Stock： WazhouB Code：200706 No.：2023-08
Wafangdian Bearing Co., LTD Announcement
About the renewal of the Accounting networks and associations
Our company, the whole members of the board of directors and top managements ensured the truth,
accuracy, completeness, no false record, misleading statement and fatal omit of the announcement.
Wafangdian Bearing Co. , Ltd. (hereinafter referred to as “The company”)2023 the fourth
meeting of the Ninth Board of directors and the Fourth Meeting of the Ninth Board of Supervisors
on April 26, to consider and pass the motion on renewal of Accounting networks and associations.
On the recommendation of the Audit Committee of the Board of Directors of the company, it has
agreed to retain the Accounting networks and associations (Special General Partnership) as the
auditor of the 2023 of the company and to submit the proposal to the General Meeting for
consideration, the relevant matters are hereby announced as follows:
1.Basic information on the proposed Accounting networks and associations for 2022
(1) Institutional information
1) Basic information
BOD China Shu Lun Pan Certified Public Accountants LLP (hereinafter referred to as Shu Lun Pan)
was founded by Dr. ShuLun Pan, pioneer of China’s accounting profession, in Shanghai in 1927,
and was reincorporated in 1986. In 2020, Shu Lun Pan CPAs changed from a limited corporation
to a limited liability partnership (LLP), the first accounting LLP in China’s history.Registered
address of Shu Lun Pan is at 4th floor, No.61 Nanjing East Road, Huangpu District, Shanghai, and
the lead partner is Mr. Zhu Jiandi. Shu Lun Pan is a member firm of BDO, an international
accounting network with long-term securities services business engaged in. Prior to the
implementation of new securities act, they has securities and futures business license and
qualified to audit H share, and registered with the U.S Public Company Accounting oversight Board
(PCAOB).
As of end of 2022, Shu Lun Pan has 267 partners, 2392 certified public accountants, 674 certified
public accountants who have signed the audit reports for securities service business.
The revenue(audited) of 2022 from Shu Lun Pan was 4614 million yuan. In 2022, Shu Lun Pan
provided annual report audit services for 646 listed companies with audit fees of 817 million yuan,
and 53 audit clients of listed companies in the same industry.
2）Investor protection capability
As of end of 2022, Shu Lun Pan has withdrawn 161 million yuan from its professional risk funds
and purchased an occupational insurance with a cumulative limit of 1250 million yuan, relevant
Stock： WazhouB Code：200706 No.：2023-08
occupational insurance is able to cover the civil liability due to audit failures.
Civil liability in civil litigation related to the practice in the last three years:
Prosecut
or
Respondent(arbitrees) Events Amount Results
(arbitrato
r)
The joint and several liability, the
Estimate occupational insurance insured by
GEEYA Annual
d 45 Shu Lun Pan is sufficient to cover
Investor TECHNOLOGY, Zhou Report of
million the amount of compensation, all
Xuhui, Shu Lun Pan 2014
yaun judgments in force have now been
fulfilled
The first trial decision ruled that
Reorganizat Shu Lun Pan was liable for
ion in 2015, supplementary damages for the
Annual 15% of the liabilities incurred by
Bao Qianli, Northeast Report of 0.8 Bao Qianli for misrepresentation
Investor Securities, Yinxin CPV, 2015 and million of securities to investors during
Shu Lun Pan, etc. yuan the period from December 30,
Annual
Report of 2016 to December 14, 2017, the
2016 occupational insurance is
sufficient to cover the amount of
compensation.
The case has gone to court
Investor CHENGDU GEEYA Annual 174.3 and has not yet been
TECHNOLOGY Report thousand decided. The employment
CO.,LTD 、Zhou Xuhui、 Yuan insurance that Ericsson has
BDO China Shu Lun tak en out is sufficient to
Pan CPAs cover the compensation.
Bao Qianli 、
Investor NORTHEAST IPO and Not The case has yet to go to trial and
SECURITIES 、YINXIN annual counted Tachinobu’s employment
APPRAISAL CO.,LTD.、Report insurance covers the damages.
BDO China Shu Lun
Pan CPAs (Including
but not limited to listed
above)
Investor Xinjiang Yilu Wanyuan Annual Not The case has yet to go to trial
Industrial Holding Report counted and Tachinobu’s employment
Co.,Ltd. 、 BDO China insurance covers the damages.
Shu Lun Pan CPAs
(Including but not limited
to listed above)
Guangdong Bobaolon The case has yet to go to trial
Investor CO.,LTD.、BDO China Annual Not and Tachinobu’s employment
Shu Lun Pan CPAs 、 Report counted insurance covers the damages.
GUOSEN
SECURITIES 、
ZHONGXINGCAI
GUANGHUA
CERTIFIED PUBLIC
ACCOUNTANTS LLP、
SHU JIN LAW FIRM
(Including but not limited
to listed above)
Stock： WazhouB Code：200706 No.：2023-08
3） Independence and integrity record
There is no violation of the independence requirements of the China Code of Ethics for Certified
Public Accounts by proposed signing partner, signing accountant and quality control reviewer.
In the past three years, Shu Lun Pan has received 0 criminal penalties, 2 administrative penalty, 30
supervisory and management measures, 2 self-regulatory measures and 82 practitioners involved.
（2）Partner and signatory certified public accountant
1）The project partners:
Item Name Practice time
Project partner Qi Tao 2002
Project partner Qi Tao, who became a Certified Public Accountant in 2002, started auditing listed
companies in 2002, started practicing in the firm in 2012, and started providing audit services to
the firm in 2022. In the past three years, he has signed or reviewed the audit reports of many
enterprises, such as Shenzhen Agricultural Products Group Co. , Ltd. , Shenzhen Xinwei
Communication Co. , Ltd. and Haibo Heavy Engineering Technology Co. , Ltd. .
2）Signatory CPA:
Commencement of audit for
Item Name Practice time
the listed companies
Signatory CPA Huang Jin December 2018 July 1998
Signature Certified Public Accountant: Huang Jin, Certified Public Accountant in 2018, started to
audit listed companies in 1998, started to practice in the firm in 2018, and started to provide audit
services to the firm in 2022. In the past three years, I have signed or reviewed the audit reports of
many enterprises, such as Shenzhen Agricultural Products Group Co. , Ltd. , Shenzhen Xinwei
Communication Co. , Ltd. , Shenzhen Koth Technology Co. , Ltd. .
3) Review partner:
Commencement of audit
Item Name Practice time
for the listed companies
Quality control reviewer Cui Song 2003 2002
Quality Control reviewer name: Cui Song, Certified Public Accountant in 2003, started auditing
listed companies in 2003, started practicing in the firm in 2013, and started providing audit services
to the firm in 2022. Nearly three years of employment: has signed or reviewed the Wuhan
zhongketongda high-tech Co. , Ltd. , Wuhan Dir Laser Technology Co. , Ltd. , and other enterprise
audit reports.
Stock： WazhouB Code：200706 No.：2023-08
4）Independence and integrity record of project team members
The project partner, Certified Public Accountant and quality control reviewer did not violate the
independence requirements of the code of Professional Ethics for Chinese Certified Public
Accountant.
(3)Audit fees
The total audit fees of the annual report and internal control for year of 2022 were 700,000 yuan
(tax inclusive, including travel and correspondence costs, etc.). Cost of audit for financial report is
550,000 yuan and 150,000 yuan for the internal control audit.
The above-mentioned persons have no adverse record in the past three years
2. The approval procedures to be followed for the proposed renewal of the Accounting
networks and associations
(1) The Board of Directors' consideration and voting on the bill
The Board of directors of the company considered that the Accounting networks and associations
(Special General Partnership) was qualified to engage in securities-and futures-related businesses
and had the experience and ability to provide audit services to listed companies, in the work of
providing audit service for the company, we can follow the professional standards of independence,
objectivity and impartiality and perform our duties diligently, thus providing high-quality audit
service for the company, its report can objectively and truthfully reflect the actual situation, financial
situation and operating results of the company, effectively carry out the duties of the audit
institution, and safeguard the legitimate rights and interests of the company and shareholders from
a professional perspective. Therefore, it is recommended that the company continue to employ the
reliance Accounting networks and associations (Special General Partnership) as an auditor of the
company’s 2023 for a period of one year. The fourth meeting of the Ninth Board of directors of the
company on the “Motion on the renewal of Accounting networks and associations” vote: YES 12
votes, no 0 votes, abstention 0 votes;.
(2) The performance of the Board of Directors' Audit Committee
The board reviewed the credentials, relevant information and integrity records of Ericsson and
recognized its independence, professional competence and investor protection. Believing that
Reliance was able to complete its audit in accordance with its 2022 financial report audit plan and
issued its audit opinion on the company’s 2022 financial report as scheduled, and that in carrying
out the company’s 2022 audits, able to conduct audit in accordance with Chinese Certified Public
Accountant auditing standards and observe professional ethics. The related audit opinions are
objective and fair, and the work entrusted by the company has been well completed. Agreed to
submit the motion on renewal of Accounting networks and associations to the fourth meeting of the
Ninth Board of directors of the company for consideration.
(3)The prior approval and independent opinion of the independent director
Stock： WazhouB Code：200706 No.：2023-08
Prior approval: Ericsson Accounting Networks and associations (Special General Partnership) is
qualified in the securities business and has years of experience and capability in providing audit
services to listed companies, be able to meet the requirements of the company's 2023 financial
audit. As such, the Accounting networks and associations agrees to submit the motion to the fourth
meeting of the Ninth Board of directors of the company for consideration. Independent Opinion: the
2023 of the company to re-employ the Accounting networks and associations (Special General
Partnership) as the auditor is determined after full communication and careful consultation
between the two parties; That the agency and its personnel have not been found to have engaged
in any conduct prejudicial to professional ethics and quality control, or that the company and its
personnel have engaged in any conduct that affects or attempts to affect the independence of the
audit, the decision of the Board of directors of the company to continue to employ the 2023 as an
auditor was made in accordance with the Articles of Association of the company and relevant laws
and regulations, taking into account the previous work of the agency and other premises made, for
good reason, agreed to submit to the 2022 Annual General Meeting for consideration.
(4)Effective date
The renewal of the Accounting networks and associations is subject to the approval of the 2022
Annual General Meeting of the company and will take effect on the date of its approval.
3.File
1.Resolution of the fourth meeting of the Ninth Board of trustees;
2. Prior approval and independent opinions signed by the independent directors;
3. LIXIN Accounting networks and associations (Special General Partnership) Business License,
Principal and supervisory business contact information and contact information, identity Certified
Public Accountant, license and contact information of the person to be responsible for the specific
audit business.
Hereby noticed
Board of Director of Wafangdian Bearing
Company limited
April 27,2023
Stock： WazhouB Code：200706 No.：2023-08
