and internal control audit fee) is 800000 yuan (in words: eight hundred thousand yuan only). The charge for this audit service is calculated based on the time spent by staff at all levels of Zhonghui accounting firm in this work.
The board of directors of the company requests the general meeting of shareholders to authorize the chairman of the board of directors and his authorized persons to determine the audit fees for 2022 (including the audit fees of financial reports and internal control) through consultation with Zhonghui accounting office based on the business scale, industry and other factors of the company, comprehensively considering the degree of responsibility, workload and required work skills of the staff participating in the audit, And sign relevant service agreements and other matters.
2、 Procedures to be performed by the accounting firm to be reappointed
(I) review opinions of the audit committee
The audit committee of the board of directors of the company has fully understood the professional competence, investor protection ability, integrity and independence of Zhonghui Certified Public Accountants (special general partnership). Zhonghui Certified Public Accountants (special general partnership) scrupulously abided by its responsibilities in the audit process of the company in 2021, followed the independent, objective and fair practice standards, and successfully completed the audit of the company in 2021. The audit committee of the board of directors of the company proposed to renew the appointment of Zhonghui Certified Public Accountants (special general partnership) as the audit institution of the company in 2022, and agreed to submit the proposal to the board of directors of the company for deliberation.
(II) prior approval and independent opinions of independent directors
1. Prior approval of independent directors
Zhonghui Certified Public Accountants (special general partnership) meets the provisions of the securities law of the people’s Republic of China, has many years of experience and ability to provide audit services for listed companies, has successfully completed the company’s audit work in 2021, and can meet the requirements of the company’s audit work.
Following the professional standards of independence, objectivity and impartiality, the Institute has completed various audit tasks with due diligence and can provide high-quality professional services for the company. We agree to submit relevant proposals to the board of directors of the company for deliberation.
2. Independent opinion
Zhonghui Certified Public Accountants (special general partnership) meets the provisions of the securities law of the people’s Republic of China, has many years of experience and ability to provide audit services for listed companies, has successfully completed the company’s audit work in 2021, and can meet the requirements of the company’s audit work. Following the professional standards of independence, objectivity and impartiality, the Institute has completed various audit tasks with due diligence and can provide high-quality professional services for the company. In order to maintain the continuity and consistency of the company’s financial audit business, we agree to continue to employ Zhonghui Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 and agree to submit it to the company’s 2021 annual general meeting for deliberation.
(III) deliberation and voting of the board of directors
On April 15, 2022, the company held the 16th meeting of the third board of directors. The meeting deliberated and approved the proposal on renewing the appointment of accounting firm, agreed to continue to employ Zhonghui accounting firm (special general partnership) as the company’s audit institution in 2022 for one year, and agreed to submit the proposal to the company’s 2021 annual general meeting for deliberation.
(IV) effective date
The renewal of the accounting firm needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and effective from the date of deliberation and approval by the general meeting of shareholders of the company.
It is hereby announced.
Board of directors of Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd. April 18, 2022
