Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2024-49
Hangzhou Turbine Power Group Co., Ltd.
Announcement on the Change of Accounting Firm
The members of the Board and the Company acknowledge being responsible for the truthfulness,
accuracy, and completeness of the announcement. Not any false record, misleading statement or
significant omission carried in this announcement.
Special Reminder:
1. Name of the accounting firm to be hired: Grant Thornton Certified Public Accountants
(LLP) (hereinafter referred to as "Grant Thornton").
2. Name of the accounting firm originally hired: Pan-China International Certified Public
Accountants (LLP) (hereinafter referred to as "Pan-China").
3. Reason for changing the accounting firm: According to the relevant regulations of the
Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the
State Council and the China Securities Regulatory Commission on the accounting firms
continuously undertaking the financial audit of state-owned enterprises and listed companies, the
Pan-China accounting firm originally hired by the Company to provide audit services for the
Company has exceeded the specified period.
4. The change of accounting firm is in accordance with the provisions of the Administrative
Measures for the Selection and Employment of Accounting Firms by State-owned Enterprises and
Listed Companies (No. 4 [2023] Cai Kuai) (hereinafter referred to as the "Administrative
Measures") issued by the Ministry of Finance, the State-owned Assets Supervision and
Administration Commission of the State Council and the China Securities Regulatory Commission.
Hangzhou Turbine Power Group Co., Ltd. (hereinafter referred to as the "Company" or "the
Company") held the seventh meeting of the 7th Meeting of the 9th Board of Directors. and the 6th
Meeting of the 9th Supervisory Board on July 2, 2024, in which the "Proposal on Changing the
Accounting Firm" was deliberated and passed, agreed to appoint Grant Thornton as the Company's
auditor in 2024 and agreed to submit the proposal to the Company's shareholders' meeting for
deliberation. The relevant matters are hereby announced as follows:
I. The basic information of the accounting firm to be hired
(1) Institutional information
1. Basic Information
Founded in 1981, Grant Thornton was approved by the Beijing Municipal Bureau of Finance
on December 22, 2011 to transform into a LLP, and in 2012 its name was changed to Grant
Thornton Certified Public Accountants (LLP), with registered address: 5th Floor, Scitech Plaza, No.
22 Jianguomenwai Street, Chaoyang District, Beijing, and with Li Huiqi as chief partner.
As of the end of 2023, Grant Thornton has 225 partners, 1,364 certified public accountants,
and more than 400 certified public accountants who have signed audit reports on securities service
business.
The audited business income of Grant Thornton in 2023 was 2,703,373,200 yuan, of which
the audit business income was 2,204,595,000 yuan and the securities business income was
501,833,400 yuan.
In 2023, the number of audit clients of listed companies was 257, and the industries of listed
companies involved include: manufacturing; information transmission, software and information
technology services; wholesale and retail trade; electricity, heat, gas and water production and
supply; transportation, warehousing and postal services (according to the industry classification of
the China Securities Regulatory Commission, the same below), with the total audit fee was
354,812,100 yuan. In 2023, 174 listed companies in the manufacturing industry were the audit
clients.
2.Investor protection capabilities
Grant Thornton has provisioned an occupational risk fund of 8,150,900 yuan, and the
cumulative compensation limit of the purchased occupational insurance is 90 million yuan, and the
withdrawal of the occupational risk fund and the purchase of occupational insurance are in
accordance with the relevant regulations. The relevant professional liability insurance can cover
civil liability for audit failures. Grant Thornton is not required to bear civil liability for civil
lawsuits related to professional conduct that have been concluded in the past three years.
3. Integrity record
In the past three years, Grant Thornton has received 0 criminal penalties, 0 administrative
penalties, 10 supervision and management measures, 3 self-discipline supervision measures and 1
disciplinary punishment for its professional conduct. In the past three years, 30 practitioners have
received 0 criminal penalties, 0 administrative punishments, 10 supervision and management
measures, 3 self-discipline and supervision measures, and 1 disciplinary punishment for their
professional behavior.
(II) Project information
1. Basic Information
Project Partner and Signing CPA: Mr. Li Shilong, became a certified public accountant in
2009, began to engage in the audit of listed companies in 2007, and began to practice in Grant
Thornton in 2015; In the past three years, 6 audit reports of listed companies and 2 audit reports of
companies listed on the New Third Board were signed.
Signing Certified Public Accountant: Mr. Zhu Zemin, became a certified public accountant in
2017, began to engage in the audit of listed companies in 2012, and began to practice in Grant
Thornton Certified Public Accountants in 2017; In the past three years, 4 audit reports of listed
companies and 4 audit reports of companies listed on the New Third Board were signed.
Project quality control reviewer: Ms. Xi Qiong, became a certified public accountant in 2003,
began to engage in the audit of listed companies in 2002, began to practice in Grant Thornton
Certified Public Accountants in 2007, became a quality control partner of the firm in 2015, and
reviewed 9 audit reports of listed companies in the past three years.
2. Integrity record
In the past three years, the project partner, the signing certified public accountants and the project
quality control reviewer have not been subject to criminal punishment, administrative penalties,
supervision and management measures by the China Securities Regulatory Commission and its
dispatched agencies and industry authorities for their professional conduct, and have not been
subject to self-regulatory measures or disciplinary actions by self-regulatory organizations such as
securities trading venues and industry associations.
3. Independence
There are no circumstances that may affect the independence and the preventive measures to be
taken for the proposed accounting firm and project partners, signing certified public accountants,
project quality control reviewers, etc.
4. Audit fees
According to the specific workload and market price level of the Company's annual report audit,
the remuneration for the audit business of the 2024 annual report is 1,099,000 yuan after public
bidding. The remuneration paid by the Company to Pan-China for the audit of the 2023 annual
report was 1.3 million yuan.
II. A description of the proposed change of accounting firm
(1) The situation of the former accounting firm and the audit opinion of the previous year
The Company's predecessor auditor, Pan-China, has provided audit services for the Company for
25 consecutive years. Pan-China audited the Company's 2023 annual financial report and issued a
standard unqualified audit report. There was no situation that the Company dismissed the former
accounting firm where entrusted it to carry out part of the audit work.
(2) The reason for the proposed change of accounting firm
In view of the fact that Pan-China has been providing audit services for the Company for many
years, in order to implement the relevant requirements of the "Management Measures" and ensure
the independence and objectivity of the audit work, the Company intends to hire Grant Thornton
to provide audit services for the Company in 2024. The Company has fully communicated with
the former accounting firm on the change of accounting firm, and the former accounting firm has
no objection to the change.
(3) The communication between the listed company and the former accounting firm and the
successor accounting firm
The Company has communicated with Pan-China about the proposed change of accounting firm,
and the former accounting firm has been aware of this matter and has no objection to this change.
In view of the fact that the Company's change of accounting firm still needs to be submitted to the
shareholders' meeting for deliberation, the former and the successor accounting firm will actively
communicate and cooperate with each other in accordance with relevant regulations.
III.The procedures to be performed by the proposed change of the accounting firm
(1) The performance of duties by the Audit Committee
The audit committee of the Company reviewed the relevant qualifications and experience of Grant
Thornton, as well as the qualifications and independence of the signing project partners, certified
public accountants and quality control reviewers, and considered that Grant Thornton has
experience in providing audit services for a number of listed companies, can meet the work
requirements of the Company's financial audit, has independence, and has the professional ability
and investor protection ability to be competent for the Company's financial audit work in 2024. It
approved the appointment of Grant Thornton as the Company's accounting firm for 2024 and to
submit it to the board of directors of the Company for deliberation.
（II） Review and voting of proposal by the board of directors and the supervisory board
The proposal on changing the accounting firm was approved in the 7th meeting of the 9th board of
directors of the Company, and agreed to appoint Grant Thornton as the Company's audit auditor
for the year 2024. The voting was 9 in favor, 0 against, and 0 abstention.
The "Proposal on Changing the Accounting Firm" was deliberated and passed in the sixth meeting
of the ninth board of supervisors of the Company, and agreed to the Company's appointment of
Grant Thornton as the Company's auditor in 2024, with 3 votes agreed, 0 votes against, and 0
abstentions.
(III) Effective date
The appointment of the accounting firm still needs to be submitted to the Company's shareholders'
meeting for deliberation, and will take effect from the date of deliberation and approval of the
Company's shareholders' general meeting.
1. Resolution of the third meeting of the Ninth Session Audit Committee ;
2. An explanation of Grant Thornton's basic situation.
IV. Documents available for inspection
1. Resolutions of the 7th Meeting of the 9th Board of Directors;
2. Resolutions of the 6th Meeting of the 9th Supervisory Board;
3. Resolution of the third meeting of the Ninth Session Audit Committee ;
4. An explanation of Grant Thornton's basic situation.
The Supervisory Board of Hangzhou Turbine Power Group Co., Ltd.
July 3, 2024
