On 17 March 2023, the China Ministry of Finance (MOF) made a public announcement about administrative penalties against Deloitte Hua Yong ("We" or the "Firm") and its audit branch in Beijing, and the relevant signing certified public accountants in relation to its inspection of 2015 to 2019 audits of former client, China Huarong Asset Management Co. Ltd and certain of its subsidiaries (referred to “China Huarong”). To be clear, there is no suggestion by the MOF that either Deloitte Hua Yong, its Beijing branch, or any of its people have done anything unethical.
We have cooperated fully with the MOF throughout its inspection. We respect and accept the MOF’s penalty decision. We regret that, in this matter, the MOF considers certain aspects of our work fell below the required auditing standards.
We have received no information from China Huarong that there is any intention to make any prior period restatement to the company’s historic consolidated financial statements. No changes to the relevant audit reports have been found to be necessary.
Deloitte Hua Yong is always committed to compliance with auditing standards and to the highest standards of audit quality. In serving our clients, capital markets and the public interest, audit quality is the cornerstone of our business.