Securities code: 300626 securities abbreviation: Huarui Electrical Appliance Co.Ltd(300626) Announcement No.: 2022-003 Huarui Electrical Appliance Co.Ltd(300626)
Announcement on change of accounting firm
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.
Special tips:
1. Name of accounting firm to be employed: Dahua Certified Public Accountants (special general partnership) (hereinafter referred to as "Dahua certified public accountants").
2. Name of original accounting firm: Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as "Lixin certified public accountants").
3. Reasons for changing the accounting firm: in consideration of its personnel, business volume and audit schedule, the original audit institution of the company, Lixin Accounting firm, will not continue the audit of the company's financial statements in 2021. In view of the fact that Lixin certified public accountants will not continue to audit the company's financial statements in 2021, taking into account the company's development strategy, future business development and audit needs, and in order to ensure the independence and objectivity of the company's audit work, the company plans to change the audit institution in 2021 from Lixin certified public accountants to Dahua certified public accountants. The company has communicated with the previous and subsequent accounting firms on matters related to the change of accounting firm, and the previous and subsequent accounting firms have clearly known the change and confirmed that they have no objection. The board of directors of the company would like to express our sincere thanks for the professional, rigorous and responsible audit services provided by Beixin certified public accountants! 4. The audit committee and the board of directors of the company have no objection to the change of the accounting firm, and the independent directors have expressed their prior approval opinions and independent opinions.
5. The proposed change of accounting firm needs to be submitted to the general meeting of shareholders for deliberation.
Huarui Electrical Appliance Co.Ltd(300626) (hereinafter referred to as "the company") held the second meeting of the Fourth Board of directors and the second meeting of the Fourth Board of supervisors on January 12, 2022, deliberated and adopted the proposal on changing the accounting firm. The company plans to appoint Dahua accounting firm (special general partnership) as the company's audit institution in 2021, with a term of appointment of one year, Effective from the date of deliberation and approval at the first extraordinary general meeting of shareholders in 2022, relevant matters are hereby announced as follows:
(I) institutional information
1. Name of accounting firm to be employed: Dahua accounting firm (special general partnership)
2. Date of establishment: February 9, 2012 (transformed from Dahua certified public accountants Co., Ltd. into a special general partnership)
3. Organizational form: special general partnership
4. Registered address: 1101, building 7, yard 16, Middle West Fourth Ring Road, Haidian District, Beijing
5. Chief partner: Liang Chun
6. Number of partners as of December 31, 2020: 232
7. Number of certified public accountants as of December 31, 2020: 1679
8. Number of certified public accountants who have signed the audit report of securities service business: 821
9. Total business income in 2020: 2520553200 yuan; Audit income in 2020:
2253578000 yuan; Securities business income in 2020: 1095351900 yuan
10. Number of audit clients of Listed Companies in 2020: 376
11. Main industries involved: manufacturing, information transmission software and information technology services, real estate, wholesale and retail, and construction
12. Total audit fees of Listed Companies in 2020: 417257200 yuan
13. Number of audit clients of Listed Companies in the same industry: 35
(II) investor protection ability
By the end of 2020, Dahua certified public accountants had withdrawn 4.0591 million yuan of occupational risk fund and the cumulative compensation limit of occupational insurance purchased was 70 million yuan. The withdrawal of occupational risk fund or purchase of occupational insurance shall comply with relevant regulations. In the past three years, there has been no civil liability in civil proceedings related to practice. (III) integrity record
Dahua Certified Public Accountants (special general partnership) has been subject to criminal punishment 0 times, administrative punishment 2 times, supervision and management measures 25 times, self-discipline supervision measures 1 time and disciplinary punishment 2 times in recent three years. In recent three years, 52 employees have been subject to criminal punishment 0 times, administrative punishment 2 times, supervision and management measures 23 times and disciplinary punishment 3 times.
2、 Project information
1. Basic information
Project partner: Jiang Chunyou, who became a certified public accountant in May 2010, began to audit listed companies in December 2009 and began to practice in Dahua certified public accountants in August 2010; In recent three years, 2 listed companies have signed audit reports.
Signature certified public accountant: Sang Dongxue, who became a certified public accountant in June 2020, began to audit listed companies in May 2016 and began to practice in Dahua certified public accountants in May 2016; In the past three years, 0 listed companies have signed audit reports.
Reviewer of project quality control: Li Junxiong, who became a certified public accountant in March 1997, began to audit listed companies in June 1997 and began to practice in Dahua certified public accountants in June 1997; More than 50 audit reports of listed companies have been reviewed in recent three years.
2. Integrity record
The project partner, the signing certified public accountant and the project quality control reviewer have not been subject to criminal punishment due to their professional behavior in recent three years, have been subject to administrative punishment, supervision and management measures by the CSRC, its dispatched offices and industry competent departments, and have been subject to self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as stock exchanges and industry associations.
3. Independence
Dahua Certified Public Accountants (special general partnership), project partners, signing certified public accountants and project quality control reviewers can maintain their independence in the audit of the project.
4. Audit fees
The current audit fee is charged according to the number of working days required by Dahua certified public accountants to provide audit services and the charging standard of each working day. The number of working days shall be determined according to the nature and complexity of audit services; The charging standard of each working day shall be determined respectively according to the professional skill level of practitioners.
3、 Description of the proposed change of accounting firm
(I) previous accounting firms and audit opinions of the previous year
Lixin certified public accountants, the original audit institution of the company, provided audit services for the company in 2020. During the period of providing audit for the company, it adhered to the principle of independent audit, diligently and dutifully, fairly and independently expressed audit opinions, objectively, fairly and accurately reflected the company's financial statements, and earnestly fulfilled the responsibilities of the audit institution, It has safeguarded the legitimate rights and interests of the company and shareholders from a professional perspective. The type of audit opinion of the previous year is standard unqualified opinion. In order to formulate the 2021 annual audit plan, the original audit institution implemented preliminary audit preparations in mid November 2021. However, at the end of December 2021, many project signing accountants and teams of the original audit institution were required to be isolated due to the epidemic situation, and were unable to participate in the company's annual inventory and follow-up audit.
(II) reasons for proposed change of accounting firm
Lixin certified public accountants, the original audit institution of the company, will not continue the audit of the company's financial statements in 2021 considering its own personnel, business volume and audit schedule. In view of the fact that Lixin certified public accountants will not continue to audit the company's financial statements in 2021, taking into account the company's development strategy, future business development and audit needs, and in order to ensure the independence and objectivity of the company's audit work, the company plans to change the audit institution in 2021 from Lixin certified public accountants to Dahua certified public accountants. Dahua certified public accountants is proposed to be appointed as the company's audit institution in 2021 and be responsible for the company's financial audit in 2021. (III) communication between the listed company and previous accounting firms
The company has communicated with Lixin certified public accountants and Dahua certified public accountants in advance on the proposed change of accounting firm, and the previous and subsequent accounting firms have no objection to the proposed change of accounting firm; The previous and subsequent accounting firms will actively communicate in accordance with the relevant requirements of China Auditing Standards for certified public accountants No. 1153 - communication between former certified public accountants and future certified public accountants.
4、 Procedures to be performed by the accounting firm to be changed
1. Deliberations of the board of Auditors
The audit committee of the 4th board of directors of the company reviewed the information provided by Dahua certified public accountants and made professional judgment after knowing the specific situation of the company's proposed change of accounting firm from the company's management, and believed that Dahua certified public accountants could meet the company's requirements for audit institutions in terms of independence, professional competence and investor protection, The audit committee formed a written audit opinion on the change of the company's accounting firm in 2021, agreed to appoint Dahua accounting firm as the company's audit institution in 2021, and submitted the proposal to the company's board of directors for deliberation.
2. Prior approval and independent opinions of independent directors
According to the relevant regulations, the independent directors learned the specific situation from the company's management about the company's proposed change of accounting firm, reviewed the relevant qualification and other supporting materials of the proposed accounting firm, and issued the following prior approval opinions on this matter: Dahua accounting firm (special general partnership) has the practice certificate of accounting firm, Comply with the relevant provisions of the securities law, be able to follow the independent, objective and fair professional standards, fulfill their duties, better complete the audit work, and the report issued can objectively and truly reflect the actual situation, financial status and operating results of the company. We agree to submit the above proposal to the board of directors for deliberation.
The independent directors of the company express their independent opinions on this matter as follows: Dahua Certified Public Accountants (special general partnership) is qualified to engage in securities related business, has the professional qualification and competence to provide audit services for listed companies, and can independently, objectively and fairly evaluate the financial situation of the company, It can meet the requirements of the company's 2021 financial statement audit. The review procedure of the company's proposed change of accounting firm complies with the provisions of the company law and other laws and regulations, normative documents and the articles of association, and there is no damage to the interests of the company and shareholders, especially the interests of minority shareholders. Therefore, we agree that the company employs Dahua Certified Public Accountants (special general partnership) as the company's audit institution in 2021 and agree to submit it to the company's general meeting for deliberation. 3. Deliberations of the board of directors and the board of supervisors
The company held the second meeting of the Fourth Board of directors and the second meeting of the Fourth Board of supervisors on January 12, 2022, deliberated and adopted the proposal on changing the accounting firm, agreed that the company would change the financial audit institution in 2021 to Dahua accounting firm, and submit it to the first extraordinary general meeting of shareholders in 2022 for deliberation, with a term of appointment of one year.
4. Effective date
This change of accounting firm needs to be submitted to the first extraordinary general meeting of the company in 2022 for deliberation, and will take effect from the date of deliberation and approval by the general meeting of shareholders.
4、 Documents for future reference:
1. Resolution documents of the second meeting of the Fourth Board of directors of the company;
2. Resolution documents of the second meeting of the Fourth Board of supervisors of the company;
3. Resolution documents of the audit committee meeting of the Fourth Board of directors of the company;
4. Prior approval opinions of independent directors on matters related to the second meeting of the Fourth Board of directors of the company; 5. Independent opinions of independent directors on matters related to the second meeting of the Fourth Board of directors of the company.
6. 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, practice license and contact information of the certified public accountant to be responsible for the specific audit business.
It is hereby announced.
Huarui Electrical Appliance Co.Ltd(300626) board of directors
January 13, 2022
