Huadian Heavy Industries Co.Ltd(601226) audit committee
Written opinions on the matters considered at the 10th interim meeting of the audit committee of the Fourth Board of directors
In accordance with the relevant provisions of the articles of association, working rules of the audit committee of the board of directors and annual report working system of the audit committee of the board of directors, the audit committee of the Fourth Board of directors of the company expressed the following opinions on the relevant matters considered at the meeting of the Audit Committee:
1、 Comments on the internal control evaluation of the company in 2021
According to the relevant requirements of the China Securities Regulatory Commission, Shanghai Stock Exchange and other departments on the internal control of listed companies, as well as the relevant laws, regulations and normative documents such as the company law, the securities law, the basic norms of enterprise internal control and the supporting guidelines for enterprise internal control, the company has established a relatively perfect internal control, compliance and comprehensive risk management system in combination with its own actual characteristics and conditions. The key activities of the company’s internal control shall be carried out in accordance with the provisions of the company’s internal control systems.
During the reporting period, the company had no major defects in the internal control over financial reporting and non-financial reporting, nor significant defects in the internal control over financial reporting and non-financial reporting. We believe that the evaluation of the company’s internal control is comprehensive, true and accurate, which reflects the actual situation of the company’s internal control. Agree to submit relevant proposals to the board of directors of the company for deliberation.
2、 Opinions on the implementation of the company’s daily connected transactions in 2021 and the prediction of daily connected transactions in 2022
In 2021, the company’s actual related party transaction revenue was 49487553 million yuan, and the actual related party purchase amount was 659061 million yuan. It is estimated that the revenue from related party transactions will be about 600 million yuan in 2022, and the amount of related party procurement will be about 449 million yuan in 2022.
The daily related party transactions that have occurred in 2021 and are expected to occur in 2022 are conducive to the increase of the company’s sales revenue and the daily operation and steady development of the company. The related party transactions follow the commercial principles of compensation, fairness and voluntariness. The transaction pricing is fair and will not harm the interests of the company and its shareholders. It is fair and reasonable for the company and all shareholders. It is agreed to submit relevant proposals to the board of directors of the company for deliberation.
3、 Opinions on the audit institution and internal control audit institution employed by the company
We recognize the performance of Tianzhi International Certified Public Accountants (special general partnership) (hereinafter referred to as “Tianzhi International Certified Public Accountants”) in the annual audit of 2021. The certified public accountants of Tianzhi international certified public accountants have completed the annual audit in strict accordance with relevant regulations, with sufficient audit time, reasonable allocation of auditors and competent professional ability, The audit statement issued can fully reflect the company’s financial situation, operating results and cash flow in 2021, and the audit conclusion issued is in line with the actual situation of the company.
As a professional audit institution, Tianzhi International Certified Public Accountants has no relationship with the company and its directors, supervisors and senior managers. The staff of Tianzhi international certified public accountants who provide audit services for the company have no relationship with the company and its directors, supervisors and senior managers. Tianzhi International Certified Public Accountants has institutional independence and personnel independence. In the process of providing audit services for the company, it can independently verify and independently express professional opinions on its verification.
Tianzhi International Certified Public Accountants has withdrawn occupational risk fund in accordance with relevant laws and regulations, purchased occupational insurance at the same time, and has the ability to protect investors. In addition, Tianzhi International Certified Public Accountants has no criminal punishment, administrative punishment, self-discipline supervision measures and disciplinary sanctions in the past three years.
In conclusion, we agree to continue to employ Tianzhi international accounting firm as the company’s financial audit and internal control audit institution in 2022, agree that the total cost of financial audit and internal control audit is 750000 yuan, and agree to submit relevant proposals to the board of directors for deliberation.
4、 Opinions on the signing of financial service agreement between the company and Huadian finance company
We have reviewed the signing of the financial service agreement between the company and China Huadian Group Finance Co., Ltd. (hereinafter referred to as “Huadian finance company”), carefully read the relevant materials provided by the company, and believe that the company signed the financial service agreement with Huadian finance company, and the balance of comprehensive credit from Huadian finance company does not exceed 1700million yuan, It is beneficial for the company to make full use of the financial service platform provided by Huadian finance company, broaden financing channels, reduce financing costs, ensure the demand for operating funds, enhance the ability of capital allocation and maximize capital benefits.
This connected transaction follows the commercial principles of compensation, fairness and voluntariness. The transaction content and deliberation procedures are legal and compliant, and the transaction pricing is fair. It will not damage the interests of the company and other shareholders, especially the interests of minority shareholders, and will not affect the independence of the company. It is agreed to submit the relevant proposals to the board of directors of the company for deliberation.
Huadian Heavy Industries Co.Ltd(601226) board of directors audit committee
April 11, 2002
