Huading Nylon(SH:601113) Zheng Quan Zhi Xing·2025-08-18 10:19Core Viewpoint - The document outlines the selection and appointment procedures for accounting firms by Yiwu Huading Nylon Co., Ltd, aiming to ensure the quality of audit work and the authenticity of financial information [1][2]. Group 1: General Principles - The selection of accounting firms must comply with relevant laws and regulations, including the Company Law of the People's Republic of China and the Shanghai Stock Exchange listing rules [1]. - The company must not engage an accounting firm for audit services before obtaining approval from the board of directors and the shareholders' meeting [1][2]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess independent legal status and necessary qualifications to conduct securities-related business [2]. - Firms must have a stable workplace, sound organizational structure, and a good record of compliance with financial auditing laws [2]. Group 3: Selection Procedures - The audit committee is responsible for proposing the selection of accounting firms and overseeing the audit process [3]. - The selection process must be fair and transparent, utilizing competitive negotiation, public bidding, or other methods to assess the capabilities of the firms [4][5]. Group 4: Evaluation and Adjustment of Audit Fees - The company must establish detailed evaluation criteria for the selection of accounting firms and maintain records of evaluation opinions [6]. - Audit fees can be adjusted based on factors such as consumer price index changes and business complexity, with significant decreases requiring disclosure [6][7]. Group 5: Special Provisions for Reappointment - The audit committee must evaluate the performance of the accounting firm before reappointment, and if the evaluation is negative, a new firm must be appointed [6][8]. - If the accounting firm has significant quality issues or fails to meet deadlines, the company must change the firm [8][9]. Group 6: Supervision and Penalties - The audit committee is tasked with supervising the selection process and ensuring compliance with laws and regulations [22]. - Violations of the selection process may lead to penalties for responsible individuals, including potential dismissal of the accounting firm [23]. Group 7: Implementation and Amendments - The selection system will be effective upon approval by the board of directors and will be amended as necessary [24][25].