Securities code: Shanghai Geoharbour Construction Group Co.Ltd(605598) securities abbreviation: Shanghai Geoharbour Construction Group Co.Ltd(605598) Announcement No.: 2022024 Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd
Announcement on reappointment of 2022 audit institution
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
\uf020 name of accounting firm to be employed: Lixin Certified Public Accountants (special general partnership)
On April 29, 2022, Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure construction (Group) Co., Ltd. (hereinafter referred to as “the company”) held the 10th meeting of the second board of directors and the 10th meeting of the second board of supervisors, deliberated and adopted the proposal on renewing the appointment of the audit institution in 2022, which needs to be submitted to the general meeting of shareholders for deliberation.
1、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin”) was founded in Shanghai in 1927 by Dr. pan Xulun, a leading Chinese accountant, and reopened in 1986. In 2010, it became the first special general partnership certified public accountants firm to complete the restructuring. Its registered address is on the fourth floor, No. 61, East Nanjing Road, Huangpu District, Shanghai, and its chief partner is Mr. Zhu Jiandi. As a member of the international accounting network BDO, Lixin has been engaged in securities service business for a long time. Before the implementation of the new securities law, it has a securities and futures business license, has H-share audit qualification, and has been registered with the American public company accounting supervision board (PCAOB).
2. Personnel information
By the end of 2021, Lixin had 252 partners, 2276 certified public accountants, 9697 employees, and 707 certified public accountants who had signed the audit report of securities service business. 3. Business scale
In 2020, the business income (audited) of Lixin was 4.106 billion yuan, including 3.431 billion yuan from audit business and 1.357 billion yuan from securities business. In 2021, Lixin provided annual report audit services for 587 listed companies. The audited listed companies are mainly distributed in computer, communication and other electronic equipment manufacturing industry (69), pharmaceutical manufacturing industry (43), software and information technology service industry (42), chemical raw materials and chemical products manufacturing industry (35), special equipment manufacturing industry (43), electrical machinery and equipment manufacturing industry (35) Automobile manufacturing industry (25), general equipment manufacturing industry (25), rubber and plastic products industry (20).
4. Investor protection ability
By the end of 2021, Lixin had withdrawn 129 million yuan from the occupational risk fund, and the cumulative compensation limit of the occupational insurance purchased was 1.25 billion yuan. The relevant occupational insurance can cover the civil liability caused by audit failure.
5. Independence and integrity record
Lixin does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. In the past three years, Lixin has been subject to criminal punishment, administrative punishment once, supervision and management measures 24 times, self-discipline and supervision measures and disciplinary punishment twice for its practice behavior, involving 63 employees.
(II) project members
1. Personnel information
The project partners and the certified public accountants to be signed have corresponding qualifications and professional competence, as follows:
Partner of the project to be signed: Mr. Chen Li, who obtained the qualification of Chinese certified public accountant in 2002, began to engage in the audit of Listed Companies in 1999, began to practice in the exchange in 2002, and began to provide audit services for the company in 2020. Seven listed companies have signed and reviewed in recent three years.
Certified public accountant to be signed: Ms. Gao Yunling, who obtained the qualification of Chinese certified public accountant in 2017, began to engage in the audit of Listed Companies in 2015, began to practice in the exchange in 2017, began to provide audit services for the company in 2020, and two listed companies signed and reviewed in recent three years.
Proposed independent review partner: Mr. Li Zhengyu, who obtained the qualification of Chinese certified public accountant in 2009, began to engage in the audit of Listed Companies in 2002, began to practice in the exchange in 2002, and began to provide audit services for the company in 2020. There are 8 listed companies that have signed and reviewed in recent three years.
2. Record of independence and integrity of project team members
The project partner, the signing certified public accountant and the quality control reviewer do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. Not subject to criminal punishment, administrative punishment, administrative supervision measures and self-discipline supervision measures.
2、 Audit fees
(I) audit fee pricing principle
Pricing is mainly based on the responsibility of professional services and the degree of professional technology investment, and comprehensively considering the experience and level of employees involved in the work, the corresponding charging rate and the working hours invested.
(II) year on year changes of audit fees
The audit fee for 2021 is 2.3 million yuan (excluding the transportation, board and lodging expenses during the audit period). The audit fee is determined through negotiation according to the business scale and distribution of the company. In 2022, the audit fee will be determined separately with Lixin certified public accountants according to the business scale of the company, the professional skills required by the accounting firm to provide audit services, the nature of work, the workload to be undertaken, the required working people, days and the daily charging standard of each working person. 3、 Procedures to be performed by the accounting firm to be renewed
(I) performance and voting of the audit committee
The audit committee of the board of directors of the company has fully understood and reviewed the professional competence, investor protection ability, integrity and independence of Lixin Certified Public Accountants (special general partnership), and believes that Lixin Certified Public Accountants (special general partnership) has the qualification of auditing related businesses of securities and futures. It has comprehensively evaluated its audit work and quality in 2021 and believes that it adheres to objectivity, impartiality and Independent audit standards, scrupulously and diligently performed relevant responsibilities, and the audit conclusion is in line with the actual situation of the company. It is agreed to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s financial and internal control audit institution in 2022.
(II) prior approval and independent opinions of independent directors
The independent directors of the company recognized the matter of re employment of the accounting firm in advance and expressed independent opinions: Lixin Accounting firm (special general partnership) has corresponding business qualification, professional ethics and performance ability, has long-term cooperation with the company, is familiar with the company’s situation, has timely and effective communication with the Audit Committee of the board of directors, independent directors and management, has solid basic audit work, and the report issued is objective and reliable It truly reflects the company’s financial situation and operating results, and can meet the company’s financial reporting requirements. We agree to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the company’s financial and internal control audit institution in 2022, and agree to submit the proposal to the 2021 annual general meeting for deliberation.
(III) deliberation and voting of the board of directors
At the 10th meeting of the second board of directors of the company, the proposal on renewing the appointment of audit institution in 2022 was deliberated and adopted with 5 votes in favor, 0 against and 0 abstention, and it was agreed to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the audit institution of the company to provide audit services for the company in 2022.
(IV) opinions of the board of supervisors
At the 10th meeting of the second session of the board of supervisors of the company, the board of supervisors agreed to renew the appointment of Lixin Certified Public Accountants (special general partnership) as the audit institution of the company to provide audit services for the company in 2022.
(V) effective date
The renewal of the accounting firm needs to be submitted to the 2021 annual general meeting of the company for deliberation, and will take effect from the date of deliberation and approval of the 2021 annual general meeting of the company.
It is hereby announced.
Shanghai Geoharbour Construction Group Co.Ltd(605598) infrastructure (Group) Co., Ltd. board of directors April 30, 2022
