Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd
Performance report of the audit committee of the board of directors in 2021
In accordance with the provisions of the company law, the securities law, the standards for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange’s Kechuang board, the self regulatory guidelines for companies listed on Shanghai Stock Exchange’s Kechuang board No. 1 – standardized operation and other relevant normative documents, as well as the relevant provisions of the articles of association and the detailed rules for the implementation of the audit committee of the company, The performance of the Audit Committee (hereinafter referred to as the “Audit Committee”) of the board of directors of Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd. (hereinafter referred to as the “company”) in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the third board of directors of the company is composed of three members, namely independent directors Chen Gang and Li Bei
Zhan and non independent director Guo Aihua, of which the chairman is Mr. Chen Gang, an accounting professional.
2、 Meetings of the audit committee
Date of the meeting and resolutions on matters considered
1. On the performance of the audit committee of the board of directors in 2020
Proposal on the implementation report
2. Discussion on the company’s 2020 annual report and its summary
Proposal of the third board of directors
March 2021
The third of the audit committee, the proposal on the company’s 2020 annual financial statement report, was unanimously agreed on May 15
5th meeting 4. Proposal on the company’s 2021 annual financial budget report
5. Proposal on the company’s 2020 profit distribution plan
6. About the company and its wholly-owned subsidiaries to the bank in 2021
Proposal on applying for comprehensive credit line
The third board of directors
April 2021
The proposal of the Audit Committee on the company’s report for the first quarter of 2021 was unanimously agreed on September 29
6th meeting the 3rd board of directors
Discussion on the company’s 2021 semi annual report and its summary in August 2021
The audit committee agreed to the case of January 19
Seventh meeting
The third board of directors
The audit committee unanimously agreed on the proposal on changing the accounting firm on September 18, 2021
The third board of directors
October 2021
The proposal on the third quarter report of the company in 2021 of the audit committee was unanimously agreed on September 29
Ninth meeting
3、 Annual performance of the audit committee
1. Supervise and evaluate the work of external audit institutions
The audit committee of the board of directors of the company has carefully analyzed and evaluated the work of ShineWing Certified Public Accountants (special general partnership) and Zhonghui Certified Public Accountants (special general partnership) (hereinafter referred to as “Zhonghui”) hired by the company. They are qualified to engage in securities related business, follow independent, objective and impartial professional standards, and can better complete the audit work entrusted by the company. The audit personnel of the above accounting firms have the professional knowledge and relevant professional certificates necessary for the implementation of the audit. During the audit process, they are serious and responsible, maintain due attention and professional prudence, and are competent for the audit work of the company. The Audit Committee believes that the above accounting firms are able to fulfill their duties and follow the independent, objective and impartial practice standards when they are employed to provide audit services for the company.
2. Supervise and evaluate internal audit
During the reporting period, we gave full play to the role of the special committee. According to the requirements of the company law, the securities law and the basic norms of enterprise internal control, combined with the actual situation of the company, the audit committee carefully reviewed and inspected the company’s internal audit work in 2020, urged the company to seriously implement it according to the work plan, and required the audit team to formulate the internal audit work plan for 2021.
3. Review and comment on the company’s financial report
During the reporting period, the audit committee of the board of directors reviewed the financial reports of the company and communicated with the management of the company. It believed that the financial reports of the company were true, accurate and complete, fairly reflected the financial status and operating results of the company, and there were no relevant fraud, fraud and material misstatement. The above financial reports were reviewed and approved and submitted to the board of directors for review and approval.
4. Supervise and evaluate the effectiveness of the company’s internal control
During the reporting period, the audit committee of the board of directors guided the Audit Department of the company to organize the construction of internal control system, reviewed the revision and formulation of relevant internal control systems, and improved the internal audit work and internal control process
Gave guidance. Through efforts, the company’s internal control system has basically met the requirements for the standardized operation of listed companies and has been seriously implemented. Under the internal control framework, the company has further refined the internal management system and improved the internal control process. The construction of the internal control system has achieved good results, which can effectively control relevant business risks and protect the interests of the company and shareholders. 5. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
During the reporting period, the audit committee of the board of directors coordinated the company’s management, audit department, finance department, securities department and other relevant departments to maintain good communication with the external audit institutions. The relevant departments sought the opinions of the external audit institutions on the company’s financial accounting standards, the construction of internal control system and other issues, and cooperated with the external audit institutions to carry out the audit of annual financial reports, so as to promote the company’s financial and internal control standards.
6. Review of related party transactions and other matters of the company
During the reporting period, the audit committee reviewed the daily business related party transactions between the company and related parties, and considered that Zhuo Xu, a related party of the company, provided guarantee for the company’s application for credit extension to banks and other financial institutions in 2021. The nature of the guarantee was natural guarantee for the company without any guarantee fee, which reflected the support of the actual controller to the company and was in line with the interests of the company and all shareholders, It will not adversely affect the production and operation of the company.
4、 Overall evaluation
In 2021, the audit committee of the board of directors faithfully and diligently performed its duties specified in relevant laws and regulations, carefully considered relevant proposals, played a guiding, coordinating and supervising role, effectively promoted the construction of internal control and financial norms of the company, and promoted the standardized decision-making of the board of directors and standardized corporate governance.
In 2022, the audit committee of the board of directors will continue to earnestly perform its duties, strengthen the prior audit of relevant matters of the board of directors, strengthen the guidance of internal audit and communication with external audit institutions, promote the standardization of financial related matters of the company, improve the construction of the company’s internal control system, and promote the standardized operation and steady development of the company.
(no text below)
Members of the audit committee of the board of directors of Zhejiang Damon Technology Co.Ltd(688360) Group Co., Ltd.: Chen Gang, Li Beizhan and Guo Aihua April 15, 2022
