CNFinance Transitions to New Auditor: Updates and Implications

CNFinance Changes Auditor: An Overview

Introduction

In an important announcement on December 6, 2024, CNFinance Holdings Limited, a prominent provider of home equity loans in China, disclosed a significant change in its auditing firm. The company has dismissed its previous auditor, KPMG Huazhen LLP, and appointed HTL International, LLC as its new independent registered public accounting firm. This decision comes after a detailed evaluation process and has been approved by CNFinance’s audit committee.

Details of the Change

The transition to HTL International is effective for the fiscal year ending December 31, 2024. CNFinance has emphasized that the reports issued by KPMG regarding the company’s consolidated financial statements for the years 2022 and 2023 were not adversely qualified, indicating the firm’s solid audit practices over the past years. Despite this transition, it’s important to note that there were no prior disagreements regarding accounting principles or practices between CNFinance and KPMG.

Smooth Transition Process

CNFinance highlighted its commitment to ensuring a smooth transition between auditors. The company will collaborate closely with both KPMG and HTL to guarantee that the ongoing auditing processes proceed without interruption. The audit committee expressed sincere gratitude to KPMG for the high-quality services provided over the years, demonstrating a positive relationship that will aid in the transition.

About CNFinance Holdings Limited

CNFinance operates by connecting borrowers, particularly micro and small enterprise owners, with financial institutions such as trust companies and commercial banks. The company utilizes a trust lending model and emphasizes effective loan management procedures aimed at mitigating risks. By changing auditors, CNFinance aims to enhance its operational frameworks while maintaining strong oversight of its financial reporting processes.

Conclusion

The change in auditor reflects CNFinance's ongoing commitment to rigorous financial oversight and adaptability in a competitive market. As the company transitions to HTL International, stakeholders can anticipate a dedication to continuity and quality in auditing, thereby reinforcing confidence in CNFinance's financial health and operations.