Shunfeng loses Deloitte as auditor amid going concern uncertainty
Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.
Chinese firm Shunfeng International Clean Energy Ltd (HKG:1165), or SFCE, appointed a new auditor last week after Deloitte Touche Tohmatsu resigned.
The reason given by the accounting giant for its decision to leave SFCE after nine years is the “professional risk associated with the multiple uncertainties [which] exist relating to [the] going concern of the Group and the level of audit fees.”
In a bourse filing on Thursday, Shunfeng said there were no disagreements or unresolved matters between Deloitte and the company. According to its board and audit committee, there are no other matters related to the change of auditor that need to be brought to the shareholders’ attention.
BDO Ltd has been appointed as SFCE's auditor effective July 30. The change is not expected to have any significant impact on the timing of release of the company’s results for the first half, which usually takes place by the end of August.
Shunfeng reported a 2019 loss of CNY 1.88 billion (USD 269m/EUR 229m), widening from CNY 1.71 billion a year ago. It sold its solar products manufacturing business last year and also disposed of several power generation assets. The company is focusing on solar power generation in China and LED manufacturing.