ZHEJIANG DINGLI(SH:603338) Zheng Quan Zhi Xing·2025-07-18 09:17Core Viewpoint - The document outlines the selection and appointment procedures for accounting firms by Zhejiang Dingli Machinery Co., Ltd, aiming to enhance audit quality and protect shareholder interests [1][2]. Group 1: General Principles - The company establishes a system for the selection of accounting firms to ensure compliance with relevant laws and regulations, including the Company Law and the Shanghai Stock Exchange listing rules [1]. - The selection process must be approved by the Audit Committee and the Board of Directors, with final decisions made by the shareholders' meeting [1][2]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess independent legal status, necessary qualifications, and a good reputation for audit quality [2]. - Firms should have a solid organizational structure, internal management systems, and familiarity with relevant financial regulations [2]. Group 3: Selection Procedures - The company may use competitive negotiation, public selection, invitation selection, or single selection methods to ensure a fair and transparent process [3]. - Evaluation criteria for accounting firms include audit fees, qualifications, past performance, quality management, and resource allocation [3][4]. Group 4: Responsibilities of the Audit Committee - The Audit Committee is responsible for overseeing the selection process, evaluating the performance of the accounting firm, and reporting to the Board of Directors [4][5]. - The committee must ensure that the selection process adheres to established policies and internal controls [4]. Group 5: Appointment and Reappointment - The company can adjust audit fees based on various factors, and significant decreases in fees must be disclosed [5]. - If the Audit Committee recommends reappointment based on satisfactory performance, it must be approved by the Board and shareholders [5]. Group 6: Circumstances for Replacement - The company must replace the accounting firm if there are significant quality issues, inability to meet deadlines, or if the firm requests termination of services [7]. - The process for replacing an accounting firm must be timely to avoid delays in financial reporting [7]. Group 7: Supervision and Penalties - The Audit Committee must monitor for any irregularities, such as frequent changes in accounting firms or significant fluctuations in audit fees [8]. - Serious violations by the accounting firm can lead to termination of services and potential penalties for responsible individuals [8][9]. Group 8: Miscellaneous Provisions - The document specifies that any unaddressed matters will follow relevant laws and regulations, and the Board of Directors is responsible for interpreting the provisions [11][12].