Sun Create Electronics Co.Ltd(600990)
Performance report of the audit committee of the board of directors in 2021
In accordance with the relevant laws and regulations such as the governance standards for listed companies of China Securities Regulatory Commission (hereinafter referred to as the “CSRC”), the articles of association and the working procedures for the annual report of the audit committee of the company, as the current member of the audit committee of Sun Create Electronics Co.Ltd(600990) (hereinafter referred to as the “company”), I hereby report to the board of directors on the performance of my duties in 2021 as follows:
1、 Basic information of the audit committee of the board of directors
The audit committee of the sixth board of directors of the company is composed of five members, including directors pan Lisheng, Wu Junxiang, Liu Taikang, Hu Heshui and Xu Shuping, with Pan Lisheng as the director.
On June 17, the company held the first meeting of the seventh board of directors and elected pan Lisheng, Zhang Chuncheng, Chen Yonghong, Xu Shuping and Shen Zejiang as members of the audit committee of the seventh board of directors, with Pan Lisheng as the chairman.
2、 Meetings of the audit committee of the board of directors
During the reporting period, the audit committee of the board of directors held 6 meetings in accordance with relevant regulations:
1. On April 16, 2021, the audit committee of the board of directors of the company held its first meeting in 2021 and listened to the report on the audit of 2020 financial statements by the audit accountant and the report on the audit supervision of the company by the discipline inspection, audit and legal department.
2. On April 22, 2021, the audit committee of the board of directors of the company held the second meeting in 2021 and agreed to submit the following matters to the board of directors for deliberation:
(1) Financial statement report of 2020
(2) Financial budget report for 2021
(3) 2020 annual report and summary
(4) Proposal on daily connected transactions in 2021
(5) Proposal on changes in accounting policies
(6) 2020 internal control evaluation report
(7) Report on the performance of the audit committee of the board of directors in 2020
3. On April 26, 2021, the audit committee of the board of directors of the company held the third meeting in 2021 and agreed to submit the first quarter report of 2021 to the board of directors for deliberation.
4. On August 20, 2021, the audit committee of the board of directors of the company held the fourth meeting in 2021 and agreed to submit the 2021 semi annual report to the board of directors for deliberation.
5. On October 27, 2021, the audit committee of the board of directors of the company held the fifth meeting in 2021 and agreed to submit the third quarter report of 2021 to the board of directors for deliberation.
6. On December 10, 2021, the audit committee of the board of directors of the company held the sixth meeting in 2021 and agreed to submit the proposal on hiring the financial audit institution in 2021 and the proposal on hiring the internal control audit institution in 2021 to the board of directors for deliberation.
3、 Performance of relevant work of the audit committee of the board of directors
1. Performance of annual report audit in 2020
In 2021, the audit committee of the board of directors communicated with the annual report audit accountant during the audit of the 2020 annual report in strict accordance with the working procedures of the annual report of the audit committee of the board of directors of the company, as follows:
The audit committee of the board of directors communicated with the annual audit accountants of Rongcheng Certified Public Accountants (special general partnership) (hereinafter referred to as “Rongcheng certified public accountants”) on the arrangement of audit work this year, urged the accounting firms to submit audit reports within the agreed time limit and form written opinions.
The audit committee reviewed the financial and accounting statements prepared by the company and formed written opinions before the annual audit accountant entered the audit; After the annual audit CPA entered the site, the audit committee communicated with the annual audit CPA. After the annual audit CPA issued the preliminary audit opinion, it reviewed the company’s financial and accounting statements again and formed a written opinion.
2. Supervise and evaluate the work of external audit institutions
(1) Evaluate the independence and professionalism of external audit institutions
As the audit institution of the company’s 2020 financial report and internal control, Rongcheng firm is qualified to engage in securities related business. The audit committee of the board of Directors believes that the firm can better complete all the entrusted work, its work is meticulous and serious, its work results are objective and fair, can realistically Express relevant audit opinions, meet the requirements of financial and internal control audit, and can follow the independent, objective Fair professional standards.
(2) Express opinions on the company’s 2021 financial report and the appointment of internal control audit institutions
After verification, the company carried out bidding for the selection and employment of accounting firms in 2021, invited the former and future accounting firms to participate in the bidding, and finally determined Dahua as the bid winner by using the comprehensive scoring method. The company has communicated with Rongcheng office on matters related to the change of accounting firm. Rongcheng knows all about this matter and has no objection to it. Dahua firm has been engaged in securities related business for a long time, has many years of experience in providing audit services for listed companies, has sufficient investor protection ability, does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, and has a good level of integrity. Dahua firm is agreed to hire Dahua firm as the company’s financial and internal control audit institution in 2021 and provide relevant services for one year, The audit service fees are 530000 yuan and 200000 yuan respectively, which shall be submitted to the board of directors for deliberation.
(3) Audit fees of external audit institutions
According to the audit, the service fees actually paid by the company for the financial statement audit and internal control audit of Rongcheng firm in 2020 are 730000 yuan, which is consistent with the disclosed audit fees.
(4) Discuss and communicate with external auditors to monitor and evaluate their diligence
During the reporting period, the audit committee of the board of directors fully discussed and communicated with Dahua firm on audit scope, audit plan, audit methods and other matters, and no other major matters were found in the audit during the audit. The audit committee of the board of Directors believes that Dahua firm was diligent and conscientious during the audit of the company and followed the professional standards of independence, objectivity and impartiality.
3. Guide internal audit
During the reporting period, the audit committee of the board of directors carefully reviewed the company’s internal audit work report in 2020 and the internal audit work plan in 2021, timely urged the effective implementation of the company’s internal audit work plan in 2021, and put forward guiding opinions on the problems in internal audit to improve the effectiveness of internal audit. 4. Review and comment on the company’s financial report
During the reporting period, the audit committee of the board of directors carefully reviewed the company’s financial report and believed that the company’s financial report was true, complete and accurate, there were no relevant fraud, fraud and material misstatement, and there were no major accounting error adjustment, major accounting policy and estimation changes, matters involving important accounting judgment, and matters leading to non-standard unqualified audit report.
5. Evaluate the effectiveness of internal control
The company has established a relatively perfect corporate governance structure and governance system, which can strictly implement various laws, regulations, rules, articles of association and internal management systems, and standardize 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. During the reporting period, the audit committee of the board of directors gave full play to the role of professional committees, strengthened the evaluation management of the company’s internal control, actively urged and guided the company’s internal audit institutions to complete the self-evaluation of internal control, and carefully reviewed the self-evaluation report of internal control. Therefore, the audit committee of the board of Directors believes that the actual operation of the company’s internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
6. Coordinate the communication between management, internal audit department and relevant departments and external audit institutions
During the reporting period, in order to better enable the management, internal audit department and relevant departments to fully and effectively communicate with Dahua firm, the audit committee of the board of directors actively coordinated after listening to relevant opinions, so as to complete relevant audit work with high quality and efficiency.
4、 Overall evaluation of annual performance
During the reporting period, the audit committee of the board of directors of the company scrupulously performed its duties and responsibilities in accordance with the stock listing rules of Shanghai Stock Exchange and the working procedures of the annual report of the audit committee formulated by the company, and effectively performed relevant responsibilities, giving full play to the role of supervision, evaluation, review and coordination. In 2022, the audit committee of the board of directors will further standardize the operation of the audit committee of the board of directors, pay close attention to the internal and external audit work of the company, better play the role of guidance and supervision, and make unremitting efforts to safeguard the interests of all shareholders. (there is no text on this page, which is the signature page of the 2021 performance report of the audit committee of Sun Create Electronics Co.Ltd(600990) board of directors) signature of the members of the Audit Committee:
Pan Lisheng, Zhang Chuncheng, Jin Yanbin
Xu Shuping, Shen Zejiang
Sun Create Electronics Co.Ltd(600990) board of directors audit committee April 21, 2022
