Huaxing Capital Holdings (01911) announced that the company auditor Deloitte Guanhuang Chen Fang will not be able to complete their audit work and issue the auditor's report until (i) can contact Bao Fan and learn about the matter; and (ii) complete additional audit procedures that may arise from the above matters. As a result, the company was unable to determine when it would be able to complete the audit of the 2022 annual results. To ensure that the 2022 annual results can be announced as soon as possible, the board of directors believes that appointing another auditor and completing the audit work as soon as practicable is more in the overall best interests of the company and its shareholders. As a result, the company has notified Deloitte of its decision to change the company's auditors.
Following these communications, Deloitte has resigned as the company's auditor, effective December 13, 2023, and stated in the resignation letter that the impact of the change of auditor is that it will not be able to complete the audit of the Group's consolidated financial statements for the year ending December 31, 2022, as originally planned, and will not be able to fulfill its public interest responsibility for reporting to the company's shareholders in accordance with the appointments made at the company's previous annual general meeting of shareholders. After careful consideration, Deloitte believes that the decision of the board of directors to appoint another auditor to replace Deloitte as the company's auditor makes it difficult to maintain the professional relationship between Deloitte and the company. As a result, Deloitte decided to step down as the company's auditor.
The company's board of directors further announced that after considering the recommendations of the audit committee, it has decided to appoint Zhonghui Anda Certified Public Accountants Co., Ltd. as the company's new auditor, effective December 13, 2023, to fill the temporary vacancies after Deloitte's resignation. The term of office is until the end of the company's next annual shareholders' meeting.