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on the evening of september 24, jiangling motors announced that the company's board of directors recommended the dismissal of pricewaterhousecoopers zhongtian llp (hereinafter referred to as pwc), mainly because pwc was recently punished by regulators.

in comparison, pwc will lose an audit order that has lasted for four consecutive years, with a total order amount approaching tens of millions of yuan, while the orders it lost previously were mainly for one-year periods.

a 4-year audit order will be lost

in june 2021 and april 2024, the shareholders' meeting of jiangling motors approved the appointment of pricewaterhousecoopers as its external auditor and internal control auditor for 2024 to 2027, respectively.

that is, pwc had previously won jiangling motors' audit business orders for four consecutive years.

now, jiangling motors plans to dismiss pricewaterhousecoopers, which means the latter will lose an audit order for four consecutive years and will lose audit business income of 9.52 million yuan.

according to jiangling motors' previous announcement, the company appointed pricewaterhousecoopers as its external auditor and internal control auditor for 2024, with a total audit fee of 2.32 million yuan.

at the same time, jiangling motors previously appointed pricewaterhousecoopers as its external auditor and internal control auditor from 2025 to 2027, with an annual audit fee of 2.4 million yuan, totaling 7.2 million yuan in three years.

jiangling motors announced that the company's proposal to dismiss pricewaterhousecoopers still needs to be submitted to the shareholders' meeting for deliberation and approval, and the company will re-select external auditors and internal control auditors for 2024 to 2026.

as of the close of september 24, the total market value of jiangling motors was 19.12 billion yuan.

the impact of regulatory penalties continues to emerge

jiangling motors announced that the company plans to dismiss pwc due to the recent punishment imposed by the ministry of finance and the possible impact on the company's 2024 annual report work.

on the evening of september 13, the china securities regulatory commission and the ministry of finance announced that they had imposed a maximum fine of 441 million yuan on pricewaterhousecoopers. the ministry of finance's penalty on pricewaterhousecoopers also included a six-month suspension of business operations.

suspension of business operations for six months is called a “qualification penalty.” previously, some companies had their accounting firms punished with “qualification penalties,” which caused related capital operation projects to be put on hold, and they could only continue to move forward after they changed firms according to relevant requirements.

according to incomplete statistics from reporters, since september 13, five a-share companies have dismissed or plan to dismiss pricewaterhousecoopers, including jiangling motors, ningbo bank, suzhou bank, kejie intelligent, and citic publishing.

among them, the audit agencies hired by ningbo bank and suzhou bank are both ernst & young huaming accounting firm (special general partnership), while the audit agency hired by kejie intelligent is kpmg huazhen accounting firm (special general partnership), both of which are one of the "big four accounting firms in the world" on par with pricewaterhousecoopers.