Rising Nonferrous Metals Share Co.Ltd(600259)
Performance report of the audit committee of the board of directors in 2021
In accordance with the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation, the governance standards for listed companies and the stock listing rules of Shanghai Stock Exchange issued by China Securities Regulatory Commission and Shanghai Stock Exchange, and in accordance with the articles of association and the working rules of the audit committee of the board of directors of Rising Nonferrous Metals Share Co.Ltd(600259) (hereinafter referred to as “the company”), the audit committee of the board of directors of Rising Nonferrous Metals Share Co.Ltd(600259) (hereinafter referred to as “the company”) is based on the principle of diligence and responsibility, Conscientiously fulfilled the responsibility of audit and supervision. The report on the work of the audit committee in 2021 is as follows:
1、 Basic information of the audit committee
The audit committee of the 8th board of directors of the company is composed of independent directors Ms. Zeng Yamin, Mr. Guo Yong, Mr. Yang Wenhao, and directors Mr. Wu Jianping and Mr. Hong Yerong. The chairman of the audit committee is Ms. Zeng Yamin, a professional accountant. The number and composition of the audit committee meet the provisions of Shanghai Stock Exchange and the relevant requirements of the articles of association and other systems.
2、 Convening of the 2021 annual meeting of the audit committee
In 2021, the audit committee organized and held 8 meetings. The details are as follows: on January 15, 2021, the audit committee held the first meeting of the audit committee of the eighth board of directors in 2021 by means of communication, deliberated and adopted the proposal on providing guarantees and related party transactions for joint-stock companies.
On February 1, 2021, the audit committee held the second meeting of the audit committee of the eighth board of directors in 2021 by on-site combined with communication. The meeting heard the report of Zhongxi Certified Public Accountants on the preliminary review of the company’s 2020 annual report and the audit plan.
On March 30, 2021, the Audit Committee convened the third meeting of the audit committee of the eighth board of directors in 2021 by means of on-site combined communication, deliberated and adopted the financial report of the company in 2020, the report on the performance of the audit committee of the board of directors in 2020, the proposal on the implementation of the company’s daily connected transactions in 2020 and the expected daily connected transactions in 2021 There are four proposals in the proposal on financial assistance and related party transactions provided by indirect controlling shareholders to the company.
On April 29, 2021, the audit committee held the fourth meeting of the audit committee of the eighth board of directors in 2021 by means of communication, and considered and adopted the company’s financial report for the first quarter of 2021.
On May 31, 2021, the Audit Committee convened the fifth meeting of the eighth board of directors in 2021 by means of communication, deliberated and approved two proposals: the proposal on the company’s outstanding losses reaching one third of the total paid in share capital and the proposal on the acquisition of 51% equity and related party transactions of Shenzhen fuyile magnetic materials Co., Ltd.
On June 25, 2021, the Audit Committee convened the sixth meeting of the eighth board of directors in 2021 by means of communication, deliberated and adopted two proposals: the proposal on increasing the forecast of daily connected transactions in 2021 and the proposal on the wholly-owned subsidiary’s plan to borrow from banks and carry out foreign exchange hedging business.
On August 31, 2021, the audit committee held the seventh meeting of the audit committee of the eighth board of directors in 2021 by means of communication, deliberated and adopted the financial report and summary for the half year of 2021 and the proposal on Revising the company’s internal audit system, and listened to the report of the audit Department on the internal audit for the half year of 2021.
On October 29, 2021, the Audit Committee convened the eighth meeting of the audit committee of the eighth board of directors in 2021 by means of communication, deliberated and adopted two proposals: the report of the third quarter of 2021 and the proposal on renewing the appointment of Zhongxi certified public accountants as the audit institution of the company in 2021.
3、 Main work of the audit committee in 2021
(I) supervise the annual audit work
(1) Communicate with the auditors of the company’s annual report and determine the company’s annual audit plan;
(2) Reviewed the unaudited financial and accounting statements prepared by the company, considered that the financial statements were prepared in accordance with the requirements of the accounting standards for business enterprises, and found no major errors and omissions;
(3) Communicate with the Annual Report Auditors on the audit progress for many times, and urge the accounting firm to carry out the audit work according to the planned progress;
(4) Reviewed and approved the audited financial and accounting statements and agreed to submit them to the board of directors of the company for deliberation.
We believe that the company’s financial report is true, complete and accurate, and there is no relevant fraud, fraud and material misstatement, nor is there any adjustment of major accounting errors, major changes in accounting policies and estimates, matters involving important accounting judgments, and matters leading to non-standard unqualified audit reports.
(II) supervise and evaluate the work of external audit institutions
The audit committee has supervised and evaluated the audit work of Zhongxi Certified Public Accountants (special general partnership), and believes that it has the independence and audit qualification required to provide audit services for the company, and the auditors have high professional quality and professional ethics. In the audit service, he scrupulously fulfilled his duties, followed the independent, objective and fair practice standards, and better completed the company’s financial report and internal control audit. The report issued fairly, objectively, truly and accurately reflected the company’s financial status and operating results, and effectively assisted the company in promoting the construction of internal control standard system. On this basis, the audit committee of the board of directors proposed to the board of directors the renewal of Zhongxi Certified Public Accountants (special general partnership) as the financial audit institution and internal control audit institution in 2021.
(III) supervise the company’s internal audit and evaluate internal control
The audit committee of the board of directors reviewed the company’s internal audit work plan, urged the company’s internal audit institutions to implement it in strict accordance with the audit plan, and believed that the company’s 2021 audit work could give better play to the role of internal audit supervision in combination with its own business characteristics and management needs, closely focusing on the company’s production and operation management and key links.
At the same time, the audit committee of the board of directors will continue to guide the company to carry out self-examination and self-assessment on the implementation of internal control system in 2022. During the reporting period, the company strictly implemented various laws, regulations, rules, articles of association and internal management systems, and standardized the operation of the general meeting of shareholders, the board of directors, the board of supervisors and the management, effectively protecting the legitimate rights and interests of the company and shareholders. The company has formed the internal control evaluation report for the internal control work during the reporting period. The accountant has issued a standard unqualified opinion on it, and the work related to the internal control of the company continues to be standardized.
4、 Overall evaluation
During the reporting period, the audit committee of the board of directors, in accordance with the operation guidelines of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange, the articles of association, the working rules of the special committee of the board of directors and other relevant provisions, relied on its own professional level and work experience, and diligently performed the duties of the audit committee in key areas such as the company’s regular reports and the implementation of internal control norms, Promote the continuous improvement of the overall standardized governance level of the company, and promote the improvement of corporate governance and internal control.
In 2022, the audit committee of the board of directors of the company will, as always, faithfully perform its duties, be diligent and conscientious, earnestly perform various responsibilities entrusted by the company, pay close attention to the internal and external audit work of the company, give full play to the review and supervision function of the audit Committee, play a good guiding role for the internal and external audit work of the company, and better promote the healthy and standardized development of the company Rising Nonferrous Metals Share Co.Ltd(600259)
Audit Committee of the board of directors
April 28, 2002
