Fangdd Network Group Ltd. (NASDAQ:DUO) (“FangDD” or the “Company”) announced on August 1, 2022 the dismissal of KPMG Huazhen LLP (“KPMG”) and the engagement of Audit Alliance LLP ( “Audit Alliance”) as the Company’s independent registered public accounting firm to audit and report on the consolidated financial statements of the Company for the year ending December 31, 2022 (the “Initial Announcement”). Following the Initial Announcement, the Company would like to clarify the following:
- KPMG has advised the Company that July 25, 2022 was the date on which its client-auditor relationship with FangDD ended, based on the Company’s communications with KPMG.
- The audit reports of KPMG on the consolidated financial statements of the Company as of and for the years ended December 31, 2021 and 2020 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles, except that KPMG’s report on the consolidated financial statements of the Company as of and for the year ended December 31, 2021, contained a separate paragraph stating that “The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2(b) to the consolidated financial statements, the Company has suffered recurring losses from operations and a significant decline in revenue during the year ended December 31, 2021, that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2(b). The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.”
As previously reported in the Initial Announcement, the audit committee of the Company’s board of directors formally approved the change of auditors on July 29, 2022.
