Stock Code: 600795 stock abbreviation: Gd Power Development Co.Ltd(600795) No.: pro 2022-04 Gd Power Development Co.Ltd(600795)
Announcement on the appointment of an audit institution for the financial statement report of 2021
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:
Name of accounting firm to be employed: Daxin Certified Public Accountants (special general partnership) (hereinafter referred to as Daxin)
Name of the originally appointed accounting firm: Zhongshen Zhonghuan accounting firm (special general partnership) (hereinafter referred to as Zhongshen Zhonghuan)
Brief reasons for the change of accounting firm and objections of former accountants: in order to ensure the independence, objectivity and fairness of the company’s audit work, and comprehensively consider the needs of the company’s business development and audit work, the company plans to appoint Daxin as the audit institution of the company’s 2021 annual financial statement report. The company has communicated with the central audit Zhonghuan in advance on the change of accounting firm. The central audit Zhonghuan is aware of the matter and confirms that it has no objection.
1、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
Daxin was founded in 1985 and transformed into a special general partnership firm in March 2012. Its registered address is room 1504, College International Building, No. 1, Zhichun Road, Haidian District, Beijing. Daxin has 31 branches across the country, set up branches in Hong Kong and initiated the establishment of Daxin international accounting network in 2017. At present, the global members of Daxin international accounting network include 26 network members such as the United States, Canada, Australia, Germany, France, the United Kingdom and Singapore. Daxin has the practicing certificate of accounting firm issued by the Ministry of finance. It is one of the earliest accounting firms engaged in securities business in China and one of the first to obtain the audit qualification of H-share enterprises. It has nearly 30 years of securities business experience.
2. Personnel information
The chief partner is Mr. Hu Yonghua. As of December 31, 2021, Daxin has 4262 employees, including 156 partners and 1042 certified public accountants. More than 500 certified public accountants have signed the audit report of securities service business.
3. Business information
In 2020, the business revenue was 1.832 billion yuan, providing services to more than 10000 companies. Among the business income, the audit business income is 1.568 billion yuan and the securities business income is 584 million yuan. In 2020, there were 181 annual report audit clients of listed companies (including H shares), with an average asset of 24.951 billion yuan and a total charge of 231 million yuan. It is mainly distributed in manufacturing, information transmission software and information technology services, water conservancy environment and public facilities management, power, heat, gas and water production and supply, transportation, storage and postal services. There are 7 audit clients of Listed Companies in the power industry. 4. Investor protection ability
The sum of the cumulative compensation limit of occupational insurance and the occupational risk fund withdrawn exceeds 80 million yuan, and the withdrawal of occupational risk fund and the purchase of occupational insurance comply with relevant regulations.
Civil liability in civil litigation related to practice in recent three years: in December 2020, Hangzhou intermediate people’s court ruled that Daxin and other institutions should bear joint and several liability for compensation in the “Wuyang debt” case, and Daxin appealed. In September 2021, the higher people’s Court of Zhejiang Province made a judgment and upheld the original judgment.
5. Integrity record
Daxin does not violate the independence requirements of the code of professional ethics for Chinese certified public accountants. In the past three years, Daxin has been subject to administrative punishment once and administrative supervision measures 14 times, and has not been subject to criminal punishment, self-discipline supervision measures and self-discipline sanctions. In the past three years, 2 employees have been subject to administrative punishment and 25 people have been subject to supervision and management measures.
(II) project information
1. Basic information
Project partner to be signed: Xie Zemin
Mr. Xie Zemin, executive vice chairman, President and partner of Daxin Management Committee. He became a certified public accountant in 1992, began to audit listed companies in 1999 and began to practice in Daxin in 2013. Part time: served as the executive director of China Enterprise Financial Management Association and the deputy director of the education and Training Committee of Beijing Institute of certified public accountants.
Certified public accountant to be signed: Shi Chenqi
Mr. Shi Chenqi, a partner, has the professional qualification of Chinese certified public accountants. He became a certified public accountant in 2010. He began to engage in the audit of Listed Companies in 2011 and began to practice in Daxin in 2013. He has more than 10 years of experience in securities business services. Five audit reports of listed companies signed in 2019-2021. Not part-time in other units.
Certified public accountant to be signed: Xin Yujie
Ms. Xin Yujie became a certified public accountant in 1992. She began to audit listed companies in 2009 and began to practice in Daxin in 2013. He has participated in the IPO, major asset restructuring and annual report audit of listed companies of many companies. Two audit reports of listed companies signed in 2019-2021. Not part-time in other units.
Proposed project quality reviewer: Feng inventing
Mr. Feng inventor, who became a certified public accountant in 2002, began to review the audit quality of listed companies and listed companies in 2015 and began to practice in Daxin in 2001. Review the audit reports of several listed companies and listed companies in 2019-2021. Not part-time in other units. 2. Integrity record
In the past three years, the partners of the project to be signed, the signing certified public accountants and the quality review personnel have not been subject to criminal punishment due to their professional behavior, 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 stock exchanges and industry associations.
3. Independence
The partners of the project to be signed, the signing certified public accountants and the quality review personnel do not violate the independence requirements of the code of professional ethics for Chinese certified public accountants, do not hold and buy or sell the company’s shares, and do not have other economic interests that affect the independence. Regular rotation meets the requirements.
4. Audit fees
The audit fee of the financial final accounts report in 2021 is 8.44 million yuan, which is consistent with the audit fee of the financial final accounts report in 2020.
2、 Description of the proposed change of accounting firm
(I) previous accounting firms and audit opinions of the previous year
The former accounting firm is Zhongshen Zhonghuan, which provided audit services for the company in 2018-2020. The type of audit opinion in 2020 is standard unqualified opinion. The company does not have the situation of dismissing the company after entrusting the company to carry out part of the audit work.
(II) reasons for the proposed change of accounting firm
In order to ensure the independence, objectivity and fairness of the company’s audit work, and comprehensively consider the needs of the company’s business development and audit work, the company plans to appoint Daxin as the audit institution of the company’s 2021 annual financial statement report.
The company has communicated with the central audit Zhonghuan in advance on the change of accounting firm. The central audit Zhonghuan is aware of the matter and confirms that it has no objection.
(III) communication between the listed company and the former and future accounting firms
The company has fully communicated with Zhongsheng Zhonghuan and Daxin on the appointment of Daxin as the auditor of the company’s 2021 annual financial statement report. All parties have clearly known the matter and confirmed that they have no objection. Zhongshen Zhonghuan and Daxin will do a good job of communication and cooperation in accordance with the requirements of China Auditing Standards for certified public accountants No. 1153 – communication between former certified public accountants and subsequent certified public accountants.
3、 Change the procedures performed by the accounting firm
（1） Deliberations of the audit committee of the board of directors
On January 24, 2022, the company convened the audit committee of the board of directors to consider and approve the proposal on appointing Daxin certified public accountants as the audit institution of the company’s 2021 annual financial statement report. The Audit Committee believes that Daxin has the qualification of auditing securities and futures related businesses and the experience and ability to provide audit services for listed companies, Be able to meet the financial audit requirements of the company and its holding subsidiaries, and be able to audit the financial status of the company independently. The appointment of Daxin does not affect the operation of the company or damage the interests of the company, nor does it damage the interests of shareholders of the company, especially small and medium-sized shareholders. It is agreed to submit this proposal to the board of directors for deliberation. （2） Prior approval of independent directors
The independent directors of the company have approved the proposal on appointing Daxin certified public accountants as the auditor of the company’s 2021 annual financial statement report in advance. The independent directors believe that in order to ensure the independence, objectivity and fairness of the company’s audit work, and comprehensively consider the needs of the company’s business development and audit work, The company plans to appoint Daxin as the auditor of the company’s 2021 annual financial statement report. Daxin has the qualification of securities and futures related business audit, has the experience and ability to provide audit services for listed companies, can meet the financial audit requirements of the company and its holding subsidiaries, and can audit the financial status of the company independently. The appointment of Daxin does not affect the operation of the company or damage the interests of the company, nor does it damage the interests of shareholders of the company, especially small and medium-sized shareholders.
（3） Deliberations of the board of directors
The company held the 10th meeting of the 8th board of directors on January 24, 2022, deliberated and approved the proposal on appointing Daxin certified public accountants as the auditor of the company’s 2021 annual financial statement report, and agreed to appoint Daxin as the auditor of the company’s 2021 annual financial statement report.
This matter needs to be submitted to the general meeting of shareholders of the company for deliberation.
It is hereby announced.
Gd Power Development Co.Ltd(600795) January 25, 2022
