Shang Gong Group Co.Ltd(600843) (Group) Co., Ltd
Performance report of the audit committee of the board of directors in 2021
In 2021, the audit committee of the board of directors of Shang Gong Group Co.Ltd(600843) (Group) Co., Ltd. (hereinafter referred to as the “company”) (hereinafter referred to as the “Audit Committee”) in accordance with the standards for the governance of listed companies, the guidelines for the operation of the audit committee of the board of directors of listed companies on Shanghai Stock Exchange, the stock listing rules of Shanghai Stock Exchange, the articles of association, the rules of procedure of the company audit committee and other relevant provisions, In 2021, he worked diligently, actively carried out work and earnestly performed his duties. The performance of the audit committee in 2021 is reported to the board of directors as follows:
1、 2021 annual meeting of the audit committee of the company
The ninth Audit Committee of the company is composed of three directors, including two independent directors, and the chairman is Mr. ruimeng, an independent director with professional accounting qualification. During the reporting period, the audit committee of the company held 7 meetings, as follows:
(I) on January 15, 2021, the first meeting of the ninth audit committee in 2021 was held by means of on-site meeting and communication to listen to the special communication report of Lixin Certified Public Accountants (special general partnership) on the 2020 financial and internal control audit work plan and preliminary review of Shang Gong Group Co.Ltd(600843) (group) Co., Ltd.
(II) on April 19, 2021, the second meeting of the ninth audit committee in 2021 was held by means of on-site meeting and communication. The topics of the meeting are as follows:
1. Report and communication on the progress and important matters of the company’s 2020 annual review by Lixin
2. Proposal on renewing the appointment of Lixin Certified Public Accountants (special general partnership) as the audit institution in 2021
3. Report on the company’s 2020 audit department work summary and 2021 work plan and 2020 internal control construction
(III) on April 28, 2021, the third meeting of the ninth audit committee in 2021 was held by means of on-site meeting and communication. The topics (plans) of the meeting are as follows:
1. Audit report of the company in 2020
2. Internal control evaluation report of the company in 2020
3. 2020 performance report of the audit committee of the board of directors of the company
4. Proposal on renewing the appointment of Lixin Certified Public Accountants (special general partnership) as the audit institution in 2021 and paying audit fees
5. The company’s 2020 financial work report and 2021 budget
6. 2020 profit distribution plan of the company
7. Proposal on comprehensive bank credit of the company in 2021
8. Proposal on the company’s prediction of providing guarantee for holding subsidiaries in 2021
9. Proposal on the company’s cash management of some temporarily idle self owned funds
10. Special report on the deposit and actual use of raised funds (2020)
11. Proposal on changes in accounting policies
12. The company’s report for the first quarter of 2021
The meeting formed resolutions on the above 12 matters and submitted relevant proposals to the board of directors for deliberation.
(IV) on July 27, 2021, the fourth meeting of the ninth audit committee in 2021 was held by means of on-site meeting and communication. The meeting considered the following matters:
1. Semi annual report of the company in 2021
2. Special report on the deposit and actual use of the company’s raised funds (half year of 2021)
(V) on September 15, 2021, the fifth meeting of the ninth audit committee in 2021 was held by means of communication to consider the proposal on cash management of some temporarily idle raised funds
(VI) on October 29, 2021, the sixth meeting of the ninth audit committee in 2021 was held by means of communication, and the following matters were considered:
1. Report of the company for the third quarter of 2021
2. Internal control evaluation plan of the company in 2021
3. Proposal on using the raised funds to replace the self raised funds and issuance expenses invested in the raised investment projects in advance
The meeting formed a resolution on Item 3 above and submitted it to the board of directors for deliberation.
(VII) on December 29, 2021, the seventh meeting of the ninth audit committee in 2021 was held by means of on-site meeting and communication to listen to the special communication report of Lixin Certified Public Accountants (special general partnership) on the work plan and preliminary review of financial and internal control audit of Shang Gong Group Co.Ltd(600843) (group) Co., Ltd. in 2021.
2、 Performance of relevant work of the company’s audit committee in 2021
1. Performance of annual report audit in 2021
At the beginning of 2021, the company’s audit committee carefully listened to and reviewed the work plan and relevant materials of Lixin’s audit of the company’s annual report before the entry of certified public accountants, put forward specific opinions and requirements on the overall audit strategy, and jointly negotiated the relevant schedule.
During the audit, the audit committee and the annual audit certified public accountants had full communication and exchange on the problems found in the audit process. The Audit Committee believes that: the company’s financial and accounting statements are prepared in accordance with the company’s accounting policies, the application of accounting policies is appropriate, the accounting estimates are reasonable, and comply with the accounting standards for business enterprises, the accounting system for business enterprises and the relevant regulations issued by the Ministry of Finance; The company’s financial and accounting statements are included in the consolidation scope and the content of the report is complete, the basis of statement consolidation is accurate, the content of financial and accounting statements is objective, true and accurate, and no major misstatement or omission is found; The requirements of the company’s internal control standard system and relevant regulations have maintained effective internal control over financial reporting in all major aspects. However, the company and certified public accountants should pay special attention to and deal with the events after the balance sheet date and the occupation of non operating funds by related parties in strict accordance with the accounting standards for business enterprises, so as to ensure the fairness, authenticity and integrity of the financial statements.
2. Supervise and evaluate the work of external audit institutions
After issuing the preliminary audit opinion of the 2020 annual audit report, the audit committee of the company reviewed the 2020 annual financial statements, notes to financial statements and internal control audit report prepared by Lixin, which was hired by the company, and gave opinions. Agree with the accounting treatment of the company recognized by Lixin, believe that the company has been prepared in accordance with the provisions of the accounting standards for business enterprises, and fairly reflected the financial status, operating results and cash flow of the company in 2020 in all major aspects, and have no objection to the opinions on the company’s 2020 annual financial and accounting statements and internal control audit report issued by the annual audit certified public accountant, It is agreed to submit the 2020 annual financial statements and internal control audit report of the company audited by Lixin to the board of directors for deliberation.
3. Supervision and evaluation guidance on the construction of the company’s internal control system
In 2021, the company’s audit committee gave full play to the role of professional committees, actively promoted the construction of the company’s internal control system, urged the construction of the company’s internal control standard system, organized relevant personnel to summarize and sort out internal control defects, analyze the nature and causes of defects, and formulate internal control defect rectification plans in combination with the actual situation of the company and in accordance with the basic norms of enterprise internal control and relevant supporting guidelines, Establish an internal control system suitable for the company’s management mode and make it effectively implemented.
4. Guidance on internal audit of the company
In 2021, the audit committee of the company carefully reviewed the work summary of the company’s audit office in 2020 and the work plan of the audit office in 2021, timely supervised and guided the Audit Office of the company to carry out the audit work of the company according to the audit standard process and plan, and put forward guiding opinions on the problems existing in the audit process. In 2021, the audit committee of the company did not find any major problems in the work of the Audit Office of the company, and the work of the Audit Office of the company can operate effectively.
3、 Overall evaluation
During the reporting period, the audit committee of the company played an important role in supervising external audit, guiding the company’s internal audit and urging the company to establish a reasonable and effective internal control system by making full use of professional knowledge, being diligent and dutiful 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 rules of procedure of the company’s audit committee and other relevant provisions.
In 2022, the audit committee of the company will continue to adhere to the principles of impartiality, prudence, objectivity and independence, be diligent and responsible, abide by the relevant provisions of the China Securities Regulatory Commission and Shanghai Stock Exchange, give full play to the supervision function of the audit committee of the company, earnestly perform the responsibilities within the scope of authority, safeguard the legitimate rights and interests of the company and all shareholders, and promote the steady operation and standardized operation of the company.
It is hereby reported.
Audit Committee of the board of directors of Shang Gong Group Co.Ltd(600843) (Group) Co., Ltd. April 28, 2022
