Shan Dong Kexing Bioproducts Co.Ltd(688136)
Performance report of the audit committee of the board of directors in 2021
The audit committee of Shan Dong Kexing Bioproducts Co.Ltd(688136) (hereinafter referred to as the “company”) actively carries out its work 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 Shan Dong Kexing Bioproducts Co.Ltd(688136) articles of Association (hereinafter referred to as the “articles of association”) and the detailed rules for the work of Shan Dong Kexing Bioproducts Co.Ltd(688136) Audit Committee (hereinafter referred to as the “detailed rules for the work of the audit committee”), Conscientiously perform their duties, and now the performance of the audit committee in 2021 is reported as follows:
1、 Basic information of the audit committee
The audit committee of the first board of directors of the company is composed of three directors: Independent Director Tang an, independent director Cao Hongzhong and director Zhu Yumei. Among them, the convener is independent director Tang an with professional accounting qualification. All members of the audit committee have professional knowledge and work experience competent for the duties of the audit committee, and comply with relevant laws and regulations and the provisions of self regulatory guidelines for companies listed on the science and Innovation Board of Shanghai Stock Exchange No. 1 – standardized operation.
2、 Meetings of the audit committee
During the reporting period, the audit committee of the board of directors of the company held 7 meetings and considered a total of 16 proposals, each of which was passed by vote. The main deliberations include the company’s financial report, financial final accounts, change of accounting policies, deposit and actual use of raised funds, daily connected transactions and renewal of audit institutions. For each proposal under consideration, all members carefully reviewed the relevant materials, learned about the relevant situation from the relevant personnel of the company, and used their own professional knowledge to judge the situation of relevant matters, so as to ensure the scientificity and rationality of the decision-making of the board of directors of the company.
See the annex of this report for the meeting of the audit committee of the board of directors of 2021 company.
3、 Main work contents of the audit committee in 2021
(I) supervise and evaluate the work of external audit institutions
Based on the comprehensive evaluation of the audit work of Dahua Certified Public Accountants (special general partnership), the audit committee of the board of directors of the company believes that in the relevant audit work, it has strictly abided by the provisions of the auditing standards for Chinese certified public accountants, scrupulously performed its duties, followed the independent, objective and impartial professional standards, and better completed various audit tasks.
Complete and accurate, without fraud, fraud and material misstatement related to the financial report, nor major accounting error adjustment, matters involving important accounting judgment and matters leading to non-standard unqualified audit report.
(III) guide internal audit
During the reporting period, we carefully reviewed the company’s annual internal audit work plan and recognized the feasibility of the plan. At the same time, we urged the company’s internal audit institutions to implement it in strict accordance with the internal audit system, and put forward guiding opinions on the problems found in the internal audit.
(IV) evaluate the effectiveness of internal control
During the reporting period, the company established a relatively perfect corporate governance structure and governance system in accordance with the company law of the people’s Republic of China, the securities law of the people’s Republic of China and other laws and regulations and the relevant provisions of the CSRC and Shanghai Stock Exchange. During the reporting period, the company strictly implemented various laws, regulations, rules, articles of association and 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 shareholders.
Therefore, we believe that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
(V) coordinate the communication between the management, internal audit department and relevant departments and external audit institutions
During the reporting period, on the basis of fully listening to the opinions of all parties, the audit committee of the board of directors actively coordinated the communication between the company’s management and external audit institutions, the communication between the company’s internal audit department and external audit institutions and the cooperation of external audit work, which improved the efficiency of relevant audit work.
4、 Overall evaluation
During the reporting period, based on the principle of diligence, the audit committee of the company conscientiously performed its duties and scrupulously observed its duties, deliberated on proposals such as financial reports, related party transactions and changes in accounting policies, effectively supervised and guided the development of the company’s audit work and promoted the further improvement of the company’s internal control system.
In 2022, all members of the audit committee of the board of directors of the company will continue to perform their duties and work diligently in accordance with the articles of association, detailed rules for the work of the audit committee and other relevant provisions, earnestly perform various responsibilities entrusted by the company, and promote the continuous optimization of the company’s internal control system and the further improvement of operation efficiency.
Shan Dong Kexing Bioproducts Co.Ltd(688136) members of the audit committee of the board of directors: Annex: meetings of the audit committee of the board of directors in 2021
Date of meeting important opinions and suggestions on meeting contents
Considered and adopted:
On January 20, 2021, the audit committee of the first session of the board of directors (1) proposal on the eighth meeting of the board of Commissioners for signing house leasing and property service contracts with related parties and related party transactions;
(2) Proposal on reappointment of audit institutions in 2020.
On February 26, 2021, the audit committee of the first session of the board of directors deliberated and adopted the proposal of the ninth meeting of the board of directors on the estimation of the amount of daily connected transactions in 2021
Considered and adopted:
(1) Proposal on the 2020 annual performance report of the audit committee of the board of directors;
(2) Proposal on the company’s 2020 annual report and its summary;
(3) proposal on the company’s 2020 annual financial report of the first audit committee on April 19, 2021; (4) proposal on the company’s 2020 annual financial statement report at the 10th meeting; (5) Proposal on the first quarter report of the company in 2021; (6) Proposal on the special report on the deposit and actual use of the company’s raised funds in 2020;
(7) Proposal on the company’s use of raised funds to replace self raised funds invested in advance.
Considered and adopted:
(1) proposal of the 11th meeting on August 16, 2021 on the company’s 2021 semi annual report and its summary of the first audit committee;
(2) Proposal on the special report on the deposit and use of the company’s raised funds in the half year of 2021.
On October 12, 2021, the first audit committee considered and adopted the proposal on reconsidering the related party transaction agreement. Twelfth Meeting
On October 26, 2021, the 13th meeting of the first Audit Committee deliberated and adopted the proposal on the company’s report for the third quarter of 2021
The first session of the audit committee considered and adopted:
(1) proposal on renewing the appointment of audit institutions in 2021 at the 14th Meeting on December 28, 2021;
(2) Proposal on changing accounting policies
