TANGYUAN ELECTRIC(SZ:300789) Zheng Quan Zhi Xing·2025-07-01 16:40Core Viewpoint - The document outlines the selection and management procedures for accounting firms at Chengdu Tangyuan Electric Co., Ltd, emphasizing the importance of maintaining high-quality financial reporting and protecting shareholder interests [1][2][3]. 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 Board of Directors and the Shareholders' Meeting after review by the Audit Committee [1][2]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess qualifications for securities and futures-related business and have a good record of professional quality [1]. - Firms must have a fixed workplace, a sound organizational structure, and adequate resources to ensure audit quality [1]. Group 3: Selection Procedures - The Audit Committee is responsible for establishing policies and processes for selecting accounting firms, including proposing the initiation of selection work [2][3]. - The selection process must be competitive and transparent, utilizing methods such as competitive negotiation and public bidding [2][3]. Group 4: Evaluation Criteria - Evaluation criteria for selecting accounting firms include audit fees, qualifications, professional records, quality management levels, and risk management capabilities [4]. - Quality management level must have a weight of no less than 40% in the evaluation [4]. Group 5: Reappointment and Dismissal Procedures - The Audit Committee must evaluate the performance of the accounting firm before reappointment and submit a report to the Board of Directors [5][6]. - If a firm is to be dismissed, the reasons must be disclosed in detail, including any statements from the dismissed firm [7][8]. Group 6: Supervision and Penalties - The Audit Committee is tasked with ensuring that selected accounting firms adhere to ethical standards and perform their duties diligently [9]. - Serious violations by accounting firms can lead to penalties, including dismissal and financial liability for responsible individuals [9][10]. Group 7: Reporting and Disclosure - The company is required to disclose evaluations of the accounting firm's performance and the Audit Committee's supervisory activities annually [10]. Group 8: Miscellaneous Provisions - Any matters not covered by this system will be governed by relevant national laws and regulations [11]. - The system becomes effective upon approval by the Board of Directors [11].