Stock Code: 360 Security Technology Inc(601360) stock abbreviation: 360 Security Technology Inc(601360) No.: 2022029 360 Security Technology Inc(601360)
Announcement on the renewal of accounting firm
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Name of the accounting firm to be employed: Deloitte Touche Tohmatsu (special general partnership) 360 Security Technology Inc(601360) (hereinafter referred to as “the company”) held the 8th meeting of the 6th board of directors on April 20, 2022, deliberated and adopted the proposal on renewing the employment of 2022 financial report and internal control audit institution, The company plans to continue to employ Deloitte Touche Tohmatsu (special general partnership) (hereinafter referred to as Deloitte Touche Tohmatsu) as the company’s 2022 financial report and internal control audit institution. This matter must be submitted to the general meeting of shareholders for deliberation. The relevant matters are hereby announced as follows:
1、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
The predecessor of Deloitte Touche Tohmatsu was Hujiang Deloitte certified public accountants Co., Ltd. established in February 1993. It was renamed Deloitte Touche Tohmatsu certified public accountants Co., Ltd. in 2002. In September 2012, it was approved by the Ministry of Finance and other departments to become a special general partnership. Deloitte Huayong’s registered address is 30 / F, No. 222 Yan’an East Road, Huangpu District, Shanghai.
Deloitte Huayong has the practice certificate of accounting firm approved by the Ministry of finance, and is approved by the Ministry of Finance and China Securities Regulatory Commission to engage in the audit business of H-share enterprises. Deloitte Huayong has filed for securities service business in accordance with the administrative measures for the filing of accounting firms engaged in securities service business and other relevant documents issued by the Ministry of Finance and the CSRC. Deloitte Huayong has been engaged in Securities and futures related service business for more than 20 years and has rich experience in securities service business.
The chief partner of Deloitte Huayong is Mr. Fu Jianchao. At the end of 2021, there were 220 partners, 6681 employees and 1131 certified public accountants, including more than 220 certified public accountants who signed the audit report of securities service business.
Deloitte Huayong’s total audited business income in 2020 was RMB 4 billion, including audit business income of RMB 3.1 billion and securities business income of RMB 688 million. Deloitte Huayong provided annual report audit services for 60 listed companies in 2020, with a total audit fee of RMB 205 million. Among the listed companies served by Deloitte Huayong, the main industries are manufacturing, finance, information transmission, software and information technology services, real estate and mining. Among the listed companies that Deloitte Huayong provides audit services, there are 6 customers in the same industry as the company.
2. Investor protection ability
The cumulative compensation limit of occupational insurance purchased by Deloitte Huayong exceeds 200 million yuan, which is in line with relevant regulations. Deloitte Huayong has not been judged to bear civil liability in relevant civil proceedings due to its practice in recent three years.
3. Integrity record
Deloitte Huayong and its employees have not been subject to criminal punishment or administrative punishment due to their professional behavior in recent three years, and have not been subject to the supervision and management measures of securities regulatory institutions or the self-discipline supervision measures and disciplinary sanctions of stock exchanges, industry associations and other self-discipline organizations.
(II) project information
1. Basic information
Mr. Li Sijia, the project partner, has joined Deloitte Huayong since 1995 and has been engaged in auditing and professional services related to the capital market for a long time. He is now a practicing member of Chinese certified public accountants. Mr. Li Sijia has been engaged in securities service business for more than 25 years. He has provided professional audit services for many domestic and overseas listed companies and served as project partner and signing certified public accountant. He does not have the situation of holding a part-time post of director, supervisor and senior manager of other companies, and has corresponding professional competence. There are two audit reports of domestic listed companies signed by Mr. Li Sijia in recent three years. Mr. Li Sijia has provided professional audit services for the company since 2020.
Ms. Liu Xuan, the reviewer of quality control, has joined Deloitte Huayong since 1997 and has been engaged in auditing and professional services related to capital market for a long time. She is now a practicing member of Chinese certified public accountants. Ms. Liu has been engaged in securities service business for more than 23 years. She has provided professional audit services or performed quality control review for many listed companies. She does not have the situation of holding a part-time position as director, supervisor and senior manager of other companies, and has the corresponding professional competence. Ms. Liu Xuan has not signed the audit report of Listed Companies in recent three years. Ms. Liu Xuan has provided professional audit services for the company since 2019. The practicing information of Mr. Li Sijia, the certified public accountant to be signed, is the same as that of the above project partners.
Ms. Yang Jie, the certified public accountant to be signed, has joined Deloitte Huayong since 2005 and has been engaged in professional services related to audit and capital market for a long time. She is now a practicing member of Chinese certified public accountants. Ms. Yang Jie has been engaged in securities service business for more than 15 years. She has provided professional audit services for many domestic and overseas listed companies. She does not have the situation of holding a part-time post of director, supervisor and senior manager of other companies, and has corresponding professional competence. There are three audit reports of listed companies signed by Ms. Yang Jie in recent three years. Ms. Yang Jie has provided professional audit services for the company since 2019.
2. Integrity record
In the past three years, the above personnel have not been subject to criminal punishment or administrative punishment due to their professional behavior, nor have they been subject to the supervision and management measures of securities regulatory institutions or the self-discipline supervision measures and disciplinary sanctions of stock exchanges, industry associations and other self-discipline organizations.
3. Independence
Deloitte Huayong and above project partners, signed certified public accountants and project quality control reviewers have no circumstances that may affect their independence.
4. Audit fees
The audit fee standard agreed between the company and Deloitte Huayong is determined according to the audit workload during the reporting period and the time cost spent by its partners, managers and other employees in the audit work.
In 2021, the company hired Deloitte Huayong to undertake the audit of financial statements and internal control. The company determines the audit fee according to the audit workload during the reporting period and the fair and reasonable pricing principle, and pays Deloitte Huayong the total audit fee of 9 million yuan in 2021 according to the fixed price agreed in the contract (including 7.5 million yuan for the audit of financial report and 1.5 million yuan for the audit of internal control).
The audit fee for 2022 will be determined through consultation with the accounting firm based on the audit fee for 2021 and in accordance with the fair and reasonable pricing principle of the market and the nature and complexity of audit services.
2、 Decision making procedures to be performed by the accounting firm to be renewed
(I) performance and review opinions of the audit committee in the process of renewing the appointment of accounting firms
In the opinion of the board of auditors, except for the agreement on the basic business ethics of Deloitte, all the members of the audit committee of Deloitte have not complied with the basic business ethics of the company during the audit period.
The audit team members have the necessary professional knowledge and relevant qualifications to undertake the audit business, can be competent for the audit work, and can also maintain due attention and professional prudence. According to his audit work, service awareness, professional ethics and performance ability in 2021, it is proposed to renew Deloitte Huayong’s appointment as the company’s 2022 financial report and internal control audit institution for one year, and it is agreed to submit the proposal of renewing the company’s 2022 financial report audit institution and internal control audit institution to the company’s board of directors for deliberation.
(II) prior approval and independent opinions of independent directors on the renewal of the accounting firm
Prior approval opinions of independent directors: the review procedures of the company’s proposed renewal of the accounting firm comply with the provisions of relevant laws, regulations and the articles of Association; Deloitte Huayong has the experience and ability to provide audit services for listed companies, can provide true and fair audit services for the company, and meet the requirements of the company’s financial and internal control audit in 2022; The company’s reappointment of the accounting firm will not harm the interests of the company and all shareholders, and there is no infringement on the interests of minority shareholders. In conclusion, we agree to submit the proposal to the 8th meeting of the 6th board of directors for deliberation.
Opinions of independent directors: Deloitte Huayong has the experience and ability to provide audit services for the company, can meet the audit requirements of the company, and will not damage the interests of the company and all shareholders. Deloitte Huayong worked diligently, independently, objectively and impartially as the company’s financial report and internal control audit institution, and has the ability and requirements to continue to provide annual audit services for the company; We agree to continue to appoint Deloitte Huayong as the auditor of the company’s financial report and internal control in 2022, and agree to submit the matter to the general meeting of shareholders for deliberation.
(III) deliberation and voting of the board of directors on the proposals related to the renewal of the accounting firm
On April 20, 2022, the company held the 8th meeting of the 6th board of directors, deliberated and approved the proposal on renewing the employment of 2022 financial report and internal control audit institution, and agreed to renew the employment of Deloitte Huayong as the company’s 2022 financial report and internal control audit institution for one year.
(IV) the renewal of the accounting firm needs to be submitted to the general meeting of shareholders of the company for deliberation and effective from the date of deliberation and approval by the general meeting of shareholders of the company.
3、 Documents for future reference
1. Resolutions of the 8th meeting of the 6th board of directors of the company;
2. Prior approval opinions of independent directors on matters related to the eighth meeting of the sixth board of directors;
3. Independent directors’ independent opinions on matters related to the eighth meeting of the sixth board of directors.
It is hereby announced.
360 Security Technology Inc(601360) board of directors April 22, 2022
