HPH Announces Change of Independent Auditor

Rhea-AI Summary

Highest Performances Holdings Inc. (NASDAQ: HPH) announces changing its independent auditor from Marcum Asia CPAs LLP to Deloitte Touche Tohmatsu Certified Public Accountants LLP. The transition was approved by the audit committee and the board of directors, with no disagreements or reportable events during the previous fiscal years.

Insights

Financial Analyst

The change of an independent auditor for a publicly traded company, such as Highest Performances Holdings Inc., is a significant event that may influence investor confidence. The transition from Marcum Asia to Deloitte, a firm with a global reputation, could be perceived as a strategic move to align with a more internationally recognized auditor. This shift might aim to enhance the credibility of financial reports, especially if the company is looking to attract more global investors or considering cross-border transactions.

It is important to note that the previous auditor's reports did not contain any adverse opinions, which suggests that the financial statements were fairly presented. The lack of disagreements and reportable events in the past fiscal years indicates a smooth auditing process. Investors should monitor if the new auditor will maintain the same level of transparency and whether any new insights or adjustments will emerge from Deloitte's future audits.

Corporate Governance Expert

The board's decision to switch auditors is a governance action that reflects the company's internal control and risk management priorities. The unanimous approval by the audit committee and the board underscores the importance of this decision. The seamless transition between auditors is important for maintaining the integrity of the company's financial reporting.

For stakeholders, it is essential to assess the board's rationale behind the change. If the move to Deloitte is part of a broader strategy to improve governance standards, it could signal a positive long-term commitment to robust financial oversight. However, stakeholders should remain vigilant for any subsequent changes in financial disclosures that might arise from the new auditor's different perspective or methodologies.

GUANGZHOU, China, April 02, 2024 (GLOBE NEWSWIRE) -- Highest Performances Holdings Inc. (NASDAQ: HPH) (“HPH” or the “Company”), today announced that with approval from the audit committee and the board of directors (the “Board”) of the Company, it has changed its independent auditor from Marcum Asia CPAs LLP (“Marcum Asia” or the “Former Auditor”) to Deloitte Touche Tohmatsu Certified Public Accountants LLP (“Deloitte” or the “Successor Auditor”) effective March 29, 2024. 

The audit reports of Marcum Asia on the financial statements of the Company as of and for the years ended June 30, 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 the fiscal years ended June 30, 2022 and 2023 and in the subsequent interim period through March 29, 2024, there have been no disagreements (as described under Item 16F(a)(1)(iv) of Form 20-F) between the Company and Marcum Asia on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures. None of “reportable events”, as that term is described in Item 16F(a)(1)(v) of Form 20-F, occurred within the two fiscal years of the Company ended June 30, 2022 and 2023 and subsequently up to the date of dismissal.

The Board would like to express its sincere gratitude to Marcum for its professionalism and quality of services rendered to the Company over the past years. The Company is working closely with Deloitte and Marcum to ensure a seamless transition.

About HPH

Established in 2010, HPH is dedicated to becoming a leading provider for intelligent home and enterprise services. Guided by the mission to enhance the quality of life for all families, HPH focuses on two core driving forces: “technological intelligence” and “capital investments,” with a global strategic perspective. It identifies high-quality enterprises with potential on a global scale and engages in investment and operations in areas such as asset allocation, education and study tours, cultural tours, sports events, healthcare and elderly care, and family governance.

HPH currently owns Fanhua Inc., a leading technology-driven financial services platform in China, and Fanhua Puyi Fund Distribution Co., Ltd., a leading independent wealth management service provider in China. It has signed an agreement to acquire controlling interests in Singapore White Lingjun Pte. Ltd.

HPH was formerly known as Puyi Inc., and it was renamed on March 13, 2024 to reflect its strategic transformation.

Forward-looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When HPH uses words such as “may”, “will”, “intend”, “should”, “believe”, “expect”, “anticipate”, “project”, “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from HPH’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: HPH’s goals and strategies; HPH’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the third-party wealth management industry in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets HPH serves and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by HPH with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in HPH’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. HPH undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

FAQ

Why did Highest Performances Holdings Inc. change its independent auditor?

Highest Performances Holdings Inc. changed its independent auditor from Marcum Asia CPAs LLP to Deloitte Touche Tohmatsu Certified Public Accountants LLP with approval from the audit committee and the board of directors.

When did the transition to the new auditor take effect?

The transition to the new auditor, Deloitte Touche Tohmatsu Certified Public Accountants LLP, took effect on March 29, 2024.

Were there any disagreements between the Company and the former auditor, Marcum Asia CPAs LLP?

There were no disagreements between Highest Performances Holdings Inc. and the former auditor, Marcum Asia CPAs LLP, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.

Did any reportable events occur during the previous fiscal years?

No reportable events, as described in Item 16F(a)(1)(v) of Form 20-F, occurred within the two fiscal years ended June 30, 2022, and 2023, and subsequently up to the date of dismissal.

How is the Company ensuring a smooth transition to the new auditor?

The Company is working closely with both Deloitte and Marcum to ensure a seamless transition to the new auditor.