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2: 2021 Annual Work Report of the Company’s Supervisory Board
2021 Document No. 2 for the Annual General Meeting
2021 Annual Work Report of the Company’s Supervisory Board
Dear Shareholders:
Hereby, the 2021 work report of the Company’s Supervisory Board is submitted to the Shareholders’ Meeting for your consideration.
I. Status of the Supervisory Board Meeting
2021 In the year, the company’s Supervisory Board held four meetings.
1 The Eighth Session of the Eighth Term of the Supervisory Board was held on April 22, 2021, in the Company’s Third-Floor Conference Room. The meeting reviewed and approved the Supervisory Board’s 2020 Annual Work Report; the audit opinions on the 2020 Annual Report and the First Quarter Report for 2021; the opinions on the Company’s 2020 Internal Control Evaluation Report; the opinions on the Company’s 2020 Corporate Social Responsibility Report; and the opinions on the Company’s provision for asset impairment.
2 The ninth meeting of the eighth session of the Supervisory Board was held on August 24, 2021, in the Company’s third-floor conference room. The meeting reviewed and approved the written report on the 2021 semi-annual results. Opinions on the review of the financial statements; opinions on the company’s provision for asset impairment.
3 The 10th meeting of the 8th Session of the Supervisory Board was held on October 27, 2021, in the Company’s Third-Floor Conference Room. The meeting reviewed and approved the written audit opinions on the Third-Quarter Report for 2021.
4 The 11th meeting of the 8th Session of the Supervisory Board was held on December 23, 2021, in the Company’s Third-Floor Conference Room. The meeting reviewed and approved the Report on Candidates for Shareholder-Representative Supervisors of the Company’s 9th Supervisory Board.
II. Independent Opinion on the Company’s Material Matters
The Supervisory Board hereby expresses the following independent opinion on the following matters:
1 — The company’s compliance with the law in its operations. The company’s decision-making procedures are lawful, and it has established a relatively comprehensive internal control system. During the performance of their duties, the company’s directors and managers have not engaged in any conduct that violates laws, regulations, the company’s articles of association, or that harms the company’s interests.
2 — Financial condition of the company. Shinewing Zhonghe Certified Public Accountants has issued an unqualified audit report. The financial statements faithfully reflect the company’s financial position and operating results.
3 During the reporting period, the company’s related-party transactions primarily involved the procurement of complete-project supporting products from affiliated companies, the sale of supporting components, and the transfer of equity interests. Such related-party transactions were conducted on a fair basis and did not prejudice the company’s interests.
4 The company’s provision for asset impairment in 2021 is consistent with the actual condition of the assets and with applicable policies and regulations; the board of directors’ decision-making procedures regarding this matter were lawful, thereby helping to ensure the reliability and accuracy of the accounting information.
5 The Company has established relevant systems for the registration and management of persons privy to inside information and has rigorously implemented these systems in accordance with their requirements. During the reporting period, no directors, supervisors, or senior management personnel engaged in unauthorized trading of the Company’s shares.
Supervisory Board of BingShan Cold & Heat Technology Co., Ltd.
2022 May 18, Year