Securities code: Modern Avenue Group Co.Ltd(002656) securities abbreviation: Modern Avenue Group Co.Ltd(002656) Announcement No.: 2022037 Modern Avenue Group Co.Ltd(002656)
Announcement on the company's reappointment of the audit institution in 2022
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions in the announcement.
Modern Avenue Group Co.Ltd(002656) (hereinafter referred to as "the company" or "the company") held the 10th meeting of the 5th board of directors and the 6th meeting of the 5th board of supervisors on April 26, 2022, deliberated and approved the proposal on the company's reappointment of the audit institution in 2022, and planned to reappoint China audit Zhonghuan accounting firm (special general partnership) (hereinafter referred to as "China audit Zhonghuan") as the audit institution of the company in 2022. This proposal needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and the relevant matters are hereby announced as follows:
1、 Description of the matters to be re employed by the audit institution
Zhongshen Zhonghuan has the qualification of securities and futures related business audit, has rich experience and professional quality in the audit of listed companies, and can better meet the requirements of the company to establish and improve internal control and financial audit. During his tenure as the company's audit institution, he was diligent and conscientious, and was able to abide by the independent auditing standards for Chinese certified public accountants and other relevant provisions, adhere to the independent, objective and fair auditing standards, and express audit opinions fairly and reasonably. In order to maintain the continuity of the audit work, the company plans to appoint Zhongshen Zhonghuan as the audit institution of the company in 2022. The board of directors of the company requests the general meeting of shareholders to authorize the management of the company to negotiate with the central auditor Zhonghuan to determine the relevant audit fees according to the specific audit requirements and audit scope of the company in 2022.
2、 Basic information of the accounting firm to be renewed
(I) institutional information
1. Basic information
(1) Organization Name: Zhongshen Zhonghuan Certified Public Accountants (special general partnership)
(2) Nature of organization: special general partnership
(3) History: the proposed accounting firm was founded in 1987. It is one of the first large accounting firms approved by the state to engage in Securities and futures related business and financial business audit. In November 2013, it was transformed into special general partnership according to relevant requirements of the Ministry of finance.
(4) Registered address: No. 169, Donghu Road, Wuchang District, Wuhan City, Hubei Province
(5) Business qualification: the original securities and futures business qualification, accounting firm qualification, military secret related business consulting service security and confidentiality conditions filing qualification, large state-owned enterprise audit qualification, and financial related audit qualification.
(6) Have you ever engaged in securities service business: Yes
(7) Investor protection ability: the accounting firm to be employed will purchase professional liability insurance according to the scale of business income every year, and supplement the provision of professional risk fund. The cumulative compensation limit of the purchased professional insurance is 600 million yuan, which has not been used at present, and can bear the civil compensation liability caused by audit failure.
(8) International Accounting Network: in November 2017, it is proposed to appoint an accounting firm to join Mazars, an international professional accounting and auditing service organization.
2. Personnel information
(1) Number of partners at the end of 2021: 199
(2) Number of certified public accountants at the end of 2021: 1282
(3) Number of certified public accountants who signed the audit report of securities service business at the end of 2021: 780.
3. Business scale
(1) Total audited income in 2020: 1946474000 yuan.
(2) Audit income in 2020: 1 Rockontrol Technology Group Co.Ltd(688051) 500 yuan.
(3) Securities business income in 2020: 467851 million yuan.
(4) Number of annual report audit clients of listed companies: 179 annual report audit clients of Listed Companies in 2020; The main industries include manufacturing, wholesale and retail, real estate, power, heat, gas and water production and supply, agriculture, forestry, animal husbandry, fishery, information transmission, software and information technology services, mining, culture, sports and entertainment. The audit fee is 181075300 yuan.
(6) Whether there is audit experience in the industry where the listed company is located: Yes.
4. Independence and integrity record
(1) Zhongshen Zhonghuan has not been subject to criminal punishment, self-discipline supervision measures and disciplinary sanctions in the last three years. It has been subject to administrative punishment once for its practice behavior in the last three years and 22 times for its practice behavior in the last three years.
(2) In the past three years, 45 practitioners have received 0 criminal punishment, 2 administrative punishment, 43 Administrative Measures, 0 self-discipline and supervision measures and 0 disciplinary punishment for their practice behavior.
(II) project information
1. Basic information
Project partner: Wang Bing, a Chinese certified public accountant, has been engaged in securities business for many years and has the ability to engage in securities business. Signature certified public accountant: Wu Xiafei, a Chinese certified public accountant, has been engaged in securities business for many years and has the ability to engage in securities business.
Partner of project quality control review: Li Ling, a Chinese certified public accountant, has been engaged in securities business for many years and has the ability to engage in securities business.
2. Record of independence and integrity of project team members
Li Ling, the partner of the project quality control review, Wang Bing, the partner of the project, and Wu Xiafei, the signing certified public accountant, have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline punishment in the past three years. There are no circumstances that may affect the independence of Zhongshen Zhonghuan and project partner Wang Bing, signed CPA Wu Xiafei and project quality control reviewer Li Ling.
3. Audit fees
The company's audit in 2021 totaled 1.3 million yuan. The pricing principle of audit fees is mainly based on various factors such as the company's business scale, industry and complexity of accounting treatment, combined with the actual annual report audit personnel investment, workload and the fee standard of the firm.
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) has provided financial audit services for the company in 2021. Therefore, the company plans to continue to employ Zhongshen Zhonghuan Certified Public Accountants (special general partnership) as the audit institution of the company in 2022 to engage in the audit of accounting statements, verification of net assets, consulting services and other accounting consulting services. The employment period is from the date of deliberation and approval by the general meeting of shareholders to the end of the annual audit services in 2022, and the estimated cost is 1.3 million yuan.
3、 Procedures to be performed by the audit institution to be reappointed
1. Deliberations of the board of Auditors
The audit committee of the board of directors of the company reviewed the professional competence, investor protection ability, independence and integrity of zhongshenzhonghuan, and believed that zhongshenzhonghuan could fulfill its duties, follow the practice standards of integrity, objectivity, impartiality and independence, and the audit report issued for the company objectively and fairly reflected the financial status and operating results of the company, Agree to propose to the board of directors to reappoint Zhong Zhong Huan as the company's audit institution in 2022.
2. Prior approval opinions of independent directors
Zhongshen Zhonghuan Certified Public Accountants (special general partnership) is an accounting firm with securities and futures related business qualifications. In the process of practicing, it can follow independent, objective and fair professional standards, and the report issued can objectively and truly reflect the company's financial status and operating results, showing good professional ethics. In order to maintain the continuity of financial audit, it is agreed to renew the appointment of zhongshenzhonghuan as the company's audit institution in 2022, and it is agreed to submit the proposal to the board of directors of the company for deliberation.
3. Independent opinions of independent directors
After verification, Zhongshen Zhonghuan Certified Public Accountants (special general partnership), which the company plans to renew, has the qualification of securities industry, has the experience and ability to provide audit services for listed companies, can meet the needs of the company's financial audit and audit the company's financial status independently. Zhongshen Zhonghuan Certified Public Accountants (special general partnership) has better completed relevant audit work during the company's financial audit in 2021, and the renewal of employment is conducive to ensuring the continuity of the company's audit business. Therefore, we agree to continue to employ Zhongshen Zhonghuan Certified Public Accountants (special general partnership) as the financial audit institution of the company in 2022.
4. Deliberations of the board of directors
During the period when Zhonghuan ZHONGSHEN Certified Public Accountants (special general partnership) served as the audit institution of the company, the audit reports issued in each period objectively and fairly reflected the financial status and operating results of the company in each period, adhered to the independent audit standards, and better fulfilled the responsibilities and obligations stipulated by both parties. The company plans to continue to employ him as the company's audit institution in 2022, and agrees to submit the above matters to the 2021 annual general meeting of shareholders for deliberation.
5. Opinions of the board of supervisors
During the period when Zhonghuan ZHONGSHEN Certified Public Accountants (special general partnership) served as the audit institution of the company, the audit reports issued in each period objectively and fairly reflected the financial status and operating results of the company in each period, adhered to the independent audit standards, and better fulfilled the responsibilities and obligations stipulated by both parties. The company plans to continue to employ him as the company's audit institution in 2022, and agrees to submit the above matters to the 2021 annual general meeting of shareholders for deliberation.
4、 Documents for future reference
1. Modern Avenue Group Co.Ltd(002656) the resolution of the 10th meeting of the 5th board of directors;
2. Modern Avenue Group Co.Ltd(002656) the resolution of the 6th meeting of the 5th board of supervisors;
3. Modern Avenue Group Co.Ltd(002656) independent directors' prior approval opinions on matters related to the 10th meeting of the 5th board of directors of the company;
4. Modern Avenue Group Co.Ltd(002656) independent directors' independent opinions on relevant matters of the 10th meeting of the 5th board of directors of the company.
It is hereby announced.
Modern Avenue Group Co.Ltd(002656) board of directors April 27, 2022
