Securities code: Safbon Water Service (Holding) Inc.Shanghai(300262) securities abbreviation: Safbon Water Service (Holding) Inc.Shanghai(300262) Announcement No.: 2022037 Safbon Water Service (Holding) Inc.Shanghai(300262)
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.
Safbon Water Service (Holding) Inc.Shanghai(300262) (hereinafter referred to as "the company" or " Safbon Water Service (Holding) Inc.Shanghai(300262) ") held the 36th meeting of the 4th board of directors and the 27th meeting of the 4th board of supervisors on April 27, 2022, deliberated and approved the proposal on renewing the appointment of the audit institution in 2022, and agreed to continue to appoint Zhonghua Certified Public Accountants (special general partnership) as the audit institution of the company in 2022 for one year. The details are as follows:
1、 Description of the proposed accounting firm
Zhonghua Certified Public Accountants (special general partnership) is a company with the experience and ability to provide audit services for listed companies. Its professional liability insurance can cover the civil liability caused by audit failure. As of 2021, it has provided audit services for the company for 14 consecutive years, worked diligently and conscientiously, adhered to the audit principle of independence, objectivity and impartiality, strictly followed the relevant national regulations and the requirements of Certified Public Accountants' practice norms, and issued various professional audit reports for the company on time. The contents of the reports objectively and fairly reflected the financial status and operating results of the company in each period. In 2021, Zhonghua Certified Public Accountants (special general partnership) provided audit services for the company with an audit fee of 1.3 million yuan (including tax).
In order to ensure the continuity of audit work, the company plans to renew the appointment of Zhonghua Certified Public Accountants (special general partnership) as the company's financial audit institution in 2022 for a period of one year, which will take effect from the date of deliberation and approval by the 2021 annual general meeting of shareholders.
The board of directors shall propose to the general meeting of shareholders to authorize the management of the company to negotiate with Zhonghua certified public accountants according to the specific audit requirements and audit scope.
2、 Basic information of the accounting firm to be employed
(I) institutional information
(1) Name of accounting firm: Zhonghua Certified Public Accountants (special general partnership) (2) date of establishment: December 2, 2013 (3) form of organization: special general partnership (4) registered address: Jiading District, Shanghai (5) chief partner: Lu Shimin (6) number of partners at the end of last year: 42 (7) number of certified public accountants at the end of last year: 338 (8) Number of certified public accountants who signed the audit report of securities service business at the end of last year: more than 140 (9) total income in the latest year (audited): 521419 million yuan (10) audit income in the latest year (audited): 4113209 million yuan (11) securities business income in the latest year (audited): 1633113 million yuan
2. Business scale
(1) Top five major industries of audit clients of Listed Companies in last year:
Industry serial number industry category industry category
C39 manufacturing computer, communication and other electronic equipment manufacturing
C38 manufacturing electrical machinery and equipment manufacturing
C29 manufacturing rubber and plastic products industry
C36 automobile manufacturing
C35 manufacturing of special equipment for manufacturing industry
(2) Top five major industries of audit clients of Listed Companies in last year:
Industry serial number industry category industry category
I65 information transmission, software and information technology services
M74 scientific research and technical services professional technical services
C38 manufacturing electrical machinery and equipment manufacturing
C35 special equipment for manufacturing industry
I64 information transmission, software and information internet and related service technology services
(3) Audit in 2021
1) Audit fees of Listed Companies in 2021: 919537 million yuan
2) Audit fees of Listed Companies in 2021: 20.416 million yuan
4. Investor protection ability
In accordance with the provisions of relevant laws and regulations, Zhonghua Certified Public Accountants (special general partnership) shall purchase occupational insurance with a cumulative compensation limit of no less than 50 million yuan, which can cover the civil compensation liability caused by audit failure and comply with relevant regulations.
Civil liability in civil litigation related to practice in recent three years:
1) Shandong Yabo Technology Co.Ltd(002323) Securities Misrepresentation liability dispute
In December 2021, the higher people's Court of Jiangsu Province made a second instance judgment on the dispute over the liability for Securities Misrepresentation brought by investors against Shandong Yabo Technology Co.Ltd(002323) (hereinafter referred to as "Yabo technology"), Jinyuan Securities Co., Ltd. and Zhonghua Certified Public Accountants (special general partnership), and changed the judgment that Zhonghua Certified Public Accountants (special general partnership) should bear joint and several liability within 30% of its repayment obligation to Yabo technology.
2) Ningbo Sunlight Electrical Appliance Co.Ltd(002473) Securities Misrepresentation liability dispute
In October 2021, the higher people's Court of Zhejiang Province made a second instance judgment on the dispute over the liability for Securities Misrepresentation between investors suing Ningbo Sunlight Electrical Appliance Co.Ltd(002473) (hereinafter referred to as "shenglaida") and Zhonghua Certified Public Accountants (special general partnership), which ruled that Zhonghua Certified Public Accountants (special general partnership) should bear joint and several liability with shenglaida. Zhonghua Certified Public Accountants (special general partnership) has applied for retrial against these second instance judgments.
5. Integrity record
Zhonghua Certified Public Accountants (special general partnership) has been subject to administrative punishment twice and supervision and management measures seven times in recent three years, and has not been subject to criminal punishment, self-discipline supervision measures and disciplinary sanctions.
In the past three years, 10 employees have been subject to administrative punishment for practicing behavior, involving 3 people and 13 times of supervision and management measures. No employees have been subject to criminal punishment, self-discipline supervision measures and disciplinary sanctions.
(II) project information
1. Basic information
1) Name of signing certified public accountant (project partner): Kuai Yiyi
Project partner: Kuai Yiyi, who became a certified public accountant in 2008, began to audit listed companies and listed companies in 2008, began to practice in Zhonghua Certified Public Accountants (special general partnership) in 2005, and began to provide audit services for the company in 2020; As of the date of this announcement, audit reports of 6 listed companies have been signed in the past three years.
2) Signature: name of Certified Public Accountant (Manager): Wang Tao
Signature certified public accountant: Wang Tao, who became a certified public accountant in 2019, began to audit listed companies and listed companies in 2011, began to practice in Zhonghua Certified Public Accountants (special general partnership) in 2011, and began to provide audit services for the company in 2021; As of the date of this announcement, an audit report of a listed company has been signed in the past three years.
3) Name of quality control reviewer: Rong Kaiyu
Quality control reviewer: Rong Kaiyu, who became a certified public accountant in 1992, began to audit listed companies and listed companies in 1993, began to practice in Zhonghua Certified Public Accountants (special general partnership) in 2000, and began to provide audit services for the company in 2018; As of the date of this announcement, the audit reports of 8 listed companies have been reviewed in recent three years. Review the audit reports of 15 listed companies and listed companies in recent three years.
2. Integrity record
The signed certified public accountants Kuai Yiyi and Wang Tao and the quality control reviewer Rong Kaiyu meet the independence requirements and have not been subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline supervision measures in recent three years.
3. Independence
Zhonghua Certified Public Accountants (special general partnership) and the above personnel do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants.
4. Audit fees
The final audit fee shall be determined according to the company's business scale, industry, complexity of accounting treatment and other factors, as well as the auditors required for the audit of the company's annual report, the workload invested and the charging standard of the firm.
3、 Procedures to be performed by the proposed accounting firm
(I) deliberations of the audit committee
The 12th meeting of the audit committee of the Fourth Board of directors of the company deliberated and approved the proposal on renewing the appointment of the audit institution in 2022. The audit committee believed that Zhonghua Certified Public Accountants (special general partnership) employed by the company had provided audit services for the company for many years, and was able to fulfill their duties, follow independent, objective and impartial professional standards, and better complete the audit work entrusted by the company, The reports issued can objectively and truly reflect the financial situation and operating results of the company. Therefore, considering the audit quality of Zhonghua Certified Public Accountants (special general partnership) in 2021, the company is requested to reappoint him as the company's audit institution in 2022 for one year.
(II) prior approval and independent opinions of independent directors
1. Prior approval opinion
Independent directors Mr. Li Jianyong and Mr. Kang Zhongliang believe that Zhonghua Certified Public Accountants (special general partnership) has rich experience and professional quality in the audit of listed companies, and the audit reports issued for the company are objective and fair, and better perform its responsibilities and obligations; Agree that Zhonghua Certified Public Accountants (special general partnership) will continue to undertake the audit of the company in 2022; It is agreed to submit the above relevant proposals to the 36th meeting of the Fourth Board of directors for deliberation.
Ms. Liu Tao believes that based on the fact that Zhonghua Certified Public Accountants (special general partnership) has been serving the company for many years, there was a large amount of provision for asset impairment and write off of assets in 2021, and there was correction of accounting errors in the early stage; I have reservations about Zhonghua Certified Public Accountants (special general partnership) continuing to undertake the audit of the company in 2022.
2. Independent opinion
Independent directors Mr. Li Jianyong and Mr. Kang Zhongliang believe that Zhonghua Certified Public Accountants (special general partnership) has made detailed plans and arrangements in the annual audit of the company over the years, the auditors stationed have good professional ethics and rich audit experience, and the audit reports issued for the company objectively and fairly reflect the financial status and operating results of the company, Agree to continue to employ Zhonghua Certified Public Accountants (special general partnership) as the company's audit institution in 2022, and agree that the board of directors of the company will submit the above matters to the company's 2021 annual general meeting for deliberation.
Ms. Liu Tao, an independent director, believes that based on the fact that Zhonghua Certified Public Accountants (special general partnership) has been serving the company for many years, there was a large amount of provision for asset impairment and write off of assets in 2021, and there was a correction of accounting errors in the early stage; I have reservations about Zhonghua Certified Public Accountants (special general partnership) continuing to undertake the audit of the company in 2022.
The independent directors agree that the board of directors of the company will submit the above matters to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) deliberations of the board of directors
The 36th meeting of the 4th board of directors of the company deliberated and approved the proposal on renewing the appointment of the audit institution in 2022, and agreed to appoint Zhonghua Certified Public Accountants (special general partnership) as the audit institution of the company in 2022. The audit fee in 2022 shall be submitted by the board of directors to the shareholders' meeting to authorize the company's management to negotiate with Zhonghua certified public accountants according to the specific audit requirements and audit scope. This proposal needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and will come into force after being deliberated and approved by the general meeting of shareholders.
(IV) deliberation of the board of supervisors
The 27th meeting of the 4th board of supervisors of the company deliberated and approved the proposal on renewing the appointment of the audit institution in 2022. The board of supervisors believed that Zhonghua Certified Public Accountants (special general partnership) adhered to the principle of independent audit in the process of practice and was able to issue various professional reports for the company on time, and agreed to appoint Zhonghua Certified Public Accountants (special general partnership) as the audit institution of the company in 2022.
4、 Documents for future reference
1. Resolution of the 36th meeting of the 4th board of directors
2. Resolution of the 27th meeting of the 4th board of supervisors
3. Prior approval opinions of independent directors on relevant matters of the 36th meeting of the Fourth Board of directors;
4. Special instructions and independent opinions of independent directors on relevant matters of the 36th meeting of the Fourth Board of directors. It is hereby announced.
Safbon Water Service (Holding) Inc.Shanghai(300262) board of directors
