Huaxun Fangzhou Co.Ltd(000687)
Announcement on the proposed appointment of accounting firm
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.
Special tips:
1. Name of the accounting firm to be employed: Shenzhen xutai accounting firm (general partnership) (hereinafter referred to as "xutai accounting firm");
2. Name of the originally appointed accounting firm: Zhongxi accounting firm (special general partnership) (hereinafter referred to as "Zhongxi accounting firm")
3. Reasons for not renewing the original accounting firm: in view of the business development and annual audit task arrangement of Huaxun Fangzhou Co.Ltd(000687) (hereinafter referred to as "the company"), the original audit institution Zhongxi firm, the company will not renew the appointment of Zhongxi firm as the financial and internal control audit institution in 2021. The company plans to appoint xutai firm as the company's audit institution in 2021 for one year. The company has communicated with the former audit institution Zhongxi firm on the appointment of the accounting firm, and Zhongxi firm has made it clear that it is aware of the matter and confirmed that it has no objection.
4. The type of audit opinion of the company in 2020 is the audit report with no opinion and the internal control audit report with negative opinion.
5. The proposed accounting firm needs to be reviewed and approved by the general meeting of shareholders of the company.
On January 20, 2022, the company held the 31st meeting of the 8th board of directors and the 19th meeting of the 8th board of supervisors respectively, deliberated and approved the proposal on the appointment of financial and internal control audit institution in 2021, and agreed to appoint xutai firm as the financial and internal control audit institution of the company in 2021 for one year, The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation. Relevant matters are hereby announced as follows:
1、 Basic information of the accounting firm to be employed
Organization Name: Shenzhen xutai Certified Public Accountants (general partnership);
Date of establishment: February 2, 2012;
Organizational form: general partnership;
Registered address: 29 South B, Hubei building, No. 9003, Binhe Avenue, Xinzhou community, Shatou street, Futian District, Shenzhen;
Professional qualification: xutai firm obtained the practice certificate of accounting firm on January 17, 2012 with the approval of Shencai Kuai [2012] No. 6 document of Shenzhen Municipal Commission of finance; On February 2, 2021, it passed the record of accounting firms engaged in securities service business of the Ministry of Finance and CSRC.
2. Personnel information
The chief partner of xutai firm is Yin Qing. As of December 31, 2021, there are more than 60 employees, including 17 certified public accountants and 10 certified public accountants transferred from the accounting firm with securities and futures business qualification.
3. Business scale
Xutai firm's total business income in 2021 was 12.8323 million yuan, including 8.1727 million yuan from audit business and 1.47 million yuan from securities business. In recent years, xutai office has undertaken the annual financial statement audit and special audit of more than 200 enterprises; The firm's customers are involved in manufacturing, commodity circulation, posts and telecommunications, finance, medicine, real estate, power and other industries. Xutai firm has audit experience in the industry where the company is located. In addition to the company, * ST danbang has announced to hire xutai firm as the audit institution in 2021. 4. Investor protection ability
The cumulative compensation limit of occupational insurance purchased by xutai office is 10 million yuan, which can bear the civil compensation liability caused by audit failure and has the ability to protect investors. Xutai office has not had any civil litigation since its establishment.
5. Integrity record
Since its establishment, xutai firm has not been subject to criminal punishment, administrative punishment, supervision and management measures, self-discipline supervision measures and disciplinary sanctions due to its practice, and has not been filed for investigation. In recent three years, employees have not been subject to criminal punishment, administrative punishment, supervision and management measures, self-discipline supervision measures and disciplinary sanctions due to their practice behavior, and have not been filed for investigation.
（2） Project information
1. Basic information
Project partner to be signed: Yin Qing, executive partner, certified public accountant, engaged in securities service business for 12 years. He became a certified public accountant on July 25, 2005. He began to engage in securities business in January 2010, worked in Beijing Xinghua Certified Public Accountants (special general partnership) with business qualification related to securities and futures, successively served as project manager, began to practice in Shenzhen xutai Certified Public Accountants (general partnership) in December 2012, and is now the executive partner of Shenzhen xutai Certified Public Accountants (general partnership). During his employment, he has provided securities services such as third board application audit, annual report audit of listed companies and merger and reorganization audit for many enterprises, has experience in securities service business and has corresponding professional competence. Mr. Yin Qing has not been subject to other administrative penalties and regulatory measures by the securities regulatory department. No part-time job.
Certified public accountant to be signed: Wang Pingping, certified public accountant, began to engage in audit business in May 2016, became a certified public accountant on July 28, 2020, began to engage in securities business in May 2016 and began to practice in xutai firm in May 2020. During his employment, he has provided securities services such as annual report audit of listed companies and merger and reorganization audit for many enterprises, has experience in securities service business and has corresponding professional competence. Proposed quality control reviewer: Ling Hui, certified public accountant, engaged in securities service business for 12 years. He became a certified public accountant on April 27, 2006. He began to engage in the audit of Listed Companies in January 2010 and began to practice in Shenzhen xutai Certified Public Accountants (general partnership) in August 2020. During his practice, he provided securities services such as declaration audit, annual report audit and merger and reorganization audit for many listed companies. Mr. Ling Hui has not been subject to other administrative penalties and regulatory measures by the securities regulatory department. No part-time job.
2. Integrity record
The project partners, signed certified public accountants and project quality control reviewers have not been subject to criminal punishment, administrative punishment, supervision and management measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as securities trading places and industry associations in recent three years.
3. Independence
Xutai firm, project partners, signing certified public accountants, project quality control reviewers and other practitioners are independent of the auditee, and there is no violation of the independence requirements of the code of professional ethics for Chinese certified public accountants, and there is no record of bad faith.
4. Audit fees
The annual audit fee in 2021 is RMB 900000, including annual financial audit fee of RMB 600000 and annual internal control audit fee of RMB 300000. The audit fee for this period is determined with the accounting firm in consideration of the company's business scale and expected audit workload.
2、 Description of the proposed change of accounting firm
(I) previous accounting firms and audit opinions of the previous year
The original accounting firm of the company, Zhongxi accounting firm, provided audit services for the company for 1 year.
The company sincerely thanks Zhongxi firm for the audit services provided to the company. Zhongxi certified public accountants has issued an audit report on internal control that cannot express opinions and negative opinions on the company in 2020. The company has not been dismissed after entrusting the former accountant to carry out part of the audit work.
(II) reasons for not renewing the original accounting firm
In view of the business development and annual audit task arrangement of the company's original accounting firm Zhongxi firm, the company will not renew the appointment of Zhongxi firm as the financial and internal control audit institution in 2021.
(III) communication between the company and previous accounting firms
The company has communicated with the former audit institution Zhongxi firm on the appointment of the accounting firm, and Zhongxi firm has made it clear that it is aware of the matter and confirmed that it has no objection. Xutai firm has communicated with Zhongxi firm, the former auditor of the company, in accordance with relevant regulations.
3、 Procedures to be performed by the proposed accounting firm
1. Performance 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, independence and integrity of xutai firm, and believes that it has the qualification to engage in securities business, can meet the annual audit needs of the company and has the ability to protect investors. The audit committee of the board of directors unanimously agreed to propose to appoint xutai firm as the financial and internal control audit institution of the company in 2021 and submit it to the board of directors and the general meeting of shareholders for deliberation.
2. Prior approval and independent opinions of independent directors
(1) Prior approval opinion: before convening the board of directors to review the relevant proposals on the appointment of audit institutions, we carefully reviewed the relevant qualifications, institutions, personnel, business, practice, integrity records and other information of xutai firm, and inquired and discussed with the board of directors and management of the company on relevant matters. We believe that xutai firm has the qualification to engage in securities business, the ability to provide audit services for listed companies, the ability to protect investors and the ability to provide fair audit services for the company. Therefore, we agree to submit the proposal to the 31st meeting of the eighth board of directors for deliberation.
(2) Independent opinion: xutai firm to be employed by the company has the qualification to engage in securities business, the ability to provide audit services for listed companies, the ability to protect investors, and the ability to provide fair audit services for the company. The deliberation procedures of the board of directors comply with the relevant provisions of relevant laws and regulations. Agree to appoint xutai firm as the financial and internal control audit institution of the company in 2021, and agree to submit the proposal to the general meeting of shareholders of the company for deliberation. 3. Deliberation procedures and voting
(1) The company held the 31st meeting of the 8th board of directors on January 20, 2022. The proposal on the appointment of financial and internal control audit institution in 2021 was considered and approved by 7 votes in favor, 0 votes against and 0 abstentions. The board of directors agreed to appoint xutai firm as the financial and internal control audit institution of the company in 2021 for one year.
(2) The company held the 19th meeting of the 8th board of supervisors on January 20, 2022. The proposal on the appointment of financial and internal control audit institution in 2021 was reviewed and approved by 5 votes in favor, 0 votes against and 0 abstentions. The board of supervisors agreed to appoint xutai firm as the financial and internal control audit institution of the company in 2021 for one year.
(3) The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation and approval.
4、 Documents for future reference
1. Resolutions of the 31st meeting of the 8th board of directors;
2. Resolutions of the 19th meeting of the 8th board of supervisors;
3. Resolution of the first meeting of the audit committee of the eighth board of directors in 2022;
4. Prior approval opinions of independent directors on matters related to the 31st meeting of the eighth board of directors; 5. Independent opinions of independent directors on matters related to the 31st meeting of the eighth board of directors;
6. Business license of xutai firm, information and contact information of main principals and regulatory business contacts, identity certificate, practice license and contact information of certified public accountants to be responsible for specific audit business;
7. Other documents required by SZSE.
It is hereby announced.
Huaxun Fangzhou Co.Ltd(000687) board of directors
January 21, 2022
