Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd
Performance report of the audit committee of the board of directors in 2021
In accordance with the guidelines for the operation of the audit committee of the board of directors of listed companies, the standards for the governance of listed companies, the Listing Rules of Shanghai Stock Exchange and other relevant laws and regulations, as well as the articles of association and the rules of procedure of the audit committee of the board of directors, the audit committee of the board of directors of Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd. (hereinafter referred to as the "Audit Committee") is diligent and responsible, We have conscientiously performed our duties of audit supervision, and now report the performance of the audit committee in 2021 as follows:
1、 Basic information of the audit committee
The audit committee of the board of directors of the company is currently composed of three members, namely, independent director Mr. Lu Jiaxing, independent director Mr. Chen Zhenlou and director Mr. Xu Shilong. The chairman of the audit committee is Mr. Lu Jiaxing with professional accounting qualification.
2、 Meetings of the Audit Committee during the reporting period
The audit committee actively performs its duties in accordance with the company law, the standards for the governance of listed companies, the articles of association and other relevant provisions. During the reporting period, the audit committee of the company held 4 meetings, and all members attended the meeting. The details are as follows:
1. On March 19, 2021, the audit committee of the board of directors of the company held the first meeting of the audit committee of the second board of directors, deliberated and approved three proposals, including the proposal on the company's 20182020 audit report, the proposal on the company's 2020 internal control self-evaluation report and the proposal on changes in accounting policies.
2. On May 25, 2021, the audit committee of the board of directors of the company held the second meeting of the audit committee of the second board of directors, Six proposals, including the proposal on 2020 financial report, the proposal on 2020 financial final accounts and 2021 financial budget, the proposal on the application and handling of comprehensive credit line by the company to financial institutions in 2021, the proposal on carrying out asset pool business, the proposal on related party transactions expected in 2021 and the proposal on renewing the appointment of 2021 audit institution, were reviewed and approved. 3. On September 20, 2021, the audit committee of the board of directors of the company held the third meeting of the audit committee of the second board of directors, deliberated and adopted the proposal on carrying out asset pool business.
4. On October 24, 2021, the audit committee of the board of directors of the company held a meeting and deliberated and adopted the proposal on the third quarter report of the company in 2021.
3、 Main work of the audit committee in 2021
1. Supervise and evaluate the work of external audit institutions
The audit committee of the company regularly communicated with the audit institution of the company, Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as "Lixin"), and supervised and evaluated its audit work. As the annual audit institution of the company, Lixin is qualified to engage in securities related business. During the company's employment, Lixin can carry out audit work in strict accordance with relevant national regulations and professional norms of certified public accountants, adhere to independent audit standards, provide good audit services for the company, and objectively and truly reflect the company's financial status and operating results.
2. Review and comment on the company's financial report
The audit committee has carefully reviewed the company's periodic reports and believes that the preparation and review procedures of the company's periodic reports comply with the relevant provisions of laws, regulations and the articles of Association; The content and format of the report comply with the relevant provisions of China Securities Regulatory Commission and Shanghai Stock Exchange, and can comprehensively and truly reflect the actual operation and financial situation of the company during the reporting period. There is no fraud, fraud or material misstatement in the company's financial report, and there is no 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 report. The content and format of the financial report comply with the provisions of China Securities Regulatory Commission and Shanghai Stock Exchange, and fairly reflect the company's financial status, operating results and cash flow in all major aspects.
3. Evaluate the effectiveness of internal control
After listing, the company has established a relatively perfect corporate governance structure and governance system in accordance with the requirements of the company law, the securities law and other laws and regulations and the relevant provisions of the CSRC and the Shanghai Stock Exchange. During the reporting period, the audit committee guided the company's internal audit to carry out daily work, implemented the requirements of relevant systems and norms, and strengthened the supervision and inspection of the internal control system. 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. Therefore, it is considered that the actual operation of the company's internal control meets the requirements of the governance norms of listed companies issued by the CSRC.
4. Review the changes of the company's accounting policies and give opinions
On December 7, 2018, the Ministry of Finance revised and issued the accounting standards for Business Enterprises No. 21 - leasing (CK [2018] No. 35) (hereinafter referred to as the "new leasing standards"). Enterprises that are required to be listed both at home and abroad and enterprises that are listed overseas and adopt international financial reporting standards or accounting standards for business enterprises to prepare financial statements shall be implemented as of January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021.
As a domestic listed company, the company has implemented the new leasing standards since January 1, 2021, and held the second meeting of the second board of directors during the reporting period, deliberated and adopted the proposal on changes in accounting policies, and completed the changes in the above accounting policies.
The Audit Committee believes that the implementation of the new accounting standards for business enterprises during the reporting period can more accurately reflect the company's financial status and operating results, improve the quality of the company's financial information, comply with the relevant provisions of the accounting standards for business enterprises, and do not harm the interests of the company and minority shareholders.
4、 Overall evaluation
In 2021, the audit committee faithfully and diligently performed its audit supervision duties in accordance with the operation guidelines of the audit committee of the board of directors of listed companies and other relevant laws and regulations, as well as the rules of procedure of the audit committee of the board of directors formulated by the company, and used its professional experience in accounting and financial management to supervise the external audit of the company, guide the internal audit and internal control work, and maintain the independence of the audit, Strengthen the authenticity and reliability of the company's financial report information and promote the company to improve its governance structure.
In 2022, the audit committee will continue to adhere to the principles of prudence, objectivity and independence, abide by the relevant regulations of China Securities Regulatory Commission and Shanghai Stock Exchange, faithfully and diligently perform the audit supervision responsibilities, give full play to professional functions, effectively supervise and guide the audit work of the company, promote the company to establish effective internal control and gradually improve the governance level.
Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd. Audit Committee of the board of directors April 29, 2022
