Autowell(SH:688516) Zheng Quan Zhi Xing·2025-06-24 18:20Core Viewpoint - The document outlines the selection system for accounting firms at Wuxi Autowei Technology Co., Ltd, emphasizing the importance of maintaining shareholder interests and ensuring high-quality financial information [1][2]. Group 1: General Principles - The selection of accounting firms must comply with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [1]. - The selection process requires approval from the audit committee, board of directors, and ultimately the shareholders' meeting [1][2]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must have a good record of professional quality and meet specific criteria, including independent legal status and necessary qualifications [2]. - The firms must have a solid organizational structure and internal management system, and their auditors should not have faced administrative penalties in the last three years [2][3]. Group 3: Selection Process - Various entities, including the audit committee and shareholders holding over 1% of shares, can propose the hiring of accounting firms [3]. - The audit committee is responsible for overseeing the selection process, including developing policies and evaluating candidates [3][4]. Group 4: Procedures for Hiring Accounting Firms - The selection process involves competitive negotiations, public bidding, and other methods to ensure fairness and transparency [4][5]. - The audit committee must evaluate the qualifications of the firms and submit recommendations to the board of directors for approval [5][6]. Group 5: Management of Reappointment - The audit committee must evaluate the performance of the accounting firm annually and can only reappoint them if they meet quality standards [6][7]. - If an auditor has served for five consecutive years, they must be replaced for the next five years [6]. Group 6: Circumstances for Changing Accounting Firms - The company must change accounting firms under specific circumstances, such as collusion in bidding or significant quality issues in audit reports [7][8]. - The audit committee must initiate the hiring process immediately if a change is necessary during the annual audit period [8][9]. Group 7: Information Disclosure and Record Management - The company must disclose information about the accounting firm, including service duration and fees, in annual financial reports [10]. - All documents related to the selection and hiring process must be archived for at least ten years [10][11]. Group 8: Supervision and Accountability - The audit committee must remain vigilant regarding any irregularities in the selection process and report serious violations to the board [11][12]. - The company is responsible for any economic losses resulting from the wrongful termination of an accounting firm [11].