HG Technologies (SZ:300847) Zheng Quan Zhi Xing·2025-07-15 16:24Core Viewpoint - The document outlines the selection and management procedures for accounting firms by China Shipbuilding Industry Corporation Han Guang 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][2]. - The selection process involves the audit committee's review and approval, followed by the board of directors and ultimately the shareholders' meeting [2][3]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess independent qualifications, relevant licenses, and a good reputation without recent administrative penalties related to securities and futures [4][5]. - The firms must have a solid organizational structure, effective internal controls, and qualified registered accountants to ensure audit quality [4][5]. Group 3: Selection Procedures - The audit committee is responsible for the selection process, which includes defining policies, initiating the selection, and evaluating proposals [3][4]. - The selection methods must ensure fairness and transparency, including public bidding and competitive negotiations [4][5]. Group 4: Evaluation Standards - Evaluation criteria for accounting firms include audit fees, qualifications, past performance, quality management, and resource allocation [5][6]. - Quality management must account for at least 40% of the evaluation score, while audit fees should not exceed 15% [5][6]. Group 5: Audit Fees - The average audit fee from all compliant proposals serves as the benchmark for evaluation, with specific formulas to calculate scores [6][7]. - Adjustments to audit fees during the engagement period can be made based on various economic factors, with significant decreases requiring disclosure [6][7]. Group 6: Supervision and Penalties - The audit committee must monitor the performance of the accounting firms and ensure compliance with legal and regulatory standards [10][11]. - Serious violations by accounting firms can lead to penalties, including termination of contracts and reporting to the board of directors [11][12]. Group 7: Information Security - The company must assess the information security capabilities of accounting firms during the selection process and include specific clauses in contracts to protect sensitive information [12][13]. - Ongoing oversight of information security practices is required to prevent data breaches [12][13].