Xinjiang Korla Pear Co.Ltd(600506) : work report of the audit committee in 2021

Xinjiang Korla Pear Co.Ltd(600506)

Work report of the audit committee in 2021

Xinjiang Korla Pear Co.Ltd(600506) (hereinafter referred to as “the company”) the audit committee of the board of directors as a member of the audit committee of the company in accordance with the operation guidelines of the audit committee of the board of directors of listed companies, the governance standards of listed companies, the stock listing rules of Shanghai Stock Exchange, the rules of procedure of the audit committee of the board of directors of the company and other relevant provisions of the China Securities Regulatory Commission and Shanghai Stock Exchange, The following report is hereby made to the board of directors on the work in 2021:

1、 Basic information of the audit committee

The audit committee of the seventh board of directors of the company is composed of independent directors Li Jiang, Li Shengli, Li Gang and directors Du Wenhui and Zhang Ting. Li Gang serves as the chairman (before May 12, 2021, independent director Gong Qiaoli serves as the chairman). The members of the audit committee of the company have professional knowledge and work experience that can be competent for the duties of the audit committee, so as to ensure sufficient time and energy to perform the duties of the Committee. In 2021, with rich industry experience and professional audit and accounting knowledge, members of the audit committee put forward professional opinions to the board of directors in supervising and evaluating the work of external audit institutions, guiding the company’s internal audit, reviewing the company’s financial reports, and played an important role in the company’s audit and risk management.

2、 Convening of the 2021 annual meeting of the audit committee

In 2021, the audit committee held 4 times in total, deliberating 9 proposals and special matters. All members attended the meeting without entrusted voting. During the year, the audit committee mainly deliberated on the proposal of 2020 financial final accounts report, 2020 annual report, 2020 profit distribution plan, 2020 internal control evaluation report, 2020 internal control audit report, 2020 work report of the audit committee, the first quarter report of 2021 The proposal of the 2021 semi annual report and the proposal of the 2021 third quarter report. The members of the audit committee focused on the related transactions of the company and the implementation of internal control, expressed their opinions on relevant issues, and signed and confirmed the resolutions of relevant meetings.

3、 Main work of the audit committee in 2021

1. Supervise and evaluate the work of external audit institutions. During the reporting period, the audit committee communicated with ZTE financial Guanghua Certified Public Accountants (special general partnership) (hereinafter referred to as “ZTE financial Guanghua”), the annual audit institution hired by the company, negotiated and determined the annual audit work plan, discussed the major matters and treatment methods in the audit, the impact and application of the new leasing standards, and urged the annual audit accountant to arrange the work progress in strict accordance with the plan, Ensure the smooth completion of the audit plan. Supervised ZTE caiguanghua’s audit of financial statements and internal control in 2020, and believed that ZTE caiguanghua carried out the audit in accordance with the provisions of the audit standards for Chinese certified public accountants, followed the independent, objective and fair professional standards, exercised due diligence, issued independent audit opinions fairly and reasonably, showed good professional ethics, and issued various reports that were true, accurate and fair Fully reflect the company’s operating results, financial position and cash flow.

2. Review and comment on the company’s financial report. During the reporting period, we carefully reviewed the company’s quarterly financial report and 2020 annual report, and believed that the company’s financial report was true, accurate and complete. During the reporting period, we focused on the company’s revenue recognition, related party transactions and other related situations. During the reporting period, the audit committee of the board of directors actively coordinated the communication between the company’s management and external audit institutions and the cooperation of external audit work on the basis of fully listening to the opinions of all parties, which improved the efficiency of relevant audit work.

3. Review the company’s internal control evaluation report and internal control audit report, form opinions, and evaluate their effectiveness. During the reporting period, the company organized and carried out internal control evaluation in accordance with the basic norms of enterprise internal control, the enterprise internal control standard system and its supporting guidelines, the annual internal audit plan, etc. By reviewing the company’s 2020 internal control evaluation report and the 2020 internal control audit report issued by the external audit institution, we found no major problems in the internal control work. We believe that the above report basically reflects the internal control of the company, there are no major defects and important defects, and the operation is effective. We believe that the company’s internal control design and actual operation meet the requirements of the governance norms of listed companies issued by the CSRC.

4. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions. The audit committee communicated on issues related to the preparation and audit of the company’s annual report, listened to the report of Certified Public Accountants on the company’s audit, promoted the communication between the internal audit department and external audit institutions, actively carried out relevant coordination work, and urged the annual report audit accountants to better complete the audit work.

5. Guide internal audit. During the reporting period, the audit committee carefully reviewed the company’s internal audit work plan and materials, urged the company’s internal audit institutions to strictly implement the audit plan, and put forward guiding opinions on the internal audit work. After reviewing the internal audit work report, we found no major problems in the internal audit work, and believe that the internal audit work can operate normally and effectively.

4、 Overall evaluation

During the reporting period, the audit committee of the company performed its duties in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange and the working rules of the audit committee of the board of directors and other documents formulated by the company. In 2022, the audit committee will continue to perform the duty of loyalty and diligence to ensure the authenticity, completeness and accuracy of the company’s financial report.

Members of the board of directors: Li tinggang, Li tinggang, and Zhang Shengli on April 19, 2002