Vipshop Updates the Status Under Holding Foreign Companies Accountable Act
Vipshop Holdings Limited (NYSE: VIPS), a prominent online discount retailer in China, disclosed its provisional identification as a Commission-Identified Issuer under the Holding Foreign Companies Accountable Act on May 4, 2022. This identification suggests that the SEC found the company used an accounting firm whose work cannot be fully inspected by the PCAOB. If identified for three consecutive years, Vipshop could be prohibited from trading on U.S. exchanges. The company plans to monitor these developments and maintain compliance with U.S. and Chinese regulations.
- None.
- Provisional identification as a Commission-Identified Issuer could lead to trading restrictions if SEC findings persist for three consecutive years.
- Use of an accounting firm that the PCAOB cannot fully inspect raises compliance and operational risks.
GUANGZHOU, China, May 5, 2022 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today updates its status under the Holding Foreign Companies Accountable Act (the "HFCAA"). The Company was provisionally named by the United States Securities and Exchange Commission (the "SEC") as a Commission-Identified Issuer on May 4, 2022 U.S. Eastern Time, following the Company's filing of the annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on April 27, 2022.
The Company understands that this identification under the HFCAA and its implementation rules issued thereunder indicates that the SEC determines that the Company used a registered public accounting firm whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States (the "PCAOB") to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021.
In accordance with the HFCAA, the SEC will prohibit a company's shares or American depositary shares from being traded on a national stock exchange or in the over-the-counter trading market in the United States if the company has been identified by the SEC for three consecutive years due to PCAOB's inability to inspect the auditor's working paper.
The Company will monitor market developments and evaluate all strategic options. The Company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on the New York Stock Exchange.
About Vipshop Holdings Limited
Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. 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 and quotations from management as well as Vipshop's strategic and operational plans also contain forward-looking statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 Vipshop'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: Vipshop's goals and strategies; Vipshop's future business development, results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop's ability to attract customers and brand partners and further enhance its brand recognition; Vipshop's expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com
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SOURCE Vipshop Holdings Limited
FAQ
What is the significance of Vipshop's identification under the Holding Foreign Companies Accountable Act?
What consequences could Vipshop face due to its provisional designation by the SEC?
When did Vipshop file its annual report that prompted the SEC's identification?
How does Vipshop plan to respond to its current regulatory status?
