Hangxiao Steel Structure Co.Ltd(600477)
Performance report of the audit committee of the board of directors in 2021
In accordance with the company law, the securities law, the guidelines for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation and other relevant laws, regulations and normative documents, as well as the Hangxiao Steel Structure Co.Ltd(600477) articles of Association, the rules of procedure of the audit committee of Hangxiao Steel Structure Co.Ltd(600477) board of directors and other relevant provisions, Hangxiao Steel Structure Co.Ltd(600477) (hereinafter referred to as “the company”) the audit committee of the board of directors has conscientiously performed its audit supervision duties based on the principle of diligence. The performance of the audit committee of the board of directors in 2021 is reported as follows:
1、 Basic information of the audit committee of the board of directors
The audit committee of the 7th board of directors of the company is composed of Mr. Luo Jinming, Ms. Wang Hongwen and Mr. Lu Yongjun, including 2 independent directors, and the chairman is Mr. Luo Jinming, an accounting professional. Mr. Luo Jinming is an accounting professor and certified public accountant. All members have professional knowledge and business experience competent for the duties of the audit committee, and comply with the provisions of Shanghai Stock Exchange and the relevant requirements of the articles of association and other systems.
2、 2021 annual meeting of the audit committee of the board of directors
In accordance with the requirements of relevant laws and regulations, the audit committee gave full play to its role of review and supervision, and worked diligently and conscientiously, which played an important role in improving corporate governance and improving the quality of internal and external audit work. In 2021, the audit committee held five meetings, as follows:
Meeting time and content
On February 3, 2021, the “on confirmation of the excess of daily related party transactions of the company in 2020” was reviewed and approved
Proposal for
The proposal on the prediction of the company’s daily connected transactions in 2021 was deliberated and adopted
The financial report of the company’s 2020 annual report was reviewed and approved on March 26, 2021
The proposal on employing Dahua Certified Public Accountants (special general partnership) as the company’s 2021
Proposal of annual financial audit institution
The proposal on employing Dahua Certified Public Accountants (special general partnership) as the company’s 2021
Proposal of annual internal control audit organization
The report on the performance of the audit committee of the board of directors in 2020 was reviewed and adopted
Reviewed and approved the company’s 2020 internal control evaluation report
The full text and text of the company’s report for the first quarter of 2021 were reviewed and approved on April 29, 2021
The full text and summary of the company’s 2021 semi annual report were reviewed and approved on August 27, 2021
The report of the company for the third quarter of 2021 was reviewed and approved on October 22, 2021
3、 Main performance of the audit committee of the board of directors in 2021
(I) pay attention to the audit of annual report and financial report
The audit committee of the board of directors discussed and negotiated with the auditors in advance to roughly determine the overall schedule of the audit of the company’s 2021 financial report and the work plan of the special audit team. After the auditors enter the site, they also maintain continuous and sufficient communication with the person in charge of the audit project on statement consolidation, accounting adjustment matters, application of accounting policies and accounting work to be improved found in the audit, And carefully listened to the periodic report on the annual audit work of Dahua Certified Public Accountants (special general partnership). After Dahua Certified Public Accountants (special general partnership) issued the preliminary audit opinion, the company reviewed the financial and accounting statements of the company in 2021 again and formed written opinions.
Summarizing the work of the accounting firm, it is considered that the accountant performing the annual audit does not work in the company, there is no direct or indirect mutual investment with the company, there is no close business relationship, and there is no correlation between the members of the audit team and the decision-making level of the company. The audit team has the necessary professional ability to undertake audit business and is competent for audit work.
(II) review the company’s financial report and express opinions on it
During the reporting period, we carefully reviewed the company’s financial reports of each period and believed that the company’s financial reports were true, complete and accurate, and there were no major accounting error adjustments, major accounting policy and estimation changes, matters involving important accounting judgments, and matters leading to non-standard unqualified audit reports; The company’s financial statements are prepared in accordance with the accounting standards for business enterprises and the company’s financial system, and fairly reflect the company’s financial position, operating results and cash flow in all major aspects. There are no fraud, fraud and material misstatement related to the financial report.
(III) guide internal audit
During the reporting period, we reviewed the company’s annual internal audit work plan and actively urged the implementation of the company’s internal audit plan. After reviewing the company’s internal audit work report, we found no major problems in the company’s internal audit work, and believe that the company’s internal audit work can operate effectively.
(IV) evaluate the independence and professionalism of external audit institutions
During the reporting period, the audit institution employed by the company was Dahua Certified Public Accountants (special general partnership). The audit committee objectively evaluated the independence and professionalism of the Institute, supervised the audit work, and believed that it was able to carry out its work in strict accordance with the provisions of the auditing standards for Chinese certified public accountants, complete various audit tasks in accordance with the independent, objective and impartial professional standards, and fulfill its duties with due diligence.
(V) evaluate the effectiveness of internal control
The audit committee carefully reviewed the internal control evaluation report of the company in 2021 and the internal control audit report issued by Dahua certified public accountants, and believed that the company had established a relatively perfect corporate governance structure and internal control system in accordance with the company law, securities law and other laws and regulations and the requirements of relevant regulations of China Securities Regulatory Commission and Shanghai Stock Exchange. During the reporting period, the company strictly implemented various laws, regulations, rules, articles of association and internal control system, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, so as to effectively protect the legitimate rights and interests of the company and shareholders. The audit committee has supervised and guided the daily work of the audit and supervision department of the company. We believe that the actual operation of the company’s internal control meets the requirements of relevant laws and regulations on the governance of listed companies.
4、 Overall evaluation
In 2021, the audit committee of the board of directors of the company performed the duties of the audit committee diligently and responsibly in strict accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange, the governance standards of listed companies, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation, the articles of association, the rules of procedure of the audit committee of the board of directors of the company and so on.
In 2022, the audit committee of the board of directors of the company will continue to improve its ability to perform its duties, adhere to the principle of independent, objective and professional judgment, give full play to the functions of supervision, guidance, evaluation and coordination of the audit committee, earnestly safeguard the legitimate rights and interests of the company and all shareholders, promote the standardized operation of the company and improve the governance level of the company. It is hereby reported.
Hangxiao Steel Structure Co.Ltd(600477) board of directors audit committee Luo Jinming, Wang Hongwen, Lu Yongjun
April 19, 2022
