Shanxi Huayang New Materialco.Ltd(600281)
Performance report of financial audit committee in 2021
In 2021, the financial audit committee of Shanxi Huayang New Materialco.Ltd(600281) (hereinafter referred to as “the company”) carried out its work conscientiously and performed its duties diligently in accordance with the relevant provisions of the stock listing rules of Shanghai Stock Exchange, the self regulatory guidelines for listed companies No. 1 – standardized operation and the articles of Association of the company. The performance of the financial audit committee of the board of directors in 2021 is reported as follows:
1、 Basic information of financial audit committee
On August 17, 2021, the 10th meeting of the seventh board of directors of the company in 2021 deliberated and adopted the proposal on adjusting the members of the special committee of the seventh board of directors of the company.
The financial audit committee of the board of directors of the company is now composed of Mr. Tian Wanglin, Mr. Yang Zhijun and Mr. Luo Weijun, of which the convener is Mr. Tian Wanglin with professional accounting qualification.
2、 Meetings of the financial audit committee
The financial audit committee of the board of directors of the company actively performs its duties in accordance with relevant laws, regulations and the company’s system. During the reporting period, the financial audit committee of the board of directors held 4 meetings. Deliberated on the company’s periodic report, renewal of accounting firm, credit impairment, related party transactions, external guarantee and other matters, and provided professional opinions for the decision-making of the board of directors.
3、 Annual performance of financial audit committee
(I) supervise and evaluate the work of external audit institutions
During the reporting period, we objectively evaluated the independence and professionalism of ZTE caiguanghua Certified Public Accountants (special general partnership), the company’s annual audit institution, paid full attention to its investor protection ability and integrity, and considered its reappointment as the company’s 2021 financial statement audit institution and internal control audit institution. We believe that ZTE caiguanghua Certified Public Accountants (special general partnership) was diligent and conscientious during the audit, followed the professional standards of independence, objectivity and impartiality, issued relevant audit opinions objectively and fairly, and the audit report of the company truly, accurately and completely reflected the overall situation of the company.
(II) review the company’s financial report
During the reporting period, we carefully reviewed the company’s financial report, paid full attention to the financial and accounting matters related to the provision of assets and credit impairment, and believed that the company’s financial report was prepared in strict accordance with the provisions of the accounting standards for business enterprises, which can objectively and fairly reflect the company’s financial status, operating results and cash flow, and found no fraud, fraud, major misstatement and omission.
(III) supervise and evaluate the effectiveness of internal control
During the reporting period, we reviewed the company’s internal control system and its effectiveness, and evaluated the effectiveness of the company’s internal control on this basis. We believe that the company has established a relatively perfect corporate governance structure and governance system in accordance with the company law, securities law and other laws and regulations and the requirements of securities regulatory authorities. During the reporting period, the company strictly implemented the internal control management requirements 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. We believe that the company’s internal control evaluation report and audit report can truly and accurately reflect the actual situation of the company’s internal control. The construction of the company’s internal control system meets the requirements of the governance norms of listed companies, no major internal control defects are found, and the internal control system is generally effective.
(IV) review of related party transactions of the company
During the reporting period, we had a detailed understanding of daily related party transactions and fully communicated with relevant related parties. We believe that the related party transactions of the company follow the principles of openness, fairness and impartiality, and there is no behavior that damages the interests of the company and all shareholders, especially small and medium-sized shareholders.
(V) coordinate the communication between management and external audit institutions
During the reporting period, we maintained necessary communication with the company’s management, independent directors and accounting firms. Actively listen to the opinions of all parties, coordinate various work, focus on key audit areas such as guarantee and fund occupation, and promote audit institutions to complete relevant audit work efficiently.
(VI) review of external guarantees of the company
During the reporting period, the company continued to maintain a certain amount of guarantee support for its subsidiaries according to the needs of business development and on the premise of controllable risk. The company fulfilled the necessary decision-making and disclosure procedures for guarantee matters, and there were no violations such as overdue guarantee.
4、 Overall evaluation and recommendations
During the reporting period, the financial audit committee of the board of directors of the company adhered to the principles of professionalism, prudence, objectivity and independence, earnestly performed its duties in strict accordance with the requirements of relevant laws and regulations and corporate governance, gave full play to the role of supervision and review, and provided professional support for the scientific decision-making of the board of directors.
In 2022, the financial audit committee of the board of directors will continue to adhere to the principles of prudence, objectivity and independence, continue to improve the professionalism and effectiveness of duty performance, promote the standardized operation and steady development of the company, and earnestly safeguard the common interests of the company and all shareholders.
5、 Suggestions on the renewal of the accounting firm in the next year
After discussion by the financial audit committee of the board of directors, it is recommended to the board of directors to continue to appoint ZTE financial Guanghua Certified Public Accountants (special general partnership) as the company’s financial statement audit institution and internal control audit institution in 2022 Shanxi Huayang New Materialco.Ltd(600281) board of directors financial audit committee April 18, 2022
