Cango Inc. Announces Change of Independent Registered Public Accounting Firm
Cango (NYSE: CANG), a leading automotive transaction service platform in China, announced the appointment of MaloneBailey, LLP as its new independent registered public accounting firm, replacing Ernst & Young Hua Ming LLP (EY) effective November 18, 2024. The change was approved by the Audit Committee and Board of Directors. EY's previous audit reports for 2022 and 2023 contained no adverse opinions or disagreements. The company confirmed there were no disagreements with EY on accounting principles, financial statements, or auditing procedures during 2022-2023 and through November 15, 2024.
Cango (NYSE: CANG), una piattaforma leader nel settore dei servizi di transazione automobilistica in Cina, ha annunciato la nomina di MaloneBailey, LLP come suo nuovo revisore contabile pubblico indipendente, sostituendo Ernst & Young Hua Ming LLP (EY), con effetto dal 18 novembre 2024. Il cambiamento è stato approvato dal Comitato di Controllo e dal Consiglio di Amministrazione. I precedenti rapporti di revisione di EY per il 2022 e il 2023 non contenevano opinioni sfavorevoli o disaccordi. La società ha confermato che non ci sono stati disaccordi con EY sui principi contabili, sui bilanci o sulle procedure di revisione durante il periodo 2022-2023 e fino al 15 novembre 2024.
Cango (NYSE: CANG), una plataforma líder en servicios de transacciones automotrices en China, anunció el nombramiento de MaloneBailey, LLP como su nueva firma de auditoría pública independiente, reemplazando a Ernst & Young Hua Ming LLP (EY), con efecto a partir del 18 de noviembre de 2024. El cambio fue aprobado por el Comité de Auditoría y la Junta Directiva. Los informes de auditoría anteriores de EY para 2022 y 2023 no contenían opiniones adversas ni desacuerdos. La empresa confirmó que no hubo desacuerdos con EY sobre principios contables, estados financieros o procedimientos de auditoría durante 2022-2023 y hasta el 15 de noviembre de 2024.
Cango (NYSE: CANG)은 중국의 자동차 거래 서비스 플랫폼으로, MaloneBailey, LLP를 새로운 독립 공인 회계 법인으로 임명했다고 발표했습니다. 이는 Ernst & Young Hua Ming LLP (EY)를 대체하는 것으로 2024년 11월 18일부터 시행됩니다. 이 변화는 감사위원회와 이사회에 의해 승인되었습니다. EY의 2022년 및 2023년 이전 감사 보고서에는 부정적인 의견이나 이견이 포함되어 있지 않았습니다. 회사는 2022-2023년 동안 및 2024년 11월 15일까지 EY와 회계 원칙, 재무 제표 또는 감사 절차에 관한 이견이 없었다고 확인했습니다.
Cango (NYSE: CANG), une plateforme leader de services de transaction automobile en Chine, a annoncé la nomination de MaloneBailey, LLP comme son nouveau cabinet d'audit public indépendant, remplaçant Ernst & Young Hua Ming LLP (EY) avec effet à partir du 18 novembre 2024. Ce changement a été approuvé par le Comité d'Audit et le Conseil d'Administration. Les précédents rapports d'audit de EY pour 2022 et 2023 ne contenaient aucune opinion défavorable ni désaccord. L'entreprise a confirmé qu'il n'y avait eu aucun désaccord avec EY sur les principes comptables, les états financiers ou les procédures de vérification pendant la période 2022-2023 et jusqu'au 15 novembre 2024.
Cango (NYSE: CANG), eine führende Plattform für Automobiltransaktionsdienste in China, gab die Ernennung von MaloneBailey, LLP als neues unabhängiges, öffentlich registriertes Wirtschaftsprüfungsunternehmen bekannt, das Ernst & Young Hua Ming LLP (EY) zum 18. November 2024 ersetzt. Die Änderung wurde vom Prüfungsausschuss und dem Vorstand genehmigt. Die bisherigen Prüfungsberichte von EY für 2022 und 2023 enthielten keine negativen Meinungen oder Meinungsverschiedenheiten. Das Unternehmen bestätigte, dass es während der Jahre 2022-2023 und bis zum 15. November 2024 keine Meinungsverschiedenheiten mit EY über Rechnungslegungsgrundsätze, Finanzberichte oder Prüfungsabläufe gab.
- Clean audit reports from EY for 2022 and 2023 with no adverse opinions
- Orderly transition with no reported disagreements or reportable events with previous auditor
- Change of auditor from Big Four firm (EY) to smaller firm (MaloneBailey) might raise concerns among investors
Insights
The change in auditors from Ernst & Young to MaloneBailey, LLP represents a significant downgrade in auditor prestige, which could raise concerns among investors. While EY is one of the Big Four accounting firms, MaloneBailey is a smaller firm, though still PCAOB-registered. The timing and nature of this switch warrant attention.
Several key points stand out:
- No disagreements or adverse opinions were reported in previous audits
- The change was approved by both Audit Committee and Board
- No prior consultation with MaloneBailey on significant accounting matters
This type of auditor change often signals cost-cutting measures, which could indicate financial pressure. However, the clean transition and absence of disagreements somewhat mitigate immediate concerns. Investors should monitor upcoming financial reports closely for any changes in accounting treatments or disclosure quality.
MaloneBailey succeeds Ernst & Young Hua Ming LLP ("EY"), which was the independent auditor providing audit services to the Company. The change of the Company's independent auditor was made after careful consideration and was approved by the Audit Committee and the Board of Directors of the Company. The decision to change the auditor of the Company was not as a result of any disagreement between the Company and EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
EY's audit reports on the Company's consolidated financial statements as of and for the years ended December 31, 2022 and 2023 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.
During each of the years ended December 31, 2022 and 2023, and during the subsequent period through November 15, 2024, there have been no (i) "disagreements" (as defined in Item 16F(a)(1)(iv) of Form 20-F and the related instructions thereto) between the Company and EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of the disagreement thereto in its reports on the consolidated financial statements for such years, or (ii) "reportable events" as that term is described in accordance with Item 16F(a)(1)(v) of Form 20-F.
During the Company's two most recent fiscal years ended December 31, 2023, and the subsequent period prior to the Company's engagement of MaloneBailey, neither the Company nor anyone acting on its behalf consulted MaloneBailey with respect to (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's consolidated financial statements, and neither a written report nor oral advice was provided to the Company that MaloneBailey concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, (ii) any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of the instructions to Form 20-F, or (iii) any reportable event as defined in Item 16F(a)(1)(v) of the instructions to Form 20-F.
The Company is working closely with EY and MaloneBailey to ensure a seamless transition.
The Company would like to express its sincere gratitude to EY for its professionalism and quality of services rendered to the Company over the past few years.
About Cango Inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Business Outlook" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Yihe Liu
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com
Helen Wu
Piacente Financial Communications
Tel: +86 10 6508 0677
Email: ir@cangoonline.com
View original content:https://www.prnewswire.com/news-releases/cango-inc-announces-change-of-independent-registered-public-accounting-firm-302308268.html
SOURCE Cango Inc.
FAQ
Why did Cango (CANG) change its auditor from Ernst & Young to MaloneBailey?
When will MaloneBailey begin serving as Cango's (CANG) auditor?
Were there any issues with Ernst & Young's previous audits of Cango (CANG)?
