Chapter 1 General Principles
Article 1
To standardize the selection (including new hires, renewals, and changes) of accounting firms by Yunhan Xincheng (Shanghai) Internet Technology Co., Ltd. (hereinafter referred to as "the Company"), safeguard shareholder interests, and improve the quality of financial information, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Management Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies, and other relevant laws, administrative regulations, departmental rules, normative documents, as well as the provisions of the Articles of Association of Yunhan Xincheng (Shanghai) Internet Technology Co., Ltd. (hereinafter referred to as "the Articles of Association"), and in consideration of the actual situation of the Company.
Article 2
The selection of accounting firms refers to the Company's engagement of accounting firms to issue audit opinions and audit reports on financial accounting reports in accordance with relevant laws and regulations. The Company may also engage accounting firms to conduct other statutory audit services, which shall be executed in accordance with this system.
Article 3
The hiring or dismissal of accounting firms by the Company must be reviewed and approved by the audit committee, submitted to the board of directors for deliberation, and decided by the shareholders' meeting. The Company shall not engage accounting firms to conduct audit services before the board of directors and shareholders' meeting have deliberated.
Article 4
The Company's controlling shareholders and actual controllers shall not designate accounting firms to the Company before the board of directors and shareholders' meeting deliberation, nor interfere with the audit committee's independent performance of its selection duties.
Chapter 2 Quality Requirements for Accounting Firms
Article 5
The accounting firms selected by the Company must meet the following conditions:
- Have independent legal status and complete the filing for securities services in accordance with the Measures for the Filing Management of Accounting Firms Engaging in Securities Services;
- Have a fixed workplace, a sound organizational structure, and a complete internal management and control system;
- Be familiar with national laws, regulations, rules, and policies related to financial accounting;
- Have registered accountants capable of completing audit tasks and ensuring audit quality;
- Be able to diligently execute relevant laws, regulations, rules, and policies regarding financial audits, and have a good social reputation and record of professional quality;
- The registered accountants responsible for the Company's financial statement audits and signing the audit reports must not have received administrative penalties from regulatory bodies for violations of securities and futures laws in the past three years;
- Meet other conditions required by national laws, regulations, rules, or normative documents.
Chapter 3 Procedures for Selecting Accounting Firms
Article 6
The following institutions or individuals may propose the hiring of accounting firms to the Company's board of directors:
- The audit committee;
- More than half of the independent directors;
- More than one-third of the directors.