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on the evening of september 5, country garden announced that, upon the company's suggestion, pricewaterhousecoopers (hereinafter referred to as pwc) agreed to resign as the company's auditor, effective from september 3.

this means that pwc has lost another "tens of millions" of yuan client. the reporter checked the latest public data and found that country garden paid pwc 14.2 million yuan in audit fees in 2022.

pwc does not meet the requirements

unlike other listed companies that dismissed pwc, country garden took the initiative to suggest that pwc resign this time.

country garden announced that it has recommended that pricewaterhousecoopers consider resigning as the company's auditor. pricewaterhousecoopers agreed to resign from the company with effect from september 3, in view of the current progress of the audit work and the company's relevant considerations.

country garden revealed that the company is actively promoting a comprehensive restructuring and working hard to resume trading of the company's shares on the hong kong stock exchange. the key is to complete the review of the 2023 consolidated financial statements as soon as possible, but pwc does not meet the relevant timetable requirements.

in response to this, country garden has appointed a new auditor, zhonghui anda accounting firm co., ltd., in accordance with relevant regulations, to fill the temporary vacancy left by pricewaterhousecoopers. the new auditor will take effect from september 5 and the term of office will last until the end of country garden's next annual general meeting of shareholders.

in its resignation letter, pwc stated that it is still waiting for country garden to provide the final draft of the 2023 consolidation scope and consolidated financial statements, relevant working papers and supporting documents.

lost another "million-yuan" order

country garden is the first "million-yuan" client that pwc lost in september. although country garden has not yet disclosed its audit fees for 2023, the audit fees it paid to pwc in 2022 amounted to 14.2 million yuan.

source: country garden 2022 annual report

country garden announced that the company recommended pricewaterhousecoopers to resign as auditor in view of its recent related matters and market information.

pricewaterhousecoopers' involvement in the evergrande real estate financial fraud scandal has become public. on may 31, the china securities regulatory commission's official website announced a decision to punish evergrande real estate for fraudulent bond issuance and illegal information disclosure, and mentioned that "investigations into relevant intermediary institutions are being promoted."

public information shows that before resigning in january 2023, pwc provided audit services to evergrande real estate for 14 consecutive years, and issued standard unqualified audit reports.

according to incomplete statistics from the reporter, pwc has lost nearly 40 a-share listed companies as clients. at the same time, some listed companies are still waiting for the results of regulatory investigations after renewing their contract with pwc as their audit agency for 2024.

recently, there have been rumors in the market that the regulator will announce relevant penalties against pricewaterhousecoopers. a relevant person in charge of shanghai jahwa once again responded to the reporter, saying that the company will closely monitor the progress of the pricewaterhousecoopers incident. if the company is punished and cannot practice, the company will make adjustments in accordance with relevant regulatory provisions.