Country Garden Holdings Changes Auditor

(Reuters) – Country Garden Holdings announced on Thursday that PwC has agreed to resign as its auditor, marking the latest instance of a Chinese company severing ties with the firm.

In an exchange filing, Country Garden stated that it has appointed Hong Kong-based Zhonghui Anda CPA as its new auditor, effective until the conclusion of its next annual general meeting.

PwC has faced scrutiny for its role in auditing China Evergrande (HK:3333) Group, which was accused of a $78 billion fraud, leading to an exodus of clients, cost cuts, and layoffs.

PwC, when approached by Reuters for comment regarding Country Garden, stated it couldn’t discuss client-related matters.

Over 50 Chinese companies, including major clients like Bank of China and various state-owned enterprises, have either ended their relationships with PwC or canceled plans to hire them.

Country Garden attributed the change in auditors to PwC’s inability to meet the timetable for publishing its audited 2023 financial statements, citing relevant recent matters concerning the company’s auditor and market information.

Once a leading developer by sales, Country Garden is currently undergoing an offshore debt restructuring after defaulting on its $11 billion offshore bonds last year. Its shares have been suspended from trading since April 2, pending the release of its 2023 full year and 2024 interim financial results.

The group emphasized its commitment to advancing the comprehensive restructuring and resuming trading of its shares, highlighting the urgency of completing the audit of its consolidated financial statements as soon as possible.