Securities code: Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) securities abbreviation: Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) Announcement No.: 2022032 bond Code: 127057 bond abbreviation: Panlong convertible bond
Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864)
Announcement on reappointment of audit institutions in 2022
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) (hereinafter referred to as “the company”) held the 22nd Meeting of the third board of directors and the 19th meeting of the third board of supervisors on April 22, 2022, deliberated and adopted the proposal on the company’s re employment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and submitted the proposal to the company’s 2021 annual general meeting for deliberation. Relevant matters are hereby announced as follows:
1、 Description of the matters to be re employed by the accounting firm
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) has the qualification for securities related business, has many years of experience and ability to provide audit services for listed companies, has a relatively perfect internal organizational structure, management system, sufficient resources of certified public accountants, and has a good credit status. In order to maintain the continuity and stability of the company’s audit work, the audit committee of the board of Directors proposes to continue to employ Lixin as the company’s 2022 financial audit institution and internal control audit institution for one year. After the deliberation and approval of the company’s 2021 annual general meeting of shareholders, the management of the company is authorized to negotiate the audit fee and sign the audit agreement with Lixin according to the actual business situation and relevant standards.
2、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) was founded in Shanghai in 1927 by Dr. pan Xulun, a Chinese accounting leader, and reopened in 1986. In 2010, it became the first special general partnership certified public accountants firm in China to complete the restructuring. Its registered address is Shanghai and its chief partner is Mr. Zhu Jiandi. As a member of the international accounting network BDO, Lixin has been engaged in securities service business for a long time. Before the implementation of the new securities law, it has a securities and futures business license, has H-share audit qualification, and has been registered with the American public company accounting supervision board (PCAOB).
By the end of 2021, Lixin had 252 partners, 2276 certified public accountants, 9697 employees, and 707 certified public accountants who had signed the audit report of securities service business.
The business income (audited) of Lixin in 2021 was 4.523 billion yuan, including 3.429 billion yuan from audit business and 1.565 billion yuan from securities business.
In 2021, Lixin provided annual report audit services for 587 listed companies, with an audit fee of 719 million yuan and 43 audit customers of Listed Companies in the same industry.
2. Investor protection ability
By the end of 2021, Lixin had withdrawn 129 million yuan from the occupational risk fund, and the cumulative compensation limit of the occupational insurance purchased was 1.25 billion yuan. The relevant occupational insurance can cover the civil liability caused by audit failure. Civil liability in civil litigation related to practice in recent three years:
Sue (Arbitration) sued (arbitrated) litigation (Arbitration) litigation (Arbitration)
Litigation (Arbitration) results
(1) amount of Renren event
Investors Jinya technology and Zhou Xu are expected to be jointly and severally liable for 45 million yuan in the 2014 annual report. The professional Baohui and Lixin insurance insured by Lixin are sufficient to cover the amount of compensation. At present, the effective judgments have been fulfilled
Investors baoqianli and Northeast Securities weighed 800000 yuan in 2015, and Lixin was sentenced to baoqianli in the first instance
Securities, Yinxin evaluation group, Lixin and other reports from December 30, 2015 to 2017, and the debt to investors due to false statements of securities during December 14, 2016
15% assume the supplementary compensation liability, and the occupational insurance insured by Lixin is enough to cover the compensation
Compensation amount
3. Integrity record
In the past three years, Lixin has been subject to criminal punishment 0 times, administrative punishment 1 time, supervision and management measures 24 times, self-discipline and supervision measures none and disciplinary punishment 2 times for its practice behavior, involving 63 employees.
(II) information of project team members
1. Personnel information
The certified public accountant began to engage in listing and proposed the name of the project for the company
Business time company audit time business time for audit service time
Partner 2009 imperial examination project
Signature: Certified Public Accountant Zhao Wenze 202020202020
Quality control reviewer Yao Liqiang 20092007 20092020
(1) Experience of project partner: Name: Chen Keju
Time listed company name position
20202021 Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) signed partner
20202021 Huafon Microfibre (Shanghai) Co.Ltd(300180) signed partner
20202021 Ningbo Menovo Pharmaceutical Co.Ltd(603538) signed partner
2021 Dbappsecurity Co.Ltd(688023) review partner
2021 Zhejiang Mustang Battery Co.Ltd(605378) review partner
(2) Working experience of certified public accountant: Name: Zhao Wenze
Time listed company name position
20202021 Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) signed certified public accountant
(3) Experience of quality control reviewer: Name: Yao Liqiang
Time listed company name position
20202021 Zhejiang East Crystal Electronic Co.Ltd(002199) signed partner
20202021 Zhejiang Red Dragonfly Footwear Co.Ltd(603116) signed partner
20202021 Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) signed certified public accountant
2. Record of independence and integrity of project team members:
The project partner, the signing certified public accountant and the quality control reviewer do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
(the above personnel have no bad records in the past three years.)
(III) audit fees
1. Audit fee pricing principle
Pricing is mainly based on the responsibility of professional services and the degree of professional technology investment, and comprehensively considering the experience and level of employees involved in the work, the corresponding charging rate and the working hours invested.
2. Year on year changes of audit fees
The increase or decrease of% in 2021 and 2022 shall be authorized by the general meeting of shareholders of the company according to the audit workload
Annual report audit fee amount (10000 yuan) 60
And determine the annual audit fee based on the fair and reasonable pricing principle
3、 Review and approval procedures for the renewal of accounting firm
(I) opinions of the audit committee of the board of directors
The audit committee of the board of directors of the company reviewed the relevant qualification certificates, relevant information and integrity records of Lixin, considered that it adhered to the independent audit standards in the process of practice, objectively, fairly and fairly reflected the company’s financial status and operating results, earnestly performed the duties of the audit institution, and recognized the independence, professional competence and investor protection ability of Lixin, Agree to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 and submit it to the 22nd Meeting of the third board of directors for deliberation.
(II) prior approval and independent opinions of independent directors
1. Prior approval opinions of independent directors
After verification, Lixin Certified Public Accountants (special general partnership) has the qualification of securities and futures related business, can independently be competent for the company’s audit work, and can adhere to the independent audit standards in the audit work in 2021. The audit opinions truly and accurately reflect the actual situation of the company. We recognize the company’s continued engagement of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 and agree to submit it to the board of directors for deliberation.
2. Independent opinions expressed by independent directors
After verification, Lixin Certified Public Accountants (special general partnership) has the qualification of securities and futures related business, can independently be competent for the company’s audit work, and can adhere to the independent audit standards in the audit work in 2021. The audit opinions truly and accurately reflect the actual situation of the company. We recognize the company’s reappointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agree to submit the proposal on the company’s reappointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022 to the company’s 2021 annual general meeting for deliberation.
(III) opinions of the board of directors
The 22nd Meeting of the third board of directors of the company deliberated and approved the proposal on the company’s reappointment of Lixin Certified Public Accountants (special general partnership) as the company’s audit institution in 2022, and agreed to reappoint Lixin certified public accountants as the company’s audit institution in 2022. This proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation.
(IV) opinions of the board of supervisors
Lixin Certified Public Accountants (special general partnership) has the qualification of securities business. During the period of serving as the company’s audit institution, it can scrupulously abide by its duties, follow the independent, objective and fair practice standards, and better complete the financial audit work entrusted by the company. It is agreed to pass the proposal.
4、 Documents for future reference
1. Resolutions of the 22nd Meeting of the third board of directors of the company;
2. Resolutions of the 19th meeting of the third board of supervisors of the company;
3. Prior approval opinions and independent opinions of independent directors on matters related to the 22nd Meeting of the third board of directors of the company;
4. Relevant certificates for the performance of duties of the audit committee.
5. The business license of the accounting firm to be employed, the information and contact information of the main person in charge and the contact person of the regulatory business, and the identity certificate, license and contact information of the certified public accountant to be responsible for the specific audit business.
Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) board of directors
April 26, 2022
